Hi All,
Havent been on this site for a while, so will do a quick intro. My name is Glen Burns and I run Creative Models Australia. We are an importer, distributor, reailer and etailer. Phew!
The current situation of hobby shops has and is being discussed a lot on all forums at the moment. This is my take and understanding of the situation, as well as experiences.
In Australia, there about 3 main importers/distributors for mainstream kits. Italeri, Tamiya, Hasegawa, Fujimi, Trumpeter, Dragon, Bronco, Hobby Boss, Revell/Monogram etc.
These distributors generally buy in bulk, and when I say builk, it is normally a container load at least. Most distributors attend Nuremberg, get the up to date on the latest products and compan doings, as well as specials. These specials normally relate to the distributor purchasing one ull pallet of one perticular kit. Lately, the Tamiya 1/32 Spit, Airfix 1/24 Mossie etc.
Theythen attend the Australian version, being the Toy and Hobby fair, held in Melb. These specials are then passed on to the reail shop, if they purchase either a minimum amount, and/or, other certain kits, which arent selling are highly priced etc.
When these stock are sold out, both distributor and shop, revert back to the normal full retail price of the kit.
Pricing for other kits also works in a similar fassion. If you buy x amount of these kits at these prices, then we will give a discount of x amount on these kits.
The retailers also have 2 mark up guides. The first, which relates to ALL retail shops of all varities, was first introduced a long time ago by Meyers, which produced a formula for not only mark ups and expenses, but also for how much stock costs if it stays in the shelve for a certain period of time.
So the retailer has to gauge somewhere in between, what heir mark upand profits will be, in relation to that product, and at the end of the day, make a $, pay the bills and wages and stay in businesses. This being a very hard thing for a retail shop to do with products that are not a nessacity. Food, water, clothing etc, is a nesacity, so you have to pay what you pay. Modellers are oppotunists, and look for that discount.
On top of all that, retailer have to deal with 2 other factors. The guys that back door products in and there are a lot of these the world over, and now, the internet, and etailer stores.
In regards to the people that back door, these are guys that generall go into agreements with companies like Lucky Model etc, and some with the internationl distributor or even the manuacturuer.
I beleive that these first guys, will soon self implode, as the internaitona dist and manufacturers, will slowly start losing the orders from the national dist and retailers. At least I hope they do anyway! They are doing damage.
The etailers generally get their products legitimately, although I do alsknow some that dont, and again these guys are doing damage to the hobby and the retail stores.
Etailers generally brek down to 2 diff lots. First is that they are the internetetal outlet for the actual phyical retail store. Second lot, like me, who deal speifically in aftermarket, and products that are not distributed here, for me, Australia and New Zealand forst and then the world.
The etailers linked to retail sores are legitimate business and I beleive would hold a lot to do with proping up the physical store.
The legitamte etailers are also not a problem, generall speaking, but can be a threat to the physical store where the products are the same or similar.
Now putting some emphasis on the retailers directly as to their demise.
I have seen and witnessed a few shops that are under pressure from the distributors to stock certain items. Mostly these products arent too bad, but cn quite often be dead products, and or products that are outdated.
Then you have the shps that like already mentioned here, have lost interest in certain sides to their business, and just dont care. Again I know of one shop that refuses to stock any new 1/35th armour kits, becuase like stated before "no oe buys or wants them" Maybe if they stocked the right products then customers will want them?
Mentioned already is also the customer service. I have had stuff ive orerd from a shop, and 2 years, litrally 2 years, i get told that some of it is in stock. I have stock delays myself, but always try and keep my customers informed as best as possible. Sometimes these things cant be helped. But i think 2 years is a little long!
I think all of the above is all i their own little ways kiling the shops, but i do beleive that the shops can do something about it too.
In regards to aftermarket, when I first started I contacted over 150 model shops Australia wide, informing them about us, and our products, and also in offerring stock to them.
The fact these days iAustralia is, that retail shops, do not want to stock aftermarket.
Why?
There is way too much for starters, a lot can be very hard to store and display, and also for loss prevention.
You also need shop attandants who know their products. This is something that has certianly dissapeared. Like my good firend and customer Bilby (i know who you are!) said before, we love having customers call and email and chat about products and modelling in general. .not only do my customers get a lot of info and fun from me, but i also get the same in return. As well as learning new things, from products, to technques to forums to sites everything!
We have tried our very best to provide the best service and products available,but at times, unfortunately you cant always please everyone.
I hope this has helped shed some light.
Glen Burns
Creative Models Australia
www.creativemodels.com.au
Else I get it online, and I've been doing this since I re-entered the hobby 6 years ago in South Africa, or I phone a friend - there are plenty of guys that do this as a sideline that give great service.
