Advice on Opening a Game Store!

[RatPunk]

Back in college a friend of mine decided to open a gaming store. I was just starting to take a class in Small Business Management, where we had to do a full business plan of a hypotetical store. I took his idea, researched it, and developed the plan. It included both best and worst case scenarios, and the "best case" indicated that he wouldn't break even until the 4th year, which was far longer than his fiance would have had the patience for.

I hate to ask, but would you happen to have a copy of this laying around somewhere, or a reasonable facsimile there of? I would greatly love to see one, merely as a reference point as to what mine should look like.

He still went into business, but opened a Karate studio instead (his other hobby), starting part-time with leased space and not buying a storefront until he and his wife could actually afford it. He's now very sucessful, with hundreds of students. He also has a successful and happy marriage, with two teenage sons. So I guess what I'm saying is DO LOTS OF HOMEWORK before you start and make sure you have the full support of your family.

Lots of homework is definately a good thing. This is the process I'm beginning now. I am hoping it will pay off in the long run...

BTW, my upstairs tenant works as a manager at a pair of comic book/sports card/gaming stores in southern New Hampshire and they have been having a real had time making ends meet these past two years, and they've had a sucessful operation for nearly three decades. The current economy is NOT the best time to get into a business that is a luxury item rather than a necessity. So if you are really serious about this you may still want to wait a bit longer.

I will take this under consideration. Personally, I don't see things as being that bad where I'm at, but then again, I'm not in the business yet. At least none of the game stores I go to seem to be too adversely affected.

 

[RatPunk]

Look at some of the threads about game store employees as well. Have you given any thought as to scheduling and who else you might get to be at the store when you cannot be?

1. They need to know what you have in the store and where it is.

2. They need to know what's coming down the pipe. 'Hey, if you're buying this, you'll love 'X and Y', which we should have next month'. My comic store owner has probably been able to finance his car off what he's sold with this technique.

3. They need to have a sense of how to deal with people. Kids, females and the curious (or lost) mainstream guy are all people. They are potential money in your pocket.

4. They must have a sense of decorum, bathe at least daily, and have a nice wardrobe that consists of something other than black t-shirts. They must know what a barber is. They must know what a razor is. They must know what a napkin is.

Well, I have given it some thought, but in the beginning it will more than likely be a family affair with myself, my wife and my daughter doing most of the work (mostly me).

I am hoping to be able to rely on the generosity already offered by a few friends for those times when I want to take a couple of hours to go to one of my daughter's basketball games or simply need to get out of the store for a few.

After the first year or so, I plan to see what the situation looks like and maybe hire a person or two part-time.

 

[RatPunk]

Well this is from someone who has owned one Hobby Shop and recently a dedicated Gaming Shop. Here is what I learned.

Gamers are fickel. You will have to carry a large selection of product but not alot of one type. And to the person who said Large Customer count doesnt equal Large sales is 1000000 percent right plus or minus 1 percent. !! Be prepared to RUN the business the life of a game shop owner isnt gaming its ordering, cleaning, stocking, and most importantly and sometimes most hardest of all is keeping track of whats new and whats coming so you can keep your customers abrest of whats coming, and also YOU HAVE TO KNOW what your customers are talking about. Become knowledgable in all but not a master of any......... know your product at least to the point where you can talk turkey with them in a relativley competant way.

I feel like I already have this one covered. I know more about what's going on in the gaming industry than the manager of the store I currently frequent. Frankly, I've always felt that was just wrong.

Also, LISTEN but dont listen too carefully, yes I just counterdicted myself. What I mean is this. If 2 customers come in and say hey we play game X and you dont have game X, DONT just go out and order it for the store. Instead have a solid Special Order system, usually in most states you can have X in 2-3 days, so offer those that want X, the chance to order it. Or make a set day or days your order days. I ordered Mon, Wed, and Fri. That way I had rotating stock coming in on Mon, Wed, and Fri.

