If you could open a electric train shop??????????????/

[dbaker48]

Jim,
I certainly hope your right. I too had that feeling, but the slippery slope? And a few aggressive middle managers that do some local pricing, or even the store doing a loss leader to bring in trade. I'm sure I am "borrowing trouble" but that would be the worse thing that could happen. I have spent money unnecessarily just to support some of our local hobby stores, as oppossed to purchasing via mail order. But the stores keep dwindling. Its tough out there!

[Jumijo]

Jerry C did mention that he was open to putting Lionel in large chain discount stores, but stated that he wouldn't discount or cheapen the Lionel brand name to do so. What I read into that was if these stores want to sell Lionel around the holidays, he's willing to let that happen, on Lionel's terms. it sounded like he wasn't going to let the stores dictate what the terms would be.

Jim

[dbaker48]

If I recall from the interview that was published with Jerry C, they have already been talking to the huge discount stores, like wallyworld. If that happens, train shops will pretty much become history, and the whole hobby will probably change.

It really gets frustrating when our society is putting more emphasis on price than anything. (Lot of time they are forced too). But to stay competetive you have to cut cost, when costs are cut it invariably gets back to the product. Its seems to be a viscious circle. This international economy is a killer, wish we could go back to the days of isolationism, I think?

Our internet business is slowing, but we keep trying to increase customer service. And usually what happens is the satisfied customer that "tries" to more inexpensive source, usually comes back to us with very strong loyalty.

It is funny to me that their is only ONE MTH dealer in the greater LA area. He seems to be doing OK, but I think he could do more and should strive to become a super center or DCS demo site.

Best of Luck to you!!!

[Charles Kegel]

Hi Steve

Thanks for your 2cents worth!

Sure is a changing world we live in when I was a kid you would walk up town to the 5 & dime there was a main street with mom & pop shops stuff was mostly made in the USA the good old days.

Maybe that is some of the enjoyment we find with our electric trains takes us back in time. I don’t know if the kids of this day and age would find our hobby interesting but I would think if given ½ a chance they would.

When you talk of the slot cars that brings back some old memories I remember a place up town in the upstairs of a shop with what I remember to be a big track to race you car on and of cores you could get all the cars and parts needed and have much fun racing your friends wow that was 40 years ago!

Charles

[Anonymous]

Hi all,

Like many I've "toyed" with the idea of opening a hobby shop. Here is a link to a Dallas / Fort Worth area shop that has what I believe is the business model required to make a go of it.

http://www.trainsandtoys.com

I found it particularlly interesting that they do birthday parties. I don't know about the areas y'all live in but in my corner of southeast Texas there seems to be an unspoken competition to see who can give the grandest birthday party for the child.

A business model such as trains and toys seems to be required to survive in an area without the basements, such as Texas, to support "basement " hobbies such as model / toy trains and slot cars. I am afraid the the days of the of the small to mid-size town mom and pop shop are waining fast. Leaving as survivors those that happen to be within or within an easy drive of a major city of 500K or more population. I'm not sure an added internet presence is enough to carry a smaller town hobby shop.

Heck a slot car store with 2 or 3 routed wood tracks and a huge internet presence and following shut down not too long ago and this store was in Vegas. The store hosted an active series of forums. Even in forums sponsered by other individuals and companies that I dropped in, this firm be be favorably mentioned for price and service. It still was not enough to save them. I bought from them. I bought from Trains on Tracks as well and now they are gone.... Hey maybe the problem is me .... maybe I'm a jinx?????

Just my 2 cents and thoughts cause it sure seems like it would be satisfing to own and run a hobby shop.

Steve

[Charles Kegel]

Hi Terry

I agree with you and my shop would have a 30X20 room set aside for the store layout I feel that way one can have a hands on experience.

Charles

[Charles Kegel]

Hi okiechoochoo

The time was the 50s & 60s yes I had many nice peaces.

[lionelsuperotrack]

Sorry to say I wouldn't. No business could be tougher...............sorry to say.

Best, Mike

[tcripe]

I think more important than brand would be store "layout." I've been in four or five hobby shops and none have an operating layout. I don't mean a simple oval which two shops have, but one that showcases accessories and operating cars and that kids and adults can operate. Every shop has window space but static displays just don't cut it.
- terry

[okiechoochoo]

QUOTE: Originally posted by Charles Kegel

Question

When I was a kid my father was a master electrician and had a shop where he sold electrical supplies, but best of all he was a Lionel electric train dealer!

So as a kid my dad owned the candy store!

Charles,
What era was this? Did you have a lot of trains yourself. MY dad was very close friends to a Lionel dealer at Christmas time in the 1950s. I had a lot of trains

[okiechoochoo]

I think if you were going to run a train shop you should think maybe staying with HO and N acales mainly. They are the bulk of the hobby But if you decided to do O then by all means go with Lionel because of name recognition.

