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I will soon be opening a model railroad retail store, and am asking for feedback as to what would be the best stuff to carry to better serve the needs of as many model railroaders as possible. I welcome any/all feedback from anyone. Also, I am thinking of starting a club, and donating the meeting space behind my store. Is a low-cost dues or dues free club really going to draw out the model railroaders in my area? I hope to hear from you soon!
Posts: 1 | From: - | Registered: Dec 2001
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I'm a HO guy and do catalog-mail order business in 5 states. Most of us do business with trainworld at 25% plus off MSP. Can you compete? and what ever profit is left you have to plow back into replacement inventory and then, what do you do with it if you can't sell it? We have an all HO one person operation with a 1200 sq foor store and he is hemorrhaging.
Posts: 213 | From: Grand Rapids Mi USA | Registered: Apr 2001
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I don't think you will be able to compete with mail-order and internet-order business in terms of price. You need to attract customers in other ways.
Here are two aspects that I see as important:
First, be sure to carry an inventory of unusual and small parts. Many modelers order large quantities of items from mail-order, but go to the hobby shop for small parts, and things that they would like to see and touch.
Second: Have knowledgeable and friendly employees. I go to hobby shops often when I have questions about items or to get ideas. One shop near my home has a very friendly and knowledgeable owner. It is always an enjoyable experience when he is there, but he also has some very poor employees. They are minimum wage workers who know little and care little about model railroads. With these kinds of employees, serious railroaders may not come back.
Good luck with you new venture.
------------------ Elias Valley Railroad (N-scale) www.geocities.com/evrr
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You should have explored all these questions long before you decided to open a model railroad shop. It is true that most modelers trade at the shop that has the widest selection of small parts and ancillary items such as tools and paints, but you can't make a living off those items - they should be the magnets to draw custormers into the store to make big purchases. I have thought about doing the same thing as there is not a hobby shop within 100 miles of me that has anything I would buy. But, there is a reason for that - there aren't enough hobbyists to support one! Figure it this way: one person in a thousand is a model railroader. If you charge MSRP you'll get 40 percent of the gross, or which 10 percent at least will go to overhead. If the average model railroader spends 800 dollars a year, you'll net $240. per customer. If you hope to net $48K you'll need 200 regular customers. If people will drive 25 miles to a hobby shop, you'd better have at least 200,000 people living within 25 miles of your hobby shop. Of course, model railroading is a hobby more popular among the better educated and more affluent, so the education and disposable income of those people within 25 miles of your store will make a difference in your sales as well. I wish you the best of luck, 'cause you're sure going to need it!
[This message has been edited by thirdrail (edited 12-22-2001).]
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Congrat Earl and good luck!! You know I find that shopping the Internet I maybe save a couple of bucks from my standard brick and mortar haunts. But, the big difference is no taxes with the Internet. That can boost my savings significantly! So, you'll have to compete with this. There is still nothing like visiting a store with an operating layout, lots of inventory and knowledgeable people to scurry away the time with. That, the Internet will never do!!
Posts: 2 | Registered: Dec 2001
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