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Old 04-15-2008, 08:52 AM
  #1  
m_saraga
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Default Hobby Shop Setup

I am considering seriously setting up a hobby shop, and though I have lots of ideas, I still don''t know what could be the ideal size, or initial investment. If anyone out there can give me an idea about that, or anything related for that matter, I would greatly appreciate it.

Thanks

Matt Saraga
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Old 04-15-2008, 09:23 AM
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JustErik
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Default RE: Hobby Shop Setup

Good luck! They say the best way to make a small fortune with a hobby shop is to start with a large one.
Old 04-15-2008, 11:55 AM
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mscic-RCU
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Default RE: Hobby Shop Setup

Our LHS is having a difficult year. We have lost a lot of factory jobs and I think he is taking it on the chin. That being said, all of the local clubs support him because he supports all of the local clubs. His prices are comparable with the internet pricing and he offers outstanding customer service. I think the key to any small business nowadays is providing the customer service you can not get from a computer screen. He is always available to help with problems and questions. He also sponsors as many club events as possible. Good luck!
Old 04-15-2008, 12:41 PM
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Edwin
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Default RE: Hobby Shop Setup

I was talking to one of the shops last week about this. He says you have to carry what moves. The bulk of their business is cars and heli''s. Airplanes are just a drop in the bucket. A new shop opened recently by some people that dont know the hobby. It became clear that support flowed only one way. I asked if he wanted to donate a few items for door prizes for the registered pilots at our warbird event in return he could hang a store banner, he flat out said no. He had already donated a used trainer and that was it for the year. Since a club officer had already commited to letting him fly his banner, I relented. He said I was holding his shop hostage. That made me mad. I wont be buying from him in the future.
Edwin
Old 04-15-2008, 01:00 PM
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gboulton
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Default RE: Hobby Shop Setup

The following is opinion only, and that of a customer who AVIDLY (to the tune of 20% sometimes) supports a particular LHS:

BECOME
THE
HANGOUT

Whatever space, arrangements, stock, POS system, brand names, prices, etc you choose, do yourself one very very large favor. Become THE place for local RC''ers to hang out when they''re not out flying/racing/whatever.

Our LHS has done this in several ways. Perhaps some of these will serve as ideas for you:

1) They have an area toward the back of the store...about 15'' x 15''...in which we fly micro-helis, and hover some of the "larger" 400-sized electric heli''s. It''s a GREAT practice area for newbies, help and advice are close at hand, and there''s NOTHING that''ll sell a heli quicker than the customer watching guys have fun with them.

2) Part of the "work area", where they repair/build/service customer aircraft/cars is usable by customers...that is to say, we have some table space, controlled access to the shop''s tools, etc. This makes quick repairs (or even complete rebuilds after a crash) SO much nicer, since all the parts we wind up needing are close at hand.

3) They have 3 different flight simulators up and running at all times, free to use. This is a great way for us "regulars" to kill some time and get some hangar flying done, and it lets the shop owners introduce potential new pilots to some of the basics of RC flight, and get them excited about the possibilities.

4) There''s a consignment table. You never know WHAT might show up there, or what kind of price you might be able to arrange. It''s like a never-ending swap meet.

5) They display various locally built models, if they''re unique. This let''s those of us who build show off our work a little, gives new customers an opportunity to see what''s being done in the area, and can really be quite the conversation starter.

The basic thing here is this...anyone who''s tried to start a business knows that customers are THE best advertising...or the worst, depending. You can run all the sales in the world, have an outstanding marketing strategy, and carry the best product...if your customers don''t talk you up, or talk badly about you, you''re doomed.

On the other hand, if they speak highly of you, you may not need to spend a single cent on advertising.

When a customer comes into our LHS, chances are VERY VERY good that SOMEBODY who flies/races/drives locally will be hanging around. That lets the customer A) Hear honest opinions about products without any ''sales pressure" B) Probably SEE the product 9or something similar) IN ACTION, and C) it gives him/her a feeling that the shop MUST be good, or the locals wouldn''t hang out there.
Old 04-15-2008, 01:13 PM
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pumbadog
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Default RE: Hobby Shop Setup

One bit of caution about the fast sellers. Have you noticed that the car stuff at some LHS are kept behind the counter? I had a LHS owner north of me that flat out told me that he''ll order any car part that anyone wants to wait on but he wont stock them because they''re hot items for theft.

Other than that, the succesful hobby shops I''ve been in have either been around for years or have a small floor area and are stuffed with product. I''m talking rat maze of boxes or store shelves.

