Has anyone else made this observation

Sadly, with the pricing and availability of kits globally online, the LHS is going by the wayside. There are still a few around by me, but I seethem gradually moving towards wherethe money is for them: RC cars and planes. In today's world, you either have to bethe cheapest or the best (rarely do you see both). It's not worth it for the LHS to be the cheapest (they have to pay the bills, too) and there is not enough demand in the smaller towns and cities to sufficiently stock a store to be the best (resin, PE, paints other than Testors / Model Master / Tamiya), hard to find brands, etc.

I've come to accept the current situation and now do what I can to support the online shops that provide the best overall value with consistency.

mucker wrote:

Sadly, with the pricing and availability of kits globally online, the LHS is going by the wayside. There are still a few around by me, but I seethem gradually moving towards wherethe money is for them: RC cars and planes. In today's world, you either have to bethe cheapest or the best (rarely do you see both). It's not worth it for the LHS to be the cheapest (they have to pay the bills, too) and there is not enough demand in the smaller towns and cities to sufficiently stock a store to be the best (resin, PE, paints other than Testors / Model Master / Tamiya), hard to find brands, etc. I've come to accept the current situation and now do what I can to support the online shops that provide the best overall value with consistency.

I too have come to accept the trend and do most of my kit purchases online. However I am able to get my paints and supplies local

Real estate is another issue, many hobby shops lease their building. Since real estate has really gone up over the last 10 years many land lords have been jacking up the rent. I know 3 of the LHS' where I used to live had this happen. All had been in their location for decades and suddenly got hit with huge increases, some as much as double. Two were run by older people who chose to close their shops and retire rather than deal with a move, the third is moving. All 3 were good shops, with a good selection of models / supplies and also were diversified into trains, games, R/C etc so buisness wasn't really hurting.

I know an LHS can survive and even thrive because I have run across a few that are, but with the internet and other pressures the need for the owners to have good buisness sense and embrace new hobbies and technology as they arrive is even more important than before. Unfortunately some of those great shops that have been around 30-40 years are trying to do buisness as they always have and are not making the transistion well.    

When I go to my LHS, which is for railroad stuff, I usually spend about an hour chewing the fat w/ the other old timers and little money changes hands. Kind of an expensive proposition for the Owner. Good times, like the forums, but not any way to run a business.

RC cars, lots of energetic young kids, smart and technically adept, reminds me of taking my box of slot cars to the Hobby Shop on Saturdays where there was a track in the back room.

I seems to me that web sites offer more variety of kits and specific parts/decals, etc.

I went to my local Hobbyland and noticed that prices were comperable to web stores, (considering price, tax and gas).

LHS's can't maintain stock and have to be generic in their selections of kits and when you can't find what you want, where do you go?

Along with the virtual catalongs and pics of items available, webstores are on top. Considering the cost of gas and the 'hit & miss' (hoping to find what you want); the cost of S/H aren't that far off in expenditures.

In my area most of the LHS are into R/C and only maintain a limited amount of kits and for me

Not here.  Not far from me there are 4 or 5 really nice shops within walking distance of eachother.   Bewteen them I get almost the full Eduard, Ultracast and Qucikboost lines and ALL the kits.  They will occasionally get into a little price war.  That's so cool.  If you pay cash they will usually round down... nudge, nudge, wink, wink, know what I mean  and then...sometimes... YAWN!.......

Hey...I dozed off... what were we talking about?  The LHS?  Yup thanks to the power that be...I still have 1.

The town I live in (North Dakota) had a Hobby Town that closed and moved to Fargo as the owner hoped for more business.  They went out of business about a year later.  Fortunately, a new Hobby Town opened in my town and I visit it often.  Unfortunately, they emphasize RC cars and airplanes.  Their model selection isn't very good, and they order too little paint and are often out of what I need.  Can't blame them as RC's are where the $ is around here.  Fargo has a Hobby Lobby that is ok, but they carry the same models all the time.

Sooo, Ebay and Internet is where I shop mostly.  When I was a kid, there were several Hobby Haven's around that I'd go too and browse for hours.  All gone now.

