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It seems that the IT scene in NZ has already shut down for the year with normally active local sites like IDG having gone into suspended animation, while even granny-Herald's IT section is really only carrying overseas wire-stories.

I thought "the great kiwi break" was a thing of the past but it seems not -- although I don't think it's the great weather luring people away from their desks right now.

But back to business...

A little while ago I wrote a column in which I pointed out that local bricks and mortar businesses need to get their fingers out if they're going to compete with the power of the Net and the ease with which it allows personal imports of products from offshore.

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Well, it seems that in at least one small sector, the clash between personal imports and local retailing has created a real bunfight.

Hands up all those who have ever built a model aeroplane?

Yep, most young boys have, at some stage in their lives, built a model or two. For most people it's just a fleeting encounter with sharp knives, highly volatile glues and amazingly light bits of balsa wood. For others however, it becomes a life-long hobby on which many thousands of dollars can be spent.

Most cities and towns around the country have at least one shop that carries stocks of such items, along with propellers, those noisy engines, fuel, kitsets and all manner of other bits and pieces that are needed to build (and repair) flying models.

Until recently, those shops have been able to survive quite happily by adding sufficient margin to cover the cost of stocking such items and cover their rent, power, staff costs etc. The average modeler paid the prices being asked because that's simply what things cost.

Then came the internet, credit cards and cheap international airmail.

Now some of those model shops, especially the big ones operating with high overheads in large cities such as Auckland, are whining.

It seems that a growing number of modelers are shopping on the Net, buying offshore and importing their expensive items directly -- just as I suggested they might.

For some reason, these model shops believe that Kiwis ought to be prepared to buy locally and pay up to twice as much as they would by importing -- solely to keep them in business.

Instead of moving with the times and taking advantage of the very technologies and changing environment that has made their own prices unsustainable, they're sitting back and whining.

Now the strange thing is that, despite facing exactly the same problems of high rents, direct imports, etc -- some model shops are thriving and going from strength to strength. Why is this?

Well compare this thriving shop based in (of all places) Gisborne, with this one (one of the whiners).

Spot anything?

Yes, that's right -- the small provincial store's website allows you an online shopping facility with shopping cart etc. The other offers no such facility, providing a rather crude order form instead.

What's more, the little Gisborne shop ships stuff anywhere in NZ by courier and it arrives within 1-2 days. The other shop (in my experience) doesn't even answer its email.

436 Models have taken the challenge and turned the Net around to its own advantage. They've backed this up with a commitment to first-rate service and it's worked.

They've also been smart enough to keep their operating overheads low by basing themselves in a small city and focusing on their (e)mail-order service rather than sinking large amounts of money into Auckland-based retail premises.

The prices offered by 436 are not cheaper than those of overseas shops (even when postage is taken into account), they're not even cheaper than some of the other shops around the country -- but the convenience of their online store combined with the quality of their service means that a lot of people buy their products.

There's a great lesson there for other retailers facing the squeeze of competition from overseas. Instead of just whining, innovate and act smart!

But their hi-tech approach doesn't forsake the old values. I've bought some bits and pieces from them (and other online shops) over time - but 436 were the only ones to send me a real hardcopy Christmas card to show how much they valued my custom. That's classy, and just another reason why they deserve their success.

While on the subject of Net shops, I wonder how many readers have purchased at least some of their Christmas gifts online?

Fingers out folks
Come on, I'm still waiting for the deluge of suggestions for the Christmas Eve "Lighten Up" extravaganza. Get your suggestions in now!

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