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I know this is simply anecdotal, but I find it interesting.

 

The two hobby shops dedicated to trains in my vicinity (50 mile radius) that have closed in the last couple years discounted regularly.

 

The one shop that is flourishing, has always, even with the competition, gotten list price for everything.

 

I don't know what it means, just throwing it out there.

Outside of our little enclave of OGR, is price really the overriding factor in where hobbyists do business?

 

I will give my own answer that doesn't speak for anyone else:  The full price shop is always staffed with friendly people who act like they want you there.  It's clean, well lit, and inviting.

 

The two discount shops were always like walking into an tomb.  The staff(maybe owner) always seemed distant and less then happy.

 

Is there a correlation? 

 

Yes, I know there are shops that heavily discount AND treat you like royalty.

I'm simply talking about what was local to me and my observation.

To sum up:

Full price shop still open, loves their customers and show it.

Discount shops closed up, no real customer service in all the years I tried to shop with them.

 

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Originally Posted by EscapeRocks:
 

I will give my own answer that doesn't speak for anyone else:  The full price shop is always staffed with friendly people who act like they want you there.  It's clean, well lit, and inviting.

 

 

Bingo......My LHS is competitive with ebay and the internet. He also has nice used items. He has a big store with folks that know what they are doing and always ask if you need help. Good prices and service can be done but it takes effort.  Modern newcomers to any hobby want folks to help them and be informed. A dusty old store with good prices alone will not fly today.....

When I get service with a smile I don't have a problem supporting the LHS.  However when it is not a pleasant experience I don't.  The reason we have no LHS's in my area is because they forgot to treat the customers the way they should.  Not talking about price but attitude and their biased brand loyalty.  Each manufacturer makes good and bad....I have experienced both.  Being in Business for 33 years the one thing I know is that you have to make the customer feel special and appreciated.  If you don't you will be lookng for a job.  The rule I have used is simple...I treat the customer the way I want to be treated when I purchase.

SIMPLE. 

True here too.  The nearest shop to me closed several years ago and had an unfriendly owner and an unfriendly worker who ran the place when he wasn't there.  He did have some "regulars" that sometimes were there cluttering up the place just visiting with him, but transients weren't included.  They looked at you like you were from Mars.  You had to ask to be helped.  It was poorly stocked many times I went there for supples, i.e. the rack holding what I wanted would be empty.  Much of his rolling stock was dusty and old.  Eventually folded up.

.....

Dennis

The 2nd to last time I went to my LHS I tried to pay for my purchase with a credit card. They don't accept the credit card I use, but instead of just telling me that, they asked me why I don't have one that they do accept. Well, everyone has a bad day, so I went back with cash the next week to get what I needed...

The next time I got to hear the owner talking (to a customer!!!) about how none of their local customers have much "loyalty" and how most of their sales are to out of state customers. I made my purchase, and on the way out the door I noticed they had a Polar Express set for $150 more than I paid for mine (from Amazon).

I used to feel at least a tinge of guilt for ordering online instead of buying from a LHS, but no more...

A comment regarding a LHS that discounts vs. one that sells at retail.

 

A number of years ago a highly respected member of the retail firearms industry commented on the financial impact of discounting. He stated that a full-service sporting goods store that offered a 10% across the board discount would have to increase its gross sales by 40% in order to achieve the pre-discount level of gross income. That is a tremendous increase in sales activity, one which I would think a LHS would have great difficulty achieving.

 

While the numbers may not exactly fit today's retail environment, I am sure that there is a strong element of applicability in his statement.

 

And something to maybe keep in mind as we patronize our LHS.

Having been workig in the retail industry for over 30 years I will state this one, hard, and real fact:

 

Price only becomes an issue when service does not meet expectations.

 

So, the next time you are thinking that the price is an issue, is it really? Probably not because had you gotten the service you expected and deserve then price would have never come into play.

One thing that is mentioned here a time or two is how do people get treated by their local hobby shop. That I think has more to do with how long a place stays open.

 

It's like what has happened to the US car industry; when you don't care about your customers somebody will care to and will fill that void. The Japanise car companies moved into the US car market more fully because they offered what the US companies didn't offer, and that is service after the sale! You correct mistakes with your product and not pass on the cost of repair to the customer, in turn that equals customer loyalty. The Japanise car companies seem to take care of their customers better than the US car companies, at least that is my opion!

 

Maybe I seem to be tuff as a customer, but I feel that the customer is the one who will make or break a company in the long term. If you act like been counters as some call it, a.k.a. money mongers your company goes away quickly. Remember customer service and your customers will return to you more often.

