Help me help a Friends LHS survive and prosper

[Anonymous]

A guy opened a Trainshop across the street from my studio. Both being business guys in a small town we've become friends, and he is very responsible for me getting back into trains. He's been at it about a year now. And he realizes that he has made some purchasing mistakes, and also was the victim of his inexperience, and overzealous sales reps. Bottom line What are the must have kind of top 20 items you look for in a LHS. The stuff like the little stuff and the bigger that makes you like one LHS over another, and makes one look lame if they don't carry it. I don't mean Brass locos etc but A local hobby shop is handy when it carries... "fill in the blank" Scenery, electrical items, Kits, Rolling Stock, Couplers, ? you name it , the little things that make you get out your wallet on a Saturday afternoon ? Thanks for any feedback you can give me to give him ? One particular thing He's divided as to weather to carry mags. He doesn't want people to carry them around comparing his prices with mail order, and his prices are very good. Also not too scale specific. Right now he carries mainly "O" but is seeing that HO and N are more bread and butter, all year round sellers. Thanks again. Dave

[Anonymous]

I only have 1 LHS so I can't really say what makes one better than another. However, tell your friend to at least get into HO and N scale stuff. Might even want to add G or 1 gauge for the outdoorsy folk. I see as many people in that section as in the HO and N scale.
I would suggest carrying a decent amount of cars (both freight and passenger) as many people have different interests (I like the ACL/SAL/SCL roadname(which is hard to find) and don't buy much else but not many people do that).

Also, I would suggest getting some decent building kits in. Also, try to rotate them some to get different kits in. I don't like seeing the same kits that I didn't like last time be there over and over. If I buy all the ones I like, and you dont get more, that means I get them from someone else.

He might want to also carry a decent amount of track. Also different manufacturers too. Some people use EZ track, some normal sectional, some like different coded track, so don't just play up to one type.

As far as magazines go, if he doesn't want to carry stuff like Model Railroader, that's fine, but I would carry some of the magazines that have a lot of tips in them. Like the how to do benchwork and tracklayout magazines.

I hope all this helps. I don't like seeing LHS's go under.
By the way, I'm from southeastern PA... where's this shop at?

[egmurphy]

Let me express my opinion that friendly service is more important than stock in determining the final success or failure of the enterprise. Having said that, he obviously does need a decently stocked shop as a basis. Okay, here are some of the things I would suggest:

model railroad paints
scratch building materials (wood, plastic)
detailing parts
track and track accessories (sectional, flex, switches, roadbed)
tools
complete stock of Woodland Scenics products
couplers (like Kadee in HO or MT in N)
replacement trucks

QUOTE: One particular thing He's divided as to weather to carry mags. He doesn't want people to carry them around comparing his prices with mail order, and his prices are very good.

Very bad move not to carry magazines. Many times I've gone in my LHS and only came out with the magazine because I didn't really need, or couldn't afford at the time, anything else. But it kept me coming back in (before I smartened up and subscribed). The best LHS I know has a huge selection of magazines and railroad books, and even has a table and chairs where patrons sit, chat, and occasionally leaf through mags. Your friend may not have the space for that but he has to carry the magazines.

QUOTE: Right now he carries mainly "O"...

Beeeeepppp, wrong answer. I've got nothing against O, but if he wants to make a go of the business he better carry lots of HO and N.


Other ideas not necessarily stock related:
- make contacts with all model railroad clubs within a 100 mile radius and put out the word about the shop.
- consider offering a discount program to area model rr club members
- have a test track (at least an oval in all scales that he sells) available. A small layout would be better but at least a test track is a must.
- be sure the service is attentive and friendly, that goes for any assitants he might hire also.
- you mentioned his prices are good. It's unfortunate these days, but they better be. People are looking for ways to cut costs and he'll have a lot of competition from the internet, shows, ebay, etc. He probably won't make it selling at mrsp. people want to feel their getting a discount, even if he can't match the internet shop prices. That's where friendly service helps make the difference.


Okay, that's what comes to my sleepy mind at this moment. Good luck to your friend, we need all the LHS's we can get.


Regards

Ed

[eastcoast]

Good idea is for him to carry many different scales
in a large variety. If this is not possible to hold in shop,
he can be an on-line shop to get what modelers want.
Good idea is to offer discounts for regulars who use
his services.

[Fergmiester]

Scenery kits and refills (Woodland for one)
wheels 33" and 36"
Rolling stock low and high end
Buildings and structures easy and hard/wood and Plastic
Bridge Kits
How to books and videos
Video rentals
detail parts

You may want to suggest to him to put in a suggestion box so customers have a say.

As far as not having magazines that in its self may not be a good idea. I go to the LHS under the guise of "I have to pick up my magazine, back in twenty". I know I can get stuff for cheaper elsewhere and I have but I still get the bulk of my stuff at the LHS.

Especially the quick and dirty stuff.

