Industry Advice for buying a hobby game store

[DonTadow]

First:

... don't.

Second:

Find your niche. Every hobby game store that survives has one. For example, locally, we have:

1- 401 Games: A local convenience store that turned into a CCG store by accident. . Their schtick? Cards, space to play, cheap mainstream RPGs. Lowest prices in town. It is always cheapest there. They depend on volume.

2-Hairy Tarantula: Traditional Hardcore RPG Game / Comics store. A comic shop that became more focused on games over the years. Their Schtick? Large RPG inventory including a lot of more obscure titles. Has lately been focusing more on boardgames though. Reason? That's where the money is.

It has not helped that their three seasonal sales are predictable enough and significant enough in savings that people find themselves not buying for two months to just wait for the 30%-40% off sale in two months time.

Sales are good. Regular predictable sales that come more than twice a year are a bad idea, imo.

3- Dueling Grounds: Card and Miniature Store. Lots of singles for sale. Their Schtick? Large brightly lit area emphasizing 800 sq, feet of on site play space. A *lot* of tournaments. Every week something new.

Another store cloned this model and offered painting areas (and paint!) emphasizing War Machine. Otherwise, a clone of the other. It's a big enough city and the stores are far enough apart that it works for them.

4- Gamerama: Miniatures and used DVDs and Computer Games. Their Schtick? Empty used games and DVD boxes accessible to customers. All packaged product behind a long counter running 60 foot length of entire store. They have virtually no losses due to theft.

Brisk used computer/video game business has a lot of product turnover with high margins. New games sold as they have to - but the money is in used games. Miniatures business is extensive GW as the profit margin is obscene.

I could tell you stories of the general hobby games stores too. They open from time to time. The problem is - they close just as often. It's a tough retail business to be in. Whatever you do - you need to find your niche to survive.

Third:

You are running a business. You need to sell products that sell well with reasonable return. Right now, that means: CCGs, Collectible Miniatures, Boardgames and toy figures.

RPGs, you see, are available online in pirated versions for free. That's a price you cannot ever meet. Others are sold online as well - at a price you cannot ever meet. While you can sell some of that product line, concentrate on WotC product lines and avoid stocking too many products that don't sell. The generalist hobby store / comic shop has not fared well under internet competition. Carrying too much D20 inventory is death.

Fourth:

Most of these ventures fail. Thinking yours will do better is probably dead wrong. Finding a reason why yours won't - and pursuing that vision with clarity and purpose is important. If you aren't where you want to be within two years - you probably won't ever get there. Get out while you can.

sidenote.. what is the likelyhood of game stores /hobby stores ever chaining or franchising up. I've often mused that if enough capital came my way this would be interesting.

 

[Darklone]

One guy here in town owns 4 or now 5 gamestores in the area (100km). Looks like he's doing well...

 

[Steel_Wind]

I'm a lawyer in my day job who has a practice that is about 25% franchising.

The thing that makes franchises work is centred on unique product lines. Whether that's a Big Mac, a particular pizza or a bagel - it's all different.

While there are some hobby craft store chains which specialize in selling a turn key business with a known profitable product blend to store owners in Tier 2 and 3 malls, the concept does not crossover to games stores. Game product lines are not unique enough and those who distribute to it are fewer and yet more accessible then those who service craft store markets where product blend and unique product lines are the schtick.

In the end - as a game store, you have little to sell in terms of franchise concept and nothing to sell in terms of unique product lines. Worse, the people who want to run the hobby game store business all think they know better. You'll never have a clear vision that way.

Not going to work from a franchisor perspective. And that IS the only perspective that matters in franchising.

 

[Nightchilde-2]

Be a FLGS that also happens to be a discount Internet gaming retailer. It's the only actually profitable model in existence right now.

Seconded.

If I didn't have my online storefront, I'd probably not have survived my first year.

 

[Queen_Dopplepopolis]

OH! Toilet paper in the bathrooms!!

Once upon a time, I was the only girl working at one of the Wizard's retail stores and, while the bathroom was for employees only, there was NEVER ANY TOILET PAPER! Stupid boys. Not everyone can stand up to pee!

 

[Kae'Yoss]

I can't advise you on whether it is a good idea (Brick & Mortar stores seem to be dying out), or give you financial advice or all that.

I just can tell you what I like and don't like in a gaming store (Several things you will have already heard, but they bear repeating):

I like stores that are airy and well-lit. If I need to bring my spelunking kit, I might as well order on-line. I should be able to get past another customer without any squeezing involved, I should be able to see the merchandise, and I should be able to breathe.

