The decline in model shops in the U.K. has many causes - not all of them as obvious as you may think.
Firstly, shop lifting.
It is very difficult to display thousands of modelling kits and paints etc without a large percentage of them being stolen. No insurance is available to cover this and police support and recovery of goods is non existent as they declare it a low priority commercial (non criminal) case.
Mail order fraud is another huge loss maker
Goods are sold and sent out correctly to the confirmed delivery address only for the recipient to deny receiving them - even with the courierโs proof of delivery photograph and the recipients signature.
This is big low risk business for the criminals who are not challenged by the credit card issuers or the police (again not classified as a criminal activity)
Very low profit margins exist within the U.K. model trade, and the willingness of the shop keeper to try to match discount prices of others often shows the sale was made at a loss - ie sold for less than it was bought for
The store owner having no idea that the discounts on offer are false (the business offering the discount actually has no stock of the items on offer !).
Large Mail order suppliers can generally offer lower prices than the local model shop because they paid less for their stock - often making a higher profit that the model store even on the odd occasion when the store does achieve the โsuggested retail priceโ that the suppliers base their trade prices on.
Local support for the model shops is also very low with customers seeking help and advise before buying elsewhere at a price the local store cannot offer.
Even worse, angry customers go to their local store demanding repairs and replacements - despite not even buying the items from the store concerned!
The better and more helpful and genuine the store keeper is, the more he is likely to be abused until forced to give up and try to earn a living to support his family elsewhere.
With high insurance premiums and high overheads and rates to pay, very few model shops have been able to survive despite often working very long hours and often failing to draw a wage - even with very good looking turnover figures.
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