This was pretty much what I was thinking already. Special Ordering is a key part of my store concept, and should be for any game store, I would think. The ability to tell somebody you can get something they want is too important not to have.

Both shops were failures. The hobby shop becuase I opened it the day before 9-11 and the economy dumped thereafter, plus I was new to it and made all and I mean all the classic mistakes. But the second was in a good area, good traffic and I feel I did everything correct,............well most everything. Except get Insurance (see below)

Still failed. Ya see one of the problems ya will run into is that we gamers are loyal, and if there is a gamers store close by that they have been using you have to offer something they dont.

Some suggestions.

1. Wargaming tables. Have lots of them and supply some misc basic terrain.
2. General table, 8' standard folding leg tables work great have alot of them.
3. A pop machine, this is a NEEDED staple.
4. Have sanctioned play there. Start a Magic & YuGiOh league.
5. Have tournaments. this draws people.
6. Offer raffles once a month I did this and it was profitable and fun.
7. Use the pop bottle return money to fund once a month something for the gamers.

Again, most of these are what I was already thinking (except for the raffle and pop bottle return money). As with the special ordering, I think play space, tournaments and sanctioned play are important parts of any gaming store. I like the raffle idea, too. Consider it stolen.

Also, product. Like I said above you need to have a decent selection, but dont carry too much of any one thing. I sold a ton of D20 stuff, but I rarely had more than 2 of any book. Have alot of consumables like Dice, Deck holders, Card sleeves, Paper and Pens I made a good margin off of this stuff and sold a ton of it.

LOCATION. This is a key, along with that HAVE A ADVERTISING BUDGET. You will need to advertise you are opening soon, I suggest once you get the building you will have 1-2 months before you are ready to open, start advertising get the word out. Make flyers up and pass them out at games, tell your friends, etc,...... announce it on boards like www.goblinsgames.com if no one knows your opening then no one will come to ya, and if yu can get them into your shop and they can see you offer something fun and something the other guy doesnt then you will have return customers hopefully.

Also get Insured. Get a good alarm system, PROTECT what you have. I didnt and I got broke into and they took enough to out me out of business.

I have a location in mind, but have not checked into it. It's small enough that it should suit a new store, but looks to have enough room to allow for some play space without being too cramped. Problem is, of course, that I don't know how far away I am from opening (probably many months), so it may not be available when I'm ready. Then again, it's already been empty for a couple of months, so who knows. Insurance definately. Hadn't seriously considered an alarm system. I will have to look into it.

So good luck, and dont listen to anyone that tells you not to. Have the balls to do what you dream of. I dont regret opening what I did, and I look back at it as a great experience. Yes I dont own them anymore and yes it cost me alot of money, but I DID wat others just TALK about. And had alot of fun while it lasted.

I've been looking into doing this off and on for the last 10+ years, but never pursued it for various reasons. This time I'm determined to stick with it until whatever outcome destiny seems fit to grace me with...

 

[Xeriar]

I'm beginning to do the work on opening my own game store and I know there have been many threads here in the past from others seeking advice. Unfortunately, the search function is unavailable to my lowly self, so I was wondering if someone with that ability would be so kind as to do a search and post links to several of those past threads. If so, it would be greatly appreciated!

Thanks!

Edit: Spelling

Go to rpg.net and read the advice Chris Aylott gives.

'nuff said.

 

[spacecrime.com]

Go to rpg.net and read the advice Chris Aylott gives.
.

And then ignore it. He's an idiot.

(Sorry, rough day at work. )

 

[jeffsforehead]

Okay, as a consumer who has frequented game stores, there is one thing that nobody seems to have mentioned...

MAKE SURE YOUR STORE SMELLS NICE.

I'll probably get flamed for this or something, but a good portion of gamers aren't too strong in the odor category, and you get a whole bunch of them in a room.... oh man.