Other items

specialty tools
used equipment
and a coffee machine in the corner

Just my thoughts
Fergie

[Anonymous]

I agree with Fergie. A suggestion box or a Customer Survey would be very helpful in determining what his customers and potential customers want.

I think the "How To" books and vids are a must. I do like the idea of video rentals, not only would this help people who are "in" modeling but might be helpful to those "just looking."

Also a mailing list of his current customers would be good. As an incentive to sign up for a mailing list he might offer a special one time discount or a gift certificate for a certain dollar amount. Then he could send out mailings and special notices of discounts, sales, new items in stock, close-outs, etc.

Special days could also be set aside for experienced modelers to come in and do "clinics". Area modelers could also be invited to bring their layouts (size permitting) for special displays and at certain times (Christmas comes to mind). Remember, "A picture is worth a thousand words", and there is nothing like "putting your hand on it."

[Morpar]

If at all possible, suggest a used equipment area. My LHS sells used stuff on consignment, seems to get me into the store every time I go near. There may not be any other reason to stop, but who knows what has shown up on the "consignment shelf"! That can also give him a better idea of what will move the best (or worst) in the way of stock without tying up his own capital. I would also encourage carrying magazines, as if nothing else I tend to walk out with a magazine too. Hope he can hang in there and keep his business going, good luck!

[Paul W. Beverung]

I have a shop that I've been going to lately. The owner is having health problems and is in need of support. He doesn't have a large stock of trains, but he is a friendly, personable guy. Very likable. So I'll say that a good, friendly demeanor will go along way. Next, find out what the area is doing, in what scales. Stocking a large selection is a very expensive proposition. My friend has a lot of old stock with old prices. I will usually pick up a kit or two, and some Kadee couplers. Agood selection of Kadees would be a good move. Best ,and cheapest thing to do is ask his clients. It is not possible to stock everything,so try and have most of what is wanted.

My best wishes to him. If I was in the area I'd sure give him my support. Paul

[Anonymous]

Some tips from a guy used to staff a train shop:

--As long as he's into O scale, have him stick with it and add inventory of brand new items. Definitely add HO, and not just a smattering. If you don't get to a "critical mass" in terms of inventory in a given scale, the guys who model in that scale won't make more than 1 visit. N is nice if you can get to "critical mass", but doesn't have the sales potential of HO.

--Absolutely, positively carry the full Woodland Scenics line. It's the most reliable year-round seller.

--Nobody but the biggest shops can carry a full line of locomotives and rolling stock in any scale. Stick to the favorite local railroads and--just about wherever you're located--Santa Fe. "Everything sells better with Warbonnet on it." And if you sell locos, a test track is a must.

--Carry model railroad paints, but carefully limit what you stock. Black, white, yellow, red and weathering colors sell well, as will paints specifically for favorite local roads. Everything else will gather dust. Best year-round sellers: Dullcoat and Glosscoat.

--Also be selective about detail parts. Lift rings, sun shades and snow plows are hands-down the best sellers. Customers are willing to special order more-exotic detail parts.

--In terms of structures, consider carrying as many residential and rural kits (and built-ups) as you can. You will gain sales to people who aren't model railroaders.

--Relatively-inexpensive vehicles are good sellers; the expensive ones are not. The Mini-Metals line is great.

--Magazines are a draw, but they produce only sporadic impulse purchases of other items (which is really why you would want to carry magazines). Put magazines at the back of the shop, where customers will have to walk right past the newest high-ticket items. I would consider MR, RMC, Mainline Modeler, Trains, and an O scale-specific monthly to be the best bets. Consideration should also be given to publicastions of historical societies of favorite local roads.

--Except for magazines, I would discount everything 10% across the board and would probably go to 15% on higher-priced individual items (especially on those with 50% markups). Give the discounted prices to everybody--not just "regular customers." Without discounts, they're not going to become "regulars." Save higher discounts for stuff that isn't moving. Put that on a "Sale" table or shelf near the new, high ticket stuff.

I'll probably have some more ideas later, but this should do for starters.

[chutton01]

"- make contacts with all model railroad clubs within a 100 mile radius and put out the word about the shop."

In regards to this, perhaps put up a bulletin board listing all the clubs' shows, sales, special events, with a shelf to hold their flyers (if any) - made it a kinda quid-pro-quo - you post their flyers, and they mention your Hobby Shop at their shows or open house (perhaps with a flyer from your hobby shop on their wall - couldn't hurt to ask). What, a cork bulletin board, some thumbtacks, and a shelf - $15.00 and ten minutes of work all total maybe
Also nice, next to this put ads, posters, fold outs etc of 'coming soon' products (ask the distributors if they have any such ads) - again, it couldn't hurt.

