Starting a Store

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starslayer ( 560 )
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Post by starslayer »

Customer service is a REALLY IMPORTANT.

If you are a jerk people just won't shop at your store,they'll go to your competition. You don't have to smooch behinds ,but if you show people you don't value them as a customer they'll go somewhere else. If you don't value your customers,you soon won't have any.

If there is problem,just apologize and fix it.

We had a survey where I work,it said a satisfied customer tells 2 people, a dissatisfied customer tells TEN people. Bad news travels fast.
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Post by GearHead »

True, very true...
Ikarus ( 46 )
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Post by Ikarus »

Hmm I have a question,

how much cheaper is the GW products priced down from buying it in big lots or such?

I am also interested in jumping out in my local area and my city because there is not a single hobby shop in the area. Sure GW is up a city or two about 30 minutes away, but my city is thriving and actually becoming a major city where I am at, and I think first dibs might just get it and also introduce it to market that hasn't seen anything like this before.

Though just how much do you get discount ? Just to figure out the margin of profit between your price from the distribution center to you to your customers on retail?
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GMMStudios ( 150 )
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Post by GMMStudios »

Ikarus wrote:Just to figure out the margin of profit between your price from the distribution center to you to your customers on retail?
Depending on the game, about 50-60%.

Think about it. How could retailers offer 35% off and stay afloat. If it were 35% margin or less they would be breaking even or losing money.
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MEDEVL ( 362 )
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Post by MEDEVL »

Actually standard retail markup is 100% (that is if you pay 10 bucks for something at a store they usually paid 5 dollars or less for it from their supplier). I know that GW used to be a standard (50%) discount to retailers but that has come down in recent years, probably around 40% now (not sure on this since I don't work in a store anymore). The funny thing about GW in this industry is that the vast majority of other hobby related items (aside from card games in some cases) go through a distributor. So usually there is little or no direct contact between the gaming company and the stores, they use another company. Therefor most gaming companies get less than 50% for their goods because they have to also pay the distributor with a small percentage (no idea how much this is but I would assume not too much as they make up for it in volume). Since GW acts as their own distributor (in fact they used to not even allow other distributors to get their products!!) they are in effect double dipping since they take the manufacturer cut and the distributor cut...plus they offer a lower than standard 50% discount!!!
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montaa ( 306 )
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More Store Thoughts

Post by montaa »

GW's price is 55% of the MSRP (Manufacturers Suggested Retail Price). Many of the other gaming company's use 40% instead. It’s a strange game they play, but much of the pricing strategy has evolved with the advent of the internet.

To the 35% off idea: works beautifully if you can sell a large amount of product. Unfortunately in this industry people don't consume boxes of models at a tremendous rate. As ChoasOrc and Dropzone will tell you, they'd love to be able to offer 30% off, so long as the community promised to buy 150 box sets/day.

On the subject of my store plans:

I've come up with a rough outline of what I would like to offer.

Card games - this would be aimed at Kids and the markup is higher than 100%. Providing space for them to play and a selection of specific cards should not be too difficult. I used to be a Magic:TG player and loved it, but the local store closed and we lost all the competition. Running tournaments can be profitable without too much effort. Plus it gives another forum for the sale of drinks :)

Model based games (GW, Conf., Rack., etc) - This is not a bread and butter option, but should bring in a large number of people... and their kids. I am a Games Workshop player out of habit, not necessarily loyalty. After looking at the math, I cannot support a store on GW alone. Nor do i really want to. I like variety in my life as well, so I'd like my shop to reflect that.

The model based games will also bring my gaming group out of the garage and into the store. They are all serious veterans with a knack for helping out younger people <--- me a few years ago. We've got some great table gamers, terrain makers and solid players. One of the guys is also the single best green stuff modeler I've ever met.

More: Workshops, contests, tourneys

Computer/Console Games: This industry is INSANE. While it would be difficult for me to even order new games, I'm thinking of adding a used game section ala Electronics Boutique. A computer room wouldn't cost me a fortune and would probably pay for itself with the increased traffic through the rest of the store. Geeks are geeks are geeks and our habits tend to run along the same paths.

