Go Back  RCU Forums > RC Helicopters > RC Helicopter General Discussions
Reload this Page >

Does anyone know how much expense in A hobby Shop

Notices
RC Helicopter General Discussions Discuss RC Helis here. Nitro, gas, turbine and any make, model or brand not having its own specific forum below!

Does anyone know how much expense in A hobby Shop

Old 10-31-2002, 12:26 PM
  #1  
aashu
Senior Member
Thread Starter
My Feedback: (6)
 
Join Date: Mar 2002
Location: Edison, NJ
Posts: 331
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

I was wondering how tough is it to maintain a hobby shop and what is the margin on those popular kits they sell ..just curious
Old 10-31-2002, 06:39 PM
  #2  
GM1
 
Join Date: Dec 2001
Location: Tallahassee, FL
Posts: 257
Likes: 0
Received 0 Likes on 0 Posts
Default Not much!

Full retail markup on most hobby related items is 30-40%. Most hobby shops now are forced to cut that to 15-20% in order to compete with the domestic mail order houses (Tower, Indy, etc) and now with the internet, the international emailers are cutting even lower than that so it appears that the days of the Mom and Pop local hobby shops are numbered. I worked in the local hobby shop for several years and, while we made a profit, it was not nearly enough to justify the labor as a fundamental way of making a living. You had to work there because you liked the hobby and wanted to give back something AND you got a price break on the stuff you purchased for yourself.
It really pisses me off that guys in the hobby criticize the local retailer for trying to make a living and try to justify it to them selves by saying the hobby dealer is gouging THEM. Sorry, the soapbox just magically appeared and I had to jump on it.
Gordie
Old 10-31-2002, 08:05 PM
  #3  
RS2K
Senior Member
My Feedback: (8)
 
Join Date: Apr 2002
Location: Wichita, KS
Posts: 1,241
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

I have a lot of things to say about a certain hobby shop in my area but don't want to because I'd hate if they knew who I was. Then they might double my costs. I'm happy to know that there is a new one opening up in Carthage that competes with tower AND the prices from a hobby shop in Carthage. The owner is pretty much only doing cars right now but eventually plans to go into planes and helis VERY soon. When ever I need to buy something that is not specific to my heli (like raptor parts) I try to buy it through this shop to try to help him out. It's very nice to have a good hobby shop in town. I miss Wichita, I loved Finley's Hobbies.

I think shops lke heliproz are GREAT, but when you need a crash part QUICK paying $25 for shipping doesn't cut it. I think a local hobby shop is great for crash parts and fuel and if they can compete for major items like helicopter kits then I will buy from a hobby shop. I usually get engines(unless they come with a package in a kit) and servos from hobby shops but I usually get kits and packages from mail order shops because of price. If I was rich I'd pay the full retail at the hobby shops, but for right now I can just afford the mail order prices.
Old 10-31-2002, 11:04 PM
  #4  
radigan-RCU
Junior Member
My Feedback: (5)
 
Join Date: Dec 2001
Location: Wichita, Kansas
Posts: 24
Likes: 0
Received 0 Likes on 0 Posts
Default Finleys

Hey, how long have you been out of Wichita? Finley took a bad turn and hasn't been in his shop much. Too bad, he was always good for a laugh and he knew his stuff!
Old 10-31-2002, 11:25 PM
  #5  
RS2K
Senior Member
My Feedback: (8)
 
Join Date: Apr 2002
Location: Wichita, KS
Posts: 1,241
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

Last time I was at the shop was about three weeks ago. I havn't been there regularly for about 3 months though.
Old 11-01-2002, 01:33 AM
  #6  
venture32os
Senior Member
My Feedback: (2)
 
Join Date: Jun 2002
Location: St. Cloud, FL
Posts: 180
Likes: 0
Received 0 Likes on 0 Posts
Default ? opening shop

I too was wondering what it would take to open a shop. I live in a small town that has no shop there are several in the 50 mile area. What is the dollar amount to get one going, and do you get any help from the manufacturers?
Old 11-01-2002, 12:08 PM
  #7  
peek49230
Member
 
Join Date: Jul 2002
Location: Brooklyn, MI
Posts: 60
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

A question I would ask is "Is there a market that would support me here?" You would have to do a market analysis and such to find out. That about all I got out of my Business 101 class.

Chris
Old 11-01-2002, 10:07 PM
  #8  
Ergo60
Senior Member
My Feedback: (1)
 
Join Date: Dec 2001
Location: MI
Posts: 420
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

I for one, will refuse to go to the local Riders in my area. Last time I ordered a wind screen for my Ergo canopy, it took them a week to even order the part. I have the paper from them that shows the dates, so I am not inflating the time at all.

It is a pretty sad day when I can call a hobby shop in Montana(HeliProz) and get it quicker that my Local hobby shop.

