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Hobby Shop Closing... Franciscan Hobbies

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Hobby Shop Closing... Franciscan Hobbies
Posted by gmpullman on Sunday, February 2, 2014 12:30 PM

Yes, I know this subject has been covered pretty extensively here and that it is a sad state of affairs for both the business owners and the hobbyist who might want to visit such a shop.

The only thing that prompted me to post this one is that the statement that is on their website makes some interesting points about the hobby climate today... sort of a companion piece to the "where are we heading" thread.


Here's their statement:

My friends, sadly the era of Franciscan Hobbies has come to an end.

I have been given the responsibility as bearer of bad news, but I speak for Bill, John, and the entire crew.

The tight profit margins and reduced sales volume caused by the pricing policies of the distributors, suppliers, and the internet have left us with little to no room for the needed profit margin to remain in business in the city of San Francisco.

The blame game is useless because the fact is no one specific thing caused this. It was the preverbal death by a thousand paper cuts. In all honesty, our suppliers became our own worst enemy. While they sold to us, they sold the very same products on their own websites at below our cost. Of course the youth of today, as a whole, has little interest in a model airplane or a steam train, when they can play on a Ipad or a Xbox. This, coupled with the vast amount of cheap phony merchandise available to the masses on the internet, has spelled the demise of an “old school” establishment such as ourselves.

I share these details with you not to blame, but to explain how a 68 year old business can be slowly, but steadily, squeezed out of business. Its sad to say, but is a small consolation that five hobby shops in the bay area closed this year alone. This indicates it wasn’t something we were specifically doing wrong - its the hobby industry as a whole that’s doomed in the traditional sense of a brick and mortar store.

For me, and four generations now, Franciscan wasn’t just a store, it was a clubhouse, a ‘bar without the boos‘, a man cave, an after school hangout, whatever you want to call it. It was a place to share not only your hobby, but where discussions on world events, the city, and life in general could be heard. Not only are you customers, but many of you are our personal friends. We’ve talked to you though personal goods and bads, marriages and divorces, births and deaths. As the only old school hobby shop left in the bay area we were able to hang on and outlast the rest because of our very loyal following.

For me, this is deeply personal. At the age of 6 years old I first came into FHS. Seeing the airplanes on the ceiling ignited my passion for anything that flies. When my parents first let me take the bus by myself, where’s the first place I went on my very first solo bus ride? Franciscan of course! Over the years I bought R/C planes, John showed me how to wire my Lindberg PT-109, and I built countless 1/48 plastic kits. I share this story because it’s the norm, not the exception. Almost every one of our loyal customers have the same fond memories and stories to tell.

The decision to close was the hardest thing we have ever done, but we will remember all of the people and families who kept Franciscan Hobbies alive for nearly 68 years. We hope each and every one you continue to do whichever hobby you are into, not only for the love of your hobby, but out of sheer desire not to let the timeless skills of patience and craftsmanship be lost by today’s youth.

Noah and the entire Franciscan Hobbies crew.

Franciscan Hobbies 1946 - January 31st 2014

franciscanhobbies.comcastbiz.net/index2.html


Ed

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Posted by ATLANTIC CENTRAL on Sunday, February 2, 2014 12:47 PM

Seems like he is saying EXACTLY what i say every time this stuff comes up.

The old "distributor" business model is dead. If you cannot be big enough to buy direct, you can't make money in this business.

The elimination of the middle man has lowered the street prices of most products to levels just a few percentage points above what use to be "wholesale". The sall shops don't have a shot.

Sheldon

    

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Posted by galaxy on Sunday, February 2, 2014 1:07 PM

I hate to say it, but:

store sales for all retailers  were down DRASTICALLY this past Christmas season.

Were the customers just not buying?

NO...they WERE buying...

WHere were they buying then?

ONLINE, of course! SO Much so, that UPS could NOT deliver everything before Christmas as promised because their systems "could not handle" the volume.

Now the so called "online E-tailers" may not have had a better price  than the stores, and there is shipping costs, but it sure beat out the assumed "crowds" at the store, the "gas to run around", and it comes directly to your door. How convenient.

