mwb posted:jim pastorius posted:I would wager half the hobby shops closed because the owners were older and the other half weren't very good business people and lost out.
Seems plausible.
I've seen a lot of shops close over the years, the story varies but the trend is consistent: in one shop, I asked if they did any ebay or internet business and guy almost pushed me out of the door (he didn't, and his shop is now closed). Bottom line, he has many customers come in, inspect the 'good stuff' (high $ items), then go buy on the internet for $20 less. He said most customers come in to buy the cheap stuff, and do their big purchases on line. So the revenue has dramatically dropped, while the costs of running a storefront continues to grow. The hours are pretty long, and the revenue stream is soft. There are so many items that have been produced that it's near impossible to stock a retail store and hope the right customer comes in to buy what you could afford to stock.
My dad had a MR business in the 1960's and 70's, but it was out of a converted garage. At that point in time, brass locos were a big deal, but some of the brands would insist on a store front, would not wholesale to garage outfits (like my dad). And if they found out that you were discounting, you were GONE as a customer. That doesn't exist anymore, the manufacturers are glad to just clear out the stuff when it comes in from China or Korea.
So now if you look at the remaining shops, they all do internet business, they all do the shows, and in some cases do not have a retail outfit. And many maintain a customer relationship and will find desired trains if asked. Having parts and a repair capability does not hurt either, especially with the electronic stuff that is in most new trains. (A friend of mine does 50 DCC conversions a week through a large MR shop, so that keeps the older stuff moving as well).
So yes, some quit because they are at retirement age or higher, some clearly weren't good business people, but unless you broaden your visibility with internet and shows, you don't stand a chance.
Jim