RS2K.
but when you need a crash part QUICK paying $25 for shipping doesn't cut it
That is why I always keep an extra everything in the shop. When I crash I order the new part right away, but use my spare to get in the air. Heliproz usually only take 3-4 days to get to me, so even if I crash right away(like someone we both know). I can be back in the air BEFORE my Local hobby shop even orders the part.
Old 11-02-2002, 03:25 PM
  #9  
Whoison2nd
Junior Member
 
Join Date: Oct 2002
Location: Horse Shoe, NC
Posts: 27
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

I just opened up a local R/C Hobby Shop here in Western North Carolina.. There is alot of work to do and the profit margin is not there like a "normal" retail business due to the "online" places.. I love the hobby and have found alot of local supporters for locally owned businesses which are willing to come in here and pay 30 cents more for a 15 dollar part as for the 200 dollar kits I am keeping my prices usually within 10-15 dollars of "The Tower's Prices" and the customers are fine with that and understand that.. I only did the shop cause there wasn't even a place to go buy fuel for my toys up here with out driving an hour..
Support your local hobby shops even if you pay an extra 20 bucks cause there might be a day that comes when you have to drive an hour or more just to get a gallon of fuel.. <just a thought>

Ps. My orders are 3 day turn arounds.. lol

Clay
Old 11-03-2002, 12:32 AM
  #10  
flmgrip
Senior Member
My Feedback: (2)
 
Join Date: Feb 2002
Location: irvine, CA
Posts: 1,051
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

BTW, Heliproz is a "local" hobby shop (unlike tower hobbies which is just mail order). so i am supporting "my" local hobby shop and i never even have to drive there...
Old 11-03-2002, 12:44 AM
  #11  
-Stevo-
Senior Member
 
-Stevo-'s Avatar
 
Join Date: Mar 2002
Location: Vacaville, CA
Posts: 154
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

Ditto on the supporting the local hobby shop. Mine, R/C Country in Sacramento, just happens to be one huge place so finding what I want is usaully not a problem.
Old 11-03-2002, 12:47 AM
  #12  
RS2K
Senior Member
My Feedback: (8)
 
Join Date: Apr 2002
Location: Wichita, KS
Posts: 1,241
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

Time for my rant.

Making a living is fine. I see nothing wrong with having higher prices but tell me this. I got quoted $50 a gallon for 4 gallons of %30 CP at one of my "local" hobby shops. Is that making a living or price gouging, you tell me. If I can get it for $27 a gallon STRAIT FROM THE MFG why even bother. Unless you are someone the owner knows or belong to his club (he's the president) than he is very rude. I have heard of people walking out VERY OFTEN because of the owner’s behavior. Not everyone who works there is bad, just an unfortunate few. A few years ago they used to bad mouth Futaba and OS left and right, now that OS is the only engine he can get at a good price it's the only one he sells. It's not always the prices, it's the bad service. The new hobby shop opening up in my area has a VERY good service and VERY good prices, now that’s something you don't get every day!!
Old 11-03-2002, 12:48 AM
  #13  
RS2K
Senior Member
My Feedback: (8)
 
Join Date: Apr 2002
Location: Wichita, KS
Posts: 1,241
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

The bottom line is support who you want to stay in business. If you want the big guy than go with the big guy. If you want the little guy then go with him. I like both so I support both.
Old 11-03-2002, 03:04 AM
  #14  
Georg Matthews
Senior Member
My Feedback: (6)
 
Join Date: Apr 2002
Location: Toledo, OH
Posts: 175
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

Well I have two things to say about this issue
1. I have to wonder if some of the mail order places are buying product through the U.S. importer or are they going elsewhere to purchase product ?
Remember if you buy a JR radio at a great price through mail order and the it wasn't purchased by the mail order place through Horizon then technically you have no warranty through Horizon repair. It's called gray market.

2. Remember that by supporting your LHS it can stay in business and you go and buy the things you need when you need them ( like fuel) if you have to buy fuel by mail order wait till you see the Haz Mat shipping bill !

Now don't get me wrong I think there are several mail order places that do a great job and have good product and good knowledge. And I will also on occasion make a mail order purchase for some specialty item my local store doesn't carry.
Old 11-03-2002, 03:48 AM
  #15  
Whoison2nd
Junior Member
 
Join Date: Oct 2002
Location: Horse Shoe, NC
Posts: 27
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