SO it is with the hobby. {people buy on line, due mainly perhaps to cost savings, but it also comes right to your door.}

ANd there IS the final point that youth of today don't want "grandpa's hobby" they want video games....Just like the youth of the 1920s no longer wanted "equestrian hobbies"  with the advent of the automobile...or "gentleman farming" wiht the advent of mass food production. 

THERE MY BE a "die out of the hobby', and with no manufacturer to manufacture such things as track, it further does not help the hobby to thrive.

But in the meantime, us "old geezers" {or whatever youth today call parents and grandparents} will still ENJOY it til the day we die!

Geeked

-G .

Just my thoughts, ideas, opinions and experiences. Others may vary.

 HO and N Scale.

After long and careful thought, they have convinced me. I have come to the conclusion that they are right. The aliens did it.

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Posted by selector on Sunday, February 2, 2014 1:17 PM

It is a growing trend.  People can't be bothered leaving home if they don't have to.  Driving a car even a few blocks is darned expensive.  We just didn't care before, but with so many scaping by to make ends meet, every serious consideration is being given a lot more thought and time these days.  In Canada, Best Buy is in bad shape, having just laid off several hundred.  Sears Canada laid of about 900 a month prior to Christmas (now there's a holiday wish for you!), and then laid off another 1600 just two weeks ago.  That number may not cause a heart-skip in the USA, but in much smaller Canada, t'is a very bad sign.

Even with shipping and handling, as Sheldon says, the middle man's loss is a big gain for both the consumer and the seller when the transaction takes place on line.  Who knows, it may even breathe new life into our respective postal systems.

I would be less than honest if I didn't admit to enjoying my hobby shop experiences.  Still, they did involve more than two hours away from home and a 50 mile round-trip drive.  That can only come under discretionary income, and for me the far better bargain is cross-border-and-wait-for-it.

-Crandell

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Posted by cedarwoodron on Sunday, February 2, 2014 1:17 PM

Reading the OP's post reminds me of when I was a kid, and all the aunts and uncles of my grandfather's generation were dying off- every few months, another funeral to attend. Other than "thank you for your service", as I say to other veterans I talk to (and the young ones of today), there is little to add to such a eulogy.

I am only 59, but perhaps- in my remaining lifetime- the distributors and manufacturers will also begin to die off and we may be left with going to local or internet "swap meets" to obtain increasingly rare (and pricier!) modeling materials and equipment. I hope that is not the case, but I have not been to a local swap meet (Yet) that was not full of other similarly-aged model railroaders and E-Bay's railroad listings appear to be growing, not shrinking.

Sorry for his loss, sorrier for the change in culture over time that has precipitated it...

 

Cedarwoodron

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Posted by richhotrain on Sunday, February 2, 2014 1:22 PM

In a sense, I wish this thread were locked as soon as it was posted. That way, we could simply read that message and reflect.  Any reply that any of us offers seems lame in comparison to the message posted.

Thanks for posting that message for all of us to read.

Rich

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Posted by BPoi on Sunday, February 2, 2014 1:33 PM

When I was a kid in Highland, Indiana, I used to love the occasional car trip--or more frequent bike ride of 4 miles--to G&G Hobbies in next-door Griffith, IN.  Not having lived the area in 20 years, I have no idea if they're still there, though I have my doubts.

But now as a 40-yr old who works in the semiconductor industry, I realize the internet IS the future of retail.  I understand that many of the older members here, and a (very) few of the younger ones, lament the decline of the local hobby shop where drinking free coffee and BSing used to be rites of passage, but the fact is that anything I can buy in a physical store is available cheaper and, quite frankly faster, over the internet if the shop wouldn't have had what I wanted in stock.  And the sharing of knowledge--hello, this forum--is faster as well.

