newaddict1

Hello all, this is going to be on heck of a first post. I have been on here for quite some time always looking at the forums but never posting. Tons of good info from good members. I am 34 years old. I have been into this hobby since Iwas 16, racing a the local track when I was younger. I have always had some sort of R/C car ot truck, but do to jobs or what ever else havent been into it heavly until recently I have got back into it. started going to the local hobby shops, which race. This has been a major disapointment, there is a local hobby shop aprox 20 miles away, they race slot cars, and also have a small indoor carpet track for mostly mini cooper racing and also the do the VTA Vintage Trans AM. They also have a outdoor dirt track which they dont seem to promote much and I think it is a come and run what you got type of thing. I went into there ready to get a VTA setup, was trying to talk to the guy behind the counter about what everybody was running and what I would his suggestions was , he was younger suggested a TC5 and I should come back in a couple of days and watch the guys race and talk to them. sounded like a good idea to me... came back on race night ... There was one older guy behind the counter running the races. I watched for a while, during the break I tried to talk to him about the VTA class. he said he didnt run a car in the class and didnt know much about it.... HMMM... So off to the pits. there was probably 15 people there. talked to 1 guy that was helpful, couple of guys kinda blew me off... HMMM... went back upstairs to look at what they had. They have a ton of product,. this time a young girl tried to help me. kinda tried to sell me an old used car. not what I was looking for I was trying to get input about which brushless setup was working well for others , and batteries. and new chargers. So needless to say I decides to walk out the door very bummed with my money that I was planning on getting a complete new set-up with. (we all know how much that is....) The not so local hobbytown runs parking lot racing on Sundays... drove over an hour. to check it out. again there was no real help. they were very busy which I understand. looked around for a while talked to one guy about chargers. and got one he recomended. started to look at cars and he dsapeared.. they must have been on a racing break because I couldnt find any cars running or any racers. even looked out back at the store> they had a poster about the racing but that was about it.. I decided that with winter around the corner outdoor racing probably wasnt for me and left... There was 1 kick ass indoor track that closed about a year ago Planet R/C ... they basically didnt have a shop. just a track and some very limited typical break parts. I raced my losi there a couple of times. it was a nitro, and even though they had exhaust is was "smokey in there".

So that brings me to the what if stage, If I'm trying to get back into this hobby, and not liking what I'm finding there must be others... Around me there is a hobby town that is probably 20 milesnorth away,Greenwood Indiana. it is a store only no racing. the hobby town that is in Casleton that does the outdoor parking lot racing. that is aprox 45 miles away. north and the slot car place that has a small carpet track that is about 25 miles away in greenwood/ southport area again north of me. nothing that is south .. . kinda sounds a little saturated . thos shops are fairly near each other.

My business back ground ,, I worked in another hobby field for 9 yearsfor someone else.. then started a small trucking company with a friend. hauling large building materials . held onto it for over a year, when we relised that with the huge truck costs we were never going to be out of the rut of constantly updating our trucks at a hugh expense that would eat up all profits.. we both made a good living but there was no way to expand the business and we would be stuck having big truck expenses. not letting us move forward...we sold it . I then had a small company (3years)remodeling and selling homes and built a few custom homes from the ground up. but I saw the trend a couple of years ago and got out early before the housing collapse.. I went back to work for someone else... it been about 2 1/2 years, I hate it and need to get into something else...

There are several open retail building in a strip mall near me . it is about half empty. nad they are willing to do a short term lease....on the plus side there is a fairly large informal car show there every friday weather permiting. so I think there would be great exposure there. it is on the main street into town theere is a huge parking lot, it seems most buildings are a little over 2000 sq ft. I think a hobby shop that is cars and trucks and a good track maybe with a rock crawler area would do good. it seems people are starting to spend money again. I have never had a retail shop. but I did do the whole legal LLC for both of my other business. I know Horizin hobby is where most shops get their invetory. what kind of investment woud you guys guess I would need to get a shop stocked decently? lets say most of the AE stuff Losi and traxxas maybe hpi and Axial? with a back stock of parts and of course other thingh like bodies tires charger batteries etc... then what kind of money would you figure in for store fixtures computers telephone system etc... it is making my head spin trying to think of everything... give me your constructive critism im lookg for the good and the bad of it all.. thanks for your input

sheograth

The first thing to consider is if it will be a viable business in that area. I've seen many really nice hobby shops open and fail simply because there were too few RC users in the area. If that's not a problem it's definitely worth a shot, especially since you have experience running a business. Obviously retail is different from trucking, but lots of general business and financial skills carry over.