As for my shop that I just opened up.. I am not price gouging I am trying to bring a decent "R/C Hobby Shop" into the area.. So far I have had 1 complaint which was a total mistake on my part (pricing) I gave the guy credit of the amount of the difference between my shop and the other shop.. So I settled that quickly and he left with a smile.. Had a guy call me today about a certain name brand of fuel that he uses.. I am going to go out of my way and order that fuel not only for him but because of one other customer who had asked if I would ever carry that type.. So very shortly I'll be stocking that type of fuel.. To me thats making them happy and it will bring them into my shop.. Making money? The shop is making enough to roll back over into more inventory and thats it.. Me personally making money? No, I am by far making any, I am still working my 3rd shift job full time.. To me its worth the no sleep days and trouble to maintain this shop in order to come out on top and be known as the area's true "R/C Hobby Shop"..
I do agree - if you feel that your LHS is doing you pourly then why do business with them? But if you find a LHS that is trying hard to make you happy and everyone else that comes in there then why not?..
I am going to bed.. lol
Clay
Old 11-03-2002, 04:03 AM
  #16  
-Stevo-
Senior Member
 
-Stevo-'s Avatar
 
Join Date: Mar 2002
Location: Vacaville, CA
Posts: 154
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

Well said.
Old 11-03-2002, 01:20 PM
  #17  
GM1
 
Join Date: Dec 2001
Location: Tallahassee, FL
Posts: 257
Likes: 0
Received 0 Likes on 0 Posts
Default Good Luck

After having spent many nights and weekends working in the LHS, (before it closed) I was always amazed at the people that would walk in with a "Tower Talk" and try and get you to match Tower price on little items like hardware when the difference was $.15. When you wouldn't (couldn't, boss's orders) they would get all hacked off and storm out like you had insulted their only child. I liked the store as it was a place the R/C guys could get together and just hang around and talk, point to and look at new stuff, show each other how they did stuff, and generally have a good time. I miss that now.
We placed orders twice a week, on Weds and Sats, so the most an item (non-backordered... don't get me started here) should take was a week (you ordered Sun, we ordered on our next order which was Weds, and got it on Fri or Sat.) I did Kyosho, MA, and Hirobo parts and stocked Kyosho (Concept 30) in the store (TT Raptor was not around then). Yes, we made some mistakes in ordering and had to reorder and we also had several guys special order unusual (and expensive) items and when they came in (3 days later), refused to come pick them up when we called them saying they no longer needed them and expected us to eat them.
Our boss ran three other companies and was a multi-millionaire and while the store did make a profit, it wasn't much and he ran the store as a service to the R/C community in the area. When he lost his store manager (to a better paying job, the guy had a family to support) and could not find a qualified replacement (I was only part time since I also work a full time job), he closed the store. It was a sad day for the local guys.
5 years later, we have a HobbyTown USA run by a guy who has ZERO R/C experience and isn't really interested in learning the hobby, he just wants to sell stuff. While I have been in the store and buy any non heli related items I need from him (I am a MA sponsored pilot so I get heli parts direct) there really isn't much there that interests me. I do buy HO train stuff there but even that wouldn't make $20 a month. He is now selling mostly toys and beginner R/C stuff that comes in combos. I wish him luck.
Old 11-03-2002, 04:12 PM
  #18  
Hivoltage
Senior Member
My Feedback: (3)
 
Join Date: Dec 2001
Location: Newark, OH,
Posts: 304
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

I used to support my local hobby shop but I got tired of going in after something and finding an empty spot where it should be.

Plus he would only have about half of the parts that I would need after a crash. I am generally speaking of Raptor parts here.

Plus the hours never seemed to work out for me, or when he was suppose to be open and I went in he would not be there.

He only orders like 2 of everything. So every body buys both of them because they know that next time they will be gone. I was guilty of that too.

So now I go in if I have time, but mostly order from Heliproz, they have everything and prices are good and I can do it from home late at night when I have time. Plus if they are out of stock, I dont need to make a second trip to the hobby shop.

I agree, I should support my local hobby shop, but that option is not always the best for me. Heliproz has been very good to me and will get most of my business. And BTY, I try to get my years fuel when I go to the heli internationals, no shipping cost so I get some good prices.
Old 11-03-2002, 04:16 PM
  #19  
RS2K
Senior Member
My Feedback: (8)
 
Join Date: Apr 2002
Location: Wichita, KS
Posts: 1,241
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

What is a years supply for you?
Old 11-03-2002, 04:22 PM
  #20  
Hivoltage
Senior Member
My Feedback: (3)
 
Join Date: Dec 2001
Location: Newark, OH,
Posts: 304
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

3 cases usually gets me through a year. Here in Ohio, I dont fly all year. I will be lucky to get out again until next spring, maybe a couple nice days here and there. I am not a cold weather flyer!!
Old 11-03-2002, 04:24 PM
  #21  
RS2K
Senior Member
My Feedback: (8)
 
Join Date: Apr 2002
Location: Wichita, KS
Posts: 1,241
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

You can always move to Tucson or San Diego!