 

To the point that personal mobile devices are the instigator of the supposed decline in model train interest (of which I'm not sure exists completely), the fact is that other aspects of hobby models have come way down in price.  I have a couple of Blade RC helicopters, as well as a way-over-the-top (for my needs) transmitter from Spektrum, simply because it's readily available, immediately fun, and doesn't take much space.  I don't know that it's a complete abandonment of physical hobbies in today's youth so much as it is that some hobbies--RC--have come so far down in price.  To blame PMDs for the decline in model railroading--such that that decline exists--is missing a larger point.

 

All of this is in my opinion, only.

 

Bruce

 

 

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Posted by CGW121 on Sunday, February 2, 2014 2:31 PM

The world we knew as kids in the 50's - 70's is gone. I was just commenting to my wife when she asked me what her phone number was, I have not had to memorize a phone number since the early 2000's. She of course has a different number than I do and we have no land line. The business model has changed as well. It is so much easier to run a small business from your home, and a lot less expensive, than it is to have a store of your own. We do a LOT of our shopping onlne as it is so easy, and easy to get carried away I might add.

 I do feel bad for the businesses that close up shop. I suppose in a lot of ways the Mom and Pop stores we knew as a kid have gone away, but also they are still here but now they are known as Mom&Pop.com. However I will always love heading into a hobby shop and seeing all the engines, rolling stock and other items on shelves.

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Posted by superbe on Sunday, February 2, 2014 2:41 PM

When My father started his oil business there were 13 oil distributors in the area, The bigger ones started buying out the smaller ones until a few years ago there were just 4.

I use to joke (brag) that there were the big 3 and me. Well the joke was on me. I should have sold out sooner.

The big get bgigger and the small just fade away ................

Bob

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Posted by dknelson on Sunday, February 2, 2014 2:41 PM

BPoi

... but the fact is that anything I can buy in a physical store is available cheaper and, quite frankly faster, over the internet if the shop wouldn't have had what I wanted in stock.  And the sharing of knowledge--hello, this forum--is faster as well.

All of this is in my opinion, only.

Bruce

I would only take serious issue with Bruce on two points.  Even the guys I know who purchase almost exclusively via the internet do that primarily for the big ticket locomotives and highly desired limited run rolling stock.  For the plain old work-a-day stuff like rail joiners, bottles of glue, extra couplers, and the like, they still go to the LHS, and will be upset if it closes.   But no shop can make a go just selling that little stuff.

And when you are in mid project and you need that certain size of Evergreen styrene strip, or that certain color of Tamiya rattle can paint, or those Kadee washers to make the coupler height come out correct, you want that ASAP and might even be willing to pay more for it.    If the LHS doesn't have it you curse the LHS.  Then you sometimes learn that even Walthers doesn't have it either.   But if the LHS does have it, being able to have it in your hand that day still has value. 

As to whether the sharing of knowledge on this forum is as reliable as what you might hear at a hobby shop I am reluctant to opine, being somewhat of a knowledge-sharer myself.  I will freely concede it is faster as a rule.  Have enough people answer one question and one of those answers is bound to be right.  Which one it is is still up to the questioner.

Dave Nelson

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Posted by BPoi on Sunday, February 2, 2014 2:53 PM

dknelson
I would only take serious issue with Bruce on two points. Even the guys I know who purchase almost exclusively via the internet do that primarily for the big ticket locomotives and highly desired limited run rolling stock. For the plain old work-a-day stuff like rail joiners, bottles of glue, extra couplers, and the like, they still go to the LHS, and will be upset if it closes. But no shop can make a go just selling that little stuff.

 

Dave,

 

I actually think we agree on this point as well.  Now that I live in Dallas, there's a Hobbytown USA a mile away--and I frequently go there for the little purchases.  It's great for that.  But that's not what's going to keep it--or any other non-franchised store in business.  In fact the local Hobbytown is where I bought my helicopters--somewhat higher dollar (and margin) purchases.  But for the previous 14 years in Maine, all hobby orders were strictly internet based simply due to location.

 

I will say though that I DO prefer to buy my train purchases (mostly Blackstone HOn3, but other items as well), from places that are still trying to make a go of it with a physical location.  I appreciate what they were to the hobby and are still trying to be, so I try to patronize them, but the 21st century reality is working against them.

