# Why do Commercial Raceways Only last a few years?



## dcronin81 (Sep 10, 2010)

Why do Commercial Raceways Only last a few years?

I often think about this question. Im only 30 years old and i have seen my fair share of commercial slot car raceways come and go. Now i know the outrageous real estate prices here in Southern California don't help things much, but then again there are a lot of people here that spend a lot of $$$$ on having fun. So my question is, What are some of the biggest reasons for Commercial tracks not lasting? Well here are a few of my thoughts,
The first being the location and traffic. Now i have observed tracks that were in areas of high traffic and exposure, but they still couldn't get many walk ins. Now that im older and i have thought about this much i realized that this was due to the location being along a busy road that was used for commuters. The problem i found with this is that when people drive by they are on there way to a destination and most likely wont stop. They may think wow a slot car track, i will have to stop by there sometime but they wont ever make it a point to stop. If you look at tracks that are surviving and have made it work for a long time most of them are in some type of strip mall or shopping center of some sorts. Usually a retail center opposed to a industrial park. Thats my first thought.
Second though is if you look at the business, what is the core money maker of owning a slot car raceway? Is it track time? Is it parts sales? Big races? Now i know we all love racing and alot of the time business are run in addition to a main day job. Is it that we love it so much that just having the business pay for itself is enough to keep things rolling? But what happens when the owner gets burnt out on the business and they start to loose the passion to keeps things floating? Is this the down fall?
These are just a few things i have thought about and i have many proposed solutions but i really wanna see what you guys think. Im not trying to be negative or anything of the sort. I just have lots of thoughts and i would really love to hear what everyone thinks. Lets really try to make this a great topic that everyone can learn from and continue to allow the sport to grow so that our youngsters can have all the fun and memories that we have. Thanks

Dan Cronin


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## Grandcheapskate (Jan 5, 2006)

That's a great point about passion; it may well play a big part in how long a raceway stays open. If the business barely makes money but you do it because you like it and don't need a lot of money to live (semi-retired), that's one thing. However, once the passion goes, the business may soon follow if it's not a sufficient money maker.

The amount of foot traffic is another reason. With the advent of the internet, it is impossible for a real store to compete price-wise. So unless the store has a track, (or provides services) which makes enough to cover expenses, it's gotta be tough. 

If I ever thought about having a store, the thing that would scare me most is the real estate cost, especially in high cost areas like NJ. I doubt I would ever rent - that's just throwing money away. I know of one owner whose rent ran $5,000 a month well away from any large city. That is an incredible amount of overhead to overcome. In order to commit to running a raceway, you have to know that your monthly costs are well within reason.

And lastly, maybe some guys find out they are just not a people-person. Or having screaming kids in the store is not their cup of tea.

Joe


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## philo426 (Mar 4, 2009)

WEll at least you have tracks opening up!Around here there hasn't been a commercial track opening in over 40 years!


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## clydeomite (May 5, 2004)

I think It's almost a case of history repeating itself. In the late 60's early 70's every discount store in town was selling slot cars with no internal track to support the overhead. So the Slot Facilities lost out since the profit for them was the split on Car/parts controller sales. The track was the hook that kept people coming back. I have seen many tracks come and go here in SO Colorado . I don't really see any new activity on the slot scene here even with a new Slot Geared toy store opening downtown. I can hope. I think when you boil it down The cost of a lease- commercial phone- insurannce- Utilities- Is overwhelming to any potential track owner. I can say in my opinion the best investment to be made is a drag strip which takes up little space- requires no turn Marshalls and generates income form parts/ cars etc. I alway advise racers to support thier local tracks if they want to have a place to race. In my prime i supported 2 raceways one here and one in Denver and whatever class of car I ran at thier track I bought parts and supplies for that car from that track. I honestly think the " hayday" of commercial slot racing has come and gone with the new slot tracks being sold in many scales at Retail outlets.
Optimistically Clyde-0-mite


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## pshoe64 (Jun 10, 2008)

Back in the late 60's early 70's when I first got bit by the slot racing bug, a commercial track was an awe-inspiring thing to go visit and partake in. No one had anything like this at home and they were unique to the retail business of the genre. But now we have tracks at home, most being far better builds than what we raced on in the commercial venue back then and in some respects even today. Even though I like to go visit the commercial raceways when I can, having the track at home eliminates most of the need to make the trip to the local or distant raceway. The camaraderie of racing fellow slot fanatics is the only part I miss. I think having the convenient, in home layout that rivals the commercial tracks in size and performance really impacts the commercial venture. The raceways that go that extra mile to host events, organize series races and does what's needed to entice that racer back each week is a rare breed. But when you do find those places, they are the ones you remember and continue to visit. If you have one of those near you, take advantage and keep them around a bit longer.

