Anyone here own/run a model shop?
Discussion
Sitting at home, unemployed and bored and dreaming of running a local model shop! Does anyone here actually do this? What would be involved in starting one up in the local town? There are plenty of vacant premises to rent, then I guess £5k shop fit-out, £20k in stock from Ripmax, £1k website and we're away... or not? Does it really make good money or just get by?
I have long had the same ambition so spent quite a bit of time and effort researching wholesalers and manufacturers. I talked to people in the trade and to people who had given up on shops.
Lots of people I spoke to were very negative and getting hold of good quality stock in quantity is hard, especially if you are wanting to make big markups. Lots of the smaller distributers were retailing products directly at prices not much above their wholesale rates and I don't have pockets deep enough to explore asian manufacturers directly at the moment. I think with shops and online retail your biggest enemy is the guy with deeper pockets who will undersell you to boost his own market share.
Even in the collectable toys market (older dinky, corgi, hornby etc) at the moment it is fairly tough to make a living. I buy and sell small quantities of stuff mainly as a hobby and to fund my own hoarding, but a lot of full time dealers that would buy in bulk from me have not got the cash to buy regularly.
Good luck if you decide to go for it, but I would compare the prices you can buy stuff in at with the prices places like modelzone clear things out at, and with ebay sellers.
Sorry for being a bit negative, despite the above post I will still be waiting to find my own opportunity to try.
Lots of people I spoke to were very negative and getting hold of good quality stock in quantity is hard, especially if you are wanting to make big markups. Lots of the smaller distributers were retailing products directly at prices not much above their wholesale rates and I don't have pockets deep enough to explore asian manufacturers directly at the moment. I think with shops and online retail your biggest enemy is the guy with deeper pockets who will undersell you to boost his own market share.
Even in the collectable toys market (older dinky, corgi, hornby etc) at the moment it is fairly tough to make a living. I buy and sell small quantities of stuff mainly as a hobby and to fund my own hoarding, but a lot of full time dealers that would buy in bulk from me have not got the cash to buy regularly.
Good luck if you decide to go for it, but I would compare the prices you can buy stuff in at with the prices places like modelzone clear things out at, and with ebay sellers.
Sorry for being a bit negative, despite the above post I will still be waiting to find my own opportunity to try.
I looked at both sides of it. I was under the impression that RC and Railway Stuff could bring me a good enough income to allow me to play with other stuff.
Depending where you are located a decent RC shop could do well especially if there are local clubs that would come to you for items, and people who are willing to pay for repairs etc. I have bought a couple of cheaper (<£200) RC cars and always preferred buying from someone who I could go and ask for advice if I broke it.
Depending where you are located a decent RC shop could do well especially if there are local clubs that would come to you for items, and people who are willing to pay for repairs etc. I have bought a couple of cheaper (<£200) RC cars and always preferred buying from someone who I could go and ask for advice if I broke it.
The problem is in an ecomonic climate like this expensive toys like RC models are one of the first things to suffer. In my local area I have seen many model shops come and go, the only ones surviving are the Antics chain of model shops and they do a very wide range (RC, Trains, Scalextrix, collectables, kits, etc etc etc) and do mail order sales.
I have only ever known one really successful independent model shop.... it was succesful because it was the front for a drug dealing operation and they were laundering money through it. If you knew what was going on you could get massive discounts on the models.
I have only ever known one really successful independent model shop.... it was succesful because it was the front for a drug dealing operation and they were laundering money through it. If you knew what was going on you could get massive discounts on the models.
Viper_Larry said:
Sitting at home, unemployed and bored and dreaming of running a local model shop! Does anyone here actually do this? What would be involved in starting one up in the local town? There are plenty of vacant premises to rent, then I guess £5k shop fit-out, £20k in stock from Ripmax, £1k website and we're away... or not? Does it really make good money or just get by?
Viper:I'm in Milton keynes, should soon have some storage in stony Stratford, and a friend bringing a container full of rc helicopters and planes back from china for me to sell.
I'm unemployed, off work for the next 6 months due to some burns which mean I'm not attractive enough to see folk face to face.
If you are serious, PM me.
Regards,
Emsman
Ps. Burnt due to rc nitro fuel with some irony- going to specialize in electrics!
I'd love to own my own RC shop one day, but in the current climate, you have to ask yourself what you could do to out gun the likes of Modelsport, Apex and DMS to name but a few. Was I right in hearing DC Racing have stopped trading, or was that a sad rumour? If its true, it tells you something..