 

Bruce

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Posted by BRAKIE on Sunday, February 2, 2014 3:38 PM

dknelson
I would only take serious issue with Bruce on two points. Even the guys I know who purchase almost exclusively via the internet do that primarily for the big ticket locomotives and highly desired limited run rolling stock. For the plain old work-a-day stuff like rail joiners, bottles of glue, extra couplers, and the like, they still go to the LHS, and will be upset if it closes. But no shop can make a go just selling that little stuff.

Only if that was true for all..

My closest shop is a 52 mile round trip so,when I see I am getting low on various modeling items I  add them to my monthly order..

 

If that shop would close I doubt if I would miss it since I only go there 3 times a year and look over the limited new and the old  stock..

Larry

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Summerset Ry.


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Posted by HO-Velo on Sunday, February 2, 2014 3:44 PM

Oh man, waited too long, Franciscan Hobbies was on my list of places to visit.  

Mom and Pop Hobby shops, corner grocery, hardware, butcher, lumber yard, barber shop, etc., going away or already gone.  As the old folk song said, "better start swimming or you'll sink like a stone, cause the times they are a changing."  Changing for the better, time will tell.

Regard,  Peter

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Posted by gmpullman on Sunday, February 2, 2014 4:30 PM

cedarwoodron

I am only 59, but perhaps- in my remaining lifetime- the distributors and manufacturers will also begin to die off and we may be left with going to local or internet "swap meets" to obtain increasingly rare (and pricier!) modeling materials and equipment. I hope that is not the case, but I have not been to a local swap meet (Yet) that was not full of other similarly-aged model railroaders and E-Bay's railroad listings appear to be growing, not shrinking.

Sorry for his loss, sorrier for the change in culture over time that has precipitated it...

 

Cedarwoodron

 

Cedarwoodron, When I see many of the Ebay listings showing various collections, older stock, unfinished kits, etc. it makes me wonder how much of this stuff is generated by estate sales, kids and grandkids selling off grandpa's "toy train collection"? That may have some role in the increase in volume.

This thread seems to have kindled some stories of fond memories of visits to the hobby shops of our youth. Of course it is not just the hobby shops demise that saddens us "old timers." Try getting a decent cheeseburger and hot fudge sundae at the Woolworth's lunch counter or have your oil checked and windshield washed next time you "fill 'er up.

Anytime my family was on vacation or I was travelling anywhere with my dad we would always get out the Yellow Pages and see where to find the hobby shops in town! My first trip to New York City (back in '66 on the E-Ls Lake Cities) one of the FIRST places I had to visit was Polks Hobby Shop (FIVE floors of Trains!)

These times they are a changin'. Better or worse... well, that's a mixed bag. Human interaction is losing ground fast! The internet, the video screen at the take-out window, ATM, self serve gas, Amazon... they all remove the human element as is true with the closing of the LHS where you could occasionally chat with a fellow hobbyist or if you were lucky enough to have a store where the owner was genuinely a railroad modeler. 

Aah, to reminisce... too bad the Wayback Machine is broken.

Take care, Ed

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Posted by IRONROOSTER on Sunday, February 2, 2014 4:33 PM

I am my own LHS.  I stock kits, couplers, trucks, paints, wood and plastic shapes, strips etc.  I do this because the hobby shops closest to me don't.  They sell mostly 3 rail O gauge with a smattering of RTR for HO and N all at list.

My "distributors" are train shows and internet businesses.

Enjoy

Paul

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Posted by galaxy on Sunday, February 2, 2014 5:00 PM

BRAKIE

 My closest shop is a 52 mile round trip so,when I see I am getting low on various modeling items I  add them to my monthly order..

 

If that shop would close I doubt if I would miss it since I only go there 3 times a year and look over the limited new and the old  stock..

 

Now the closest LHS to me is a 45 minute's Highway drive away, AND they have a website too, at  the well-known and popular wholesaletrains.com!

I have only ordered stuff online for the last 3 years IF I needed it and had not been in their brick and mortar store since 3 years ago.

