I am going to guess that the reason w0mbat is having a good success with his hobby shop is because he is located in Lake Havasu City, Arizona...........it is located in a nearby lake(Lake Havasu) for RC boat enthusiasts and is in the middle of the desert with wide open spaces for flying RC and hitting the gas pedal to the metal on an RC truck.......ALSO Lake Havasu City has year round GOOD WEATHER with NO BLIZZARDS, NO ICE, NO SNOW, NO HURRICANES just good, mild RC flying, boating, trucking weather all year round.....in other words, the place has tons of RC opportunities for the average Joe citizen.................and that is why he is having good success. The place is a haven for RC flying, boating, trucking and what have you. ON THE OTHER HAND.....if you are located in a heavily populated metropolis/city/urban area...........the RC flying, boating, trucking opportunities are less and therefore the demand for RC hobbies is less. LOCATION!!!! LOCATION!!!!!!!!!! LOCATION!!!!!!!!!......IS EVERYTHING.
Actually, this is one of the worst places for an RC Hobby Shop mainly because this is a very low wage community. This is why nobody has ever survived here in the past. We have one small airfield and are surrounded by mountains, hills and rocky terrain. You can't just go out and fly in the desert unless you have a specially made aircraft that can handle softball size rocks. The weather is good for 5 months, bearable for 3 and miserable for 4! It's the second hottest place in the US where temps can and do reach 130 in the summer. It's windy every day from March - June so that eliminates a couple months of good flying temps. The lake is big and extremely busy which is not suitable for small RC boats - hence why we don't even sell them. Cars are probably the best thing to do out here and we have never sold cars until about 3 months ago. Our business was expanded only by selling airplanes and that is in an area with almost 9% sales tax! So how do we survive?
1. We have no debt
2. We are at the business just about every day and happy about it!
3. We are friendly with our customers - no matter what information they ask for.
4. We are knowledgable about EVERY product we sell. If we can't answer questions about something, we don't sell it.
5. We match online pricing even if that means we only make 5%.
6. We have an extremely clean, organized shop with highway frontage.
7. We are fully computerized and know our expenses, costs and profits at the click of a button.
8. Our advertising cost is zero. Word of mouth travels far and fast!