-Paul


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## Mexkilbee (Apr 17, 2008)

Other than playing with them with friends and family when I was a kid, I didn't get into "racing" them against others @ commercial tracks till 1990. since then I have seen 5 or 6 tracks come and go.
The reasons have been personel health of owner, marital status of owner (marital status of the racers that attend also), rent getting to high, a division in racers on the rules or classes they were going to run which split off the attendence. 
I know of a club that ran the races... slightly, hevely favored toward the club members, & if you were not a member you knew it. I know of a Hobby Shop track that let the racers openly discurage young adults from racenights, with no new intrest being generated.... its the same old same old and attendence falls off. Along these same lines I know of tracks that went south cause the best you could do was Third, unless the owner & son went on vacation. 
The best reason I was told was "they/he went out of business cause he started a T-Jet program" LOL.


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## alpink (Aug 22, 2010)

location, location, location. I have the fortune of having a commercial track in HO and 1/32 in a farmers market in my area. it is the walk in rentals and the RC repair/maintenance/sales that keep this store open. the rent is probably preferable to a full time store because the farmers market is only open Friday Nights, Saturday and Sunday. there is organized racing by a couple different groups on the HO track nearly every weekend and the 1/32 is usually quite busy with rentals. other tracks I have seen that prospered were either in farmers markets or in a strip mall next to a multi-plex movie theater. walk in rental business is very important. one track that had to move from a farmers market to a less convenient location failed within two years due to lack of walk in traffic. location, location, location.


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## Marty (Oct 20, 1999)

I talked to several raceway owners and the one thing thay all agreed upon, if you have to pay rent it will probably fail. The floor space required is huge and the per sq/ft rental cost are high. Thre is one shop, Tom Thumb Hobbies in Columbus, OH, that has been open since the 60's. Yes they have other hobbies there, trains, R/C cars and planes and model kits. They own the building.

MOO

Marty
Marysville, OH


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## AfxToo (Aug 29, 2003)

Most shops that go under simply cannot make a profit. The reasons they can't make a profit are many, but it usually comes down to costs being too high (building rental, utilities, insurance, etc.) and income being too low. The shops that do survive are a rarity so it might be easier to focus on the things that the survivors do right that allow them to hang on. 

1) Dedication: 
The most important thing that I see in surviving shops is an owner that is totally dedicated to the slot car hobby business at all levels and understands all aspects of the business. This means catering to enthusiasts at all levels, from the mom or dad who drop by occasionally with the kids to the dedicated racers who show up 4 times a week and stay the entire day each time. I don't think anyone is getting rich being a slot car shop owner. If you are doing this today you really have to love it or else you'd be doing something else. The same goes for the customers, if you want to see the shops surviving you have to show up and you have to support the shop owners. Sure you can probably find some stuff cheaper online or at a shopping club instead of at the shop, but don't complain when the shop disappears.

2) Knowledge:
You always have to understand the products you sell and the hobbyists who consume them. This means staying on top of trends, staying plugged into racing programs, new products, products across all scales, servicing and repairing the various products, track selection, track maintenance, controller maintenance and repair, etc. You'd better know your stuff and be a recognized expert. 

3) Diversity:
Everyone plays the hobby at a different level and good track owners cater to various needs. You have to give the same quality of service and attention to the occasional racers, hardcore racers, and kids dropping by with their Christmas present car with a missing shoe. Having more than one scale represented is important. Nothing worse than getting all excited about that new slot car shop in town and then finding out they only cater to HO or only cater to 1:24 and look at you like you are a freak when you ask about the "other" scales. 