Its a toss up to pay for gas to go or to pay shipping. Of course if it is not on the shelves, then the only way to get it is to order online and wait the week for it to get to me.

Here are the things I noticed when I went there for in-stock Xmas items for a deserving 4 y/o:

1} they had moved, and I failed to notice it online...only down the street, to Maybe? a bigger, better {probably cheaper} building. They said they moved about 3 years ago. They chidded me about not visiting more often!

2} their stock of MRRing stuff had GREATLY DWINDLED from the previous store. They used to have a "wall" of shelves and shelves of HO Scale RR cars/locos about 6 foot tall and an aisle in length! NOT so now, just a single shelf stacked no more than about 6 RR cars/locos high.

3} they used to have quite a bit of stock in N scale equipment, but not now just a half shelf of stuff.

4} they used to have BOXES and BOXES AND CASES of ATLAS track and other brands, but now thanks to the Atlas shortage they had just a  few  short peg hooks of track...

5} They DO carry other hobby items such as RC planes, but that stock, too, looked "thin".

I had checked the stuff for "next day", meaning in stock, for the items I want and purchased so all but one item was there on the shelves, but I wouldn't have had much "choice" anyway "free picking".

6} I did not see ANYHTING for me to "have to have" or "want" to make me pull out the credit card for myself. In fact selectiosn were limited ot boring cheap stuff....

Signs of the times...{?}

Geeked

-G .

Just my thoughts, ideas, opinions and experiences. Others may vary.

 HO and N Scale.

After long and careful thought, they have convinced me. I have come to the conclusion that they are right. The aliens did it.

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Posted by Michael6792 on Sunday, February 2, 2014 5:27 PM

When I was a kid, there was a hobby shop about 1/2 hour from my home. That is where I purchased everything for my frst layout. At that age, I pretty much only worked on the railroad in the winter months as in the summer there was too much going on outside. Then one year we went there just before Christmas & I found that it was now a video & hobby shop with very few modeling supplies. This was in the early 80's. Then I found another about an hour away and by this time I had my liscense so I could drive myself, unfortunately after buying a car, gas, and insurance there wasn't much of a train budget left. Last time I went there, in the early 90's, the store was a sporting goods store. When I moved to a different town a year later there was a nicely stocked hobby shop, unfortunately the owner wasin his 70's and when he retired there was noone to take it over.  Once the internet took off I was able to get modeling supplies again without a 3 hour one way drive. 

Within the last year, I did find another hobby shop in the town I live in. It seems that the owner opened it within the last year. Suprisingly, this owner started by selling on the internet, and eventually had so much buisness that he decided to open a brick & mortar store. It's not a spectacular shop with mostly RTR equipment & very little scratchbuilding supplies. He didn't say it but I suspect that hiss internet sales supports the store. It may not be the greatest shop but it's refreshing to see a hobby shop opening in this day & age.

Michael

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Posted by HaroldA on Sunday, February 2, 2014 5:35 PM

First of all, this is a sad letter but it is indicative of what is happening in so many places.  The writer lists several of the reasons we have discussed many times here before and we all can add to the list. 

The fact is that many of the institutions we knew in our younger days are slowly dying.  I can remember there being a Memorial Day parade in my hometown which was a  huge event and involved hundreds of people.  Today it is almost nonexistent because the people who supported it have died out.  Another personal example is my church - 30 years ago it had over 4,000 members - it now has 1600 and is in a long painful decline.  We all can name similar things.  When it hits home like the closing of a favorite store, restaurant, hobby shop, hardware or other much loved place it is a sign that the world and marketplace are all changing. 

And unless there is concerted effort of the part of many people these closings are going to continue.  There is a much loved book store located in a resort city in northern Michigan that was in danger of closing when the big name stores opened in the mall.  This downtown store survived because people simply refused to let it die and now it is going better than ever.  Other mom and pop stores are no different and one way they may survive is if we continue to give them business.

