Supporting your Local Hobby Shop...... - Page 2

rizka · #21 07-08-2011

its greedy business men that run most of these shops ...non of them are doing anyone a favour unless they are tripling there money ,most dont know what they are selling and just want to take the money and send you out the shop knowing if it breaks you will have to come back to them....almost non want to forward the hobby or actually sort someone out ...the profits say it all ....thats why id rather go to hobbyking than my LHS how can they try and charge me 100x what the battery costs from HK ...if i can get stuff cheap my LHS can get it cheaper than me and still make a profit without ripping everyone off ....no one minds jespares making £3 on a bodyshell thats fair but if they were trying to make £15 that would be robbery ....and as for saturdays ,if the people wanted it id be open everyday ,or have a day in the week off ,everyones out breaking stuff on the weekends ....

Fast Eddie · #22 07-08-2011

You obviously know nothing about retail and have no clue about business.

If said LHS made £3 gross on a bodyshell they would soon go skint.

Retail margins need to be kept strong to fund stock holding and all other huge costs that go along with running a shop.

mattybucks · #23 07-08-2011

It makes me chuckle when people think that the shops make fortunes in profit. For example the new Durango retails at £194, by the time I've paid the paypal fees and posted it out for free, I couldn't by a Pair of tyres with the profit (at the trade price!).

quincey · #24 07-08-2011

I've got a 3 model shops I could go to... But none of them stock any spares only the car itself 1 of these shops opens when he likes on satudays- no good if you have to travel 20+ miles to his shop,1 of the other shops throws you out at 12.00 so he can have dinner?.. and ain't that customer friendly and the other shop just does planes.... So I don't give a monkeys if I order from elsewhere Dms racing and je spares always get my business and I have my stuff sent to work... No messing around with royal mail collection cards for me!...

Plus I've ran a model shop and I know what Saturday opening is like... Bloody hard.. If your working 6 days a week like we were, you soon start getting tired- you've got to have a break some time and if you've got kids then you need to be with them..
We closed our shop because of all the idiots buying hsp/acme and other horrible crap off eBay- they break it then bring it in for repair when you had a shop full of decent hobby grade cars in stock!...

Adam F · #25 07-08-2011

I can just see all the fat cat bankers getting into the RC world to cash in on all this profit

And how dare you close on a saturday...

hellopips · #26 07-08-2011

hi there hope this helps fwm opens on saturdays heres there link
http://www.futureworldmodels.com/

peetbee · #27 07-08-2011

Quote:

Originally Posted by rizka

its greedy business men that run most of these shops ...non of them are doing anyone a favour unless they are tripling there money ,most dont know what they are selling and just want to take the money and send you out the shop knowing if it breaks you will have to come back to them....almost non want to forward the hobby or actually sort someone out ...the profits say it all ....thats why id rather go to hobbyking than my LHS how can they try and charge me 100x what the battery costs from HK ...if i can get stuff cheap my LHS can get it cheaper than me and still make a profit without ripping everyone off ....no one minds jespares making £3 on a bodyshell thats fair but if they were trying to make £15 that would be robbery ....and as for saturdays ,if the people wanted it id be open everyday ,or have a day in the week off ,everyones out breaking stuff on the weekends ....

Thank you, I needed a laugh and that's cheered me up no end, it's a shame that you didn't post it on Saturday tho!

SlowOne · #28 07-08-2011

Quote:

Originally Posted by rizka

its greedy business men that run most of these shops ...non of them are doing anyone a favour unless they are tripling there money ,most dont know what they are selling and just want to take the money and send you out the shop knowing if it breaks you will have to come back to them....almost non want to forward the hobby or actually sort someone out ...the profits say it all ....thats why id rather go to hobbyking than my LHS how can they try and charge me 100x what the battery costs from HK ...if i can get stuff cheap my LHS can get it cheaper than me and still make a profit without ripping everyone off ....no one minds jespares making £3 on a bodyshell thats fair but if they were trying to make £15 that would be robbery ....and as for saturdays ,if the people wanted it id be open everyday ,or have a day in the week off ,everyones out breaking stuff on the weekends ....

