LHS pricing....why buy?
Competition is a good thing, but there are things to consider why prices are usually higher at your local hobby shop. People think that when they go to a local hobby shop that the hobby shop is out to rip them off. That is generally not the case. People really need to look at the whole picture, and the value of what the hobby shop does.
If I own a warehouse with a phone person and a shipping office only, my cost of business is low. I limit what I carry and have a warehouse in a relatively low cost rent district. Therefore mark-ups on products can be low. How do I know this? I'm in an industry where I deal with these warehouses. Troubles usually happen after the sale. Questions about the product, and broken products don't get handled very efficiently.
Consider a hobby shops expenses. They are ususually in areas where the rent for the store front is almost three to five times what it is for a warehouse. So where does that money come from? Out of the owners pocket. If the store has a track. What about the costs of building a track, and keeping it lighted, heated and staffed for races? Hobby shops are always asked to carry a much wider variety of product. That means they usually don't do volume buys on one item. That means they pay a higher price right from the start. What did you do when you first wanted to get into the hobby? You walked into a hobby shop to see it. That's generally the case, but not always. The hobby shop generally has two or three people working there. Who pays there wages? Isn't our pay rate higher here in the US? Of course it is. Also if the hobby shop offers medical insurance who pays for that? The owner. What about theft of goods? Thats also about 10% of annual sales. That's right the first 10% of mark-up goes right to those who steal. Sick isn't it? The owner pays. So where am I going with all this? Total it all up.
Higher Rent + Higher expenses running the joint +theft of goods
+higher Insurance costs+ unemployment insurance+ dead inventory from a hot item that died ......all equals higher markup on goods just to even break even . Without a hobby shop...........the millions of people who start a hobby every year don't get into it. There's simply no place to go and browse, and spark an interest.
Most people don't think of all those things when they buy. I buy almost all of my stuff from the hobby shop or US distributor /dealer. I want this hobby to flourish, and will support it here. I'm not a name driver. I get a couple dollars here and there for support, but that's it. I have no monetary interest in posting this whatsoever...........period.