More: Tournaments (local Rhode Island gaming tourney pulls in 1500+ gamers), used game sales

Snacks/Drinks: Great, wonderful, amazing idea. Several of the local stores provide these and I find myself automatically grabbing a diet soda or 2 during a session. And when I game in the garage, I miss having them available. I'm thinking of adding vending machines priced at a buck or so. I'm a bit of health nut so I'm not a huge fan of Soda, but I understand people like it; and its cheap to stock.

Snacks are not my favorite thing for health reasons. Most of the items in vending machines are total junk. If I could find a good alternative I might grab a vending machine for those as well. Most likely I'll cut a deal with a local shop to provide lunch/dinner options at a slight rebate if they come from my store. My health nutism only goes so far... :)

I'm looking for more help on: dealing with small children and security. All ideas would help.

MEDEVL wrote:Actually standard retail markup is 100% (that is if you pay 10 bucks for something at a store they usually paid 5 dollars or less for it from their supplier). I know that GW used to be a standard (50%) discount to retailers but that has come down in recent years, probably around 40% now (not sure on this since I don't work in a store anymore). The funny thing about GW in this industry is that the vast majority of other hobby related items (aside from card games in some cases) go through a distributor. So usually there is little or no direct contact between the gaming company and the stores, they use another company. Therefor most gaming companies get less than 50% for their goods because they have to also pay the distributor with a small percentage (no idea how much this is but I would assume not too much as they make up for it in volume). Since GW acts as their own distributor (in fact they used to not even allow other distributors to get their products!!) they are in effect double dipping since they take the manufacturer cut and the distributor cut...plus they offer a lower than standard 50% discount!!!
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MEDEVL ( 362 )
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Post by MEDEVL »

I'd advise you rent lockers and have an area open (at least at certain times) for just assembling and painting models. It's a great way to get other people intersested in the hobby. As for vending machines you can buy one of your own at Sam's and put whatever you want into it. Juices and waters or nuts and pretzels. It is an easy source of income though, so you shouldn't give up on it.
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Post by Ikarus »

Another question if anyone could answer.

What games are there out there that people play? I'm sorry I am more of a GW straight fan, but I am pretty sure there are names out there that people would go out and play..

So would any of my list work?

Confrontation
Rackham
GW stuff
Wizards of the Coast Games

what else should I look into and try finding distribution center contact information?

And I fully assume you would need a brick and mortar address for any distrubution center to even consider mailing their products to you?

Ikarus
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montaa ( 306 )
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Wholesale License

Post by montaa »

Ikarus,

You need a wholesale license along with a physical address to give to suppliers. While you do not necessarily need a brick and mortar store, you cannot use PO Boxs for some distributors.

Wholesale licenses actually come from the State. Essentially they exist so the government can monitor who should be paying sales tax. If you live in a state without sales tax, like New Hampshire, you generally will not need to aquire a license. The form is easy and straightforward and required for each state you would like to have wholesale priced goods delivered to.

Your list looks solid. I would continue posting here and seeing what else we can garner from the generous people here on Btown. The best marketing is done face to face, so go out and meet people, shake their hands and ask them what they play, would like to play, what their friends play. Then invite them to the store to check it out.
Ikarus wrote:Another question if anyone could answer.

What games are there out there that people play? I'm sorry I am more of a GW straight fan, but I am pretty sure there are names out there that people would go out and play..

So would any of my list work?

Confrontation
Rackham
GW stuff
Wizards of the Coast Games

what else should I look into and try finding distribution center contact information?

And I fully assume you would need a brick and mortar address for any distrubution center to even consider mailing their products to you?

Ikarus
-Aaron

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GMMStudios ( 150 )
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Re: More Store Thoughts

Post by GMMStudios »

montaa wrote:Computer/Console Games: This industry is INSANE.

I wouldn't use the word insane. In fact I would use the word mediocre. And that is for retailers like EB and Gamestop. Sure, they get a good deal of traffic, but their sales aren't that great and management is terrible.