Tell me this is a wind up - surely no one could be this ignorant to post this for real!

If you are for real, and you run a model shop, can I suggest you write a book on how you have made yourself a millionaire from selling us RC stuff? Pillock...

davidmog99 · #29 07-08-2011

Its a little known fact that a certain Mr Abramovich, Chelsea owner, started working in his parents small model shop in Stalingrad. In the 80s they specialised in illegally imported Hornby trains, bootleg tamiya plastic model kits, and had carefully concealed scale plans for european designed aircraft under the counter. When Gorbachev relaxed rules for trade and encouraged other communists to embrace "Glasnost" (openness), the shops sales of balsa wood increased by 400% overnight. Roman immediately decided to kill his parents and take over.
Roman invested the roubles he made from their life insurance in radio control model kits, which were no longer illegal.
Roman enjoyed a moderately successful carrer in r/c car racing, until the untimely death of his closest rival, ivan klunkter, who fell to his death from the rostrum at abramovich raceway, which adjoined the shop.
During the mid 1990s, after the break up of the soviet union, many russians discovered radio control modelling as a hobby, as an alternative to the vodka based recreation enforced by the communist government.
Roman quickly stocked up on the newest models, and found they required fuel or "nitro". He ordered four gallons. When the fuel arrived, he was astounded by the price. Quickly examining the profit/loss account for his model shop, he realised the producer of the fuel earned almost half as much profit as him on his most popular lines. A quick call to his accountants, then the bank, and the crafty bastard had merged the two companies in a hostile takeover! SIBNEFT Models was born!

Darren Boyle · #30 07-08-2011

Quote:

Originally Posted by davidmog99

Its a little known fact that a certain Mr Abramovich, Chelsea owner, started working in his parents small model shop in Stalingrad. In the 80s they specialised in illegally imported Hornby trains, bootleg tamiya plastic model kits, and had carefully concealed scale plans for european designed aircraft under the counter. When Gorbachev relaxed rules for trade and encouraged other communists to embrace "Glasnost" (openness), the shops sales of balsa wood increased by 400% overnight. Roman immediately decided to kill his parents and take over.
Roman invested the roubles he made from their life insurance in radio control model kits, which were no longer illegal.
Roman enjoyed a moderately successful carrer in r/c car racing, until the untimely death of his closest rival, ivan klunkter, who fell to his death from the rostrum at abramovich raceway, which adjoined the shop.
During the mid 1990s, after the break up of the soviet union, many russians discovered radio control modelling as a hobby, as an alternative to the vodka based recreation enforced by the communist government.
Roman quickly stocked up on the newest models, and found they required fuel or "nitro". He ordered four gallons. When the fuel arrived, he was astounded by the price. Quickly examining the profit/loss account for his model shop, he realised the producer of the fuel earned almost half as much profit as him on his most popular lines. A quick call to his accountants, then the bank, and the crafty bastard had merged the two companies in a hostile takeover! SIBNEFT Models was born!

LOL...

I was just watching the "Dragons Den" on TV (after getting back at 6pm from being at Stotfold al day, having dinner and watching a repeat of Top Gear ;-) ) and thought I might go on that programme and offer them 5 poor sods called Dragons some money from the millions made out of my model shop selling bodies with a £3 profit at a time, the only trouble is they want me to go on there on a Saturday and I "aint doin that" since thats my day off

(and before anyone posts, this post was a light hearted joke....)

Si Coe · #31 07-08-2011

Sssshhhh Darren! You don't want the OP to realise all those of us who came on here defending DMS only did so cos you paid us £100 to do it......

