Several posters commented on the high price at the local shops...one way to get around this is to form a club. Our local shops are happy to give at least 10 percent off retail to club members, creating a symbiotic relationship. They getmore business, modelers get stoked form hanging out with other builders who tell them of hte discount, which produces more sales. In a commercialized world, the store might even be the club sponsor, providing location for the meeting as well as a discount. With a regular clientele, the store has a base of people whose interests they know, makoing ordering easier.

I also try to buy locally when I can. After the 1st of Feb there will be on the new Hobbytown left in my area. The local "Mom and Pop" shop will close it's door after over 30 years. It's sad. The owners have become personnel friends and Harry was someone who built models. I spent a lot of money there, and a lot of time talking models.
Chuck

Howdy fellas,

I suppose I'm fortunate to live 5 minutes away from Colpar Hobbies here in Aurora, Co. (you see there adverts in FSM for example). Anyway, I try to make it a point to buy all of my kits from them, and I also order my Accurate Armour, Real Model type purchaces from them as well. My delimma is this though. They basically charge more than suggested retail for everything!!
So, rather than ramble on about it. I'll pose a question to the group.

How much mark-up is there in model kits?
10% -30% -50%?

Tread.

That's interesting Tread. Is that true both in their stores and online? I can't see how they can stay in business charging more than retail online and it hardly seems fair if they charge more in their retail store than they do online.

Howdy Tread!
I would say there is a 30 % markup on the average in LMP stores. I was surprised when you said that colpars sells there kits for above suggested retail price!
At my LMP store , the price is high, but its always a few cents under suggested retail.
But then again they have several 20 % off sales per year so that helps!
I hope maybe this answers your question.

Cheers,
Garry

According to one of the club memebers who vends at shows, approximately 40% of the retail (MSRP) is money to the hobby shop. In other words, the retailer has paid about $6 for a $10 kit. Of course, some of that goes to the cost of operating the business and higher volume dealers may get a better deal from the wholesaler.

If you LHS is charging OVER MSRP, you are being taken and need have no allegiance to them. We had a bookstore in town that had a decent hobby sectio but charged at least 10-20% over list. The only time I'd buy from them is at their big after Christmas sale when they had selected items at 70% off. While they were charging this, there were two FULL service hobby shops offering club discounts from retail within a half hour drive, and several smaller more specialized stores in the area. They have since folded, having not kept up with the needs of the computer based office, though they had a great used book section.

The problem with online buying is cost of shipping...I usually buy from squadron...So I save my list until i have $100 or more then buy for free shipping...My local hobby shop over prices armor and Planes by $10 or so...I cant justify the cost, just to keep them open for models//However I do buy my paint and supplies locally...I and I love visiting just to look as well....

I also agree with you. I am always looking online for models because where I live, the closest hobby shop is 2 hours away. By the time I buy gas, the kit, and get back home, I could've buy the kit online and saved money.....

I would love it if a good hobby shop would come to my neck of the woods.....


(++)

If may go off a little pedantic, since this is my area of specialization (economics), it has to do with the different demand elasticities of people who shop online versus the people who walk into the store. If you go online to find this store specifically, you may be either checking out their stock or trying to find a good price on something. On the internet you always just a click away from something else. If you just browse by in person, you have little recourse in going next door and finding the same thing for a better price. So it isn't a matter of fair as much a matter of choosing the right balance between per-unit revenue and sales frequency; generally speaking different types of customers get different prices as long as you can tell them apart.

To wit, my local hobby shop prices above suggested retail on everything. I can easily save over 25% by going online before shipping costs. Since tons of kits are expensive relative to the shipping cost, I can't justify ever buying at the LHS. Every time I do I regret it as an impatient waste of money. My solution: buy a ton of kits as a backlog so I always have something to work on and just go the LHS for browsing and small supplies.

Sorry if that sounded too academic. I can't help myself when econ comes into play.

