How to make money as an LHS owner

[Will_Annand]

Interesting points Kevin.
As a LHS owner and one who's business is growing, I will chime in here and address your points.

1) Cater to multiple hobbies, and make sure there is an employee that knows about them. I don't think a hobby store can survive just catering to one hobby anymore.

In our case, we only sell model railroad accessories, scenery supplies, paint and wood. However, our shop is also a computer repair shop. We could not survive on MR alone. <!-- w --><a class="postlink" href="http://www.muskokacomputes.com">www.muskokacomputes.com</a><!-- w -->

2) Make the store inviting. Most of the hobby stores I have been to are disorganized, crowded, confusing, and generally uninviting for most people. Clearly separate the various departments, make sure the lighting is good, and have displays to catch the eye. This philosophy works for super markets - why won't it work for LHS?

The shop is nice and bright, the product is separated into HO and N scale with scenery in a center section.
The manufacturer's product is kept together in each scale. and nicely displayed.

3) Have a display layout that customers can operate, and do similar for other hobbies. Perhaps you can draw in customers who just want to come in to check out the display, and they decide to buy something. Or perhaps they come in to buy something for their RC car, and their kid becomes captivated by the HO layout. Take the Cabella's approach - make it appealing to simply browse and have fun!

We have an N scale display layout, it was the result of an online track planning contest and was created by a Swissman who came around to world to create it for us. it will be display only no customer operation. Some people don't understand that trains do not go 500KPH and if they do, they will leave the track. Maybe if we had gone DCC and set ACC/DEC limits.

4) Friendly staff. I quit going to one store because the owner was a bit of a jerk. I don't care how much you know, If you are a jerk to me and act like you don't want my business, I won't be back.

We try to be a friendly folk, even with a customer who is being a jerk. Customers should be friendly as well, not continually point out that if they ordered it online they could get it much cheaper. Two things they forget... 1. shipping will cost you. 2. if it is not right, you may have to jump through hoops to return it. We had one customer who bought a locomotive online, when it arrived it was dead, so he sent it back to the online store... they had sent it to him parcel post and he returned it the same way. The parcel was lost in transit, the suppplier said they never recieved it and the post office said it was delivered. But since the fellow forgot to request request a signature, nothing could be done.

5) Make sure the basic items are in stock!!! there is nothing more frustrating than going over to the paint rack, and seeing half the paint colors sold out - including the most popular colors. I can't emphasize this point enough. Sometimes I need one more bag of green ground foam, and I drive across town thinking it should always be in stock only to find out they are sold out, and have been sold out for MONTHS.

I agree about the ``Out Of Stock`` situation. We can`t have everything in stock at all times, but we do listen to a customer, If you come in and want something, we order it for you. So it will be here the next time.

6) Location. Is it me, or are most LHS extremely out of the way or hard to find? I am not saying they need to be on the prime corner in town, but at least put them near a residential area and in a location where some proper signs or window displays could bring in foot traffic.

In our case we are right on Main Street in the heart of our little town.

7) Internet. I don't think a store needs to emphasize internet sales - but a lot of customers like to check out a store's website before visiting, or even calling. The website need to be easy to navigate, clearly list what is normally in stock and what services they have, and list a few items that are on special.

We do sell more online than in our shop, this is because our area is rural and our town has 18,000 with another 10-15,000 within easy driving. However online we have the entire world to sell to.