One of the common criticisms of local hobby shops is pricing - some are very competitive, others are not. I have successfully negotiated better pricing at both. Some basic understanding of the business empowers customers to negotiate effectively.

Understand that the owner wants to sell, and at a profit. The MORE they sell, the better the volume discount they receive from the distributors. The FASTER they sell, the lower their interest costs. If you, the customer, can help them sell more, faster, they can be more profitable. The shop costs (rent, utilities, labor) are pretty constant - regardless of sales volume. If they don't sell a single thing all month, they still have bills to pay. If they let you go elsewhere, someone else makes the money. This suggests a couple of strategies that I have used successfully with lots of retailers, not just hobby shops.

ALWAYS negotiate with the person in power - owner or sometimes manager. You need the person authorized to say YES - any of the clerks can say NO.

#1 - Special Orders. If they have to order it, you have a golden opportunity. The shop has no risk involved. All they have to do is place the order and collect your money. The shop in my town that "never" matched Tower's prices actually BEAT Tower by $60 on a radio because I offered cash up front when I placed the order. They had it to me in 2 days.

#2 - Old Stock. Another shop in town had a Sig 4*120 kit on the shelf for several months, priced at $159.99 (same as Tower). I wanted one for my stash, so I called the owner and offered to free up some inventory $ by buying the kit for $100 cash. He said yes, and rang it up for $93.24 + tax, $100 out the door, still sealed in the factory wrap - and was happy to do so! I saved $71.59 with tax.

#3 - Buy all you can from the LHS - they will remember. I buy screws and such from Microfasteners, but all the R/C hardware comes from the LHS - and I don't dicker on the price.

#4 - Be friendly, not demanding. Make an offer, politely, and realize that if you have to have it NOW, it will probably cost more. Give the owner the chance to make a sale, and he probably will. If not, maybe next time. Remember, he needs you more than you need him. He can't mail order customers!

The owner needs to see a win-win solution. It's not about beating him on a deal - it's about keeping him in business.