There was this game store that was close to me, and had a decent selection, but every once in a while I'd get in there and I'd just be like... "NO. Not going in there. It reeks", and go to the store that was further away.

So, please... buy some air freshener.

 

[FoxWander]

I've been following this thread with interest as this is an idea I've considered for after I retire from the military in 4 years. Here are some of the ideas I thought of and some cool things that keep me going to my FLGS when I'm back home (currently stationed in Korea now)

-- Offer a military discount. Alot of military guys game and this alone will get them going out of there way to use your store over a competitors. I know it works for me.

-- Some kind of frequent buyer program. Another store back home gives out discount coupons based on a percentage of your purchase that are good for your next purchase. I think it might be 5% and the coupon expires after 6 months. It never fails to get me back into his store before they expire to see what I can get, and of course I always buy way more than what the coupon is worth- which just leads to getting another coupon and repeating the cycle.

-- Carry a small selection of eccentric items that might appeal to gamers. Things like swords, decorative skulls and gargoyles, etc. Contact your local SCA group and offer to sell armor and garb on consignment. Make and sell wierd gaming props like a Thing in a Jar and other oddities. "Treasure chests" filled with plastic coins (or better yet- foreign coins. The weirder the better and you can often get alot for your money depending on what country they're from), gems and jewelry. If you can keep it varied and interesting people will come in just to see what new weirdness you've got.

-- Have promotions based on outside events in the fantasy/sci-fi industry. Like discounts to customers who show up in costume when the next Harry Potter/Star Wars/whatever movie comes out or on Halloween or Tolkien's birthday. Have a trivia or movie quotes contest with goofy prizes.

That's all I can remember for now. I'll post again if I think of anything else.

 

[PatrickLawinger]

Okay, I think most things have been covered several times. I'll mention a few quick items that you'll want to consider.

If you have gaming in the store, and serve or allow food, (even just from vending machines) you are going to need to check into local laws. I am pretty certain you need to have a public restroom, not all "store fronts" in strip malls are equipped in a way that makes this easy. You also need to have handicap access to the restroom (this can vary depending on the age of the building, often, if you remodel you need to be "up to code"- these expenses are usually inflicted on the leasee).

This sounds pathetically detail-oriented, but renting out store space and then finding the "employee" restroom is beyond the stockroom at the back of the store and that you require a restroom for "dining guests" can be a real problem. I know of a store that had to move locations after 3 months (sooner actually, their initial lease was 3 months, couldn't get out of it) for this very reason. They let people use the restroom in the back until stock started disappearing.

Running a small business, any small business, is a huge pain. Be sure you are ready for it. Be sure your family is ready for it too.

 

[RatPunk]

Go to rpg.net and read the advice Chris Aylott gives.

'nuff said.

Already done. Very good and informative stuff.

And then ignore it. He's an idiot.

(Sorry, rough day at work. )

Good. A sign of what I have to look forward to...

Okay, as a consumer who has frequented game stores, there is one thing that nobody seems to have mentioned...

MAKE SURE YOUR STORE SMELLS NICE.

I'll probably get flamed for this or something, but a good portion of gamers aren't too strong in the odor category, and you get a whole bunch of them in a room.... oh man.

There was this game store that was close to me, and had a decent selection, but every once in a while I'd get in there and I'd just be like... "NO. Not going in there. It reeks", and go to the store that was further away.

So, please... buy some air freshener.

In my mind, this is a given. Nothing turns you off of a store like gamer smell. This will be aggressively fought in any establishment I own.

I've been following this thread with interest as this is an idea I've considered for after I retire from the military in 4 years. Here are some of the ideas I thought of and some cool things that keep me going to my FLGS when I'm back home (currently stationed in Korea now)

-- Offer a military discount. Alot of military guys game and this alone will get them going out of there way to use your store over a competitors. I know it works for me.