DaveG55

A couple of thoughts for you.
First, It has been my experience that anytime you turn a hobby into a buisness it pretty much ruins the hobby aspect of it for you.
Second, Mooresville is a tough market, I do know the area a little bit. I have one brother-in-law that lives there and one that opened - and closed - a resteraunt there. Compounding the problem, is the tough economy, it MAY be starting to get better but is still real fragile and there is a reason that the strip mall is willing to go with a short term lease. Also, retail is a very tough market. You're competeing with online stores with micro overhead and having to deal with the local government, employees, landlords, bookkeepers and still run a shop. And I'm sure that you're familiar with dealing with the IRS. As for start up stock, I'd call the suppliers you are thinking about and get the real info straight from them. I'm sure they will be happy to tell you exactly what hoops you'll have to jump through and how much you'll have to buy.

Anyway, not trying to be all gloom and dooom, just playing devils advocate and you can take it for what it cost you. Good Luck with whatever you decide.

aaronlb

If you decide to open it up, just remember all the reasons you left the other shops dissapointed and try your best not to make the same mistakes. I will personally pay a little extra for my stuff locally if the service is top notch and the people are friendly. good luck.

IloveMYxt2

Hire people that KNOW the hobby and not some 16 year old kid who has a Radioshack RC.

Dont raise prices, sell them at MSRP or even lower if possible. There is a local hobby shop here who likes to make his own MSRP and it drives business away.

Have plenty of spare parts in stock (Traxxas, HPI, Losi, Associated, cant think of others right now).

Focus on one aspect of the hobby such as cars/trucks instead of heli's/planes. Have all available but I think you should focus on one more than the other (cars/trucks are more popular). There was a local hobby shop that closed simply because they focused on Helis/planes and not too many fly those. More cars/trucks (ground vehicles).

Customer service wins business.

newaddict1

Thanks for all the input.. I would focus on cars and trucks. I'm thinking it is a must to have a indoor track. and maybe a rock crawler area... I "think" there is a decent crawler crowd in the area that is using 2 different parks in Plainfield and in Brownsburg. that obviously they cant use in the fall and winter... My buddy is into the crawler stuff more.... I also figured I will have to do online sales as well.. because some days I relize there wont be that much if any business. Fortunally one of my best friends is a big time computer programer and designer he works for a mega huge company ,and he would help out in that area . I definatly think price drives purchases more these days than ever... I do realise it will change the hobby aspect of it for me.... but it cant be as bad as tapping in a sewer line for the new house you just built( which I have done) ... I also know that my per hour ratete will likely be much lower than I make now..

04DarkShadowGT

I know a buddy and I have talked about doing that as well, you will need more than RC anything. You will need other hobby stuff such as trains, models, and possibly toys like Thomas the train and stuff. Diversify, a hobby shop imo would be less likely to succeed long term just focusing on one thing.

Airbus 9e

ditto.....the 2 LHS's near me that are the most successful are diversified....The one I got to most has RC cars, trucks, and aircraft, but he also has rockets, models, and airsoft....He told me a few weeks ago that the airsoft gun bring in nearly as much money as the RC gear....

larryf333

My Feedback: (2)

Airsoft guns are huge in this area as well. I'd definitely check into an Airsoft department in your store. Also, it'd be nice to have some toys for younger children. My 2 year old loves to watch me run my RC's, but he also wants to drive them, which he can't do. I picked him up an RC that has a one button controller. You push the button it goes forward, you release it, it goes backwards and turns. I had to drive all over the f'in place to find it. Keep cheap things in the store for the young kids and a Dad will not be as reluctant to come there, as I am with HobbyTown. The kids always want expensive stuff there, there's nothing inexpensive at HobbyTown. If a Dad can come and get what he needs, then spend a buck or two to put a smile on his kids face and keep him occupied for a little while, he'll definitely be back.

An indoor Crawlin track would be awesome!

newaddict1

never really thought of the airsoft guns... that is pretty popular around here. and it wouldnt take up a huge area... good suggestions. I'm going to go do a first look on the buildings tommorrow. anybody here done a lease on a commercial building? I need to find out things like who is responsible for maintance of stuff like heating and cooling systems... what other type of questions should I be asking?

Access

IMO if I were running a retail business I would stick with things I know or find an expert who is 'in the know' when it comes to those types of items. Getting into something you don't know and understand what the trends are, what is selling well and will continue to sell well over the next 3 months, regional trends, etc. isn't going to get you anywhere. You just end up filling shelf space with items that don't sell, which hurts in you multiple ways.