Insane is just when new stuff comes out. And the only people that truly feel that are the Microsoft, Nintendo, and Sony. In that order to be exact.

I don't want to dissuade you or bring you down or burst your bubble, but i find that it would be hard enough being name brand and selling video games. Selling used and new games under a mom and pop name would just be a pawn shop to me.

To further clarify, I would be afraid to buy a EB or GS franchise, even more so to sell games under a mom and pop banner. Its the same with movie rentals and new and used movie sales.

Editx3: DECORATE! I hate ugly game stores. Make it look like a bookstore. You know what colors I am talking about. Make it smell good too.
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Post by MagickalMemories »

I've come up with a rough outline of what I would like to offer.

Card games - <SNIP>


Yes, but don't fall into the trap. Carry only the big names (Pokemon -though dwindling-, Yu Gi Oh, M: TG, Warlord -if it's big there, etc) on a regular basis. When a new one with a big buzz comes out, invest MODERATELY in it. Don't buy so much that you have half of your stock of it left over when people see it sucks. I've seen it happen. DO NOT CARRY SINGLES UNLESS YOU HAVE A LARGE GROUP OF GAMERS. Wait until you see how much long-term CCG traffic you have before making this decision. If you don't have groups of 4 or more there 3 or more nights a week, it's probably not a good idea. Even then, only carry M:TG singles.

Model based games (GW, Conf., Rack., etc) - <SNIP>

Yes. Have them, display WELL painted models from them, and support them. If you carry it, learn how to play it... even if only the basics. Gamers hate to ask someone who sells the stuff a question to only hear "I dunno!" as a response.

More: Workshops, contests, tourneys

Oh, yes... but wait until you are settled in fora while.

Computer/Console Games: <SNIP> A computer room wouldn't cost me a fortune and would probably pay for itself with the increased traffic through the rest of the store. <SNIP>
Don't waste your time. I've seen a couple places try it. It dies. Few people will PAY you to play on your computer or video game system when they have something just like it -IF NOT BETTER- at home. You WILL regret it.

More: Tournaments (local Rhode Island gaming tourney pulls in 1500+ gamers), used game sales

YES.

Snacks/Drinks: Great, wonderful, amazing idea. Several of the local stores provide these and I find myself automatically grabbing a diet soda or 2 during a session. And when I game in the garage, I miss having them available. I'm thinking of adding vending machines priced at a buck or so. I'm a bit of health nut so I'm not a huge fan of Soda, but I understand people like it; and its cheap to stock.<SNIP>

From a neutral standpoint... Who cares what you want? It isn't about YOU. it is about your customer. You're treading close to the "I don't play it, so I don't carry it," attitude when you refer to keeping healthy food in a vending machine. Gamers tend to consume vast quantities of junk. They WILL NOT BUY those "apple crisps" that you have stocked in the vending machine very often.
Get a Sam's Club membership, buy 4 or 5 different types of candy bar by the case, as well as ALL the major soda brands (Pepsi, Coke, Diet Coke and/or Pepsi, Dr. Pepper, Sprite or 7-Up and Root Beer). These are classics and are a MUST HAVE. "Value packs" of chips work well, too.
One store I used to go to had a microwave (they kept it behind the counter because they were smart) and sold those cheap little Microwave sandwiches. They made a KILLING on game nights... Slim Jims & other meat sticks, too.

Another GREAT idea... FLEA MARKETS.
There was a shop in St. Louis that used to hold Flea Markets a couple times a year. Everybody won. Buyers bought stuff at discounts, sellers were able to sell off their extra stuff, He got about $10 a piece for table space, as well as a SMALL % of each seller's profit. Plus, he had boosted sales of his in-stock merchandise on those days, as well. For other reasons, he went out of business... but those Flea Markets were awesome... I'll always miss him & his shop.