Of course people start freezing at 68 degrees in Lower California!
Old 11-03-2002, 05:04 PM
  #22  
flmgrip
Senior Member
My Feedback: (2)
 
Join Date: Feb 2002
Location: irvine, CA
Posts: 1,051
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

Originally posted by Mig-29
Well I have two things to say about this issue
1. I have to wonder if some of the mail order places are buying product through the U.S. importer or are they going elsewhere to purchase product ?
Remember if you buy a JR radio at a great price through mail order and the it wasn't purchased by the mail order place through Horizon then technically you have no warranty through Horizon repair. It's called gray market.

2. Remember that by supporting your LHS it can stay in business and you go and buy the things you need when you need them ( like fuel) if you have to buy fuel by mail order wait till you see the Haz Mat shipping bill !

Now don't get me wrong I think there are several mail order places that do a great job and have good product and good knowledge. And I will also on occasion make a mail order purchase for some specialty item my local store doesn't carry.
i tried to support our local hobby shops, probably 3 in a 40 mile radius. they often do not have all the parts and don't know when they come in. a part costing 6.99 at heliproz costs "locally" 9.99. strike one...
i buy my fuel in years supply as well and it comes shipped by a trucking company and runs about 15.- per gal (20%) as opposed to 19.99.- plus they locals don't even carry my fuel (wildcat) strike two...
after using four 550T gyros (with servos) for almost half a year and being greatly disappointed with them. i returned all of them for a full refund, at heliproz (horizon did their part to make it happen)... possible at any of our local hobby stores ? i highly doubt it... strike three

my local hobby shop is and always will be heliproz. great service, fast turnaround, great people, full inventory of parts, shopping at 3.00 am and full warranty on anything and everything. if there would be a heliproz locally (within 40 miles or so) i would be driving to them...

good luck with trying to open a hobby shop... the market is saturated and you have to be smart and play hardball to have a chance...
Old 11-03-2002, 05:15 PM
  #23  
RS2K
Senior Member
My Feedback: (8)
 
Join Date: Apr 2002
Location: Wichita, KS
Posts: 1,241
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

Maybe Heliproz should start a local hobby chain with strict rules about having friendly, knowledgeable, and professional people. Hmmmm, I wonder if Hobby Town USA started like that.
Old 11-04-2002, 03:49 AM
  #24  
Ergo60
Senior Member
My Feedback: (1)
 
Join Date: Dec 2001
Location: MI
Posts: 420
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

Originally posted by Mig-29
2. Remember that by supporting your LHS it can stay in business and you go and buy the things you need when you need them ( like fuel) if you have to buy fuel by mail order wait till you see the Haz Mat shipping bill !
I just made a fuel order about two months ago, and the Hazmat charge was only 3.00 per gallon, and since the fuel was only 14.00 a gallon(30% heli fuel) I still got it for more than 10.00 a gallon CHEAPER than my LHS. I have receipts to prove it. Bottom line is that NONE of my local shops are worth a damn, and I refuse to go to a place that does not want to make the customer hapy. I do not bicker about a 15 cent difference, but I do expect good service. The LHS's in my are fall way short of good service.

And, yes I do realize that Heliproz is a LHS in Montana. I support them because they give FANTASTIC service, I would Love to move there to have a LHS like that available right around the corner.
Old 11-04-2002, 05:25 AM
  #25  
Georg Matthews
Senior Member
My Feedback: (6)
 
Join Date: Apr 2002
Location: Toledo, OH
Posts: 175
Likes: 0
Received 0 Likes on 0 Posts
Default Does anyone know how much expense in A hobby Shop

Ergo60
Which Rider's is your local shop ?


But I bet if you go to Heliproz to buy a Telescope you won't find it.
You see my point is that a place like Heliproz has the whole country as a market so they can afford to specilize. But your LHS and the operative word here is local, needs to be more diverse to survive. Now you are correct about the service issue and I agree there is no excuse for second rate service. But it is important here to compare oranges to oranges. I work in a hobby shop and there are some thingsI go to Heliproz, G8lakes and Rick's myself.
There are things that my shop just can't afford to stock and there are certain heli specific parts and supplies that we have no demand for. But when a heli guy comes in the store and expects us to have that certain part for heli which BTW I didn't sell it to him and he is the one and only guy using this equipment. I will make an honest effort to order it for him , but chances are he could go to Heliproz and get it faster and cheaper.Then all of a sudden we suck cause we couldn't compete.
Also we sell our product at competitive prices which is what the distributors call SMAP or MAP and I know what kind of margins we make selling at those prices and the profit is slim in many cases.
So when I see a place like Heliproz selling product at just a couple bucks over our cost I have to wonder where the cuts are being made because there is no way a LHS could survive at those margins. Yes I realise they deal in volume but like I said before they have the whole country as a market.
So just remember to try to make a fair comparison because for the most part I think LHS's provide a great service to the hobby customer.

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2021 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.