Hey NUT!  Where are they at?  I would make a trip up there just for them.  There's only 1 1/2 in the city here.  I was surprised not to see a vender with kits at the WWII weekend last year or even maybe a modeling contest of some sort.(hint, hint).  Maybe someone reading this might see to it.      Can't wait for this years!

                                                                                             Chris

Though times have been hard and many LHS have closed their doors, it is for mulitiply reasons. LHS owners cry about the impact of the internet has had on their sales. Some will tout that internet businesses don't have the 'overhead' which is totally untrue.

There are some 'out of the closet' internet retailers out there who collect orders all week, pool them, order the items from their distributors, get the stock and simply redistribute it to the customer thus filling the order. They stock very little, thus turn around time is longer and they offer a slightly lower price...they are mearly a jobber or 'kit broker' for a lack of a better term. Their impact is minimal.

Any business that has been successful or has failed basically boils down to decisions the owner of that business has choosen to make. A good business decision equals prosperity a bad one failure or a step down the road to that end.

Many LHS owners fail to remain viable for several reasons, reasons that we hope to reeducate them about at next years iHobby Expo. The HMA is working to develop materials for seminar(s) to help them revitalize their businesses. By the way...if you look at the economic figures LHS overall are holding their own. Abeit, some better than others...again it is based on making the right business decisions.

LHS have to regain their status as destinations for hobbyist. They need to have not only product selection, but solid customers service...not some old crankster behind the counter or some punk chatting on the phone or on the computer ignoring the customers. The clerks need to have a working knowledge of the various categories or know whom to source to get the answers the customers are asking.

In many stores, you can tell who has a working knowledge of what categories by the sales of any given day. Plastic sales will do well when the clerk has a passion/knowledge for the category, and on another evening when the RC guy is there his category will do well. Finding a balance of information is crucial to evening the sales statistics. Training! You walk in, ask a simple question and you are met with an 'I dunno' you're likely not to return. A customer lost because of attitude and lack of training.

Location location location...is important, but if you don't have products, service and knowledge you won't draw customers. Price. Well modelers are notoriously cheap...but they will pay to get what they need and want. Look at the prices paid for stuff on eBay!

More LHS are jumping into the frey of the internet and internet sales. They have to to survive. I've had discussions and in the coming months training materials will be developed, articles penned and conversations initiated that the internet is/could be another 'branch location' of an existing brick and motar operation. As a LHS you have to approach it in just that way...another store with staff and yes...overhead!

Today, the younger generations, and it is trickling up into the older generations as well, one doesn't look at the Yellow Pages to find a source...they go online! Having an internet presence (properly done) opens the LHS to a greater geographical footprint than a simple Yellow Pages add...and comparible in costs. 

Don't rule that the death of the LHS is imminate, infact I believe you will see a resurgance of LHS presence in the market. Why, without them where will the manufacturers turn to sell their products and service their customers. Many companies have opted to eliminate their 'distribution level' to increase profit...but if you strictly believe that direct sales to the end user is the creme de la creme your drastically wrong depending on the product line.

Some of us remember (and in some locations there still are) separate stores for...meat...bakery...dry goods...dairy...now we visit and purchase it all under one roof...grocery store. Tailor...cobbler...appliances...toys...greeting cards...pet supplies...we call this a department store.

My appologies for the long winded speach...but if we take on the mindset that the world is ending...it will. We open ourselves up to stupid people promoting stupid idealologies...remember any?   

The owner of my local place, HiWay Hobby in Ramsey, NJ (which has been there since 1953), has been threatening to retire lately. His son, the store manager, emails me once every couple of months with a panic attack saying "this is it!!," then nothing happens.

It'd be a major heartache to lose HHH. Been shopping there all my life, even back when I had to ride my bike 8 miles to get there.

As for stock, the manager says he just can't afford to stock most kits at today's prices. He might get one or two of a ruinously expensive Tamiya kit and hope to sell them both, but gone are the days of buying them in case lots. He can't afford to have a dozen $50 kits sitting on shelves for months or years on end. Consequently the airplane section is down from both sides of a whole 50-foot aisle with a dozen of each kit, to maybe 20 feet of shelf with only two to six of each kit and empty space behind them.

^^^^^

Bummer story, but your photo is awesome.

 Been there, really really want to go through with it.