Also focus on the bottom line, one place where a lot of hobby shops make money these days is building, repairs, and installations. For instance, if someone buys a new motor but is uncertain how to install it in their vehicle, they get the installation done for free b'cos they bought it at the shop (not online or not at a competitor's shop). If someone breaks their vehicle and can't fix it themselves, the shop will fix it for them $30/hr labor plus parts cost, or maybe a discounted rate if they bought the vehicle from the store. Finally if someone wants a factory team kit built up b'cos they can't do it themselves, once again offer a special deal provided they buy it in the store. No online store can do these things.

FieroMan121

My Feedback: (2)

i agree, with the diversity thing, as well as the in-shop repair/building. i think if you offer free or minimal price repair + price for the parts than youll grab many more entry level rc'ers, also, make sure you keep the rc addiction alive, all to often the hobby shops ive been to have attitudes or give you a hard time because they lost the spark that got them into the hobby. so make sure you recruit guys who have been in the hobby a while and practicly have shock oil in their blood stream and want to spread the hobby, not just make a buck.

you also want to support the big brands, traxxas, hpi, losi, ae, etc. aftermarket brands as well. dont be affraid to order the from the small discreet companys, you may not ever work with them more than once or twice but if you build a rep as a shop that helps the individual hobbyist than that will spread. repore is everything as local racers do become biased and will go out of their way to get that one part. from that one shop

also, dont make the mistake my boss made (mold restoration), dont dump all your money into advertising but dont be affraid to get your name out their. also, if you have any parks around you, let the county know your interested in starting a public track, if its located near your store ppl will go to you for parts first. im not sure all what is involved with that but i live near a long standing rc track that was never takin care of and wasnt affiliated with any club or h.s. but an rc oval club steped in and now the 2 shops also near me are booming because of the club and the club works very closely with the county and is now the pride of the park system.

hope this helped some, good luck.


also, you may want to look into a good security sytem, hobby shops are big targets for theft since rcs can be sold pretty easily and cost big bucks when sold new in box and are pretty hard to trace unless they have any unique mods

Airbus 9e

Also keep in mind.....He told me the airsoft stuff was among his best selling, it was also most likely to be 5 finger discounted as well.....

SLAYERDUDE

My longtime friend owns the LHS and he will be closing his doors soon.
Not to discourage you, but that is what is going to happen.
I think a big part of his problem is he's in a bad location.
And he has no online store.
What he also sells is skateboards and I see more kids come in buying boards and skate parts than RC people.

He is stuck using Global hobby as his supplier because Great Planes and Horizon want him to stock, I think, $20,000 worth of inventory.
I will talk to him again and verify but I would definitely give Horizon a call before you go any further.
Global is a very poor supplier and though they can sell him HPI cars and trucks they do not sell many replacement parts, engines and parts, etc...
In many cases I have to go to another hobby shop simply because he can't get the parts I need.

ludeman

IMO, Horizon is ruining the hobby!

The Mad Modder

+1 That's one reason I don't like shopping at hobbytown, which is the only hobby shop in my area. The other reason is that the only brands they stock are losi and traxxas, which does me no good.

Traxxas4fun

My Feedback: (3)

man, im from fishers indiana. i can tell you indyslots is a very annoying track.. you get barely any help there. and hobbytown is better, but i dont like that they dont have an outdoor track..

Ttam Says Blarg

IMO......... ADVERTISING makes EVERYTHING!