My 2 cents.
Old 04-15-2008, 01:30 PM
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Default RE: Hobby Shop Setup

I completely agree with gboulton. We have two Hobbytown USA stores in our area, both owned/operated by the same couple. While we don''t have the building/table space in our store(s), it is a great place to "hangout" and swap stories/opinions. They also have a G4 simulator up and running (which even the sales team spend a lot of time on). I probably spend half of my modeling budget at my LHS and because I only live two miles away, I spend more time there than I should.
Old 04-15-2008, 02:20 PM
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Default RE: Hobby Shop Setup

As for the how much to spend, your going to want at least a couple hundred thousand available. Yes, I am serious. This is coming from several different shop owners I''ve spoken to. You''ll want to buy or build your own building. The overhead from a lease will quickly kill a small business. Then there is start-up stock. I believe Horizon or one of the big name suppliers requires 50K investment in stock to carry thier products. And you will want as much stuff in stock as you can have, nothing will lose you a sale quicker than saying "I can order it for you." as they can order it themselves, and likely get it quicker. And as others have mentioned, service, service, and did I mention, SERVICE?! If you get 20 customers and 19 of them are satisfied, those 19 will mention you if someone asks, but won''t likely do much else. The one who wasn''t happy however will go out of thier way to tell people about it. Stinks, but it''s true.
Hopefully your venture goes well, just make sure to research it well before you spend any money. Good luck.
Old 04-15-2008, 02:42 PM
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Dig it
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Default RE: Hobby Shop Setup

Horizon requires a 10K initial purchase and a 500/month minimum after that.

Dale
Old 04-15-2008, 05:07 PM
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jbflier
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Default RE: Hobby Shop Setup

Been there, done that......best advise is don''t. Save the money and buy a 35-40% whatever..............[8D]
Old 04-18-2008, 07:45 PM
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Adam G
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Default RE: Hobby Shop Setup

Our LHS does very well. They are friendly and stock everything you could ever want. I don't think I would start a new shop right now with the economy waivering a bit. I know my LHS is bracing for a slower than normal summer.
Old 04-18-2008, 08:43 PM
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stang
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Default RE: Hobby Shop Setup

Buy a big dog. Let it sleep in the shop. It discourages those "after-hours" shoppers!
Old 04-19-2008, 07:43 AM
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Default RE: Hobby Shop Setup

I always thought the ideal setup would be to buy a big enough building that you could have a good size shop in front and your house in back. No need for an alarm system, after you close for the night just open the door between the shop and living area and let the canines roam. Just make sure you don't have chewers or that they can't get at the stock.
Old 04-19-2008, 09:37 AM
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049flyer
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Default RE: Hobby Shop Setup

You better like working for FREE.

Old 04-19-2008, 09:52 AM
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Edwin
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Default RE: Hobby Shop Setup

The best arrangement I ever saw was a flying field within 1/2 mile.
Edwin
Old 04-21-2008, 03:26 AM
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Default RE: Hobby Shop Setup

The quickest way to kill a LHS is to not have items in stock. If I hear a LHS say they do not have basic items in stock then that is a black mark. Also if by chance I order something through your LHS. MAKE SURE YOU FOLLOW IT UP!!!!! I have lost count of the number of times I have had a shop order me something. After a week of frustration in reminding them that I want them to order me something I will give up and order online.
Also have a large amount of items on display. I have often gone to my LHS and just bought something on impulse cos I saw it on display.
Old 04-21-2008, 08:11 AM
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Pete328
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Default RE: Hobby Shop Setup

"It became clear that support flowed only one way. I asked if he wanted to donate a few items for door prizes for the registered pilots at our warbird event in return he could hang a store banner, he flat out said no. He had already donated a used trainer and that was it for the year. Since a club officer had already commited to letting him fly his banner, I relented. He said I was holding his shop hostage. That made me mad. I wont be buying from him in the future."
Edwin

In my opinion: The reason that this shop owner said this is because in my experience talking to people of all the facets of hobbying airplane guys are the cheapest bunch of people of them all. I am an avid airplane guy and when I crash a model I gut the engine and electronics and buy a new airframe!!!!! Forget taking the time to fix it. I know people that will make a cowl out of a coke bottle before they will buy the one that came with their model. Now I know airplanes for the most part are more expensive that other hobbies, but come on either your in the hobby or your not. That is what Visa is for!!!!!! Just my opinion.
Old 04-21-2008, 11:09 AM
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Edwin
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Default RE: Hobby Shop Setup