4) Evangelism:
Beside loving the hobby the shop owner needs to be out there on floor, greeting customers, providing hands-on support and encouragement, and actively engaging with customers of all levels. Shop owners are the biggest ambassadors for the hobby. The impression they make in the first 5 minutes on a new customer can be the make or break point for getting someone excited about the hobby or walking away to try something else. I've seen shop owners that sit like a lump behind the counter sipping coffee (or much worse, smoking) and pretty much ignoring newbies walking in the door with curiosity plastered all over their face. You can see the bubble of excitement slowly deflate. Then there are the shop owners that greet the customer with encouragement and enthusiasm, not salesmanship, but interacting with the customer in a way that makes them want to look around and try their hand at running some cars. Shop owners must always be promoting the hobby in a positive manner to bring in new customers. Being a "people person" is a good thing in this case.

5) Business Sense:
If you don't make enough money to survive, the game is over. Don't try to run a business as a hobby. Yes, you can love what you're doing but you have to make money to keep the gig going. I'd encourage any prospective shop owner to do the math ahead of time and figure out whether you have a realistic business plan that will sustain the business after the dream part fades away.


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## Hornet (Dec 1, 2005)

You also have realize that places like BSRT/Scale-Auto don't support hobby shops anymore,which makes it even tougher on the average hobby shop.
I think Wizzard still supports to some extent,but not like they did even 5 years ago,not sure about AW ,they might still support hobby shops,Tony at Slottech never did give much of a discount even to his big venders.
But when you're a hobbyshop,and you can't buy wholesale,it sure makes it tough to survive.
So maybe the pressure should be put on the manufacture'rs too.


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## Jim Norton (Jun 29, 2007)

I think it is because some guys cars get so fast that other guys lose interest and so goes the recruitment of new racers. Keep all cars stock and I bet tracks would prosper!

Jim Norton
Huntsville, AL


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## Grandcheapskate (Jan 5, 2006)

You know what I thought would be a great idea to help a raceway survive? Combine a slot shop with a golf driving range. During the warm months, slots kinda die out and golf picks up. When the cold weather comes, just the opposite happens.

There is one driving range I pass in Pa. that would be an excellent candidate for this combination of business. A nice driving range and minature golf course, and a nice new building to house the track and hobby store. In a nice country area. And it is for sale.

Joe


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## neorules (Oct 20, 2006)

Joe-- get someone to make up some golf cart bodies and cater to the competitive golf crowd.


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## Sir Slotsalot (Jan 23, 2010)

Not a bad idea combining with other interests. A long time ago, I remember seeing slot tracks in a few local bowling alleys. According to Steve Russell, AMF(the bowling equip guys) had approached his dad about selling his slot business to them. AMF had a notion at one point that slot car racing was going to replace bowling as a favorite American pastime. Wow, just think if it did. I'd definitely be racing 'cause I stink at bowling. LOL!!


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## Grandcheapskate (Jan 5, 2006)

neorules said:


> Joe-- get someone to make up some golf cart bodies and cater to the competitive golf crowd.


Bob,
I don't know if you ever saw them, but years ago Dan Esposito had golf cart bodies made up for the Tyco chassis. I have five of them. They are all white, have a roof, steering wheel and two golf bags in the back. Some day I want to paint them four different colors (leaving one all white).

The stangest combination I've seen was in Blairstown, NJ on Rt. 94. Someone opened a carpet business and had a huge 1/32 layout in the store - not a plastic track layout, one of those huge wooden tracks. He also had a little display case with some cars in it. I don't know if it's still there. I stopped in once about 8 years ago.

Joe


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## Mexkilbee (Apr 17, 2008)

in my neck of the woods we had a, excuse me, almost had an arcade, go cart, batting cage, mini-golf, with slots in the basement. But the owner had to close up do to...? 