I second the soda & snacks part. Don't charge an arm and a leg for the stuff (or people won't buy it), but don't try to undersell the regional Supermall. Keep the stuff cool, and make sure you don't sell ancient snacks you have to hit with a stick so they won't run away. Remember the to keep the air clean (if people think they ran into a wall when they enter the store, something's wrong). Also tell the customers that they should take care (and that if they damage goods with spilled drinks and greasy fingers, they'll have to buy it. In fact, you might want to keep away from greasy snacks so people won't damage too much stuff).

I guess a bathroom (including a sink where you can wash) will be handy.

Action! Have tourneys and game nights. Apply for all the swag you can get for that sort of thing (Like Wizards' Retailer Kits) and don't be shy with the swag. If I had a shop here with access to promo material, I might shop there instead of online.

Be willing to offer discounts. Someone will buy 4 books? Give him some % off. It might not happen with books too often, but offering a decent discount for bulk orders is important for all collectible games (Magic, D&D minis). Many stores have frequent buyer cards and stuff like that.

Be approachable. If someone wants something you don't have in stock, order it for him (maybe with some sort of down payment unless he's a regular), even if you won't make too much profit off that product. He'll come again and buy something else.

If people have questions and/or requests, answer them without much delay - if they need info, dig it up and get back to them quickly. Reply to emails fast. I personally hate it if I have to chase down answers from local shops.

You (that includes whoever you employ as store clerks) should be friendly and know about the stuff you're selling. That includes not only release dates, but what the games are about. Have demo games, and try to be able to answer general questions about each game. Find out what the most popular stuff is around and learn more about those games.

 

[Fifth Element]

Most importantly, compose a business plan good to your first year and get an accountant.

QFT. Speaking as an accountant, get an accountant. A good accountant. Good accountants know a great deal about business in general, and are familiar with all the tasks of managing a retail store that you might not think of.

Be prepared for the seasonal nature of the retail industry. I don't know about game stores specifically, but some retail segments have 50% or more of their annual sales in the last quarter of the year heading up to Christmas. Be prepared for that, and manage your cash flow accordingly. Your accountant can help.

 

[RFisher]

There's a lot of good advice on how to run a gamer friendly store here.

All I think I can add is this: Find a cash cow. A consistent revenue stream.

I've a pretty good idea that my FLGS is still around mainly because they are also a comic store. For whatever reason, people who are big into comics seem to "subscribe" through local stores rather than directly through publishers.

Successful music stores (those that sell instruments & such, not those that sell CDs) often make a lot of their money off of renting instruments to kids in marching band or the school orchestra. Even if you only see guitars & drums on the showroom floor.

Don’t be afraid of getting rid of merchandise that doesn’t sell.

I rarely buy something the first time I see it in the store. I'm often looking for something that wasn't published in the last 12 months. A store that has a cache of old or used merchandise is going to see me & have a chance at my money much more often. Even if it's an unorganized mess hidden in the back that I have to search through.

Plus you can sell it online. I often buy out-of-print games or more obscure titles from some little game store somewhere through the web.

I'm sure there's good business sense behind Josh's advice, but I'm very glad that there are people who don't follow it. (^_^)

 

[Umbran]

I was curious if anyone had any suggestions on which way the industry was going ??

Everyone has a suggestion on which way the industry is going. No two of them agree.

Where the industry as a whole is going is perhaps of less import as where your own customers are going. You aren't selling to the industry - you're selling to the people within an easy trip to your store. You are going to have to learn their likes, dislikes, and habits, as a group. This is why you'll likely lose money in your first year - you won't know your customers well enough to stock the things they really want.

 

[Man in the Funny Hat]

Don't expect big profits. Watch closely for shoplifters and even consider a decent video monitoring system. Don't expect D&D/RPG's to be the bulk of your business - if your shop too narrowly focuses on that then you will live and die with it. Customer service is king, particularly the smaller the shop. Providing gaming space is a bit of a luxury but there's no better way to sell a game than for customers to see it in actual play. That means encouraging play of ALL kinds of games in your store.

Sadly, you should also consult a lawyer about your obligations should you happen to allow a lot of gamers to play in your store. While they are there you have rights and responsibilities, but you are NOT a babysitting service. Be clear about expected conduct of ALL kinds and enforce it. If customers are coming in those games better be rated PG at worst, lest mom decide that the games are about sex, gratuitous gore and violence, and real-world occultism.

Keep it clean. Keep those RPG shelves organized. Keep the aisles wide - better for customer browsing, better for watching for theft. Be a good neighbor and an active community participant.

Beyond that I have no idea what I'm talking about. That's just what comes off the top of my non-business-owners head.