Do you think 20k of stock is enough to offer a competative service to the above? Half a dozen Sxs, half a dozen D4s, a few b4s and b44s and 25% of your budget is gone, thats before you have stocked up on cells, radio gear, electronics for all budgets. To be competative, you would need to buy in much greater bulk at much greater outlay and cut overheads by not having a shop - selling online or preferably track side support. Maybe even start making and selling your own hop-ups and mods Nortech type style?
To be successful, you will have to be different - I have no idea what that is - if I did I would be doing it myself.
I know it sounds negative, but its my view of the situation at the moment, nevertheless good luck if you go for it... oh and can I have some Lazer front wishbones please
Do you think 20k of stock is enough to offer a competative service to the above? Half a dozen Sxs, half a dozen D4s, a few b4s and b44s and 25% of your budget is gone, thats before you have stocked up on cells, radio gear, electronics for all budgets. To be competative, you would need to buy in much greater bulk at much greater outlay and cut overheads by not having a shop - selling online or preferably track side support. Maybe even start making and selling your own hop-ups and mods Nortech type style?
To be successful, you will have to be different - I have no idea what that is - if I did I would be doing it myself.
I know it sounds negative, but its my view of the situation at the moment, nevertheless good luck if you go for it... oh and can I have some Lazer front wishbones please
My wife owns and runs an online model store. I can tell you that you need to be ultra competitive, (especially for plastics and R/C – there are simply too many well established outlets already, and even they’re feeling the pinch!) and offer products and services that differ from the norm. You also need full stock, because, as my wife found out, you can order 50K worth of stock, and the stuff you didn't bother to order, the customer asks for. My wife aimed for customers who had problems sourcing the products locally, so she gets a lot of US, Canadian, Japanese and Australian/New Zealand customers, and it ticks along quite nicely.
ETA - high street model shops are closing at quite a rate, I am not sure just how sustainable a new shop would be, when you take into account local apathy, business rates etc...
ETA - high street model shops are closing at quite a rate, I am not sure just how sustainable a new shop would be, when you take into account local apathy, business rates etc...
Edited by chris watton on Thursday 24th September 12:54
Edited by chris watton on Thursday 24th September 12:55
TedMaul said:
I'd love to own my own RC shop one day, but in the current climate, you have to ask yourself what you could do to out gun the likes of Modelsport, Apex and DMS to name but a few. Was I right in hearing DC Racing have stopped trading, or was that a sad rumour? If its true, it tells you something..
Do you think 20k of stock is enough to offer a competative service to the above? Half a dozen Sxs, half a dozen D4s, a few b4s and b44s and 25% of your budget is gone, thats before you have stocked up on cells, radio gear, electronics for all budgets. To be competative, you would need to buy in much greater bulk at much greater outlay and cut overheads by not having a shop - selling online or preferably track side support. Maybe even start making and selling your own hop-ups and mods Nortech type style?
To be successful, you will have to be different - I have no idea what that is - if I did I would be doing it myself.
I know it sounds negative, but its my view of the situation at the moment, nevertheless good luck if you go for it... oh and can I have some Lazer front wishbones please
Perhaps not massively "different", but would having a decent RC track on premises be enough of a draw for customers? Admitedly to get the required area you would either have to be out of town, lucky or raise budget, but it may give a focal point that the internet cannot manage. And a captive audience in need of spares.....Do you think 20k of stock is enough to offer a competative service to the above? Half a dozen Sxs, half a dozen D4s, a few b4s and b44s and 25% of your budget is gone, thats before you have stocked up on cells, radio gear, electronics for all budgets. To be competative, you would need to buy in much greater bulk at much greater outlay and cut overheads by not having a shop - selling online or preferably track side support. Maybe even start making and selling your own hop-ups and mods Nortech type style?
To be successful, you will have to be different - I have no idea what that is - if I did I would be doing it myself.
I know it sounds negative, but its my view of the situation at the moment, nevertheless good luck if you go for it... oh and can I have some Lazer front wishbones please
By no means am I saying this is a sure fire idea, but having no where/one to race has always been one of the factors that has stopped me getting a car
Just a thought but what about having a Games Workshop style deal with modelling tables and a Scalextric track-set up so people can buy, build and play with stuff instore?
You'de probably make a load of extra cash from selling tea and coffee as well.
I'd be happy to build my models in store, I hate getting home and realising I have run out of Panzer Grey paint and having to go back next day for more.
You'de probably make a load of extra cash from selling tea and coffee as well.
I'd be happy to build my models in store, I hate getting home and realising I have run out of Panzer Grey paint and having to go back next day for more.
