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Retail Gaming Store Economics [LONG]
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<blockquote data-quote="Sam" data-source="post: 628295" data-attributes="member: 1024"><p>This weekend was a particularly depressing one for my game purchasing ego. I learned over the weekend that my FLGS will be closing early next month and that both local WotC stores are in the process of liquidating their inventory and will be closing shortly. This leaves a big retail gap in my area and forces me to wonder where I'm going to have an opportunity to browse new products before purchasing them.</p><p></p><p>I've always been a big supporter of my FLGS and purchased most of my gaming materials there, even when I knew I could get them cheaper (and in many cases, quicker) by purchasing them online. I organized and ran RPGA Living Greyhawk gamedays in the store on a somewhat monthly basis for over a year and a half.</p><p></p><p>That said, the proprietor of the store was, as tends to be the case, a gamer first and foremost. Running a business was not his strong suit. (He's a great guy and a friend, but truth is truth).</p><p></p><p>This all makes me wonder: Could I do it any better? I’m an avid gamer, but I think of myself as a business-oriented person first. I’ve got an MBA and have 11 years of corporate experience. </p><p></p><p>Now, I'm not in a position to leave my day job. I make a good living and support three kids, a wife and a mortgage that is <em>way</em> too large to leave the income solely to a new venture. If I hit the $50mm lottery ticket that’s in my pocket, I’d do it in a heartbeat (now that I said that, I’ve just jinxed my chances). I think that I can get some money together (personal and some investors) to open a store, and I’ve got someone in mind (a hardcore gamer and bright guy) to run it. </p><p></p><p>What I don’t have a very good feel for are the economics of running a store. If any of the ENWorld community that has experience in running a gaming store could help shed some light on this, I would be highly grateful. I’ve got a bunch of questions that I’ll list below. If people with experience could help out, either here, or if you’re uncomfortable posting “trade information” on a public forum, you can email me directly at sschuste (at) optonline (dot) net.</p><p></p><p>Background: I expect that (and would gear up for) the strong sellers/draws for a store would be the following products: <ul> <li data-xf-list-type="ul">Dungeons & Dragons / d20 Materials, books, minis, etc</li> <li data-xf-list-type="ul">Games Workshop tabletop games (Warhammer, Warhammer 40k, etc)</li> <li data-xf-list-type="ul">Magic: The Gatehring (and other CCGs)</li> </ul><p></p><p>Questions: <ul> <li data-xf-list-type="ul">What are typical profit margins?</li> <li data-xf-list-type="ul">What would a normal week of sales look like?</li> <li data-xf-list-type="ul">Are there seasonal trends that I need to be aware of? Does the December Holiday shopping season have a significant impact on business?</li> <li data-xf-list-type="ul">How important is running organized play/leagues?</li> <li data-xf-list-type="ul">How much space do you have/require for open/organized play?</li> <li data-xf-list-type="ul">Do you sell only gaming merchandise, or do you have other products (comic books, models, apparel)?</li> <li data-xf-list-type="ul">What is a realistic level of starting merchandise?</li> <li data-xf-list-type="ul">What am I not thinking of?</li> <li data-xf-list-type="ul">Am I just fantasizing about a crazy concept, and is the reason that game stores are closing all over the place because it is not a profitable venture?</li> </ul><p></p><p>Any information is <strong>greatly</strong> appreciated.</p><p></p><p>--Sam</p></blockquote><p></p>
[QUOTE="Sam, post: 628295, member: 1024"] This weekend was a particularly depressing one for my game purchasing ego. I learned over the weekend that my FLGS will be closing early next month and that both local WotC stores are in the process of liquidating their inventory and will be closing shortly. This leaves a big retail gap in my area and forces me to wonder where I'm going to have an opportunity to browse new products before purchasing them. I've always been a big supporter of my FLGS and purchased most of my gaming materials there, even when I knew I could get them cheaper (and in many cases, quicker) by purchasing them online. I organized and ran RPGA Living Greyhawk gamedays in the store on a somewhat monthly basis for over a year and a half. That said, the proprietor of the store was, as tends to be the case, a gamer first and foremost. Running a business was not his strong suit. (He's a great guy and a friend, but truth is truth). This all makes me wonder: Could I do it any better? I’m an avid gamer, but I think of myself as a business-oriented person first. I’ve got an MBA and have 11 years of corporate experience. Now, I'm not in a position to leave my day job. I make a good living and support three kids, a wife and a mortgage that is [I]way[/I] too large to leave the income solely to a new venture. If I hit the $50mm lottery ticket that’s in my pocket, I’d do it in a heartbeat (now that I said that, I’ve just jinxed my chances). I think that I can get some money together (personal and some investors) to open a store, and I’ve got someone in mind (a hardcore gamer and bright guy) to run it. What I don’t have a very good feel for are the economics of running a store. If any of the ENWorld community that has experience in running a gaming store could help shed some light on this, I would be highly grateful. I’ve got a bunch of questions that I’ll list below. If people with experience could help out, either here, or if you’re uncomfortable posting “trade information” on a public forum, you can email me directly at sschuste (at) optonline (dot) net. Background: I expect that (and would gear up for) the strong sellers/draws for a store would be the following products:[list] [*]Dungeons & Dragons / d20 Materials, books, minis, etc [*]Games Workshop tabletop games (Warhammer, Warhammer 40k, etc) [*]Magic: The Gatehring (and other CCGs) [/list] Questions:[list] [*]What are typical profit margins? [*]What would a normal week of sales look like? [*]Are there seasonal trends that I need to be aware of? Does the December Holiday shopping season have a significant impact on business? [*]How important is running organized play/leagues? [*]How much space do you have/require for open/organized play? [*]Do you sell only gaming merchandise, or do you have other products (comic books, models, apparel)? [*]What is a realistic level of starting merchandise? [*]What am I not thinking of? [*]Am I just fantasizing about a crazy concept, and is the reason that game stores are closing all over the place because it is not a profitable venture? [/list] Any information is [B]greatly[/B] appreciated. --Sam [/QUOTE]
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