Caboose

[jpwisc]

We kind of saw the same thing with MBK --- nice downtown Baltimore location with a great atmosphere then they moved to Cockeysville with a smaller store front -- then eventually the webstore took over completely .. at least they are still in biz

Not only are they still in business, they are shipping out over 600 orders a day. Their business model has been a massive success.

[Ed Kapuscinski]

Not only are they still in business, they are shipping out over 600 orders a day. Their business model has been a massive success.

They are the Amazon of the model train world. Not gonna lie, it's a minor point of professional pride that I was part of laying the groundwork for that. 

But that said, and in the same way that we know the way that Amazon has messed with the non-model train retail world, I also wonder about the effects that their business has on the rest of the hobby shop world. A big difference is that MBK isn't using TedsWebServices to subsidize their retail business, but I can't help but think that their success in focusing on the "big ticket" stuff (and turning and burning it) is partly responsible for the difficulty that small shops have.

They can no longer subsidize the inventory cost of racks of those $3 detail parts (that we all love) with $250 locomotive sales. No shop is gonna survive long on selling just flex track and paint. Perhaps the ascendency of shops like MBK, TTH, etc... and our desire to always save a few bucks has contributed to the downfall of the smaller shops.

Yes, I know, this is capitalism and a system that works in the aggregate, but it doesn't always result in the best outcomes for everyone.

[Point353]

They are the Amazon of the model train world. Not gonna lie, it's a minor point of professional pride that I was part of laying the groundwork for that. 

But that said, and in the same way that we know the way that Amazon has messed with the non-model train retail world, I also wonder about the effects that their business has on the rest of the hobby shop world. A big difference is that MBK isn't using TedsWebServices to subsidize their retail business, but I can't help but think that their success in focusing on the "big ticket" stuff (and turning and burning it) is partly responsible for the difficulty that small shops have.

They can no longer subsidize the inventory cost of racks of those $3 detail parts (that we all love) with $250 locomotive sales. No shop is gonna survive long on selling just flex track and paint. Perhaps the ascendency of shops like MBK, TTH, etc... and our desire to always save a few bucks has contributed to the downfall of the smaller shops.

Yes, I know, this is capitalism and a system that works in the aggregate, but it doesn't always result in the best outcomes for everyone.

For several decades, you could say the same thing about BLW, up until very recently.
 
How many of those $250 locos will the small shop have in stock?
The two nearest Kato dealers are about an hour's drive away from me.
Neither one stocks the latest 20th Century Ltd train sets and locos.
To buy it from either one would require two two-hour round-trips, one to place the order and another to pick up the items.
Even if there was no COVID to worry about, it was so much easier to order it from MBK, who had over a hundred in stock.

[Ed Kapuscinski]

For several decades, you could say the same thing about BLW, up until very recently.

I'd agree.

How many of those $250 locos will the small shop have in stock?
The two nearest Kato dealers are about an hour's drive away from me.
Neither one stocks the latest 20th Century Ltd train sets and locos.
To buy it from either one would require two two-hour round-trips, one to place the order and another to pick up the items.
Even if there was no COVID to worry about, it was so much easier to order it from MBK, who had over a hundred in stock.

That's true, but if it weren't for the big discounters, it's possible that you might still have somewhere closer that would also have some other stuff you might want, need, or find useful.

I'm talking about having a vibrant ecosystem that provides the best overall experience for hobbyists.

[Philip H]

I think there’s also a geographic component to it with associated local culture. The train store by muni laws In Green Bay has lots of stock of the big and the small four brands of paint an online presence and decoder installs. Best I can tell they are doing good business but it’s also the nerve center of the MRR world.

[Point353]

That's true, but if it weren't for the big discounters, it's possible that you might still have somewhere closer that would also have some other stuff you might want, need, or find useful.
I'm talking about having a vibrant ecosystem that provides the best overall experience for hobbyists.

The lack of a vibrant local model train shop ecosystem is what led me to start ordering from BLW back in the 1980s.
By that time, the guys that had opened their shops after "the war" were either retiring or dying off.
The only thing that would give the big discounters a run for their money was the annual Springfield MA train show.

[ednadolski]

Looks like they (finally) updated the FB page:  https://www.facebook.com/CabooseHobbies/posts/4147910901905074

Ed

[Dave V]

And yet last night Caboose did their Facebook live webcast.  No mention of closure or failure.  It's an odd situation indeed.

[ednadolski]

And yet last night Caboose did their Facebook live webcast.  No mention of closure or failure.  It's an odd situation indeed.

I tuned in to one of those a bit before Christmas and it was... surreal:  he had his laptop open but unattended and with the camera left on, and it looked like he was in the store with some other folks and they were carrying things out.  Meanwhile other folks on the call were just continuing on as if nothing else was happening.   I guess they all knew but had some kind of silent understanding not to say a word about it.  Very odd indeed... 

Ed

[wazzou]

Could be in effort to legally maneuver behind the scenes for some type of bankruptcy protection to shield themselves from creditors.

[MK]

They will probably come back as an online shop only a la Radio Shack or recently Modell's in the Northeast.

[C855B]

To what end? With inventory managed like they did at the B&M? Pshaw.

[ednadolski]

They will probably come back as an online shop ....

Based on the text of the announcement, I would not hold my breath.  More to the point, one does not simply wake up one day and decide to open an online retail shop especially (a) in a niche specialty market (b) with many thousands of SKUs and (c) with razor-thin margins and (d) built upon the remains of an already failed web presence and (e) with a great deal of existing competition that has a large loyalty base and (f) nothing to distinguish oneself from said competition other than a brand name that now has been very seriously tarnished in the minds of many customers and suppliers alike.

But hey, you never know....

Ed

[MK]

They will probably come back as an online shop only a la Radio Shack or recently Modell's in the Northeast.

To what end? With inventory managed like they did at the B&M? Pshaw.

Based on the text of the announcement, I would not hold my breath.  More to the point, one does not simply wake up one day and decide to open an online retail shop especially (a) in a niche specialty market (b) with many thousands of SKUs and (c) with razor-thin margins and (d) built upon the remains of an already failed web presence and (e) with a great deal of existing competition that has a large loyalty base and (f) nothing to distinguish oneself from said competition other than a brand name that now has been very seriously tarnished in the minds of many customers and suppliers alike.

But hey, you never know....

Ed

I said that facetiously and forgot the  at the end.  Dumb move #1 doesn't mean there's no dumb move #2 as some don't learn from their mistakes.  But then again, like Ed said, you never know.  We thought Radio Shack was done...

[TLOC]

Radio Shack, I thought was dead. I just went to the website and within 50 miles of me there are 9 authorized RS sellers. The closest in near the Pure Hockey store I need to go to on Monday, 1/4 so I will checkpoint it out. Can’t be any worst then what they ended up being at the bankruptcy.

Caboose, I agree, it seems silly they think can raise an online store. Especially if they need to file any type of bankruptcy. If I was a creditor and they owed me and if they make an announcement about a new online presence, I would definitely have representation at the bankruptcy hearing.

I read and commented at the Caboose Facebook site as did Dave V. Seems so many folks didn’t know about the the Lakewood location and are mourning the lost Caboose Hobbies in the downtown location. Reads as though the advertising the move years ago didn’t work out too well.

TomO