Stephen

PS Has there ever been a hobby that's benefitted more from international trade than modelmaking? I.e. Revell of Germany, PST, Tamiya, Hasegawa, Trumpeter, etc. Fantastic models, some at fantastic prices. Best of all worlds.

I guess I "blessed" with the LHS's around here. None of the stores sell above MSRP and all give some club discounts. Given the economies cited above, it's really amazing these people can stay in business.

Well AJ... PS at STS and crew tried for about 6 MO to get me that HF M29 and kept coming up NG. Maybe he's had BL with other 'specials', but I got TOW. He kept telling me that there was "no such animal" (NTBC with DW, BTW), even tho I had POP to show him. I went directly to MPK in TWN and had it/them within a week or so.

OTT, he is an ELHS.

#:-)

Hi Halfyank. I feel the same way as you do. Sometimes it's convenient to get something at the doorstep, and sometimes it's great fun to compare, see and touch all the different models in the shop!
For me it's fifty-fifty, so everybody can be happy; the internetshop, and the hobby-shop...

Best regards, John.

I'll add my name to the list of the fortunate ones with LHS. With a few big name stores and a few mom and pop stores also, I have found little need to use the internet to get models. To me, it feels better to know exactly what you are buying, which is sometimes hard to judge from the pictures (or lack thereof) on some sites. That said, the only times I would buy online is if the bargain outweighs shipping or I need aftermarket stuff. Just my two cents.
Kyle

I guess I am lucky in the respect that if I need anything, my Hobby shop will order it for me at retail with no shipping...

Well...having read some of the posts here...it is becoming apparent that alot of the LHS are charging more than list price for their kits and supplies. I know the only LHS here charges the MSRP for his stuff....but he won't order anything in...and rarely changes his stock.
AS a member of the local club here...I have heard the gripes of fellow modelers about how slack his shop is. I listened long enough, I decided to do something about it...and as in a previous post I put on this thread I am starting a hobby shop of my own...I have about 15yrs of retail and grocery background, as well as the backing of the members in the club....as well as trying to know what people want...and basically it boils down to customer service. You provide what the customer wants...or can get what the customer wants within a reasonable time....and the customers will come....kind of like if you build it...they will come.

Now having access costs on products from suppliers like VLS, Borgfeldt Canada(Tamiya), and Hobbycraft Canada...I see what the costs on this stuff would be...and even looking at the MSRP that these suppliers offer, the LHS are making anywhere from 20-40% savings...infact VLS sends their catalogues with MSRP prices...and the dealer program offers 40% off the MSRP as the cost price....so for LHS to price them over MSRP is just a case of being greedy. I would think that the 40% would offer a wide margin...and would also allow a LHS operator to allow local club members a discount...as well as being able to offer sales on older items....and still make a profit.
The only way I can see a shop that provides the customer service people deserve, is in foolish aqcuisitions for stock that people won't buy....for example...I see that Trumpeter is going to release the 1/35 Hind in about a month....Canadian MSRPs on it...are in the $135 range....I would bring one of these in to have it on the shelf....I know someone will buy it...
Something else I plan to offer is a weekly...possible only a bi weekly or monthly newsletter via e-mail to those customers that want to give me their e-mail address...as well as e-mail notification of the arrival of special orders with a breakdown of the price of the order with the tax and everything...just a few of the ideas I have to provide excellent customer service.

Let me be the first to wish you the best of luck in your endeavour!

My local Hobby Shoop wll order ANYTHING that I want.(plus she gives me a discount!). I also try to visit hobby shops when I travel. Nothing beats the personal touch of a small hobby shop.
Plus I always run into fellow modelers, the conversatios are worth the trip.

Like AJ said, Good Luck, Scott! I know your club friends will appreciate it.

I'm kind of old-fashioned. I have never ordered anything on the net (though I have done quite a few trades on this and other forums). I kind of like to hold a model in my hands before I buy it. I especially like to thumb through a reference book before I buy it.

