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<blockquote data-quote="guildofblades" data-source="post: 5984129" data-attributes="member: 27324"><p>A lot of it will depend on the margins, which, of course, will depend on what types of product they sell and how they source them.</p><p></p><p>Used products can be a game changer where margin is concerned, but can you acquire the types of used products that your customers would actually buy?</p><p></p><p>If you are talking about strictly new gaming products with almost ALL of it sold at MSRP, given the typical margins that product is available at, I would say $15,000 monthly sales is the minimum many stores would need to achieve in order to hit any level of basic stability.</p><p></p><p>On the issue of price, don't fall into the trap they you have ti discount to make sales. The are a great many customers out there for which price is not a big factor in their shopping decision. Customer service, product availability, community offerings and sponsorship, informational services, onsite gaming and a host of other factors are more important to them. B&M retailers discounting much beyond a few points for loyalty programs and such will put them out of business, and fast.</p><p></p><p>Walmarts and Amazon.com and the like can price things as they do because they operate under a completely different set of cost structures. But those cost structures also prohibit them from being able to offer customers the host of services I mention above (and more) that a great many customers will appreciate.</p><p></p><p>Lastly, location, location and demographics, demographics. Is the location in a well travelled area and conductive to people willing to travel there and shop? Good signage opportunities facing a busy road, but not too busy to restrict access? What is the population density of the 5,10 and 15 mile radius around the store and how much established competition is within those zones already offering some of what you might offer? These are critical elements in deciding if an area is large enough and fits the right demographics to sustain a store and if the area is yet adequately serviced or not.</p><p></p><p>FWIW, we opened the GOB Retail store abou 4 years ago. Its doing very well. We are currently laying plans to open a second location, though actually pulling the trigger on that is likely more than a year away yet.</p><p></p><p>Ryan</p><p>GOB Retail</p><p><a href="http://www.gobretail.com" target="_blank">GOB Retail - Great Selections for Your Gaming.</a></p><p>Guild of Blades Publishing</p><p><a href="http://www.guildofblades.com" target="_blank">Guild of Blades Publishing Group - Great Games since 1994.</a></p></blockquote><p></p>
[QUOTE="guildofblades, post: 5984129, member: 27324"] A lot of it will depend on the margins, which, of course, will depend on what types of product they sell and how they source them. Used products can be a game changer where margin is concerned, but can you acquire the types of used products that your customers would actually buy? If you are talking about strictly new gaming products with almost ALL of it sold at MSRP, given the typical margins that product is available at, I would say $15,000 monthly sales is the minimum many stores would need to achieve in order to hit any level of basic stability. On the issue of price, don't fall into the trap they you have ti discount to make sales. The are a great many customers out there for which price is not a big factor in their shopping decision. Customer service, product availability, community offerings and sponsorship, informational services, onsite gaming and a host of other factors are more important to them. B&M retailers discounting much beyond a few points for loyalty programs and such will put them out of business, and fast. Walmarts and Amazon.com and the like can price things as they do because they operate under a completely different set of cost structures. But those cost structures also prohibit them from being able to offer customers the host of services I mention above (and more) that a great many customers will appreciate. Lastly, location, location and demographics, demographics. Is the location in a well travelled area and conductive to people willing to travel there and shop? Good signage opportunities facing a busy road, but not too busy to restrict access? What is the population density of the 5,10 and 15 mile radius around the store and how much established competition is within those zones already offering some of what you might offer? These are critical elements in deciding if an area is large enough and fits the right demographics to sustain a store and if the area is yet adequately serviced or not. FWIW, we opened the GOB Retail store abou 4 years ago. Its doing very well. We are currently laying plans to open a second location, though actually pulling the trigger on that is likely more than a year away yet. Ryan GOB Retail [url=http://www.gobretail.com]GOB Retail - Great Selections for Your Gaming.[/url] Guild of Blades Publishing [url=http://www.guildofblades.com]Guild of Blades Publishing Group - Great Games since 1994.[/url] [/QUOTE]
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