Model Forum / General / Models / April 2004

"Craig" <crw59@earthlink.net> wrote in message

That would be my guess.

WmB

To reply, get the HECK out of there
HELLinhock@earthlink.net

Hah! Seeing the $29.99 tube of glue reminded me of my light bill for my
shop last month. $9,573. Yep. It normally averages about $15. The meter
reader read the meter next to mine & it's a heavier user than me. What
was most disconcerting was the 2 'customer service' reps I spoke with
seemed hardly surprised that a $15 bill was now 600+ times as much.
"It's been confirmed that the reading is accurate, sir." Yeah, well,
they accurately read the wrong meter. Got the new, corrected bill today,
$16.  

If ours is any indicator of company wide merchandise, most all the labels
read Made in China or India.
That would be the best clue for their ability to 1/3 to 1/2 off everything
several times a year, not to mention quarterly taxes.

--
Chuck Ryan
CSRZ28@REMOVEearthlink.net
Springfield OH

Jerry 47 put it quite well, they're good business people.  They have a 'loss
leader' sale item that brings people in the door and then the person buys
several 'add-on' items which have a higher mark up/profit margin.

Ie:  In the auto parts business we put a brand name of oil on sale.  A
person
comes in wanting five quarts of brand-x oil.  We don't make any money off
of the oil, but we make a ton of profit off of the regular priced oil
filter, air
filter, PCV valve, cabin air filter, shop towels, hand cleaner, filter
wrench, and
the bottle of soda and Slim Jim (tm) that he buys at the same time.

Hence, when HL puts the kits on 50% off sale, they are anticipating that you
will buy the regularly priced glue, knife blades, paint, inkjet printer
decal
making system, etc.

This is just good business.

To answer another poster's question, the reason that Hobby Lobby hasn't
moved into the SF-O area is because of the nature of their business ethic.
This is a company that's VERY steeply based in bible-belt type business
ethics.  To the point that the entire company shuts down completely one
day per week, they are _NOT_ open on Sundays.  Frustrating to some cus-
tomers, but a lifesaver for many employees.  It's nice for those people in
the
low paying service industry/retail sector to have one guaranteed day off per
week.  The 'fast food' establishment Chik-Filet is the same way, it's sur-
prising to me that there are so many of them in shopping malls in the US, I
know that many malls will fine businesses for not being open when everyone
else is (my mom's retail store once was fined $1000 for having their gate
down five minutes too early!).

Anyway, up here in the frozen north of Fargo, ND we FINALLY got one
just about a year ago.  They've had the coupon special twice and the regu-
lar 50% off sale at least twice.  I've snap[ped up some decent a/c kits each
time.  Picked up a Testor's B-2 kit for about $13 the last time!

Hope this helps!

While the other posters covered the "how" of HobbyLobby and their
pricing and profit margins, I think you're also curious as to how some
people managed to get the new Academy 1/32 F-18 Hornets so cheap?

Unfortunately (or fortunately, depending on how you look at it),
HobbyLobby (HL) didn't screw up the pricing chain wide, it varied
depending on the stores.

According to the posts I've read here and on Hyperscale, some stores
had the wrong pricing info, and priced the kits at $80 regular price,
then take half off that.  Other stores didn't have any pricing info on
the kit, so they based the price of the kit on the size of the box,
ie: it's about the size of kit X box, and it's $60, take half off that

Hey, I got a 21st Century Toys P-47 at Wal-Mart for $12 a couple of
weeks ago, they marked them down wrong, but changed it right after I
got mine.

Ken
----------------
Ken Lilly
amplifone@technologist.NOSPAM.com
*remove NOSPAM to reply*
When diplomacy fails, send in the B-52's