newaddict1

Slayer dude, definatly talk to your friend about horizion & great planes. That would be very interesting to me. Again great input from everybody.. glad I wasent the only one feeling unloved by the slot car palce.(which means there is others) The property manager is suspose to be getting me prices on the building but hasent contaced me today, I m waititng to see how that goes. One thing I am real worried about is advertising, I have Zero experience in that field,but have always heard it is very expensive by my previous employers, so that is something I will have to explore more...The upside is I Think Iwould have alot of exposure due to the location... And if I have a track that would bring in more people, since they are limited in this area. one of the building is kinda like the expanded 2 into 1 and has a wall mostly down the center. leaving 2 areas that are approx 22' X55' measuring by my footsteps. there is a alcove that is 10' deep by 20' or so that would be perfect for a rock crawler course. but the 22' X 55' area. I'm not sure would be large enough for a decent course... I'm really leaning towards a dirt track... Because I think new customers around here be more likely to buy a rig or a rig for theit children. if thy can also play with it in their back yard.. opposed to a onroad car they can basically cant use anywhere else.. just my thought... Leaving most of the other halfto use for the shop. which seems to be plenty of space the local hobbytown (no track) rc car/truck area is definatly smaller soI would have plenty of room there.. I agree on the "repair" aspect I was actually talking to another guy about this.. with all the RTR kits peolpe are not very aware of how things are put together, nor do they want to learn... he has actually purchased a few cars off people because they wrreck them and think it is gioing to be hard or expensive to reapir and they just get another one... And you Always see at least 5 or more cars/truck behind the counter at hobbytown... Usually a freakin Tmaxx, Which literally my freinds 12 year old boy can work on... And I agree with the discount pricing on the "service" I think it will always be a numbers game, so sell it for a little less than everybody else and sell more of them, usually wins. and eveyone else complains. Again I feel I would have to have some internet , and actually me and a friend were also talking about this. I seems more and more recently most of the stuff on the internet is about the same price as a LHS...And the price hasent gone down... now this is for new stuff we are talking about... Say for instance Since it s so popular a Tamxx look on Evil-aby. most new in box stuff is the same price as a local place. There are a few "I bought this and never opened it odd balls that go for cheap" or some computer store that somehow got a odd-lot buy. .. But Anyways this seems encouraging to me that they arent $100 cheaper.... and the price hasent gone down $100 in the last year... Keep the ideas and the bad stuff comming ... I have put alot of thought and effortinto this and outside opinions are Very welcome

Access

The only type of advertising that works in these types of hobbies is word-of-mouth. Otherwise, it's all just a waste.
Remember advertising is not going to sell product or make people buy it. At best advertising just gets the knowledge out there that you exist.
A visible location with a lot of traffic is always a good thing, but work with the local clubs in your area, host events / competitions for free, etc. Treat every customer (or potential customer) with respect and try to be helpful. Word of mouth goes a lot farther than the general advertising in this hobby.

SLAYERDUDE

I just talked to RC Sancho from the X-shop.
He told me when he was first opening Horizon wanted a minimum $20,000 store to start.
I.E.- If he had $10,000 worth of inventory they would only require a $10,000 order.

He now has about $12,000 in inventory and called Horizon but now they want him to order $18,000 bringing his inventory to $30,000.
So good luck with your overhead there...

Global was the only one that he could afford starting out, they wanted a $5000 first order.
Global does not deal with Losi, or O.S. Engines and it takes a week for any order to come in from them.
Also for older models Global doesen't carry much for parts like Horizon or Great Planes do.
Fuel is very expensive thru Global also, he said with hazmat fees he would lose money selling thier fuel so he deals directly with Byrons.
Byrons has a minimum order of 8 cases at a time so that's a chunk of change there.

If you do start up shop let me know because he has alot of HPI and Traxxas parts that he will sell you at cost.

Any other questions feel free to ask.

SLAYER

Traxxas4fun

My Feedback: (3)

yeh, i called one friday night and asked, what offroad races to race there? (indy slots) the guy goes i dont know, i dont race off road but i think they get a good amount of those traxxas trucks, you know the ones that are on tv.. i was like WOW.. this was the guy that was working there that night..

DaveG55

Yeah, it's hard to get good help, especially in a field that requires a bit of specialized knowledge. And being limited to paying minimum wage does not help all that much. Then you've got some high school kid who doesn't know much and cares even less representing your store to the world. Then somebody gets a bit bent out of shape and posts it on the net and there goes the reputation that you've worked so hard for.

It's even harder to find good help that does not steal from you. You can take my word for that, I know from first hand experience.

newaddict1

Thanks slayer dude... I have contacted them and a "represenitive " is suppose to get some of my questions answered... I'm not trying to knock anybody.... I am mearly saying there is a gap in local tracks I'm sure everyone has their bad days... or maybe someone is sick and the person that helped fill in that night didnt know much about that perticular area..... I was never treated rude or badly... just didnt find what I wanted.... as fall is comming, there will be only 1 place to race locally, it is a nice small carpet track . That track isnt what I'm looking for personally, and there must be others... So I'm just exploring the potiential pitfallls, and hurdles , that would face someone looking to start up something.. I appreciate ALL INPUT...

animalnut

with the market and layoffs my lhs of 23 years is now talking it may be the end no one can afford nothing but the bare basics to live I can hardly afford to run my truck or fly my heli or fix my nitro boat right now and 2 months ago I made 50,000+ a year, with nothing but a wife and 2 young ones then what went from a booming buss. just up and died and after the top guy loses all the broom pushers s out for any reason you can come up with the company is nice enough to lay me off instead of find a reason to fire me and thats the story every where I'd wait the recession out!