Sorry if what I say seems to be harsh but that is the way I see it and what is going on in this country as far as cutomer service goes.

 

Lee F.

Within the past five or six years the eonomy has been bad, so some hobby shops have gone under for that reason.

Here in West Palm Beach at least two hobby shops have gone under and another has changed ownership. BT&L Railroad(hobby shop) went out about three years ago right before Christmas, I forget the other hobby shops name.

 

Anybody know why Orange Blossom Hobbies in Miami FL went out over seven years ago? I know that was a very large hobby shop.

 

Lee F.

Hobby shops are no different than any other business.  There are good ones and bad ones.  If price is your sole determining criterion, you might just as well stick to online buying.  But if some things in life mean more to you than just price alone, it's well worth the time and effort--and even the driving expense--to find a dealer whose establishment you look forward to visiting and whose personality and business practices matches your expectations.

 

And please be a good citizen of the hobby.  Don't wander into a train store; take up the dealer's time with a series of questions and requests to examine items; and then walk out and order the thing online.  That is the kind of customer every dealer dislikes the most, for very obvious reasons.

I would like to support local business and I do when I can but local is now within a 40 mile radius. Nothing better than driving 40 miles to see 10 or 15 O Gauge cars and a few other things. I like a Saturday afternoon impulse buy, but it doesn't happen anymore. Inventory is like musical chairs nobody wants it when the music stops. The I can order it for you and have here tomorrow doesn't work because I can do the same thing and get it delivered at home for much less.

All of my online retailers are a direct result of their Ads in OGR and sponsorship here.

 

Gentlemen,

   Allen makes a great point, long ago both Frank at the Iron Horse Hobby Shop and Dave owner of Bill & Walts Hobby Shop treated people more than just well, and their business sold lots of different trains.  Frank was so great with my deaf daughter, even learned sign language to communicate with her, and in the early 70's that was almost unheard of.  Dave Owner of Bill and Walts played with her on the floor of his big building, located on the BLVD of the Allies in Pittsburgh, after he closed up in the evening.  You can't purchase that kind of personal treatment on line, can't be done.  Frank runs trains in Gods big train house now, but Dave still has a small shop in White Oak, Pa.  Price means something but owners like these two

made the Train Hobby a very special and personal experience.  We need more like them today.

PCRR/Dave

 

Frank owner of the Iron Horse Hobby shop explaining President Reagans,

Standard Guage American Flyer Silver Presidential Train to the Train Club members.

Frank owned the exact same train and had it on display in the up stairs club house.

I wish I had taken a picture of it, a foolish mistake on my part.

 

Last edited by Pine Creek Railroad

A factor that no one has brought up is the difference between a shop whose owners rent the space, and those who own their own building. I suspect that many of the successful ones are owners, not renters. It would be interesting to find out about the good ones that have been mentioned.  Renting is a sinking ship, for many reasons. Ownership frees up capital, in the long run, and offers tax breaks and other advantages. It also gives the owner a vested interest in keeping the place neat and clean. Just sayin'...

I try to buy localy, and thankfully we have an excellent LHS that stocks a good selection of newer O gauge stuff, mostly Williams, Lionel and MTH.  Some is second hand thru dealer friends of his, other is brand new.  Pricing and customer service is excellent as long as you deal with the shop's odd hours.  The owner still teaches school full time, so the shop is only open a few evenings and Saturday.  But living only an hour from Indianapolis helps with many more shops.  Most of the shops that I have seen struggle or go under wouldnt know what customer service was if it slapped them in the face.  Nobody goes in a shop to be insulted, engage in a policital debate or just hear rants about how bad the hobby/sales are.  Debate that with your regulars at other times, not when new customers are in the shop.  There is a shop not far from my in Arcadia, IN that has been around since I was a little boy, owner is almost 90 now.  Many guys into Lionel stop just to chat with him, and usualy go home with something new to add to the collection.  I was his repair technician for many years till he partial retired and shut it down for awhile.  Its back open again, but not as deeply stocked as back then.  At one time it was like a mini Madison Hardware with Lionel stacked to the ceiling and only narrow walkways to get around.  Shops that can both be pro active in customer service, competitive in pricing as best they can.  While they might sell near MSRP, if a guy is buying a bunch of stuff and dropping some $$, make him/her a package deal.  It might not be much but it goes a long way to establishing good customer relationships that last and become repeat shoppers.   Out of line prices and arrogant owners/staff is the quickest way out of business, doesnt matter if you sell at shows or at a shop.  Merry Christmas everybody!    Mike and Michele T

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