-- Some kind of frequent buyer program. Another store back home gives out discount coupons based on a percentage of your purchase that are good for your next purchase. I think it might be 5% and the coupon expires after 6 months. It never fails to get me back into his store before they expire to see what I can get, and of course I always buy way more than what the coupon is worth- which just leads to getting another coupon and repeating the cycle.

-- Carry a small selection of eccentric items that might appeal to gamers. Things like swords, decorative skulls and gargoyles, etc. Contact your local SCA group and offer to sell armor and garb on consignment. Make and sell wierd gaming props like a Thing in a Jar and other oddities. "Treasure chests" filled with plastic coins (or better yet- foreign coins. The weirder the better and you can often get alot for your money depending on what country they're from), gems and jewelry. If you can keep it varied and interesting people will come in just to see what new weirdness you've got.

-- Have promotions based on outside events in the fantasy/sci-fi industry. Like discounts to customers who show up in costume when the next Harry Potter/Star Wars/whatever movie comes out or on Halloween or Tolkien's birthday. Have a trivia or movie quotes contest with goofy prizes.

That's all I can remember for now. I'll post again if I think of anything else.

Again, with the exception of the military discount, which I like but hadn't thought of, these are already things that are in my mind, especially the outside events promotions as the location I am thinking about is next door to a video store AND in the same strip mall as the local movie theater. Both big pluses as far as I'm concerned. I'm glad to see I'm on the same wave length as most of the people here.

Okay, I think most things have been covered several times. I'll mention a few quick items that you'll want to consider.

If you have gaming in the store, and serve or allow food, (even just from vending machines) you are going to need to check into local laws. I am pretty certain you need to have a public restroom, not all "store fronts" in strip malls are equipped in a way that makes this easy. You also need to have handicap access to the restroom (this can vary depending on the age of the building, often, if you remodel you need to be "up to code"- these expenses are usually inflicted on the leasee).

This sounds pathetically detail-oriented, but renting out store space and then finding the "employee" restroom is beyond the stockroom at the back of the store and that you require a restroom for "dining guests" can be a real problem. I know of a store that had to move locations after 3 months (sooner actually, their initial lease was 3 months, couldn't get out of it) for this very reason. They let people use the restroom in the back until stock started disappearing.

Running a small business, any small business, is a huge pain. Be sure you are ready for it. Be sure your family is ready for it too.

I think (but I could be wrong) that if you only serve snacky type foods and canned soft drinks, you can get around the public restroom thing. I will definately have to check into that, though.

 

[RatPunk]

My advice from having run a game store in three years:

Don't undercapitalize
Advertise strong when you first open, be stingy with advertising after that (unless you periodically have new customers because you are near a college). Concentrate on cheap stuff like flyers.
Have a used section
Have a place where people can play
Organize tournaments, charge a small entry fee, and use it all for prizes (at your cost). You break even on the entry fees, and the people in the store will buy stuff.
Make it a place where kids are comfortable and more importantly where parents are comfortable letting their kids go.
If most people drive in your area, parking is important.
Have a board for gamers seeking gamers. People like it and it helps you keep track of what they're playing.
Treat it like a business, not a hobby.
Go to local conventions. You can advertise and make money at the same time.
Do special orders, but keep in mind you need to be very organized about special orders.
Don't be afraid to cut prices on junk that isn't moving.
Front list sells the back list (new items in a game line help sell the older items in a game line).
Wait until [political statement edited]

Like I said above, I am so glad I am on the same wavelength as so many of you guys. That being said, though, I have a quastion or two, the first being on the "don't undercapitalize" subject.

First, what do you store owners consider to be the right amount of capital? I have heard an estimate of $35-40,000 for a good store set-up, initial inventory, etc. Add to this enough to make sure the store stays afloat for the first couple of years and what are we looking at? $80,000? $90,000?

Secondly, financing. Those of you already in business, where did you get your financing? I have some of my own money to use, of course, but not nearly enough. And I have heard that banks will be a notoriously bad option for a start-up. Where did you turn?