As stated earlier in thread rent is the biggest hurtle. Most small businesses around here the owner lives in the apartment upstairs of the store front.
But what if you went big? like a closed up grocery store? Or the big box electronics store that had it's grand opening/going out of business sale in the same month? like 100k + sq ft. And have everything auto-hobbie related. Die-Cast, Plastic Model, Slot, R/C, even raced used tires, sheet metal (1:1 scale), everything automobile related along the hobby side. Tracks for the slots all four scales (thats right 1/43 is legit). Electric R/C indoor track, gas track out back (or inside with right ventalation). Ovals, Road Courses, Drag Strips. 
You have the mom & pop bait shop (and not a dam thing wrong with them) but you also have Bass Pro & Cabela's.
It would have to be in a heavely traveled area, with access and parking. Have to have web site and web generated sales. Bad part is you would also have to have a staff. 
got to go buy a lotto ticket.


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## jobobvideo (Jan 8, 2010)

you may have something going there...now add in a side of the store like MIcheal's or Joann's for the ladies (no offense meant, just my wife, sis-in-law and daughter spent a lot of time in those places) to get there fix...With a bass pro shop in town now we see more out of state licence plates than ever...always somebody shopping there...but it's like going into a museum with all the mounts, live fish tanks and old hunting fishing gear.


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## Hornet (Dec 1, 2005)

Doesn't your Bass Pro shops have a slotcar track .
I know the one in my neck of the woods up here has a slotcar track


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## Harold Sage (Apr 6, 2008)

Okay I have read all the post so far and everybody has made good points, But it seems to always come down to $$$$$$$$$$$.
If the place isn't making $$$$$$$$$, it close's down, The reason behind the closing could be alot of things that people have already stated :beatdeadhorse:. 
Right now most people aren't spending $$$$$$$ like they use too. which in turn means everybody economy is affected. I hope that bigger slot car track shops ( bigger than HO) hasn't come and gone. I would love to have one in the town where I live (Fernley,NV) but I relies that it would probably wouldn't last long (not enough business).


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## Mexkilbee (Apr 17, 2008)

See JoBobVideo gets it. even have some comfortable couches in a lounge area for the wives to read and do lady crafts. ( I wonder if you put a kitchen in the corner, would they take to it, and make us lunch? or cupcakes?)
instead of wall mounts and heads, fenders and firesuits race type museium type stuff (for sale, @ a profit). 
I know the economy is down, in Buffalo it has been since late sixtys. Thats why last recission didn't effect us that much, were already there. Yet try to go out any night of the week and get a table @ any resturant (corner cafe/chain) and get a table within an hour. almost impossible. Parking lots @ the theaters are full for all movie times, and i have seen more Bentleys around hear in past month than a whole season of Cribbs. when was the last time you got a steal on eBay? like real steal where you feel guilty. (I actually did hit on a couple in past month, but not as many as years past).
This is America, Americans love the automobile. Cast a large enough net... 
To bad we can't have the federal gov. mandate slot cars, sure it would lose money, but they would make it up in volume..LOL.


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## 440s-4ever (Feb 23, 2010)

Because they grow out of a person's private clubhouse/basement racetrack. 

Rarely does the operator know how to make the customer service shift, and continues to run it like a private club. First time visitors are turned off by the treatment and don't come back.

Also, it is such a narrow business model that you're gonna need a huge metropolitan area to support it, unless it is coupled with something else that helps pay the bills.


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## jobobvideo (Jan 8, 2010)

At bass pro Manteca, slots only at christmas and usually broke the first week...at Joann's they have cake decoarting classes so cupcakes might make the list...not sure about lunch. Bass Pro Shops, Disney, Knott's Berry Farm's started rather small and put money back into building it bigger...most start-up businesses today want/need big profits right out of the gate an have to take too much cover cost. We have farm just outside of town that started with a fruit stand and has grown into pumpkin patch with rides and pumpkin cannons you can pay to use(very cool) the last two years they have added ice rink, ice slide, and christmas tree sales. Every year they add something new and they crowds grow. They still farm some of there land but seems like a little less farm land each year and more to do. I agree with 440, that's you have to have the right visionary with people skills to make it work.


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## NTxSlotCars (May 27, 2008)

I always thought a GoKart/Slot car shop would work.
Go Karts in the summer, slot cars in the winter.


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## neorules (Oct 20, 2006)

In a nutshell--- making your hobby into a business takes most of the joy out of it. Racing cars and running races and marshalling are vastly different. I know of very few people who live to marshall. Running races constantly, gets old and unless the financial rewards are great, very few people last very long. I would think that someone that goes into it as a business first and can do the things neccessary to make it work has a shot.


