Decline of Hobby Stores

Nobody!

Sadly, that store is out of touch with MPC prices.  Check the forum for-sale section to get a real sense of what secondary prices should be.

David

What is really tough for the future is that new stock being sold at these high
prices are only giving the dealer a gross profit of 15% +/-, not enough to sustain

a retail operation no matter what the volume, which is also declining.

ncng

quote:

First they tell me to look for the screws in the "airplane" section.

I have found screws that were useful for toy / model trains in the "airplane" section of various hobby shops. I don't see anything wrong with that advice.

High prices should be blamed on the big companies; like Lionel and Bachmann. A new Lionel Legacy engine is selling for around $525.00 even at the large internet retailers. Bachmann's prices for the new Williams line around $350.00 for a single diesel engine with True Blast 'Plus' and no command control. Bachmann has raised prices way too much for me to buy from them any more.

Maybe I will buy MTH or RMT or stick with used equipment; as at least it has been made!

Lee Fritz

High prices are a result of us buying like there's no tomorrow. A great majority of the consumer's in this hobby are retired or close to it and they for the most part a viewed as big kids walking around with a sack of money waiting on the next big accessory or locomotive to be developed. One day when the technology runs dry on trains then we'll see the train hobby as a whole hit a wall and prices will reflect that. There's only so much a train is supposed to do realistically and they've pretty much accomplished that even down to steaming whistle and depleting coal load. With this new phone app the next big thing I would imagine would be a hover train that doesn't use any track but rather uses global satellite positioning like my phantom drone does. 

That is why I buy only stuff from Menard's and at train shows.

It's sad to see a LHS go under, I do enjoy window shopping. That being said, the computer age is a fact and the internet is a real time saver for MOST (not all) people in my opinion. Most of the good LHS's have a web site and I believe they will survive, some might even go to only internet sale which is what I believe is happening to the Hobby at this time. This is true with most of the hobbies and I don't see an end where someday EVERYTHING will be done over the internet and the brick and mortar stores will be nothing more than a warehouse and shipping department. I grew up with the first computers in schools and haven't looked back, they are the future of the everything. The LHS will need to embrace the new age or parish. Just my opinion. P.S. They are opening a new shop very close to me, so not all is lost for the LHS!

I think it's more a reflection of the demographics and interests the hobby shop is trying to service rather than any indication of the state of the hobby. You went to the "Big Hobby store" rather than a store specializing in model trains exclusively -- and from what I can tell, RC hobbies such as airplanes and drones are particularly hot at the moment, so it's not surprising that a non-specific hobby shop would choose to focus its attention on carrying more products that are popular. I would be more concerned if you had gone to a model railroad-oriented store and received this sort of customer service.

And to be honest, I never understood why people are such sticklers for using hardware from train "manufacturers", considering that they just package those screws and retail a handful for a premium. Just go to Home Depot or an online distributor and buy a bunch of them cheaply, so you have more money to spend on rolling stock or locomotives.

I have a mountain of used 80's and 90's stuff im about to sell off. I'm gonna be selling cars for like $3 to $5 each and locos for like $25 to $50. I remember when I was a kid looking at the stuff in my uncles display case and drooling over some of ti. It was really nice stuff back then but its junk compared to what we have not.

A lot of years ago when I got Model Railroader, there was a whole discussion about the decline of the hobby shop.  Demographics played a large part, but, it was determined that prior to the rise of  internet sales, 'hobby shops' that consisted of rental space in a mini-storage lot and an 800 number that bought in bulk was a real factor.  This lead to some hobby suppliers offering better wholesale deals to actual brick and mortar shops, since many buyers like to see what they are getting before they buy.  This was to offset the folks who came to a shop to kick the tires, then  called the 800 number to get it 50 buck cheaper. As regards the demographics, my local shop of which there is only one, has had models in the front window so long that the boxes were faded.  When the downturn occurred starting in 2008,  Over a period of time he sold just about every model in the shop and said it was the first time in years he had to make a big order to replenish models.  He attributed it to folks staying home and doing family things or less expensive pursuits. On my last trip, I noticed those boxes are fading again.

The LHS that specializes in trains is under fire much the way all family owned specialty businesses are these days. Near my home there is a small strip mall. When I moved into the area there was a local hardware store, a specialty cookware store, a specialty gift store that my wife loved and a convenience store. The local hardware store is the sole survivor because they were purchased by the ACE chain. All of the others are gone and in their place is a Dollar store, a Goodwill, and lots of empty space. Oddly enough, the owners of the mall property are happier with nothing than they are with renting space at a more reasonable rate. To me, it's a miracle that any LHS's exist at all any more. I wish I had one but am thankful for access to the ones that still exist and offer internet sales.

It doesn't have much to do with the decline of hobby stores, but as to the screws, the big box hardware stores don't carry any small screws that could be used with model trains,or any such applications. These big box stores only stock items that they can sell a lot of, no matter what kind of thing it is, so their specialty hardware supply of anything that isn't a mass-selling item is non-existent. (Incidentally, the quality of the screws and much other such hardware sold at places like Home Depot is lousy).

I've had some luck with Ace Hardware (these kinds of hardware stores carry a far, far better selection of screws, nuts and bolts than the big boxes do), but Lionel, for example, uses dozens of different sizes and types of specialty screws in their trains, and often there is no realistic alternative other than ordering them from Lionel. Not a big deal - very cheap compared to most things in the model train world.

I also think it has to do with what area of the US one is in. For example, my in laws live in Findlay, Ohio. Every store in that town is a chain from Olive Garden, Home Depot, Walmart etc..Everything there has a drive through including the beer place where you drive through. Now, Im in White Plains, about 15 min from the Bronx, there are very few chains at all in Westchester County, we just have 1 Walmart. Hardware Stores in the old sense are plentiful, thank God, and are excellent sources for everything. We have a great train store, Tom's Trains at Ardsley Hardware, etc. And if one goes out to Long Island, Train Land, Nassau Hobby, Willis Hobby are all there and are well stocked stores. So I wonder if the NYC Metro area is weathering this storm better. Just my 2 cents!

LHSs will always be good for:

• The small 1-2 items you need that the shipping from an online vendor would cost more than the items you want
• Items you had no idea about. For example, I was at a Portland, OR hobby shop on Saturday and found several items I never knew existed that I bought for use on my layout. Online vendor websites can be okay if you already know what you're looking for but not if you don't
• Publications. Most of you are probably like me in that if it isn't a magazine you subscribe to, you probably want to thumb through them before buying
• Sales. Some LHSs sell used stuff or have sales to make shelf space. Good deals can be found at a LHS. I bought almost all my On30 track and many of my freight cars from a HS in Tacoma over the timeframe for a year while I was designing the track plan. Also, there's a HS in Portland that sells AMS On30 passenger cars for way less than online prices (no sales tax and no shipping, too). Buying 2 of them, it was well worth the gas cost to drive down there to buy them
• Excuse to see other stuff. I always try to double up with any HS visit to go chase trains as all of them are somewhere near active RR lines. The one in Tacoma is very close to a massive antique car museum I'm a member of as well as a great used book store. I'd never get to the area much at all if it wasn't for trips to the HS...

Like many of you, I buy from LHSs when I can. Sometimes, yes, I pay more. But to me, it's worth it.

Well a 15% return is much better than the banks offering maybe 1%

It all depends on the owner, if a train shop is going to make it or not. If they are willing to work hard and put in long hours they will make it.

Matt- I'll be watchin...

The same has happened to specialty camera stores etc.  The mass public doesn't appreciate anything but their cell phones these days.  Or buying cheaply made retail goods at malls that have huge margins built in at any sale price offered.