I was the person who recently posted the question about the future of the hobby and I received as many opinions as there were responses.  We shouldn't kid ourselves that the hobby is also changing and if it is to survive for another generation then instead of beating ourselves up for once again discussing the issue, the bigger question is what can all of us do right now to help preserve it.

 

 

There's never time to do it right, but always time to do it over.....

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Posted by alco_fan on Sunday, February 2, 2014 5:52 PM

Franciscan was my local hobby shop for a few years when I lived in the city. Not to blame the victim completely, but many of their problems were self-inflicted in terms of inventory, failure to address the Internet, etc. This has been coming for a while.

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Posted by alco_fan on Sunday, February 2, 2014 5:59 PM

cedarwoodron
I am only 59, but perhaps- in my remaining lifetime- the distributors and manufacturers will also begin to die off

The manufacturers disappear? Not a chance. New ones are starting up (Rapido, et al), including hundreds of small ones that could not have happened without the Internet.

Distribution is changing, for sure. But the sky is not falling and the hobby is not dead. For people who actually _do_ model railroading, the hobby is changing (and _surviving_). For people who spend most of their time only _talking_ about it ... well, that is another story.

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Posted by crhostler61 on Sunday, February 2, 2014 5:59 PM

I mentioned this on another thread

I work for Amazon.com and I've come to understand this issue pretty easily having the chance to see things from the standpoint of being a consumer and employed by a supplier. Consider how many businesses larger and small have disappeared as a result of my employer selling direct and much cheaper than a localized store. I am not pointing the finger at them, they are only doing what we've wanted.

My LHS closed in November. That leaves me to buy from online retailers. Go figure.

Mark H 

Modeling in HO...Reading and Conrail together in an alternate history. 

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Posted by ATLANTIC CENTRAL on Sunday, February 2, 2014 6:06 PM

alco_fan

Franciscan was my local hobby shop for a few years when I lived in the city. Not to blame the victim completely, but many of their problems were self-inflicted in terms of inventory, failure to address the Internet, etc. This has been coming for a while.

 

Inventory? How can a store have inventory when everything is presold "limited" production?

Address the Internet? How? lower prices to below their cost? Read my earlier post. 

The only brick and mortar storesthat will survive will be tohse big enough to buy direct from the manufacturers - I conld see this comming 35 years ago.

Sheldon

    

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Posted by alco_fan on Sunday, February 2, 2014 6:51 PM

Sheldon, I know that you believe that you know everything _about_ everything, but in this case you cannot know the situation at all -- not that it would ever keep you from making a pronouncement.

Franciscan had old tired inventory they would not discount to move out to make way for other stuff. They were late to see the Internet as a marketing option rather than view it as a competitor. Note that they sold a lot of RC stuff and other hobby goods, so this was not a model railroading specific shop any longer -- nor is the closing a model railroading specific problem. Not to mention that the real estate got very expensive.

But now I will withdraw and allow those of you who _never set foot_ in the shop to explain what went wrong there.

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Posted by BRAKIE on Sunday, February 2, 2014 7:18 PM

alco_fan

Sheldon, I know that you believe that you know everything _about_ everything, but in this case you cannot know the situation at all -- not that it would ever keep you from making a pronouncement.

Franciscan had old tired inventory they would not discount to move out to make way for other stuff. They were late to see the Internet as a marketing option rather than view it as a competitor. Note that they sold a lot of RC stuff and other hobby goods, so this was not a model railroading specific shop any longer -- nor is the closing a model railroading specific problem. Not to mention that the real estate got very expensive.

But now I will withdraw and allow those of you who _never set foot_ in the shop to explain what went wrong there.

 

As Paul Harvey would say "Now you know the rest of the story."

I alway said there's two sides to every story.

Thanks for the "rest of the story."

 

Larry

Conductor.

Summerset Ry.


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Posted by -E-C-Mills on Sunday, February 2, 2014 7:20 PM

As far as being able to go hang out at the hobby shop and shoot the breeze, in a way, were doing that right now, only its in our own houses.  Not quite the same, but, we are hanging out now and doing it internationally.  The hobby shop, in the form of the world wide web is also available to us internationally.  It might take a week to get something but its all available, at least to shop, 24/7.  If you have stuff to sell, you can, internationally.  Of course the next huge change in our hobby will be high resolution table top 3D printers.