But, will I ever be able to get the kit again???

sf_plane_nut wrote:

i was waiting for this...one of my LHS will order anything you want from any of their distributors an you can grab it for about retail...no shipping no wait except for another trip to the shop[which i will take over a online shopping spree any day] all you have to do is ask...

Your LHS is a full service shop...that's what they are supposed to do. Meet the needs (when possible) of their customers. Without customers there is no need for the store... 

bondoman wrote:

When I go to my LHS, which is for railroad stuff, I usually spend about an hour chewing the fat w/ the other old timers and little money changes hands. Kind of an expensive proposition for the Owner. Good times, like the forums, but not any way to run a business. RC cars, lots of energetic young kids, smart and technically adept, reminds me of taking my box of slot cars to the Hobby Shop on Saturdays where there was a track in the back room.

There are four main LHS's in my home city of a approx. million people. None have shut up shop, but one of them, Hobby Habit, opened a second store about 2 or so years ago. IT'S, HUGE. 'Round 'bout three or four times the size of your average hobby shop. The shop front looks brand spankin' new (it basically still is, but the point I'm trying to get across is that they've gone out of their way to promote themselves), and the sides of the entrance hall (that's right, a hall, not just a door) is filled with showcase display cabinets of diecast models.

Although the shop specializes in RC and has two big tracks out the back in the warehouse area as well as four scalextric tracks, about 60-70% of the shop area is taken up by plastic kits and painting and weathering accessories. In all four shops, three of which specialize in RC, I still see a lot of people browsing the plastic kit area. I don't think these shops are going anywhere anytime soon.

viper_mp wrote:

We have two here in Des moines, IA.  And another in ames [30 min north].  We just lost all our Hobby Towns [one here one in ames].  But the LHS are doing good.  Not much competition, because they seem to stock different stuff when it comes to models.

Curious, why did the Hobby Towns close. In the Charlotte NC area there have been three open in the last two, all with a heavy leaning toward RC and such

mucker wrote:

Sadly, with the pricing and availability of kits globally online, the LHS is going by the wayside. There are still a few around by me, but I seethem gradually moving towards wherethe money is for them: RC cars and planes. In today's world, you either have to bethe cheapest or the best (rarely do you see both). It's not worth it for the LHS to be the cheapest (they have to pay the bills, too) and there is not enough demand in the smaller towns and cities to sufficiently stock a store to be the best (resin, PE, paints other than Testors / Model Master / Tamiya), hard to find brands, etc. I've come to accept the current situation and now do what I can to support the online shops that provide the best overall value with consistency.

While I do love Internet shops they just lack that feeling of being able to go into a shop, pick up the kit, look at it, etc. Thankfully the one LHS still around here carries an excellant range of paint and other supplies. Alas I fear that eventually the internet will prevail

I live in Freeport, IL, a town of about 25,000, and your description fits my local LHS to a T. I even had the guy take an order of mine and just decide not to order the kits because he would have had to deal with four different distributors to get them. Worse, he didn't call me and tell me that, so I showed up looking for the kits about two hours before I had 11 Cub scouts scheduled to do a make and take. Needless to say, I only buy stuff there now that is made cost-prohibitive by shipping.

That said, the hobby shop in Monroe, WI (20 minutes north) and the Hobbytown USA in Rockford (45 minutes east) are well-stocked, with knowledgable and helpful staff. As much as I love Squadron, I may be taking some road trips in the future, because they deserve whatever support I can give, and my son thinks the Hobbytown is Heaven on Earth.

Where I live, Katy Texas, the only "shop" is the Hobby Lobby.  I've used their coupons whenever I wanted something they have, but that's the big problem - they typically only stock the same group of Tamiya, Revell, and Accurate Miniatures kits, and I already have those kits in my stash. 

But Katy is a 'burb of Houston, a city of millions, and there are several shops around the area.  Problem is that Houston is probably the largest (geographically-speaking) city in the nation.  To get to Larry's Hobbies up on I-45N is an hour drive.  To get to a shop on I-45S near Clear Lake, I forget the name, is also an hour drive.  There is another shop somewhere in mid-town but I've yet to make it out that way.

The I&I shop in Bellaire (Houston suburb) is the biggest I've seen in the area and they do carry a large selection of kits, some resin and other after-market stuff, but lots of trains and RC.  Again, a pretty long drive through lots of heinous traffic.