Ross · #32 07-08-2011

Quote:

Originally Posted by davidmog99

Its a little known fact that a certain Mr Abramovich, Chelsea owner, started working in his parents small model shop in Stalingrad. In the 80s they specialised in illegally imported Hornby trains, bootleg tamiya plastic model kits, and had carefully concealed scale plans for european designed aircraft under the counter. When Gorbachev relaxed rules for trade and encouraged other communists to embrace "Glasnost" (openness), the shops sales of balsa wood increased by 400% overnight. Roman immediately decided to kill his parents and take over.
Roman invested the roubles he made from their life insurance in radio control model kits, which were no longer illegal.
Roman enjoyed a moderately successful carrer in r/c car racing, until the untimely death of his closest rival, ivan klunkter, who fell to his death from the rostrum at abramovich raceway, which adjoined the shop.
During the mid 1990s, after the break up of the soviet union, many russians discovered radio control modelling as a hobby, as an alternative to the vodka based recreation enforced by the communist government.
Roman quickly stocked up on the newest models, and found they required fuel or "nitro". He ordered four gallons. When the fuel arrived, he was astounded by the price. Quickly examining the profit/loss account for his model shop, he realised the producer of the fuel earned almost half as much profit as him on his most popular lines. A quick call to his accountants, then the bank, and the crafty bastard had merged the two companies in a hostile takeover! SIBNEFT Models was born!

james v · #33 07-08-2011

Won't the dragons require Saturday trading ?

I kinda like ringing up, ordering and then getting all excited the next day when the posty knocks, It's like Santa claus coming every day for me.

Loving the thread, and best of all D.M.S,

pro4nut · #34 07-08-2011

Having managed a few differant shops over the years there is some good stuff in this thread.

Saturdays, in specialist hobby retail really aren't that great a trading day these days. Most of my business comes during the week.

Weekday late opening can be more profitable although everyday is a waste of energy.

The big moan i have and where my sympathy vanishes is this, i work monday to friday 9-5 and have no time? What a load of rubbish and really count yourself lucky, do you not think that those that work in shops also would like to have weekends off and not to work long hours? 9-5 really? i have to get in to work at 830 and certainly don't finish when the door closes and all that for sub average national wage.

Quit moaning get your orders sent to your work address and stop thinking that the majority of the working population have the luxury of a weekend off.

Skye · #35 07-08-2011

There are a lot of interesting points in this thread, and a few bits of nonsense as well.

Firstly though, let me say that I placed my first order with DMS last week. It was a modest order, just for two chassis protectors but I requested delivery by Tuesday and it arrived bang on time so thanks a million, it was much appreciated and certainly won't be the last order I place with you.

What I find astounding is Mattybucks post. If you really are working to such low margins mate, why do you do it? I get that you love the game, but don't we all work to make a living? A profit of about a fiver on a near £200 sale doesn't sound like a sustainable business model to me? I work for an international distribution company and if we make less than 35% margin on a sale then we have sleepless nights! I applaud you though for doing what you do. Where would we be if everyone wanted to make 100% markup on a sale!?

Another point I found really interesting is how quiet you all say the shops are on a Saturday. There is a shop near me who don't really cater for 1/10 electric so I don't go there often but on the half a dozen times I have been in on a Saturday they are literally queuing out the door. They sell mainly 1/8 nitro, and also a large selection of helicopters and airplanes, so maybe this is where a lot of their Saturday trade comes from? I'm not sure the relevance of this point, other than to say it is very different from the norm seemingly, and to possibly consider why that might be...?

Keep up the good work guys, with out the DMS, Telstars, MK and JE's of this world where would we all be? You do a grand job!!

Si Coe · #36 08-08-2011

You see a lot of people in there, but are they spending money? Lots of Saturday 'trade' is starting someones nitro, a few body clips and a servo horn - not big money stuff.

eyeayen · #37 08-08-2011

I used to work in a model shop, they lasted 2 years because their mark up was between 24 and 33%, this was about 8 years ago, I don't know if it's different now but as Skye says, unless you're making 35% plus, ideally 50% it's difficult doing it.

