Idea - Ever wanted to own a bit of a gaming store?

[JaccoNamori]

Hey all... This is kind of a repost, but I was wondering what you all thought of it, so I figured I would slap it up on a few of the new boards Ive started hanging out on. Hope you dont mind

So, I was talking with a friend earlier and I had a great idea! Of course, I had best include a bit of background first or some of you will be going "Buh?"

Some of you might now about how I plan to open my own gaming store. The great big plan, including everything from demo nights, to free painting classes for those with miniatures, a huge gaming area with snacks delivered right to your table (including pizza, pastries, cappuccino, and even lots of other goodies like pocky, yum!), and even a side room with a projector hooked up to a DvD player for showing movies and anime and the like.

Some might even know about all the things Im going to sell. Not just gaming things like the best in games, dice, miniatures, and the like, but books, movies, anime, and gadgets. A regular Nerdtopia, really

On the other hand not all of you know that, given how much I have in the way of starting capital and what I can get my hands on, Im going to have to start small and build my way up. So instead of the great big uber cool store (Yay!) Im going to have to start something a bit more small and, alas, practical. Without the movie room, with only a tiny lounge type area, no snacks delivered to you, and with a lot less in the way of cool extras for a good two and a half years. (Boo! )

I was thinking all this, and I mentioned it to my friend who happens to be into the entire business / financial thing too. We got to chatting about different ways to get the store started a little faster, going over my plans, and possibly even finding a way around the two of and a half extra years of development that would get me turning that much bigger of a profit that much faster.

"Why don't you try to talk someone into partnering up with you?" said my friend "It sounds like you have a really great idea, and what I’ve seen of your numbers its a pretty solid investment."

"The problem." I said "Is that most of my friends are college students. Whenever I get a chance to talk to one of them about the store they say 'Sounds like you really know what you are talking about. Its too bad I don’t have any money, sounds like it's going to be great!'"

"You know." Said my friend "I saw this news article about a Nascar driver who was having trouble finding corporate sponsors. So he got a lot of people to give him $20. They all got a small logo on the car, and they got to support something they loved."

Naturally, I stopped and stared for a moment.

"What?" He said

"You are either brilliant." I said "Or you are off your meds again."

"Probably off your meds..." I muttered under my breath, but it was too late. The idea had taken root in my brain.

So what I was wondering was this... Would it be too outlandish to offer a 0.02% share in a gaming store for $20? Especially if something extra was thrown in, like a certificate suitable for framing saying that they own part of a gaming store, or, say... a cookie?

I would need to get 100 people for it to be worth the trouble, but I’ve had at least that many say they would invest if they had the money. So, how about it? Good idea? Bad idea? Really want that cookie?

Im just looking for opinions at the moment, really... But if nothing else the idea of launching myself at huge amounts of people and trying to talk them into buying something is giving me the shivers in a very very good way. What can I say, If there’s one thing I take pride in its that Im a born salesman

 

[Umbran]

So what I was wondering was this... Would it be too outlandish to offer a 0.02% share in a gaming store for $20? Especially if something extra was thrown in, like a certificate suitable for framing saying that they own part of a gaming store, or, say... a cookie?

First off, 100 people donating $20 each is only $2000. In business terms, that isn't much. As I understand it, in opening a store you need to be prepared to be running at a loss for a year or two, and by comparison to the funds you'd need, this is chicken feed.

Second, the legal, business, and tax issues around partnerships like this are not negligible. If you really want to say, "You own a 0.02% share in this store," you better back it up with the proper paperwork. Otherwise, they aren't really buying share in the store.

 

[nakia]

I think Umbran is right, in that the legal rigamarole (is that a word, even?) for having 100 partners each owning 1% of your store is probably nightmarish. Actually, that sounds like having stock in your store, which is different that being a partner and has its own issues.

Instead of ownership/partnership, how about calling those who give you $20 up front "charter members." They would then get special discounts, coupons, or other cool stuff from your store when it does open.

Another variation on this theme is to have a membership program at your store, where folks pay $20/year to be members and get discounts and special offers. You could offer "charter memberships" for $50 prior to opening and these memberships would be good for life.

I know it seems odd to charge people to give them discounts, but now it seems a fairly standard business practice. Sam's Club and Barnes and Noble both offer variations on this idea. Of course, they are giant chain of stores.

 

[Thornir Alekeg]

Instead of ownership/partnership, how about calling those who give you $20 up front "charter members." They would then get special discounts, coupons, or other cool stuff from your store when it does open.

Another variation on this theme is to have a membership program at your store, where folks pay $20/year to be members and get discounts and special offers.

The Wizards Tower in Nashua NH does this. $45 for a year, as I recall, gets you a 10% discount on in stock items, 15% on pre-orders and a few times a year a special "members night" with 30% off any purchase. I did it for a year when I was buying a lot of Scarred Lands and other books, but after that my buying dropped off to the point where I was not making back the $45 through savings.

Seems to be most popular with the Warhammer players.

Also, my understanding of this same store is that they did have some people buy into the store. I think they set it up as an LLP. It is a complicated arrangement and by the stories I have heard, it has not always gone well, as when some of the partners were not happy with the way the store was operating.

 

[diaglo]

i thiink Sam's Club, price club, and so on... do this too.

also major grocery stores are into it now. and book chains like waldens, borders, barnes & nobles...

a discount for members and a normal price for those others.

you pay a member fee per year.

 

[fett527]

i thiink Sam's Club, price club, and so on... do this too.

also major grocery stores are into it now. and book chains like waldens, borders, barnes & nobles...

a discount for members and a normal price for those others.

you pay a member fee per year.

Most grocery stores in our area (not club stores like Sams) have shopper cards (ex: Kroger Plus Card) that are free. You don't have a member fee. They're doing it strictly for the rights to target ads and marketing. We like to call it the Big Brother card.

 

[Crothian]

Most grocery stores in our area (not club stores like Sams) have shopper cards (ex: Kroger Plus Card) that are free. You don't have a member fee. They're doing it strictly for the rights to target ads and marketing. We like to call it the Big Brother card.

for a few months straight use it only to buy cheap booze and condoms....see what adds you get then

 

[fett527]

for a few months straight use it only to buy cheap booze and condoms....see what adds you get then

I've gotten several Trojan and Magnum coupons, but nothing yet for Wild Turkey or Southern Comfort.

 

[1upus]

Out of curiosity, what kind of capital is required to start up a games store?

I'm sure, being down under is going to throw a spanner in the works with regards to other costs, but was wondering about the business of games retailing? The cost associated with start up, expected turnover, etc.

Always wanted to do something like that, but less of an active partner and more a silent one. Too much on my plate now as is

lupus

 

[Umbran]

Out of curiosity, what kind of capital is required to start up a games store?

As I understand it (and those here who have tried it might corect me if I am wrong) the costs with starting up a gaming store are about the same as starting up a book store, or any other retail business.

In general, you need to expect your new enterprise to operate at a loss for a year or two. Time is required to build up recognition and customers. So, as capital, you need a couple years worth of money for your perosnal rent, clothes, food, utilities and so on. You then also need a couple years rent and utilities on your storefront. Then you start considering inventory...

It's a lot of money.