That was true at one time. But out of hundreds of rc plane guys I know and see, maybe 10 or 20 will go that route. Mostly because they like to experiment. If a hobby shop wants to advertise at our events, it helps to support the event. We're not looking for a bunch of stuff. We try to spread it out so one shop doesnt donate a couple of hundred bucks. I know that would be hard. We buy the raffle prizes at a discount from the shops, they still make 10% and it helps us a lot. The door prizes help bring in the pilots, along with free pizza friday night. The more pilots, the more spectators. The spectators is where we make our money, at the concessions. Concessions along with pilots fees help bring in the funds to improve the flying site. The local shops and the owner of power master fuels is in our club. They both support us regularly which helps a lot. It isnt fair to let a shop that does nothing to show the banner next to the ones that support us.
Edwin
Old 04-21-2008, 11:58 AM
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Pete328
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Default RE: Hobby Shop Setup

Im not saying to let them put up a banner, but you saying that you will not shop there is bad for the hobby as a whole. Ordering things online will only hurt the LHS and if everybody thought that way then we would not have any customer service. My LHS supports my club immensely, but if they did not I would still shop there because of the customer service that I have not gotten on internet sites in the past. I am not looking for a free handout from the LHS to help keep my club's field afloat that is the responsibility of myself and the club members. It was not too long ago that my club had to spend hundreds of thousands of dollars to relocate our field and it has only been two years and the field is paid off. Greatly due to the genorosity of the members and our fundraisers. Anyway my point is im not going to stop shopping at a LHS just because they wont donate items and or not want to be a part of our club activities.
Old 04-21-2008, 01:52 PM
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Edwin
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Default RE: Hobby Shop Setup

To each his own. I didnt say I was abandoning the other three hobby shops. Far from it, I buy from two regularly. I just wont support this new guy unless his attitude changes.
Edwin
Old 04-21-2008, 07:25 PM
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Live Wire
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Default RE: Hobby Shop Setup

w
Wonder what happened to the guy that was going to or thinking about starting a LHS
Old 04-22-2008, 07:48 AM
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m_saraga
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Default RE: Hobby Shop Setup

I am just paying attention to all the comments, however some have sidetracked, and trying to draw conclusions. So far, pretty much everybody has said it's not worth it, but somehow I can't believe that they all exist out of pure charity. I have received some pretty interesting PMs regarding the subject, and, as I stated, I am considering all the options one of my main concerns was the amount needed to be invested in inventory, but no one has commented on it.

Thanks
[8D]
Old 04-22-2008, 08:47 AM
  #23  
Live Wire
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Default RE: Hobby Shop Setup

m_saraga
You will find a lot of people that get side tracked and off topic
. But those that have been there and done that have learned a expensive lesson. You have to watch out for the people you think you can trust [:@] they will eather break you or steel you blind. You can not stock evey item made even if some peole think you should, but if you don't have an ITEM there is alway's the INTERNET and they don't seem to mind what the on line store don't stock because they can most of the time have it DROP Shipped from an inporter. You have to watch out for what you order because these Wholesalers are in busness to make money and you are just the man on the bottom of the list.
I had a LHS and and am glad in a way I'm out but do miss haveing parts at my finger tips and a stock of FIVE FINGER DISCOUNT merchandince. Yes I miss it but have more now than I had then. Money that is

One more thing , Just get on line and down load a dealers application form many whalesalers. These apps. will answer many of your questions and give some answers.
Larry
Old 04-22-2008, 09:47 AM
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Clay Walters
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Default RE: Hobby Shop Setup

ORIGINAL: Edwin

To each his own. I didnt say I was abandoning the other three hobby shops. Far from it, I buy from two regularly. I just wont support this new guy unless his attitude changes.
Edwin
Well, from where I sit its the new guy that has the right attitude. Why don't you just purchase what you'd like from him, full retail, and give it to the club? Or let the club buy it and have a raffle? Perhaps he'll pay you something to advertise on your club's website, in your newsletter, etc.?

I bet a lot of LHS's would appreciate having some supportive clubs too. Good reasons to quit trading there?...let the shop outfit a newbie at full retail but charge regulars or club members a less price because he knows they know better. Those are reasons to trade elsewhere, not because he won't give you something for free.

You should be able to trust your LHS and they you.

My two cents,

Clay
Old 04-22-2008, 05:27 PM
  #25  
timothy thompson
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Default RE: Hobby Shop Setup

make sure no hobby lobby or michaels are around as they will cut ino plastic model sales. HL has 50% off day. i bought a 140 uss lexington for 70. stock a lot of artsy crafty stuff .\





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