[Charles Kegel]

Say cbq991a

Boy you are thinking along the same lines I am and then some.

I’m taking notes!
charles

[Charles Kegel]

Hi 3railguy

Thanks for the very helpful input funny when you talk about making a profit that never even entered my mind.

I think the same held true with my father he had a good business, as do I now.

Your words of “The answer is fun. They love being surrounded by trains. They love making a deal. It's not a job for them. It's just what they do “ that sums it up!

Charles

[cbq9911a]

Up to 1995 or so a train shop could get by with one brand of train - Lionel. Today, it can't.

But, if I wanted a "best of everything" store, I'd start with Lionel. Then I'd carry Williams' engines and passenger cars, the MTH Z-4000 and DCS, Atlas, Ross, and Gar-Graves track, and Artista figures. I'd also carry K-Line's passenger cars and IMD freight cars - if I could get them. Finally, I'd carry K-Line's S cars, converted to Marx trucks, for the Marx operators.

In other lines, I'd carry the usual assortment of paint, scratchbuilding supplies, and tools. Plus all the electrical parts from Radio Shack.

[3railguy]

Electric trains just aren't popular in this day and age with adults and kids like they were when your dad owned an electric shop. Computer games have taken place of electric trains. Expecting to make a decent living on selling trains these days is almost a fairy tale unless you deal in large volume having at least $250,000 in capitol to start with.

A few train store dealers I know of operate their store as a side line to real full time jobs. Recently, oil prices have bitten into train budgets so severely, dealers were forced into taking on full time jobs to keep their stores afloat. Family or hired help run the store while they are at their jobs and the store makes only enough money to pay for a fancy vacation once a year....If that. Many dealers of electric trains deal out of their basements and are only open on weekends or by appointment.

The internet is not alone. You would be surprised at the number of internet dealers who do it as a sideline to full time jobs and barely break even.

I wouldn't even begin to think of surviving on one name but if it were the case, Lionel is the one name I would choose since it's a name familiar to many. Williams is easy to get into and priced to move. MTH makes good stuff but the name only strikes people who are already into trains. Your best bet is to diversify in O gauge and HO along with maybe slot cars and computer games. Don't expect to have any change left after paying your bills for at least a couple years.

One might ask, why do these guys insist on staying in buisiness making $5.00 or less? The answer is fun. They love being surrounded by trains. They love making a deal. It's not a job for them. It's just what they do.

[darianj]

I'd have to go with MTH since most of my peices are MTH and all of my problems came from another brand.

[Charles Kegel]

Thanks Allen

The way of doing business sure has changed from the days of my fathers shop.
Brick and mortar vs. Internet and the best prices.

Thanks
Charles

[Anonymous]

If you had to choose just one brand, your business likely woudn't last more than a few months. In fact, if you had to choose just one scale to sell, you would probably be in the same sad shape. There are exceptions, of course, but they are just that: exceptions.

[Charles Kegel]

In a way it is somewhat of a personal question, for example when I see folks ask what is the best switch or track.

But I must start somewhere.

Thanks for the input!
Charles

[Anonymous]

I would open an mth shop. There product is very good. I own 5 different Mth engines and have had no problems with them. I also like the fact that mth seems to be a more down to earth operation. Lionel is more of a large corporation which is harder to put a face to. but with mth Most of us know who Mike wolf is.

[BMRR]

Lionel.....100%.

Stan.

[FJ and G]

I'd open a Williams line; they've been good to me.

Additionally, it would be swell to have a K-Line collectibles section!

[Charles Kegel]

Thanks John O

For your input.

Just thinking with one line it would be easier to keep up with.

But on the other hand I would like to carry Ross & GarGraves, then I must say Atlas O has some wonderful products.

Maybe a multi line shop is the way to go????

Thanks
Charles

[Charles Kegel]

Thanks for the reply Dennis

Just an observation;

MTH does seem to have a nice operating system.

Yet Lionel has name recognition.

However I have apprehension about this lawsuit business.[?]

Thanks Charles

[johnandjulie13]

Despite all of the legal issues surrounding the brand, Lionel is still ubiquitous in the marketplace. But, like the old saying goes: "How do get a small fortune in model trains? Start with a large fortune."

One brand will not allow you to survive.

Regards,

John O

[dwiemer]

Lionel, without a doubt. It is what I grew up with and what I mostly know. I think if you are going to have just one brand, you should know as much as possible about it.
Dennis

[Charles Kegel]

Question

When I was a kid my father was a master electrician and had a shop where he sold electrical supplies, but best of all he was a Lionel electric train dealer!

So as a kid my dad owned the candy store!

Now for the question if you had a nice commercial store front and could open an electric train shop (but) had to choose one brand.

What brand would you choose?

Just wondering……………

Charles[?][?]