I watched dragon's den when it first started, their was a girl on their who had her business plan set out to make jewellery. She was working with a 1000% percent mark up, that's the sort of mark up that lets you drive around in a fancy car. People that own model shops don't have that luxury, and if they did it's probably because they bought the car before they started the business.

One of the points that is perhaps being missed here is people moan about pricing in the LHS, which has to be higher than people who only sell on the net because the LHS has rent, rates and probably more staff than fred sat in shed. If we only bought from our LHS and they were selling more volume I think we'd all see them being able to reduce their prices but as quincey has said above, idiots buy acme products off the net then expect spares back up from a shop they bi-passed in their initial purchase. People often aren't interested in being educated about what they can buy, they just see the cheap one on the net and get it, no second thought until it stops working or they need a part.

As for the opening Saturday thing, I used to be self employed and you do burn yourself out trying to do too many hours, and if you've got kids you need time with them and also time for yourself away from work, so if they're closed there is probably good reason for it.

Skye · #38 08-08-2011

I would think that even a 24% markup is going to be cutting things fine. a 24% markup is about 19.35% margin. And that is based purely on a cost price / sell price calculation. It isnt based on a 'cost of sale' calculation, so by the time you have added on your shipping fees and things like operating costs (wages, bills etc) then you are barely breaking even I should think.

The company I work for try, where possible to make 50% margin which is obviously a 100% markup! And we also sell an own brand in many products where they make more like 70% margin!!

It seems to work though, over £1bill turnover last FY and £112mill profit. These numbers, whilst being huge numbers show the extent of the hidden costs as well. On a cost price / sell price calculation we make margins of 50% plus, yet the actual company profit on the bottom line is still 'only' approximately 10%.

Considering all of the above, if like Mattybucks says, the RC trade makes less than 5% on the sale of a new car kit then I am amazed there is still anyone trading at all!

On another point raised above, I am generally happy to pay more to support my local store but when ordering online then I am a lot more price conscious. When I bought both my cars from Moto Arena recently I know that I must have paid at least £100 more (could have been even more) for both cars by the time I had kitted them out. I was happy with this though as to be honest, without Matts help I wouldnt have got the cars running so it was worth paying the extra for the help I got along the way. When I order online then I tend to just take delivery and muddle through myself, in which case the price then becomes the most important factor.

I had often thought that I would like to run my own RC business, I would love to be selling a product that I am passionate about. Having seen some of the eye opening numbers quoted above though then I think I may have to pass up on the idea.....

Rocking Donkey · #39 08-08-2011

My local hobby shop turns out to be Daniels of Windsor, the department store with the royal seal (actually i think it is a concession in the store). I really want to send my business their way at they are selling Losi 22 kits with parts support and Tamiya 201's in one of the most mainstream shops there is!

It came as a bit of a shock to me that this store existed, and only found out through sponsorship of the Taplow club. I think it is great to be able to buy a model in a high street shop that is raceable, and I think it is important for drawing in future racers. Their prices are at the low end, so I hope they survive.

I want to add another note of support for DMS Racing. 15 years agoI used to go to the shop all the time, on Saturdays with my mum! I got one of the first XX4's in the country from DMS, still race it and every spare part has come from DMS. They have always been great, and I buy from DMS when I can. It makes me a little sad that they don't open on Saturdays as through the week pretty late, but I don't begrudge a day where the shop is closed, and know that for a small business the day when the shop is closed is often the busiest with paperwork and things!

To be honest I'd rather that a shop was mailing out parts that I'd broken on a Sunday in time to race on Friday, than be open on a Saturday.

Ben

MK Racing · #40 08-08-2011

Sorry you found that we are now closed on Saturdays, we changed our opening hours at the start of July, an email was sent out to all customers on our database.
We have done this as 90% of our business is now Mail Order & we only have collections on Monday to Friday.
We also support two local clubs with track side support, SHRCCC on Tuesdays & Sunday, RC-Arena on Fridays, so our local customers can collect/buy from us at these events.

Marc