it with large volumes. The LHS has the problem of tight margins
too, but with the added problem of low volume.
There’s a term in economics I came across recently:
creative
destruction
. In other words, you slowly destroy the old ways of
doing things while a new product or process takes its place.
In the thread about LHS closures, those posting gave several
examples of stores that have a good Internet presence. What
did these owners do? They had enough insight to see where
the market was going and got in early enough to establish a
presence. In business, victory often goes to the swift and nim-
ble, not necessarily to just the largest.
Those small retailers who did not embrace or grasp the changes
in shopping patterns brought on by the internet are now either
out of business or slowly going out of business. Those who did
get in early with an Internet presence opened their market
beyond their local area to literally the entire world.
With modern shipping through UPS, FedEx and others, prod-
ucts can be shipped around the world. Does this mean every-
one who opens an online hobby store will succeed? No. Those
who do succeed will be the ones who can accurately deliver
the products ordered in a timely manner, at a competitive cost,
and with excellent customer service.
I believe that customer service is the key.
As big as Amazon is, Jeff
Bezos is keen on great service for the customer.
What defines excellent online customer service? Beyond
browsing through an Internet site, I think someday soon we
will be able to order our hobby supplies online via video phone
calls such as Skype. We will be able to talk to hobby shop staff
in locations far away from where we are sitting. They can show
us the product, as well as prepare the order for us as they
Publisher’s editorial - 3
MRH-May 2014