[Anonymous]

I'd say stocking some Athearn Blue Box kits is a good idea - these will help draw new modellers in and get them started. Also consider building a layout in the store - don't fini***he whole thing but build it to show the stages in construction. This can also be used as a test track for new purchases, and running trains in the shop will attract customers too. If you aim to stock enough to allow people to get started in a scale, as well as a few more exotic or premium items (BLI locos, for example), this should attract both newbies and established modellers.

If your friend decides to go into stocking G scale equipment (risky, as individual items are expensive and sometimes take a while to sell), then a layout of some kind would be an excellent idea - if he's accepting orders from customers for models there will probably be more if people can see what they're ordering. It might also be worthwhile keeping a few of the basic start sets and track pieces (Aristocraft and LGB) in stock if funds allow - these will probably sell well around Christmas and in the summer if the experiences of my LHS are anything to go by.

[Anonymous]

Have your friend go to the local bookstore and buy "The E-Myth" by M. Gerber. He needs to learn how to run a business.

[Anonymous]

QUOTE: Originally posted by davsachz

A guy opened a Trainshop across the street from my studio. Both being business guys in a small town we've become friends, and he is very responsible for me getting back into trains. He's been at it about a year now. And he realizes that he has made some purchasing mistakes, and also was the victim of his inexperience, and overzealous sales reps. Bottom line What are the must have kind of top 20 items you look for in a LHS. The stuff like the little stuff and the bigger that makes you like one LHS over another, and makes one look lame if they don't carry it. I don't mean Brass locos etc but A local hobby shop is handy when it carries... "fill in the blank" Scenery, electrical items, Kits, Rolling Stock, Couplers, ? you name it , the little things that make you get out your wallet on a Saturday afternoon ? Thanks for any feedback you can give me to give him ? One particular thing He's divided as to weather to carry mags. He doesn't want people to carry them around comparing his prices with mail order, and his prices are very good. Also not too scale specific. Right now he carries mainly "O" but is seeing that HO and N are more bread and butter, all year round sellers. Thanks again. Dave

davsanchz
I too would like to help and would offer this advice. Have you friend take some time to visit Caboose Hobbies, Allied Trains, The Original Whistle Stop, or many of the other great stores in this Great Model railroad nation. I am being serious when I say, try to duplicate the prosperous businesses no matter what market or level of that market you are trying to get stated in.

I know his funds are limited, but he could go on the internet and actually see what items are available in many of the large stores.

There must be some larger stores within driving distance for him to survey. Guess what the large chain discount houses stay up with the competition, they go to the competitive stores and check prices and look at displays to see if they can match or top the other store.

Car dealers do the same with advertisements and almost every business, Make that smart and prosperous businesses, also cross shop their competition.

[Anonymous]

Some very good ideas from other posters. I'd like to offer a caution on a couple of them, however.

1. Consignment sales are seductive to the retailer, because they don't tie up capital in the consigned inventory. However, local zoning regulations may prohibit consignment sales by a retailer. I know some train shops that have been put out of consignment sales for that reason.

Also, consignment sale proceeds should be segregated from other receipts (and held in trust) pending remission to the consignor(s). If the retailer takes in inexpensive items on consignment, the bookkeeping burden overwhelms the benefit of not investing in the inventory in question. I would strongly recommend against accepting any consignment item having a sale price of less than $50. Since the typical consignment fee is 20% of sales price on model railroad items, we're talking about a $10 profit tot the retailer--anything less than that ain't worth the hassle.

Used items are a big potential draw to a train shop (better than magazines) and can be profitable to the retailer if they are purchased outright by him/her. The rule of thumb is that the retailer should purchase with a view to selling at twice the cost of purchase, or better. (This is also the standard for antiques and collectibles.) Don't be shy about refusing offers of pure junk or filthy items. Clean, used equipment (even very low-end stuff) can be a bargain for the retailer and the end customer.

2. Blue Box Athearn (and equivalent MDC kits in HO) seem to be all the rage if you read the various threads and posts on this and similar forums. Posters by the scores bemoan the disappearance of these items from the LHS. Guess why it's happening? Because those puppies are shelf dogs. Only the local-road-favorites and brand new shake-the-box kits sell well. The old stand-by kits (some of which have been in production since the 1950s---I'm not making this up) can't be given away. A retailer who makes the mistake of stocking these mutts can only recoup a portion of this mistaken investment by Sale pricing them after an inordinate shelf-dwell time, or by building them up and selling them as ready-to-run (which isn't a bad idea).

[shawn-118]

If your friend is going to expand his business he should look at a well desinded web page. The local shopper will come once or twice a month but the person surf'in the net will look much more often. Have a look at www.nscalesupply.com it's a LHS that uses the net to sell used items. The net can provide him with the extra sales that could allow him to expand his business into other scales maybe even carring items that are special run from say deluxe innovations or some such company. This might not be what he's looking for but when you think about how many people use the net it's a place that one has to look at to grow a customer base for a LHS that the local area might not be able to support.