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## NTxSlotCars (May 27, 2008)

I guess the great promoters who are good at dealing with racers, fans and sponsors
are making real money at real race tracks.


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## Grandcheapskate (Jan 5, 2006)

neorules said:


> In a nutshell--- making your hobby into a business takes most of the joy out of it.


You have nailed it correctly.

I can see an slot shop (only) successfully existing only if both the following are true:

1. You really don't care how much money you make. This would imply that there are nearly no monthly costs and you are semi or fully retired.

2. The shop is located basically on, or very very close, to your home. If you assume that there is going to be very little foot traffic into the store, you might only schedule to be open a few standard hours per day (maybe from school close to 9:00) and additionally whenever you feel like being there. Getting into a car and driving miles to get to a store for hours on end which may have no foot traffic would get old real fast. You might use the store to handle orders which come in online (it's a lot easier to work away from home distractions), but you'd limit your open-store hours and not expect much.

Of course, if you could combine the slot shop with another business (driving range/minature golf), then you may well be able to have longer store hours if the other business creates sufficient revenue.

Joe


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## Slott V (Feb 3, 2005)

Neo nailed it.

And you can't make $$$ renting slot cars and track time if you have a lease. It's a double edged sword; you need a killer location in a mall or next to a movie theater where you can get maximum exposure- a place where mom can drop the kids off while she shops. (Because all your customers won't be 40-something yr old adolescents like the racers in your basement you need to draw the attention of kids who we all know have short attention spans.) That kind of retail space demands lotso $$$/cubic foot. Most retail leases are at least 3 years so you're facing some serious financial responsibility and right there you have immediate overhead and you're in the red right out of the gate as there will be a substantial deposit required.. That is IF you can convince the lender AND landlord that your business model can produce ROI. You're talking about a venture into the entertainment industry and that is classified as a risky investment.

If you want cheap rent you're gonna get stuck in an old smelly drug store behind the main strip where nobody see's you.

I looked into it 10 years ago and had $10k to invest. Those were just some of the pins that burst the bubble. :drunk:


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## tjd241 (Jan 25, 2004)

*Raceways pretty much gone altogether near me...*

There were as many as 6 operating within reasonable driving distance from me since I was a kid and slowly they all faded away. A couple of those huge old school tracks are still for sale I think. The 2 closest to me, over time, had less and less stock on hand and had limited hours. Pretty much saw their demise unfold as the video gaming craze really set in. That and more on line outlets for parts and supplies... and these old-time brick and mortar shops not able to stay ahead of the curve and do likewise. I remember at one place (roughly 2001 timeframe when I got back into slots) it took months to get slip-on silicone tires... I waited so long that finally the owner gave me a pair off his personal shop runner and suggested I buy on line. I see more success happening now at hobby stores that *don't* have a track. These new-age hobby stores offer a wide selection of items targeting dozens of hobby interests like R/C, models, trains, board games, puzzles, girly girl crafts, traditional crafts, trading cards, candy, preschool items, diecast, rockets... and yes they even sell some video games. In other words a well rounded selection with something for nearly everyone. The slot car stock is slim. One such place is 5 mins from me (Hobbytown USA). Never have I ever gone in and not seen other customers actively buying things. This place even runs Build-A-Bear events. Nothing would thrill me more than to see a slots-only shop open close to me... That ain't gonna happen though. These days you have *GOT TO* offer more than slots. Been to a MLB game lately?... as a kid could you ever have imagined Sushi, Barbecue, or fine dining on white linen covered tables being a choice to eat??? Microbrews and Martini's???... Classic example of providing more things to attract a wider more diverse buying public. Just Hotdogs???... please.

There are a couple exceptions I know of in NY and NJ that are pretty much purely slots and I support/buy from them on line ... wish they were closer though.


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## Khodabear (Dec 10, 2011)

Grandcheapskate said:


> You have nailed it correctly.
> 
> I can see an slot shop (only) successfully existing only if both the following are true:
> 
> ...


You sometimes see this in 1:1 car collecting. A guy rents a shop - buys and sells to cover the overhead but basically it's a clubhouse. 

