Hobby Town Vendor

Hobby Town Vendor

How to Sell to Hobby Town Stores and Become a Hobby Town Vendor

HobbyTown is one of the premier stores for all things related to radio control hobbying, offering radio controlled planes & cars, paints & railroad items. Furthermore, they sell educational toys & games.

Initial franchise training takes place both onsite at a mentoring store and through Hobby University at company headquarters. A field team provides ongoing assistance in terms of purchasing, financial analysis and inventory management.

Inventory Management

HobbyTown stores are well known for offering an incredible selection of RC planes, model kits, dollhouses, games, toys and other hobbyist goods at competitive prices – an attractive combination that attracts both experienced hobbyists and novice hobbyists. These stores also provide expert customer service that makes shopping even easier than before!

HobbyTown’s wide selection of products, combined with their online shopping options for customers, enables them to reach more potential buyers and increase revenue – this business strategy has propelled them into one of the country’s most prominent brick-and-mortar hobby and toy stores.

Franchisees receive comprehensive training from both our corporate office and at your store location. This training includes 32 hours of classroom education and 130 hours of on-the-job experience to teach how to run their store effectively while building relationships with vendors, while our corporate team teaches essential systems and procedures for running a new business.

Before investing in a HobbyTown franchise, it is crucial that you thoroughly investigate both the brand and company. A discovery day event at Lincoln, Nebraska’s corporate headquarters provides the ideal way for you to learn more about this opportunity and decide if it’s suitable for you.

Initial investment requirements vary based on your store size, build out requirements and starting inventory requirements. Financing options such as banks or your 401(k) can provide startup capital.

HobbyTown USA franchise owners need a minimum of $125,000-$200,000 in liquid assets in order to launch their franchise business, using this money for both franchise fees and initial investments. You could also seek assistance from financial advisors when applying for loans for their business venture.

My area once boasted the finest hobbytown store when it came to airplane and model kit selection (not sure of exact numbers). After the Arab oil embargo hit however, things changed drastically; instead of stocking the full selection of airplane and kit offerings they shifted focus more towards Lionel trains and “toy grade” items such as LEGO; however they just didn’t see enough real modeling enthusiasts going there anymore and ultimately closed down business.

Marketing

The internet’s explosion has created a challenging landscape for hobby shops locally. Small businesses struggle to compete against rock-bottom prices and an overwhelming selection of specialty products online; yet thousands still operate around the country. By employing effective marketing techniques, hobby shops can attract more customers and boost profits.

As part of your hobby shop launch process, be sure to identify a target niche market and research consumer buying habits in your locality. This will enable you to assess if and what products will sell well locally. Also consider joining an association such as National Retail Hobby Stores Association or NRHSA which provide resources and networking events.

Building customer loyalty is essential to your hobby shop’s success, and loyalty programs allow you to reward repeat customers while drawing in new ones. To increase retention rates and build customer relationships, offer coupons or special discounts on hobby supplies so your customers will visit your shop instead of shopping online.

Not only can loyalty programs bring customers, but social media and digital platforms can help you advertise your hobby shop effectively. YouTube channels provide great ways to showcase projects while teaching the latest hobby-building techniques; creating such channels may attract younger audiences while expanding customer bases.

An effective way to draw more customers is by offering quality board games. Millennials love board games and are always searching for something new – you could sell items like Pandemic or Ticket To Ride that are hard to come by at other stores.

HobbyTown franchise owners need at least $125,000 in liquid assets in order to launch a franchise business, including an initial investment, startup costs and build out and inventory costs. If this amount falls short of covering these expenses, FranFund provides soft credit checks which won’t harm your score while providing multiple loan solutions tailored specifically to meet the needs of their franchise owners.

Customer Service

Hobby Town is an established retail hobby and toy franchise with more than 100 locations in the US, selling an assortment of radio controlled cars and planes, toys, games, scale models, tools, railroad items as well as paints and art/craft supplies. Their headquarters can be found in Lincoln Nebraska.

HobbyTown stores generate approximately $1,512,000 annually in revenue; however, their operation can be difficult and challenging for entrepreneurs due to initial investment requirements and franchise fee costs that may deter prospective entrepreneurs. To assist their franchisees, HobbyTown provides comprehensive initial training as well as ongoing support and financial analysis that allows owners to run their businesses more effectively.

HobbyTown has long been established as an excellent retailer in our industry; however, their customer service never leaves me impressed. I have tried calling several times to inquire about product availability; as well as going into stores to talk directly with someone regarding this question and being told they will look into it and call back later.

Before I called back again after an hour-and-a-half wait, this time they informed me that what I needed was available at another location and could be shipped free to me, with online sales also possible. When explaining that they weren’t in stock at their store and I’d already tried other places, this information came as quite a shock – they said I should buy it somewhere else instead!

I was not impressed with my conversation with one of their representatives; they did not comprehend that there is no guarantee they could provide what I asked for and did not care that I was angry over their lack of customer service; they just abruptly cut me off, hanging up on me without giving an apology or offering anything in return for business done at their hobbytown. Needless to say, I will no longer shop there and strongly advise others against doing so as well.

Todd joined our corporate team in 2022 and is responsible for accounting, budgeting, cash management and tax and franchising law compliance for corporate operations. Additionally, he’s an avid R/C aircraft enthusiast. When not at work he likes traveling and spending time with family.

Business Management

Hobby Town is a premier toys, recreation and hobby franchise offering games, toys, remote control cars and planes, model kits, train sets and rockets as well as educational products and craft items. Established in 1985 in Lincoln Nebraska by Merlin Hayes, Mary Hayes and Thom Walla it now operates 109 stores throughout the US.

This company provides comprehensive initial training and ongoing support for franchisees. Field managers are present during grand opening periods to assist with setting up operations. In addition to field managers being on-site during grand opening periods, franchisees also benefit from accessing its business system, vendor relationships and third-party financing for additional support as well as online data and point of sale systems that facilitate decision-making processes.

HobbyTown franchises can be an excellent investment opportunity for people who love working with people and possess knowledge about the hobby industry. But be warned; this business doesn’t provide high profits and requires long hours and hard work from you! If you are considering starting one of your own, review the franchise disclosure document to gain further information regarding costs and requirements.

HobbyTown franchise fees start at $49,000 while startup costs range between $161,000-$333,000, including expenses such as franchise fee, formation fees, construction of retail fixtures and equipment as well as the POS system, security deposit, signage inventory working capital insurance policies.

HobbyTown stores typically generate approximately $1.5 million in annual revenues. Franchisees must meet certain qualifications, including having at least $250,000 net worth and $100,000 liquid assets to invest. Furthermore, full-time commitment must also be ensured as well as funding a minimum inventory purchase of $70,000 each year.

Step-by-step training on how to sell to retail chains!

We explain exactly how to do that and how to get started today. I’ve taught over 100,000 of companies over the years across the globe on how to get your products to the stores. And so we’re here to support you. Or please subscribe to our Youtube channel and or be on the lookout for additional training that we create.

We are here to expedite the process of generating revenue with your physical products and that’s what we’re all about.  Take a look at our advanced training, live events, certification programs and so much more.

In this training, I will discuss some of the things to think about when approaching a retailer to sell your products and become a vendor. Hope it helps! 🙂

Karen Waksman,
Retail MBA

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