That's the kind of shop you want. You want people to come in and call you by your first name. You want to know theirs. Treat them like people, not just customers. When I was 22, I moved out of state from there (I[ve since returned). On the Saturday that was to be my last game day there, he bought me a HUGE sheet cake (enough to serve everyone who gamed there on Saturdays). It was a place I ALWAYS made sure to visit when I came back home for vacation, and one of the first places I visited when I moved back.

That is the kind of feeling you want people to have about your shop. Accomplish THAT, and you're golden.

Eric
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Post by Ikarus »

Alright so I assume the 'Wholesale' license = General Business License ?

I just had mine cleared and approved a week ago and ready to go, but I just want to double check if what I have is what I need to go. (Oh yes you can tell I am new at this, but a little research won't hurt before I actually pour some money down onto this 'project')
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Post by The Drop Zone »

ok you have business license good start

go to godaddy.com get a website name, its cheap and reserve the name
worry about the web site later...

you know the type of store you want to be... make a plan on how to become that type of store

things to ask yourself

1.how much do you have to stock your store...
2. do you have a location
3 once you have the location you have to get your accounts with the various games approved.. takes time you will ned some cash there as well

what do gamers in your area play for the most part ?that is the most important of all you can always add merchandise but once you buy it your stuck with it so dont go buy 400 boxes of pokemon if no one plays pokemon.. things like that

also if you want to stock flames of war they have a distance clause that says you cant have an account if a store is within x miles they may waive that clause then again they may not

gw may make you buy a starting package forget it in my neck of the woods lotr is a movie not a game no one plays it at least they didnt buy anything when i stocked it... ebay took alll of my lotr stock thank god

ill add more later
Robert

ok additional stuff

drinks... a must... the sams club mention is spot on... you can get sodas for 22-25 cents a can sell it for .65 or .75 sell 200 cans a month do the math thats the phone bill or water bill paid for....

snacks...if there are fast food stores near your location maybe yes maybe no... thats a personal choice... im in a mall with a food court so i dont do it.. drinks yes food no

tables do you know how to make terrain boards they are available to buy pre made but its exspensive... what do you play.. you need to kw somehting about the games you sell

what hours are you going to be open if you can afford help then you can be open 7 days a week but if you cant then you have to close one day mondays are pretty good days to close and do your banking post office runs etc etc

and no you cannot work 7 days take it form me youll burn out

if you want any more info send me some pms
im going to bed
R
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Post by ancientsociety »

Popular and/or good mini games that you should have:

GW - 40K, WHFB, maybe some Specialist stuff (Necro & BB, avoid Mordheim - not a big following since Conf is better), NOT LotR

Rackham - Confrontation (but be careful what you carry. I'd stock more Wolfen, Dirz, Griffin, Acheron, DoW, and Cadwallonthen anything else.) and AT-43

Fanpro/IWM - "classic" Battletech

WizKids - all (but be careful what you stock)

PeterPig/Battlefront/etc. - Flames Of War

GZG - Stargrunt/Dirtside2/Full THrust (EXCELLENT "generic" sci-fi rules for 15/25mm, 6mm, and Fleet scale, respectively)

PP - Hordes, Warmachine

Corvus Belli - Inifiniti (this is going to be the next "big" sci-fi game)

Mongoose - Starship Troopers

Also look into the market for historicals in your area. In some areas, it's huge! in others, nothing (like here in the midwest - unfortunately)
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Post by Datadep5 »

The Drop Zone wrote:
snacks...if there are fast food stores near your location maybe yes maybe no... thats a personal choice... im in a mall with a food court so i dont do it.. drinks yes food no
Back in Michigan there's a gaming store, but no 40k is played there, anyways. The guy who owns it doesn't allow food or drinks from outside the store in, unless you speak with him first.

Personally that kind of bothered me but I understand that he wants to keep a clean store and there would be no point in having a vending machine if we all can hit up a gas station.

I played a CCG called Warlord. Perhaps you've heard of it? The rule was for a tournament that you had to buy two booster packs, but you were exempt from tax. So it was 6 bucks a week and there were usually 6 of us. We all would throw in a rare and then at the end of the tournament, depending on what place you took, you got your choice of one rare card. Just an idea.
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