Getting a deal at the LHS
10-03-2007 | 02:24 PM
#1
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From: Bakersfield,
CA
Getting a deal at the LHS
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.
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.
10-07-2007 | 09:00 AM
#4
My Feedback: (1)
RE: Getting a deal at the LHS
I agree 110%. The LHS owner who isn't willing to at least discuss a better deal isn't going to be long in this world. My area is blessed with a guy who is more then happy to work with the customer in this regard, and is knowledgeable about his products. I'd much rather deal with him even if it means a day longer wait or a few $$ more.
10-07-2007 | 09:59 AM
#5
Senior Member
RE: Getting a deal at the LHS
I once took a used airplane to my LHS to hang up for sale because I had my eye on a new kit in the shop and didn't have the cash. After telling the owner this, he traded me straight across the plane for the kit! I was happy because I had my fun with that plane and was itching to build another one. And I didn't have to wait around for someone to buy my plane then give the shop owner his cut. He was happy because I'm sure he sold that plane for more than he payed for that kit. I usually pay a little more when I buy from my LHS but I'm ok with that. I agree with your point and I have talked the owner down before but I am much happier to pay a little more than to have to wait around for Tower to send my stuff. I can drive 5 minutes, get the things I need today, right now. I think that alone is worth a couple extra bucks. Plus I'm suporting a local buissness that may not be here forever.
-Johnny-
-Johnny-