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Posted by ATLANTIC CENTRAL on Sunday, February 2, 2014 8:58 PM

alco_fan

Sheldon, I know that you believe that you know everything _about_ everything, but in this case you cannot know the situation at all -- not that it would ever keep you from making a pronouncement.

Franciscan had old tired inventory they would not discount to move out to make way for other stuff. They were late to see the Internet as a marketing option rather than view it as a competitor. Note that they sold a lot of RC stuff and other hobby goods, so this was not a model railroading specific shop any longer -- nor is the closing a model railroading specific problem. Not to mention that the real estate got very expensive.

But now I will withdraw and allow those of you who _never set foot_ in the shop to explain what went wrong there.

 

Alco fan,

You are correct, I don't know anything about the shop in question, but based on the info the owner provided, and the info you provided, and my years working in and managing hobby shops, and my many years being self employed, I have a pretty good idea of the problems.

And yes some of them may well be self inflicted by the shop owner.

But selling off slow moving inventory at little or no profit - assuming that lowering the price even makes it move - is not a magic bullet for a store of that type. True, any business needs current inventory that people want, but the modern idea of closing out everything that is not flying off the shelves flies in the face of a "customer service" business model of a small shop. And selling off stuff at no profit because you think it is dead inventory - well the next customer in the door may be looking for just that item..........

And, it creates an expectation of even more discounting, discounting that I explained before they simply can't do and still make a profit.

As for the internet, maybe they lacked anyone with the knowledge and did not feel they had the resources to hire such a person? 

AND AGAIN, unless you can buy more product, and buy it direct from the manufacturers at lower prices, being on the internet is of marginal use - except maybe to sell that "dated" inventory to people on the other side of the country who may be willing to pay top dollar for that long out of production "new old stock" item.

It takes money, and lots of it, to buy direct from the likes of Bachmann, or to get distributor pricing from Walthers, Bowser, Digitrax, or whoever. In fact, from a pricing /marketing standpoint the small dealers only have one true friend in the list of big boys in this hobby - Athearn/Horizon who sells at basically the same price to all retailers and does all their own distribution.

So it does not matter if you are Train World or some mom and pop shop, they both buy Athearn at prices close enough to the same to be able to be competitive with each other.

Back in the good old days, all that stuff you called "tired inventory" was why I went to places Gilberts in Gettysburg, MB Klein, or other long established stores. Sure new releases are nice to see, but I want depth of inventory where I shop, or I would just rather buy from www dot send it to me now.

Mabe the owner or owners simply did not want to risk their houses, or life savings to "move into" the changing market of hobbies? Who can blame them. There is and old joke amoung hobby shop owners - "how do you make a small fortune in the hobby business? - start with a big one"

It is a tough business - it was a tough business when you could get retail prices, and a 10,000 sq ft store could hold most of the available products on the market. Now you need a super market sized store, you have buy direct so you can discount, and you have sit on tons of stuff to have depth of inventory because of buying direct and "limited production" in China.

And you mention real estate - retail rents can kill these kinds of businesses- only hope is be in a low rent area or own the building - owning the building, that is part of ther secret of several of the big name suppliers talked about on this forum all the time - they have no rent, no mortgage, their owners paid for the land and building decades ago. How do I know this? Oh yea, that's right, I worked in this busienss and know these people.

I will repeat my offer from a while back - I just need 10 of you to each put up one million dollars, and I will open and run the best full service, discount model train store you ever saw. Who's in? Oh, you have to wait 5-10 years for any return on that money...........

Sheldon

 

 

    

  • Member since
    September 2004
  • From: Dearborn Station
  • 24,014 posts
Posted by richhotrain on Monday, February 3, 2014 5:07 AM

In some ways, this thread ties in with the Where Are We Headed thread.

 

Does the demise of the LHS spell the doom of the model railroading as a hobby?

 

Not necessarily, at least not immediately, but it is a cause for concern, IMHO.