RC's Hobby Shop in Sugar Land (again, suburb) is right across the street from my office, and I frequent it often.  Their selection of plastics is very limited (I've never bought a kit from them).  They do stock the MM Acrylics that I like but no Tamiya acrylics.  I've also bought a lot of scratch-building materials from them.

These days I typically get all of my kits on-line from Squadron, Lucky Model, Great Models, Roll Models, and Tower.

Model builders in my area have been blessed for many years to have a dedicated hobby shop.  Although it has changed hands it still offers a local outlet.  Funny, however, even with a club discount, many still do mail order etc.  I always go to the shop first as the owner can oder most everything I need.

We do have to support the shops in any way we can.  I fear the thought of "mail order only."

didfaI wrote:

I seems to me that web sites offer more variety of kits and specific parts/decals, etc. I went to my local Hobbyland and noticed that prices were comperable to web stores, (considering price, tax and gas). LHS's can't maintain stock and have to be generic in their selections of kits and when you can't find what you want, where do you go?

Try asking them to order stuff for you. A lot of times they can get anything you want, they just don't carry it in stock becaause they have to go with demand. My LHS (which I have mixed feelings about, see my earlier post)  carries almost no planes, just cars and model RR stuff, but he's ordered planes and single bottles of paint for me. I called the shop in Monroe (20 minutes north) and asked if he carried Tamiya Silver Leaf spray, and he said "No, but if you want it I can have it here in a couple of days." No hesitation.

That's a way we can have it both ways: Local service and no S&H. And if they can't order it, hang up the phone and call Squadron.

Used to work for a really large LHS during the 1970's and they're still there and still doing good. I have access to another LHS here on the Space Coast which will order stuff. Just give em the catalog number and they'll get it for you with a phone call when it comes in. They have even gone so far as to provide coffee, donuts, and a place for the local IPMS members to build, do demos, etc. On the other side of the counter however, I have noticed more and more of an undesirable habit from some customers: 1. Rush into LHS and demand they order the latest, greatest, most up-to-datest Eduardogawamiya kit. 2. After the LHS gets customers name, phone number, etc. customer rushes across town (or to the internet) and buys the same model, sometimes for more money. 3. Customer doesn't do shop nr. 1 the courtesy of calling to cancel his order. 4. When customer's order comes in and calls customer he says "sorry I bought it somewhere else and don't want the one you have". 5. Then he says oh just send it back to the distributor.  You people who have done that know who you are. And by the way, once a retail business purchases merchandise it's THEIRS forever and ever. No problem if its a popular item. If its not likely to ever sell they are stuck with it. Sorry just had to vent.....Support your LHS as much as possible. If they're good they'll appreciate it.   Rick Martin

To show how times have changed, I was in one of my LHSs at lunch time and a customer came in wanting to order a few of the Fine Molds Star Wars Kits which amounted to a sizable order which included two Millennium Falcons .  One of the guys who works there duly took the order and straight after the customer walked out the door he jumped on the shops PC, called up the Hobby Link Japan website and placed the order which of course will be supplied to the customer with the appropriate mark-up of 20%.

This is why I order all my kits directly from the web these days.  I'm not paying a premium for the privilege of having someone press the buttons for me.

As to floor stock, well I'm afraid it is so far overpriced what I can get over the web it's just not worth it.

Cheers

darson wrote:

To show how times have changed, I was in one of my LHSs at lunch time and a customer came in wanting to order a few of the Fine Molds Star Wars Kits which amounted to a sizable order which included two Millennium Falcons .  One of the guys who works there duly took the order and straight after the customer walked out the door he jumped on the shops PC, called up the Hobby Link Japan website and placed the order which of course will be supplied to the customer with the appropriate mark-up of 20%. This is why I order all my kits directly from the web these days.  I'm not paying a premium for the privilege of having someone press the buttons for me. As to floor stock, well I'm afraid it is so far overpriced what I can get over the web it's just not worth it. Cheers

Thats kinda sad. The LHS here has lower prices than the web. I cant find the new Tamiya 1/48 Storch on the web anywhere for less than the $40.00 with tax my LHS charged me. I know he did not make much on the kit but I buy everything from him so he does OK.