T89 Callan said:
Just a thought but what about having a Games Workshop style deal with modelling tables and a Scalextric track-set up so people can buy, build and play with stuff instore?
You'de probably make a load of extra cash from selling tea and coffee as well.
I'd be happy to build my models in store, I hate getting home and realising I have run out of Panzer Grey paint and having to go back next day for more.
I think the biggest trouble with that kind of store is you would end up being frequented by regulars in to play and some walk in customers, the kind you can generally make really good money from by giving advice to, would be put off if the store seem cliquey. Maybe a store with that facility in a basement/upstairs room would be fun. You'de probably make a load of extra cash from selling tea and coffee as well.
I'd be happy to build my models in store, I hate getting home and realising I have run out of Panzer Grey paint and having to go back next day for more.
I agree with Chris. There is a local Games Workshop store here, but I don't go for those very reasons. The stock is difficult to see because of the gaming tables, and you feel like you are walking into one of those pubs in iffy areas where everyone looks at you until you leave. I suspect the only way they make their money is on cans of black primer sold at massively inflated prices.
Given the problems the high street is going through, high rents, rates and parking difficulties, a "real" shop cannot be a viable decision. I would start it by specialising in a particular item type, and create a niche there. Move to a commercial unit if things go well.
Given the problems the high street is going through, high rents, rates and parking difficulties, a "real" shop cannot be a viable decision. I would start it by specialising in a particular item type, and create a niche there. Move to a commercial unit if things go well.
Zad said:
I agree with Chris. There is a local Games Workshop store here, but I don't go for those very reasons. The stock is difficult to see because of the gaming tables, and you feel like you are walking into one of those pubs in iffy areas where everyone looks at you until you leave. I suspect the only way they make their money is on cans of black primer sold at massively inflated prices.
Given the problems the high street is going through, high rents, rates and parking difficulties, a "real" shop cannot be a viable decision. I would start it by specialising in a particular item type, and create a niche there. Move to a commercial unit if things go well.
GW make money in store as the margins for them, being both mfr and retailer are very large.Given the problems the high street is going through, high rents, rates and parking difficulties, a "real" shop cannot be a viable decision. I would start it by specialising in a particular item type, and create a niche there. Move to a commercial unit if things go well.
Sorry to be bearer of bad news, but my simple advice is DO NOT DO IT.
Been there, done that, got the t-shirt and the debts!!!
The model industry is simply not a lucrative one. Margins are minimal - postage is going up and up and the competition from 'small-time traders' is simply killing the market. On top of that you have eBay and the Internet itself which allows you to buy from overseas at reduced costs.
When I was running my business, I saw traders on eBay selling products cheaper than I was getting from the trade! After four years I was turning over £150+ a year but even this was not enough to give me a living salary once you'd removed all the operating costs and I was a pure play Internet business so didn't even have a shop!
My advice is to get a job and just enjoy the models as a hobby...
Been there, done that, got the t-shirt and the debts!!!
The model industry is simply not a lucrative one. Margins are minimal - postage is going up and up and the competition from 'small-time traders' is simply killing the market. On top of that you have eBay and the Internet itself which allows you to buy from overseas at reduced costs.
When I was running my business, I saw traders on eBay selling products cheaper than I was getting from the trade! After four years I was turning over £150+ a year but even this was not enough to give me a living salary once you'd removed all the operating costs and I was a pure play Internet business so didn't even have a shop!
My advice is to get a job and just enjoy the models as a hobby...
It's worth noting...
GPL (that old chestnut!!!) were turning over approx £5million a few years ago, well the last time I viewed their accounts via Companies House.
Sounds good?, well after all costs were removed the profit was approx £40-50K - can't remember the exact figure. The directors were not on huge salaries either, somewhere in the region of circa £30K.
So if a business turning over £5million is not making huge profits, imagine what you start up would be doing...
Yes they have huge salary bills due to staffing, but they couldn't operate with less and they don't pay great anyway.
The answer to your original question is all ltoo clear to see...
GPL (that old chestnut!!!) were turning over approx £5million a few years ago, well the last time I viewed their accounts via Companies House.
Sounds good?, well after all costs were removed the profit was approx £40-50K - can't remember the exact figure. The directors were not on huge salaries either, somewhere in the region of circa £30K.
So if a business turning over £5million is not making huge profits, imagine what you start up would be doing...
Yes they have huge salary bills due to staffing, but they couldn't operate with less and they don't pay great anyway.
The answer to your original question is all ltoo clear to see...
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