Would You Open a LHS?

[ARTHILL]

I think it is a better dream than reality. My LHS may be an exception and I hope he hangs tight. I really like going in there. I hope he is making a good living. I like retirement at the moment.

[Javern]

I would be more inclined to open a unique type of hobby store. perhaps a book store and half train hobby store. Include internet sales also

[Big_Boy_4005]

I would have to agree with those who said no. I've worked in a couple of hobby stores, and was never envious of the owners.

MA mentioned overhead in his original post. Has anyone ever noticed that some of the best hobby stores are in some of the worst neighborhoods or buildings?

[Anonymous]

I have done a lot of research on opening a hobby store here in Pittsburgh including visiting about 20+ of them in the area. I have been on the fence because there are people that do make money at it. SO my answer is maybe.

I have two questions that I still am working on getting answered so maybe people can post answers to these in this thread.

1) What do people go to the hobby store for?

2) Why wouldn't someone go to a hobby store for?

Regards,
Mike

[Adelie]

No. I can divorce my attachment to the hobby from the business end of it. I'd be entering a market that is on the decline right now and no real indication that it is turning any time soon. It does not sound like a winning business model to me.

If somebody told me I had to, here are a few ideas:
1) Work to develop a name in a specialty (DCC, general locomotive repairs or improvements, layout design, etc).
2) Price some things as leaders that will draw people into the store.
3) Keep an urn of coffee handy, a pitcher of water full and maybe some tea or lemonade to make people feel comfortable.
4) Get the online business running immediately.
5) Get rid of aging inventory through sales and finally listing the dead inventory on ebay. Turn the inventory instead of throwing it birthday parties.
6) Have an operating layout or two, space permitting, to draw interest. Moving things draw attention. I even know of one store that has operating sessions on their layout (after hours) almost like their own club. She's been in business a while and seems to be doing okay.

If I won the lottery and had time and money to burn, it might be an interesting thing to do, but then I would not have to worry about turning a buck. Promoting the hobby could be a hobby in itself. But as a business, I think you pretty much summed up the challenges.

[Anonymous]

NO. I would open an online LHS.

[brothaslide]

I have heard it said that making a business out of your hobby takes all the fun out of the hobby. If I was independently wealthy, I would consider opening up a store and hiring some staff. We have no LHS where I live. That would keep it fun because my lively hood would not be dependent on sales. Consider this, most hobby shops are open on the weekends. Would you want to give up your weekends just to manage the store - NO WAY!!!

[MAbruce]

There have been numerous topics over the years lamenting/praising the role of the Local Hobby Store (LHS). But I’d like to throw a question out there: If you had the necessary starting capitol, would you open a (stand alone) LHS?

My inclination would be NO. I think the overhead would be too costly to compete with on-line/mail order stores. Besides rent & utilities, I think the current distribution model would kill my store pretty quickly. There are just way too much “middle-man” costs that come with all sorts of complex terms and conditions attached.

Add to this that even with a good local market I would be competing against on-line stores that reach into a far bigger market – the world! They can even do this 24x7 while my store would be open only during retail hours.

So what do you think? Am I wrong? Could you make a new LHS work?