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Opening a hobby shop

Opening a hobby shop

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Old 03-28-2006, 08:26 PM
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Default Opening a hobby shop

Im curious as to what any of you that have owned a hobby shop had to go through to get things started. For example, what were the initial startup costs, the distributors used at first, stuff like that. Im moving to an area that doesnt really have a hobby shop nearby and im tossing around the idea of possibly starting one. please feel free to throw any feedback my way, whether it be the positive aspects, the negatives, the financial aspects, etc.
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Old 03-28-2006, 08:38 PM
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props to u man...are you only going to do r/c stuff...or are you going to be like more of a hobby town?
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Old 03-28-2006, 08:51 PM
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most likely be starting out doing RC cars only, and from there see where it takes me. I wouldnt mind branching off into planes or boats and stuff like that, but my knowledge only goes as far as cars, so I wouldnt be able to offer any good advice.
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Old 03-28-2006, 09:00 PM
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well im sure if u started to get into other stuff like that..or even like hobby town does stuff from trains,planes,miniatures,cardgames, to paintball equiptment...so idk...im sure you could find somone to jump on the band waggon
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Old 03-28-2006, 09:50 PM
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As with most retail related businesses you will find inventory is usually the largest portion of your initial start up costs.
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Old 03-28-2006, 09:52 PM
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the facility cost would be very cheap, im just trying to get an idea of what a decent starting point is inventory wise
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Old 03-29-2006, 12:47 AM
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Remember...just what YOU like will NOT carry a store. If you just like RC cars and have a shop just built around that, you may not make it. Carrying some RC aircraft, rockets and perhaps some scale modeling stuff could help alot with your planned shop's appeal.
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Old 03-29-2006, 06:13 PM
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will you be having a track at the store?
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Old 03-29-2006, 08:30 PM
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it would be nice to have a track onsite, but that would mean getting a large size facility. I guess I could say that if things went well and the demand for a track was there, an upgraded location wouldnt be ruled out. Anyone know the average buy-in a distributor asks for by a new retailer?
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Old 03-29-2006, 09:17 PM
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My brother and I looked into opening a model store a long time ago. Tamiya was real difficult to deal with, they wanted you to have a store before giving any information out, weird as we explained to them that we needed cost information as to make a business plan , we went around in circles. Finally a distrubutor for DML models gave us an actual amount they wanted. About 6 years ago they wanted a $5k min order for the first order. Then they had some sort of list prices with our multiplier on it etc.....


My guess is that its probably more like 10k min order. Possibly more. Youre not really going to get anything started with less than 50k. Sounds like a lot but im sure that wall of parts adds up pretty quickly.

If you are reallyg going to do it, dont worry about an indoor track. Lots of places have parking lot races and a small place of business. Then thats where it can get a bit tricky because some cities have certain laws about stuff that can be seen from freeways and the such. So you will have to make sure you can operate something like that outside your store.
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Old 03-29-2006, 11:08 PM
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I was told Horizon was a 5k buy in, but I guess I wont know until I start making phone calls. The one thing I did see from their website was the application criteria. They too want pics of the store front. I think its kinda tough when you dont even have a store yet. I guess I need to look around and find distributors or even manufacturers that deal direct to get some solid answers.
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Old 04-01-2006, 08:35 PM
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Horizon is $3500 to start up,Once you get an account with them GP will let you start out with very little investment,I go with GP most of the time because they are cheaper.Magma(sp?) is another one you will need,it's about $1000 to get an account with them,They carry Integy,much more and a few of the other Asian companys.At first I would try to go more off road MT type stuff than TC stuff..sells way better.I would be reluctant to stock to many TC parts,I would order it as needed.Xray is another company that needs to get their act together as far as staying with one distributor goes,Makes it very hard for a shop with a small budget to keep trying to open new accounts just to get parts for a few racers..Here is something to think about..Bashers spend way more money than what racers do.. and their is a lot more bashers than racers..
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Old 04-01-2006, 09:08 PM
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How is everything going Mike?
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Old 04-02-2006, 03:32 PM
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I know you're moving to AZ but which part?

All the Arizona LHS's
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Old 04-03-2006, 11:33 AM
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wild gopher i had the same idea. where my family lives at there is no tracks for 2 hrs. the only hobbystore that is close to me only carries traxxas, team losi, and ae stuff and that is mainly off road stuff. nothing wrong with those companies. my question is (if anyone knows this) if i start up a hobbytown where i am from what is the cost to use the name and will hobbytown help you out getting parts/kits easier? also do you have to pay a % back to them for using there name and such like when people use mcdonalds name?
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