 

Here is why I say that.

 

I had American Flyer trains as a kid, then stepped away from model trains for 45 years, before getting back into the hobby in early 2004.

 

On a lark, I visited one of my three LHS and purchased a steam engine, a DC power pack and some sectional track.  I built a small oval on a 4' x 8' piece of plywood.  Within a year, I had expanded to a DCC powered 25' x 12' layout and landscaped it.  All with the help of the LHS owner and his sidekick.

 

True, there were some old guys who hung around the store, drinking coffee and BS'ng, but not me.  I constantly visited the shop, bought merchandise, and asked questions about electronics, structures, landscaping, you name it.  By the end of that first year, I had joined this forum at the suggestion of one of the guys at the LHS.  The forum supplemented my increasing knowledge base.

 

If I decided to get into the hobby today, a mere 10 years later, all three of my LHS are now closed and gone.  So, I would have nowhere to go to get started.  I would not know about the forum.  I could not accomplish over the next 10 years what I have accomplished over the past 10 years.  So, how is a young kid going to get started and progress in the model railroading hobby?  In my opinion, it ain't gonna happen.  The loss of the LHS will eventually prove fatal.

 

Rich

Alton Junction

  • Member since
    October 2001
  • From: OH
  • 17,574 posts
Posted by BRAKIE on Monday, February 3, 2014 5:28 AM

ATLANTIC CENTRAL
But selling off slow moving inventory at little or no profit - assuming that lowering the price even makes it move - is not a magic bullet for a store of that type. True, any business needs current inventory that people want, but the modern idea of closing out everything that is not flying off the shelves flies in the face of a "customer service" business model of a small shop. And selling off stuff at no profit because you think it is dead inventory - well the next customer in the door may be looking for just that item..........

And by doing that your customers goes elsewhere for their needs while you wait and wait and wait and wait some more to sell your dust covered stock to  modelers that may never come..

Which is best to mark it down and sell it or go out of business and watch your stock take a big loss on the auction block?

Larry

Conductor.

Summerset Ry.


"Stay Alert, Don't get hurt  Safety First!"

  • Member since
    October 2001
  • From: OH
  • 17,574 posts
Posted by BRAKIE on Monday, February 3, 2014 5:39 AM

richhotrain
So, how is a young kid going to get started and progress in the model railroading hobby? In my opinion, it ain't gonna happen. The loss of the LHS will eventually prove fatal. Rich

I think your underestimating today's youth..They're very savvy when it comes to finding things out..

98% will know to type in "model train forums" for a google search or head to Face Book and do a search.MR still mention their forum and MR can be found in big box stores and some convenience stores..They can even go to You Tube and find tutorials.

Larry

Conductor.

Summerset Ry.


"Stay Alert, Don't get hurt  Safety First!"

  • Member since
    September 2004
  • From: Dearborn Station
  • 24,014 posts
Posted by richhotrain on Monday, February 3, 2014 5:52 AM

BRAKIE

 

 
richhotrain
So, how is a young kid going to get started and progress in the model railroading hobby? In my opinion, it ain't gonna happen. The loss of the LHS will eventually prove fatal. Rich

 

I think your underestimating today's youth..They're very savvy when it comes to finding things out..

98% will know to type in "model train forums" for a google search or head to Face Book and do a search.MR still mention their forum and MR can be found in big box stores and some convenience stores..They can even go to You Tube and find tutorials.

 

Sure, today's youth can do all of that stuff, but you are overestimating the amount of effort that it takes beyond getting started.  Anyone starting into the hobby today, absent a LHS, a buddy who is into model railroading, and/or a local club, is faced with an enormous learning curve.  It is not insurmountable but for many, if not most, it will not be worth the effort without the physical inspiration to pursue the hobby.

To simply say that today's youth is computer savvy is to miss the point. The LHS provided the physical presence of sample layouts, inventory, and on site expertise.   It is pretty hard to get excited about the hobby when all you have to go on is a laptop or a mini-iPad.

Rich

Rich

Alton Junction

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