Starting a hobby shop?

Don’t know if any of you have an answer to this but a friend of mine runs a little toy store and was interested in having me open up a plastic model section and running it…hmmm…how would one get started in building an inventory…would i contact the individual makers and list myself as a hobby distributer or what…

Mark

You would need to contact the US distributors for the various brand names. For instance, Dragon USA handles the distribution of Dragon, Hasegawa and other brand names. MRC handles Academy, Italeri and so on. I just checked MRC’s site and they even have a link for dealers and one for becoming one. HTH!

EDIT: oh, and I hope I get the special discount when you get started! [;)]

One word.

Capitol.

You’ll need inventory.

But I must say, there is no way in the world, not if were paid to do so, not if I found drums full of money, not if my life depended on it would I start a hobby store in todays world. The LHS is a dieing breed. To start one today with interests so narrow and specialized, with the internet and mail order…

Nope.

Good luck with your project.

You’d be even better off buying from the country of origin directly. For example,

[link]http://www.ericyymodel.com[/link]

has phenomenal prices on Tamiya, Academy, Hasegawa, Dragon, and to a lesser extent, Trumpeter. Shipping works out to be more, but in the long run you save an awful lot! If you plan to buy online from another hobby shop, shop around as there is often a 20%+ spread on prices store to store. Also, just because a store has one kit cheaper, doesn’t mean everything they have is a good bargain. Avoid ebay! you won’t know what you’re going to get, and it matters if you’re reselling. If you’re just going to build it, who cares if the box is crushed, and its missing decals…but good luck trying to sell it that way. Also, try to buy in lots, or one large order, most places will give free or reduced shipping if you buy X dollars of stuff.

HTH!

Cheers,
Alex

Sure good to know 20 years from now when I retire!

Before everyone goes nutz on this topic…your friend already has a store…selling toys…then you’d be entering the picture as his plastic model department manager? He probably already has distributors that sell plastics. He has credit with them. Stocking that department should be straight forward.

Companies such as Steven’s International, MRC, MMD and Dragon USA to name a few specialize in plastics but are not limited to just them. If he doesn’t already do business with them, then you’ll have to contact them and ask to open an account. Have your credit and business references handy!

Here is a link to an industry publication about starting a hobby shop which is produced by the Hobby Manufacturers Association.

Several questions you need to ask yourself before getting started on this venture…

Why do you want to do this?

What are your expectations?

Is this something you expect to be fun?

Are you ready to work long hours (longer than a real job!) for little or no compensation for a prolong period of time while you build your business?

Who are your customers?

What demographic will my customers be?

Do I have the necessary training and resources to enter this endeavor?

Do I have a viable business idea and a business plan to take that idea forwards successfully?

What is my exit strategy if I fail?

And the hardest one…Am I ready to work long hours, alienate my friends and family because my whole life revolves around getting my business off and operating successfully…oh and did I mention dump in some cash? Mortgage the house wife and kiddies? Trade down to an older car with no payments?

If you aren’t willing to do any of these including in the personal investment in both sweat equity and capital (cash) no one will give you a business loan…which is why a plan is so important.

People start new business ventures every day…many fail each day too. But it is what makes the business world go around…big corporations are only a fraction of the worlds businesses. Entrepreneurs are what makes the business world tick. If you don’t have the necessary skills, get them. There are programs that teach and in the process help you compile and publish a business plan. Then help connect you and your plan with financial resources that will take you and your business forward…if it is viable.

I’ll tell you it was much easier working set hours for someone else…but being in business for myself is much better…and worse in some respects but I probably will never turn back. We have several clients that are starting or renewing their businesses…it is part of what we do…help them reach their marketing and sales goals.

PS. There is a lot of free advice given on these forums…free doesn’t necessarily mean good. Just because someone has had a bad experience with something or someone, doesn’t mean that everyone else has had the same experience and thats is what you can expect to happen to you. Education pays dividends!

Be sure to have a full coffee pot going at all times. That way your “regulars” have something to drink, while they spend hours and hours of your time debating the finer points of this hobby. [:D]

What ever you do, don’t model it after Al’s Hobby Shop in Elmhurst, Illinois. What a sorry state of affairs that place has become. I was in there very recently and the military plastic model section is about an arms width wide. It looks like 90% of the store is now rc garbage. Even the trains have been moved into a store front next door. What a disappointment. If anyone from Al’s is reading this, I just want to let you know that I may never patronize your establishment ever again. There is nothing there that I want. I will drive 275 miles to St. Louis to CRM for my military plastic models needs.

Any way Mark, good luck with your endeavour.