rtabcum

Hi,

I am considering openning up a retail Hobby store. I have two local clubs nearby and know several people who would want the retail store in town. I plan to carry all R/C products. Have already talked to several distributor and found a good size retail space to lease.

I was wondering if anyone has any experience they may want to share? Investments they made? What not to do?

What kind of income per month average can I expect?

Thanks,
RT

Mike Buckley

Sounds like you have alot more to learn or a lot of money to burn if your asking these questions at this point.... (having a store and getting setup with distributors)

FLYBOY

My Feedback: (11)

I had one when I was in college. It is a big job, a lot of fun, but you don't make much with it unless you go big and stock a lot. Email me and we can chat. What is the pop of the town you live in? What kind of location are you looking at? I can give you some good info. We had a good shop till I left and went to flight school for full scale. The guys that took it over ruined it and they really could have made it work, but they wouldn't listen and didn't know anything about RC. They stocked hundreds of 3 blade props, which noone used. Wouldn't get stuff in stock that people wanted either. Thats a sure fire way to go broke. you can make it work if you have enough going for you.

Mike18

I'v heard that a good way to make a small fortune in the R/C hobbie buisness is to start out with a BIG one.

JGM

I think it may be a good idea to develop a business plan. Then sit down with someone with a sound financial backround ie. your banker and see what they have to say.

rustyrivet

My Feedback: (6)

Better keep in mind you've got serious competition out there from mail order. So I'm told
But what do I know..... I'm only one of many typical dumb consumers who's got plenty of cash to burn, and doesn't know every kit, radio, engine, and servo out there in the magazines and on the web goes for at least $30-$50 cheaper then you might offer it! Good Luck.

FLYBOY

My Feedback: (11)

Yes, thats all true, and they told the wright brothers that many had died trying to fly airplanes and that theirs wouldn't fly either. Aren't you glad they didn't listen?

There are a lot of good hobby shops out there. If you have a good business plan and don't just stock RC Planes, you can make it work well. I matched price on kits and radios and engines in my shop and our club supported the shop almost 100%. It survived and made money until I left and went to flight school and sold it to a non modeler who would not listen, and stopped stocking stuff that sells and started stocking stuff that sits. Bad plan in any business.

Don't be scared if you think it will work. If you are in a large town, it will work well, if you are in a town of 10,000 with not a lot of modelers, I would re-think it.

Mr Hackney UK

My Feedback: (18)

here take a look at this link i also wanted to open a hobby store.


http://www.rcuniverse.com/showthread...hreadid=289649]

scottrc

Diversify - Just don't stock for the RC modelers, but stock for Plastic, and Art and Craft people as well. It is a lot more work, but you will be able to increase your volume and turn your inventory.

I know of two shops that sell hunting supplies, guns, and ammo, and one shop that also sells exotic birds and reptiles.

Seen one shop open up a Mailboxes etc, in it. And also heard of one that may open an Espresso Bar. Mise well make a dime off those ol geezers who stand around cutting the bull.

Purchasing will be your biggest challenge. Know what to stock, how much, and sourcing the best price out of your suppliers. Large inventories with low turnovers kill small shop owners.

rustyrivet

My Feedback: (6)

Thank you. I rest my case.

PS Unlike others who attempted unsuccessfully to fly before them, the Wright brothers did put a wing, rudder, stab and turning prop on their invention to get it up and running. Provide the required essentials, and it'll fly regardless of opinion!

mscic-RCU

My Feedback: (6)

I am also in a tough business with a lot of mail order and internet competition. The key to being successful in that climate is to diversify, keep your pricing competitive and offer outstanding service. People will pay a little more for their product if they have a knowledgeable person to deal with, one that cares about them as a customer. One of our local hobby shops also belongs to all of the clubs in his local area and is the first to step up and support (donate) to all of the clubs functions. He also has a mobile hobby shop he takes to the field with him, so if you need a prop or plug he has it there. It is a lot of hard work and not much reward (money) at first. Good Luck

glowplug

My Feedback: (1)

I don't own a hobby shop, but the advice that I would give is this:
It's better to make $10 off of 10 people than $100 off of 1 person...what I mean is that keep your prices competitive and more people will show up, and come back when they need something.
I also believe that you MUST advertise.....place a small ad in the big magazines....don't worry about making a specific profit margin per item sold.....think lower prices and VOLUME. Offer free shipping for orders over a specific amount......people love getting something for nothing....
Advertise to customers that you can order anything that they may need.....or offer informed alternatives to the products that they want if you cannot order them.
Give repeat customers or club members a "discount"....even a small percentage will make them think they are special......
Sell some products on ebay.....start with a low price...don't worry, the market will adjust it.....people get bid crazy and may pay more than street price for products.

Mike

Goinstraightup

My Feedback: (26)

This has gone around a lot of times in the Clubhouse forum. Do a search there and you will find some big threads on this.

Somebody mentioned in one of those threads that the car and heli stuff brings in way better $$$ because if that stuff breaks you have to buy replacement parts.

I support a LHS that is in a town of 4,500 and he is making it. I don't think, well I know, he is not getting rich, but he really enjoys having the store. He has been super nice to our club even though we only have 30 members. He always matches the mail order prices too. I buy just about everything there even though it is a 35 minute drive.

Jeff A

FLYBOY

My Feedback: (11)

I tend to find that when I go to the shop, I buy more than I went in for. If I see a kit or an engine that is a good price, or anything else for that matter, I might buy it. I don't tend to do much of that mail order ecxept for heliproz, where the guys sometimes mention a great price on something they know I want. If you get a lot of people in your door looking, some will stay.

Big deal if you have to match mail order on the price of a kit or engine, if they buy the kit, they will buy the glue and everything else too if you take care of them.

rtabcum

Thank you for all your replies. It has been very educational. Makes me wonder how those LHS are doing out there. It must be pretty tough. No wonder the owners always seems bitter.

As for me, I'm not sure what I am going to do at this point. I may end up going back to just re-selling used motorcycles again.

RT

highflyer353535

My Feedback: (3)

hi, a very good friend of mine owns his own hobby shop. a hobby shop is like any other bussiness.. its got its good times and its slow times. if you can deal with the slow times.. youll be fine my friend deals with trains also with full line service , planes trains and rockets he is a super guy and reasonable.. he is located in upstate ny.. if you need something in the line of trains planes rocketshe is also an estes authorized dealer...if you need something and cant find it . i can provide you with his web address and e-mail thank you