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Watch this video and it might give you an understanding as to why they're closing. Look at how large the place is how much wasted space there is:

https://www.youtube.com/watch?v=SbpkVRj6rXk

I think r/c might not have helped, either. I get the feeling that r/c cars were sort of a bubble which has busted already. I know that it killed a hobby shop very close to where I lived, one of their employees admitted that r/c folks don't buy from retail stores much, far less than any other segment of their inventory...

I would say its difficult to support the kind of inventory expense and overhead that this large operation had exclusively from the sales of train and hobby equipment. There must be 5 or 6 employees and 2000 sq ft of space there. It looks as though RC cars was the main focus and that's on the downswing.  

I will agree that the future of retail is from online stores. I buy online 9 months out of the year and only go to 3 or 4 shows per year, but mostly to browse for the odd items and to say hello to other hobbyists. You sometimes pay more online and sometimes you pay less but you do save at least 50 cents a mile in car transportation and several hundred if you attend York.  

He made his personal choice on the size of the building and the format within.

If he grew to the size of hobby lobby. You would call him a genius. The Bill Gates of the hobby business. So, the store closes and he automatically had "FAULTY IDEAS".

 

Outside winning the lottery or inheritance. I would speculate there are very few that became rich or had a "successful" business with out taking chances. 

 

Hopefully, his dreams stay alive. He learns from any mistakes made during the stores run. May, he use the knowledge to be successful in his future endeavors.

 

shawn

Last edited by shawn

It's kinda like a hamburger place selling chicken, ribs, lattes, etc.  If you're going to call yourself "Railyard" then you should stick to that facet of the hobby market.

 

Man, that place is HUGE!  We have a Debbies RC World here and they're big, but not that big (their RC track is outside instead of inside).  Debbies sells mostly RC stuff, they have just enough model train stuff to let you know it still exists.

I see quite a few problems with their buisness model. First their name, it focuses on model railroads only and not general hobbies. People doing a search will pass over it if they are looking for RC. Next, their size is too big, so I am sure their rent was too. Plus the bigger you are the more employees you need. More cost, insurance, health and overhead. Then the biggest issue is the web site. For all practical issues there is none. You cant see product or buy it. They are 100% dependent on walk-ins and in this industry that is not enough. 

Jim Sutter,

   Maybe they should have asked for your business advise before moving to the super large location, I always liked your home/business train store location!  Today having the correct business model is even more critical than before.  Jim I always marveled at how smart your were business wise, with your trains store!

PCRR/Dave

Last edited by Pine Creek Railroad
Originally Posted by Charlienassau:

Then the biggest issue is the web site. For all practical issues there is none. You cant see product or buy it. They are 100% dependent on walk-ins and in this industry that is not enough. 

Charlie, you are right on the mark with this statement.

 

In today's world of business, if you do not have a functioning web site including an easy-to-use web store where you actually sell product, you are doomed to fail. The days of surviving exclusively on walk-in trade are over.

Last edited by Rich Melvin

That is really too bad, I am sure that the regulars will MISS that place. After reading way too many threads about shops closing, I have often thought about just how much I would miss my own LTS, Whistle Stop Trains, in Portland, OR.

 

 Whistle Stop has been in business since I was young, they opened in 1974, and many years ago moved to their current location, which was larger than their original store, but still not what you might call "LARGE" but still fit their business volume.

 

 IIRC, Charley is the fourth owner, and business is still at a viable level, he has owned the store for about 20 years now, and I recently asked him about what he expects to see in the future. Fortunately, Charley is expecting to keep the business another 15 years or so, which I was Very HAPPY to hear. Hopefully, when it is time for Charley to retire, He will be able to find someone interested in the business, but many other shops have had trouble with that in the past, time will tell, and I can only Hope for the Best.

 

 The value(at least to ME) of a Brick and Mortar LTS, is often under-estimated, I like being able to SEE what I am buying before I buy it, and have bought many things because of seeing them on the shelf, that I would not have bought otherwise. My MTH Railking Imperial Northern in Santa Fe, is the perfect example, I don't even normally collect Santa Fe, but I saw it on the shelf, and something about it just appealed to me, I kept going back and looking at it, until I finally decided to buy it, I NEVER would have bought it just from seeing it in the catalog, but IN PERSON, I just couldn't help myself.

 

 I also consider Charley and the crew Friends, and have spent an hour after closing just BS'ing. After being a customer for more than 40 years, It would be a SAD day indeed, when their "OPEN" sign is turned off for the last time.

 

Doug

Going by linear feet of shelf space he had more trains than RC, however he had N HO and O gauge. Also a reasonable selection of scenery materials.

In the RC side he didn't just sell the cars he had a very large selection of batteries chargers and replacement parts for several manufacturers. His indoor dirt track was a big draw initially. Not sure how well it is doing lately. He also had a smaller rubber track for 1/24th scale (approx) cars.

From the pictures, it looks as if they rented an old Ames or Hills department store. That's a whole lot of space to heat and cool and a lot to patrol for shoplifting.

 

The bit-off-more-than-they-can-chew syndrome is often a museum thing, but can affect retail. Somebody offers a deal on a huge space, the business takes them up on it, then they discover that their stock looks sparse on the miles of shelving and keeping everything clean and operating is a pain. Add the fad nature of R/C to the burden, and it's too much to handle. Betting on anything trendy takes incredibly good luck and timing.

Originally Posted by trainroomgary:

Very interesting video about the store....... They did it all.... 

 

Except stay in business. 

It's unfortunate that he didn't seek some, or better, business advice. Charlienassau ticked off the problems. I'm surprised he was able to get financing for this venture. It wasn't too hard to look at the video and tell this place was doomed. I'm sure a lot of the locals will miss the store.

Last edited by breezinup

Gentlemen,

   I can not understand why they did not have on line ordering, it really is not that hard or expensive to set up, David's owner of Bill & Walts small store in White Oak, Pa does a great job with the on line portion of his Hobby Shop, this particular business needed some serious business management advise, and either David or Jim could probably have saved their business for them, if either would have been consulted.  What many of these people do not understand is that hobby shops are a business not a hobby.

PCRR/Dave

 

Looked like a fun place to visit.  Sad to see someone's dream die.

 

I have NO local/regional LHS that is sincerely involved with any of the "hands on" hobby things I do: Model trains, control line model airplanes, etc.  Haven't had one in this region in decades.

 

Those same decades I've had to live "online" for my hobby fixes. I'm so used to it now, even a well stocked regional LHS would be hard pressed to garner a portion of my hobby income.

 

I have learned there are MANY online hobby shops that will go out of their way to keep your business and offer an amazing array of product.

 

Hate to say it, but I suspect my circumstances I described above is just the way it is now for LOTS of hobbyists.

 

 

 

 

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OGR Publishing, Inc., 1310 Eastside Centre Ct, Suite 6, Mountain Home, AR 72653
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