05-16-2009, 06:54 AM
This issue is not as black and white as it may seem on the surface. The biggest shop in Eastern Ontario is a well stocked (mostly HO) sizeable store in a tourist town about a 45 minute drive from the biggest market (Ottawa). In addition to a good stock of HO items, he will order anything from Walthers or Horizon - and generally has it for you in a week. Given our proximity to the US border, he maintains a PO Box in upper NY state for US business. He will ship anywhere in the world, runs eBay auctions and an eBay store, and also is a big player in the estate sale market. He regularly charges full MSRP, but does give discounts to some clubs, and on special occasions (like 25% off anything for his 25th Anniversary a few years ago). The service is great - very knowledgeable and polite/professional to everyone, even if you are just browsing or picking up railjoiners. He answers the phone and responds to email very promptly. The hired help is also very knowledgeable (one extra staffer on Saturday).
His competition is a few basement shops, and two hobby shops in Ottawa (one with primarily trains plus other stuff, and one primarily other stuff plus trains). There is one other full time shop that specializes in large scale only.
Railroad modelling in Ottawa is huge though - many, many clubs (at least two or three in each major scale), plus round robin operators and lots of "lone wolves". Oddly, there is no permanent club with a central, communal layout. There are also a variety of prototype groups from museums to historical societies. But the owner of the shop comes out to the "premier" monthly event - a dinner at <!-- w --><a class="postlink" href="http://www.ovar.ca">www.ovar.ca</a><!-- w --> - and will even deliver your order there if convenient.
So despite full MSRP (the perceived common cause of the demise of brick&mortar stores), he does very well since his business model seems to be well balanced. And he does it at 4 days per week (Thu - Sun).
Andrew
His competition is a few basement shops, and two hobby shops in Ottawa (one with primarily trains plus other stuff, and one primarily other stuff plus trains). There is one other full time shop that specializes in large scale only.
Railroad modelling in Ottawa is huge though - many, many clubs (at least two or three in each major scale), plus round robin operators and lots of "lone wolves". Oddly, there is no permanent club with a central, communal layout. There are also a variety of prototype groups from museums to historical societies. But the owner of the shop comes out to the "premier" monthly event - a dinner at <!-- w --><a class="postlink" href="http://www.ovar.ca">www.ovar.ca</a><!-- w --> - and will even deliver your order there if convenient.
So despite full MSRP (the perceived common cause of the demise of brick&mortar stores), he does very well since his business model seems to be well balanced. And he does it at 4 days per week (Thu - Sun).
Andrew