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Old Nov 01, 2005, 05:57 PM
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Mini Obsessed
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Winnipeg
Joined Feb 2002
6,909 Posts
Hobby stores should have experience to some degree in what they sell. Comparing them to Wal Mart is wrong. That is like saying that it shouldn't matter if a computer store has staff who has NO experience or expertise with computers. Of course it matters. If you are going to sell product, have someone who is familiar with the product. I ran a 6 million dollar retail store front for years and if something was defective out of the box, and a customer wanted to exchange it for the exact same thing, there was never an issue with distribution, and in speaking to the manufacturer rep, there would have been no issue with them either. I also spoke to another hobby store and they said the same, that they would have had no problem sending it back to distribution. Why should I, the consumer, buy something that is ready to go, and then accept packing it, spending time and money on gas/shipping, to take it and ship it to the mfc, and then wait for it to return. If I wanted to do that, I would have gone through mail order. I didn't, I purchased from a hobby store, who all complain that they are losing business to the net, and who don't realize that their advantage is offering customers some level of service. And distributers, at least Horizon, back up their stores, and when a product is not working out of the box, does not expect the customer to go through a hassle to get what they purchased. Margins of 4%, I don't think so, it isn't 40%, but it certainly isn't 4% either. Margins of that level are in the technology arena, but you are dealing with multiple thousand dollar items. You have it backwards, WalMart and big box appliance stores such as best buy, future shop, work in single digit margins, hence their destruction of the mom and pop shops. Well the Hobby Stores are the mom and pop stores today and if they don't do more, then they will be the dinosaurs of the future.
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