As the former owner of an IBD (Independent Bicycle Dealership) I fully understand what these guys are going thru. Most of us get into a business like trains, bikes, models, games for the love of the hobby, not to make a killing. What most fail to realize is the profit margin on big ticket items, in my case it was 35 points at best. Basically if I paid $100, my retail was $135 or a net of $35 for that item. Bikes are normally much more expensive, but I want it to be relatable on a MRR basis. Now from that $35, I have to pay rent, utilities, capital gains, employees and other as sundry items, so my profit on those bikes is virtually $0. The money came from repairs and consumables such as tires and tubes. That made up what my store was able to profit on. Train stores are much the same. Minus the ability to have the volume of service dollars a bike shop does. Now comes the internet which makes buying anything you want relatively easy and at a lower price. Why would you buy from Bob's trains at retail when you can get it online for 20% less? Well for most you wouldn't... The issue is we are at a paradigm shift in how business is done. To survive in today's tight economy you have to make money where it is available, and if an internet presence is required, that is what you must do to survive. The other side of the equation is the vendor who allows internet dealers to purchase product without a brick and mortar store front (a requirement from most vendors in any business) while cutting the dealers who made thems throats. I purchased as much as possible from my local hobby shop until it closed 6 months ago. Big ticket items I purchased online if the price was more than 20% under what the shop could do and make money. Basically, I am not going to ask the shop to do charity work, and get product for me that there is no profit in it for them. When it closed I worked with the employee who was trying to open his own store on a marketing plan that included both brick and morter and an internet site. Unfortunatly he was unable to gather enough capital to get it off the ground. In closing to survive you must adapt to the current climate. As enthusiests it is imperative that wae support the shops who lay out capital to make our lives easier. Support your shops. How would you feel if every time someone came to you for a project, no matter your career and demanded you do it for 10-20% less than you make now? Allen W The Erie Lackawanna Mailing List http://EL-List.railfan.net/ To Unsubscribe: http://Lists.Railfan.net/erielackunsub.html ------------------------------
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