Now you're Talking
From time to time this section will present thought-provoking ideas on modeling/AMA issues. Timeliness and available space are factors which may affect publication. The opinions expressed are those of the author(s) and should not be construed as being those of AMA Headquarters staff or the AMA officers.
Editor's note
The October 1998 "Now You're Talking" by Bill and Joan Hinman, concerning the closing of their hobby shop, has generated quite a bit of reaction from readers. Excerpts from a few of the responses we have received are printed below.
Neil A. Reddick — Santa Maria, California
I would like to say I do care! I would like to express my sorrow and disappointment at the "changing values of our society" to the Hinmans.
Although I only had the opportunity to visit the Red Baron on three occasions, I could immediately see that it was truly a real old-time hobby shop.
After stumbling through many years of "no money, no time, and no place to construct," I finally was able at age 37 to get completely involved in RC. I looked to my community for the real old-time hobby shops I remembered as I was growing up, but alas, they too were gone.
I thought about picking up the phone and calling some large mail-order outfit; then I looked to the Yellow Pages. I spoke to Mr. Hinman that day and asked about some specific kits I had in mind. He surprised me when he said he had them in stock and invited me down to take a look.
After walking around the store remembering when I was a youngster and the many hours I spent in Fireside Hobbies in Santa Maria, my brother and I walked out with a Sig Kadet Senior kit and a shiny new O.S. .15 engine for the same price as any mail-order catalog, along with many other smaller items that one cannot pass up while in the Candy Store.
We found Mr. Hinman and the two fellas who were working that day to be extremely nice, helpful, and knowledgeable. Just in case anyone is wondering, yes, they did tell us about the many options available to us as beginners. But after explaining our modeling background to them, it was agreed we could handle the labor-intensive Senior.
Mr. Hinman, I would like to thank you for my beginning in the wonderful world of radio control. All those you did it for were not unappreciative.
Neil A. Reddick Santa Maria, California
Brent P. Maxon — Mt. Pleasant, Michigan
My sincere condolences for losing what was obviously your dream and passion for more than a quarter-century. As you note the changing values of society as the reason for your shop failing, I wish to assure you that this is not the case everywhere.
I am an avid modeler in a small central-Michigan town with one RC hobby shop: Jon's Hobby. I can safely speak for the majority of my club when I state that if I need it, Jon will have it or get it for me!
I am frequently pleasantly surprised at how competitive his prices are (if not cheaper) when compared to the "true costs" of mail-order. And nobody handles my concerns and questions more promptly or politely.
I want to deal face-to-face with the person I purchase from. I want to touch and see the item and have his word to fall back on if there are problems.
I guess my point is that there are many of us who share your business philosophy and applaud your efforts to keep personalized, honest business practices and the "old-time shop" afloat in turbulent times.
Brent P. Maxon Mt. Pleasant, Michigan
Horace Cain — Humble, Texas
Please do not take this as being critical of the Hinmans, as it is hopefully to present my personal observations of how local hobby shops (HSs) are drawn into the same webbing.
I am aware of the very narrow profit margin that HS management has to work with. My experience comes from many years as a consumer, my visits to many shops around the country, and seven years as an HS owner. The shop was successful; however, my time was divided among the airline, the USAF Reserve, the HS, and family. Something had to go, and I needed more hobby time.
The Hinmans "stocked most of the popular kits, engines ... everyday things the hobbyist needs." What about the dedicated sportsman who wants more than what the hobbyist needs?
"We tried to keep up with the newest things ... we special-ordered as promptly as we could." New stuff has to be kept up with to a minor degree; but most calls will be for the tried-and-true from the flying field. The major distributors, with all their beautiful advertising in the magazines, will break a dealer who overloads the shelves with the high-dollar, low-profit merchandise, kits, engines, and radios.
"Price is king! Dedicated hobbyists are not a hobby shop's profitable customers .... our real customer base did not lie with the clubs. We supported them, but they did not support us." "We helped the clubs more than they ever helped us." The dedicated hobbyists/modelers will pay their way if the HS management could ever get a clue.
There are two main items that few HS owners ever learn:
- Get the guy into the store. He is the customer and you, the seller, must motivate him to come into the store.
- The dedicated modeler and/or contest modeler needs to know that he can reasonably expect to find adequate merchandise in your store. You will not be able to do that by limiting your ordering to several big distributors that advertise so heavily and give you a few more cents' discount for bigger orders.
There are a number of ways to get the modeler in the store. One method used in Chi-town is to offer a considerable discount on small parts to regular customers. When the customer needs something, he goes to the HS. The use of something like $15 merchandise credit for each $100 in retail receipts can motivate the consumer to come in and see what you have. If I have to pay full retail, I may as well have it delivered to my door.
No, price is not king, as I have at least 20 kits (about 85 total) in my attic that I bought because I saw it in the HS and just had to have it. You just gotta get me in the door.
Hey, give me 20% discount and I'll come order through you. I'll probably see something else and buy it. If I order $100 worth of Sig dope, and you pay $60 for it and sell it to me for $80, you've made $20 — a 33.3% return on investment — and you have the money right now to reinvest. Any stockbroker would be in heaven with that kind of return.
Yes, a hobby shop can prosper — even on low margins. The dedicated modeler is the best customer that a dealer can court. He is the continuous customer; however, most dealers forget him, because he wants more than the standard shelf items. To service the dedicated modeler/club member requires work, smarts, and innovation that the vast majority of dealers just cannot muster or refuse to acknowledge, because it's easier to blame the clubs. They overlook the best advertiser they could possibly have: the modeler on the flying field.
The customers are there. The dealer has to be innovative, not afraid to stock some loss-leader merchandise, and knowledgeable and supportive of all aspects of the sport. It requires work.
Just remember that I can't buy from you unless I'm there. Give me a reason to be there. I send all those people who ask me about this sport to wherever I think they will be treated well, and to where I am well-treated.
Horace Cain Humble, Texas
Transcribed from original scans by AI. Minor OCR errors may remain.