We're lucky here in the Kansas City area to have several hobby shops, as well as several HobbyTown USA franchises and Hobby Lobby stores. I also run with three local model clubs, and members are good about sharing sale news and telling who has what kits at the best prices. Some of the shops sell for MSRP, some for a bit under, some over ... a few shops are trying real hard to carry aftermarket stuff that we have told them we will buy (PE, gun barrels, track sets, reference books, etc.).

I probably buy 90 percent of my models and supplies from local shops, even if I think I could save a few dollars online. I also like to support vendors at shows, because vendor tables are really what pays for the show. If they don't sell, they don't come back, we don't sell a table, eventually the show dies ... hopefully, this never happens.

Howdy fellas,

First...allow me to wish you the very best of luck with your endeavor Viper! And if you weren't so far away I'd stop by and share a cup of 'joe', and purchase a model or two!

Secondly, maybe I'm being too hard on my local hobby shop, so I'll give you a quick example, and you guys tell me.
Their 'new' Tamiya T-55, on the shelf is $49.95, their new ODS versions of both the M113 and the M2A2 are $37.95, and just recently I spent in one day almost $950.00 for kits they had on sale!
To their defense they do offer a 10% discount to IPMS members, but since I choose not to be a member of that organization I do not get the discount. Truthfully, I shop there for some small thing almost everyother day. If I was to add it all up, it would easily be a couple of thousand dollars.....

What do you guys think?

Tread.

I think you have way too much extra money -- Keep your wife off your backside by sending all you extra money to me. Send me a PM and I'll give you my address ...

LOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOOL................................... #:-) #:-) #:-)


Thx for the chuckle Hollowpoint!

Tread.

Tell ya what...I'll run it by my wife and let ya know......O.K.,?

Just trying to help, Bro.

Update for Hollowpoint:

I was going to "run it by the wife", but then I realized I'd have to tell her what I really spend on model kits and such..........sooooo, I decided in the interest's of staying married to such a fine woman to simply keep my Bocha shut!!

...sorry Hollowpoint, guess I'll just have to hang on to all that extra cash

Tread.

Just to let you in on a little insight as to costs(maybe I shouldn't do this....might shoot me in the foot at VLS....lol) but in the price book that VLS sent me, the MSRP for those kits are as follows: These are all US prices BTW.
Tamiya T-55: $50, dealer cost $30
ODS M113: $33, dealer cost $19.80
ODS M2A2 Bradley: $47, dealer cost $28.20

So basically the T-55 is about right....but they are over charging you on the M113....but actually giving you a pretty good break on the Bradley. If a dealer was smart...he would be buying the discontinued M2A2, of which alot of suppliers still have some stock of, and buy the new Modern US Military Equipment...and offer it as a package for slightly more than the new ODS Bradley is going for...as the cost on the old M2A2 is $19.80, and the cost on the Equipment set is $5.85, which only comes out to a cost of $25.65 as opposed to $28.20 for the ODS Bradley, and is the same thing...although I don't know how many sprues make up the new equipment in the ODS Bradley...I know the Equipment set is 2 identical sprues....if this is the same as the sprues in the ODS Bradley...then its cheaper to buy the old M2A2 Bradley, and the new equipment set...and you have the same kit for approx. $3 cheaper....and dealers could offer it for probably up to $5 more retail than just the ODS Bradley alone....good money maker there. Some people would frown on this practise....but thats the way business is done.




Treadhead....if you came into my shop and laid down that kind of cash....you would not only be getting a discount, but you would be getting help carrying it to your car...despite whether you a member of the local club or not. Like the old saying goes...money talks and BS walks....those are the types of deals that will either make a customer for life for you...or alienate the customer for life....preferably I would rather take a 10% hit on my bottom line if I know that customer is going to keep coming back over and over again, and anyone that doesn't see that or understand the business aspect behind that needs to wake up and smell the coffee...or clean their glasses or something, because thats the price of doing business!!