Neighborhood Train Shop

I would suggest you run the numbers, then run the numbers again. My understanding is that o gauge retail has very low markup compare to most retail. If the margins are low can you cover all the operating expenses including salaries?

Jim

You might also want to talk with fellow forum member Dave Minarik.  Dave's Mercer Junction shop has only been around for several years or so, but it sure does appear to have developed a fine reputation and a loyal customer base (including a steady stream of new customers).  Dave's talents extend way beyond operating a train store, and his personality is precisely what one likes to see in the owner/operator of such an establishment.  He also has a first-rate store layout where customers are welcome to test out anything they buy.

The same thing happened to the Discovery Store in Harborplace in Baltimore. The store was always crowded but it was mostly people and their kids just playing with the stuff in the store, its a Noodle Factory now I believe.

If you were opening a restaurant or a deli LOCATION LOCATION LOCATION is a big factor but not many people are going to walk by a train store and say "Hey let's go get us a train set", most of the walk ins are going to be Lookie Lous killing some time, a very small percentage will actually buy anything and I'd bet most of those will already be in the hobby to begin with.

 

Jerry

Pennsy Dave, AMC Dave and Pine Creek Railroad,

Thank you for you kind words. Your words sure made me feel good. It's wonderful not to be forgotten.

Jim, I see no chance that you will be forgotten. Your knew how to treat your customers and that is not forgotten.

 

And once you got out of the business, you did not forget about your friends. You are an active participant on the Forum and stay in touch with our hobby. Not many others do this. Good for you.

I have been always told never... never never never start a business that is your hobby.

I don't completely agree with that.  In my long years in the hobby I have met a fair number of people who love the hobby as well as the business of the hobby (in some respects I guess I'm one of them, although in a somewhat different way).

 

Granted, just having an abiding passion for the hobby is not anywhere near enough to spell business success.  There's a whole lot more required, and anyone wanting to make a hobby into a business needs to go in with both eyes open and both feet planted firmly on the ground.  There's also a good bit of homework required before making the decision, including a solid and realistic business plan.

 

Yes Allan... you are right. Thanks for sharing.

Brandy,

 

If most of us currently have relationships with current distributors/shops, why should we stop purchasing from them and start purchasing from you?

This may seem like a silly question, but who do you see as your customer base?

Local mall traffic?

There is a reason why Train shops are not found in malls.

It's ok to have a passion, we all do. 

Good luck in your quest.

Nothing kills a passion like opening a business in that field as the saying goes.

 

That being said here are some ideas ... 

 

Don't open a retail location.

 

You could use train shows as a venue, along with online store and see now that goes. What you really need is access to inventory. Depending who you know, consignment may be an option. Making a deal on yesterday's stuff that doesn't move and selling it at a show at closeout pricing might be an idea. BTW I have done this and it works ... not in this hobby however.

 

Again, access to inventory ... estate sales maybe?

Antique malls?

Offer to travel to see collections and offer to buy, then turn them over?

 

You can setup an online store using free software like OS Commerce and have payment go thru Paypal so you can also accept credit cards that way. I did this and it went well but there are may hours involved in setting it up. DON'T pay someone to do it. You must learn to do this yourself this way you can add new products etc at will without relying on others. You need to find an internet provider that supports OS Commerce as well.

 

When my wife had a hobby store, I would manage the shows and most times, a weekend show would equal 3 to 6 months in retail sales ... not kidding.

 

I'll say it again, don't open a retail location.

 

Find creative ways to have access to inventory, that is the key to making it work. 

 

 

While reading this thread I was reminded of a chain of model train shops in malls only. I think it was " Great American Train Stores"??? or something like that.I worked there for a few months during the holiday season . They were a babysitting service to say the least. There was one in Steamtown Mall. Bottom line they ALL went out of business for the same reasons mentioned here. 

 

 I am doing my own thing going to local train shows and buying from auctions/estates and having a lot of fun and making a few $$$.

Here is a picture taken on a Friday evening at our store. A group of great guys.

Almost all new businesses fail.

 

A new business person may believe if you put up a sign they will come. Not true.

 

Victory can be declared ONLY IF you survive five years.

 

Keep your costs as low as possible.

 

Carve out  a niche, based on your client base.

 

Have plenty of patience.

 

Develop a business model: what works. Stick to that model as time goes on.

 

Your "Gain" is not necessarily profit and is is measured in many ways based on the tax laws. Have  good accountant.

 

There is a thin thread between making it and failing.

 

Keep the people happy.

 

Employees can kill a business, but you need them. Therefore, select those with an aptitude for dealing with people.

 

Lastly, don't rely on public opinion. Do it your way.

 

Best

They probably got scared and are still running!  It's tough out there in the small business world.

Anything is possible and their will always be a need for a hobby store. But with that said its not for the faint of heart or someone not dedicated to working long hours for little or no pay. But there are rewards also. But if your friend has to ask on a forum if he should do it. I would say no. There are lots of expenses besides rent. You need to come up with a inventory to start and customers. It can be done we started at the worst time and continue to grow but its a seven day a week commitment and as for a living I am still waiting on that.lol But it still can be done..  But the reference of how to make a million selling trains is start with 2 million does have some truth.. But you do develop customers and friends that can make it worth it..

We're going to a train show this weekend, and probably get sometime to discuss the issue. I've always had a cup half full when I started anything in life. I just never had my own business, yet. There was an extreme amount of negative from this post, but as the old saying goes, if you don't want to hear the way it is, don't ask the question! I've been thinking about enet business, along with a store front operation. One person said to start this thing up in a basement or garage, so to minimize any added overhead, which is right, but how professional looking is that? Business has a lot to do with perception. Jim, this thing is still in the planning stages. Like "HOT Water" said in another post, I guess my answer was next to last sentence................Thanks for your input on this subject.................Brandy!