Here a person or a small group of guys would rent space and set up tracks mainly for the purpose of having somewhere to go play with cars. What business comes in covers the rent and utilities so the clubhouse comes without cash outlay.

In that scenario I'd give it about 8 months before personality clashes caused it to fall apart.


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## Hornet (Dec 1, 2005)

Even a successful hobby shop won't keep a track very long.
Ties up to much valuable space for the income it generates.
One of our biggest successful hobby shops up here that caters to everything,from arts and crafts to model trains,had 2 big slotcar tracks,a custom 4X20 Wizz for HO,and a 8X 24 1/32 track,after a couple years they went up for sale,as the income they generated,didn't justify the room they tied up.
As the owner told me,there's No Profit in selling slotcars and their related parts.
You can buy online as cheap as he could.
I think any successful hobbyshop with a track is probably only going to be a memory for those of us who remember the good old days


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## AfxToo (Aug 29, 2003)

The cars and parts side of the slot car hobby is a microcosm of brick & mortar retail industry in general. There are two things that can signal the impending death of a traditional retail store. The first is the day a megalomart retailer who is pulling in countless shiploads of inexpensively manufactured foreign made products builds a store next to you. Think Walmart. The other is when you have to compete against online sellers and resellers who are able to beat you with better economies of scale and tax loopholes and subsidies. Think Amazon. In our hobby, once a car/parts manufacturer who supports a retail distribution model starts selling direct or on E-Bay they've cut out the middleman and retail resellers, like hobby shop owners. 

The points I made earlier were about things a hobby shop owner could do to add more value before and after the sale, but most buyers only look at initial acquisition costs. This behavior cuts out the hobby shop owners. So yes, part of the failure in the hobby is due to manufacturers no longer supporting and promoting the whole slot car hobby ecosystem but only concentrating on their own self interests. That's simply the reality of the economic condition that we live in and the contraction of the slot car hobby. 

I wouldn't dwell on the negative influences because the hobby will survive as long as we continue to support it. My enthusiasm for the hobby has not diminished. Sometimes you have to take the path less traveled, or in our case, the track less driven. Enjoy it while it lasts and be thankful that it is as good as it is today. The last 10 years have been pretty darn good in my humble opinion.


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## Khodabear (Dec 10, 2011)

It is a chicken and egg scenario isn't it?
Slots decline - shops see the lessening revenue and cut back on tracks and parts - manufacturers and distributors see the slump - start selling direct - shops can't compete - rinse - repeat.
Sales to mass merchants are the other nail in that coffin for the small shop.

But that's how it is with everything. In the 1950's and early 60's my dad made good money selling and servicing TV's. Didn't even have a shop - he did it on the side from his job as a fireman. One day he said - Kid - Gimbels is selling TV's for less than I can buy them - it's all over. 

But would you even think of going to a mom and pop shop to buy a TV today? 

Evolution --- it's not just a good idea...it's the law


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## Dyno Dom (May 26, 2007)

Do you feel that scale of slot cars for comm'l. raceways are a factor??
I know of 4 raceways that offered both HO & larger scale racing that 
eliminated their HO tracks and parts inventory. One of these track
owners told me his difficulty to understand HO racers lack of support.
An additional track that does offer both scales mentioned his HO clientele
will show for races, but feels the larger scale customers are much more 
loyal for sales in parts & service. The wee scale offers a large web
availability for parts & room for many to build large home layouts.


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## Ohio_Danimal (Jan 13, 2012)

Sorry for reviving and older thread, but has anyone here visited Rt.93 Raceway in Akron Ohio?

The owner Frank has an original King track, an 8 lane banked oval (also large scale), a HO Wizztrack and several drag strips.
He's still in business too!


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## Sir Slotsalot (Jan 23, 2010)

Location and appropriate local demographics play a big part for survival of any brick & mortar business. I live in a small farm town that's about 1/2 hour south from mainstream civilization. As much as I would love to have one, I would not dream of opening a shop in my town unless I were rich and did it for charity. Web business is the only way a lot of us can afford to do it and not go broke. If I ever re-locate to the right area, I would consider brick & mortar. Just common sense.


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