PDA

View Full Version : Advice for a New Game Store



Mystery.Shadow
08-28-2009, 11:12 PM
A Friend of Mine is going to do it. He's going to open a Game Store!!

I know it's a bad time, and the Economy is horrible, but....

What could possibly go wrong??


If YOU were going to open a Game Store, what would you do? Thanks all.

crazyredpraetorian
08-29-2009, 01:00 AM
A Friend of Mine is going to do it. He's going to open a Game Store!!

I know it's a bad time, and the Economy is horrible, but....

What could possibly go wrong??


If YOU were going to open a Game Store, what would you do? Thanks all.

I owned comic/game stores for over 10 years. My advice is

1. Don't have a partner(s). If you do, have a good attorney.
2. Be there as much as possible. Don't trust employees to run the business for you. NO ONE cares as much as you.
3. Don't try to do the store on a shoe string budget or on credit alone.
4. Remember it is a business not a hobby.
5. Presentation is everything, don't go cheap on fixtures or build out. But, do as much of the buildout yourself as you are able.
6. Have as diverse a product line as possible.
7. Keep the store clean.....I mean spotless and smelling good...... Especially, the bathroom.
8. Reinvest in the store. Expand your stock whenever possible.
9. Make sure you have a good landlord, talk to the neighboring businesses about them before signing a lease.
10. READ YOUR LEASE CAREFULLY. Try to get a year lease, if possible. If not, try to have the landlord give you an out(30-90 day notice), just incase....and avoid any kind of profit splits with the landlord.
11. Pay your state taxes(Comptrollers Office) early to get the discount and keep them happy.They can be your friend or your enemy.
12. Likewise with the IRS...except they'll never be your friend.:D

entendre_entendre
08-29-2009, 01:15 AM
CRP nailed it, the LGS closest to me also found that actually stocking some of the 'direct only' (eg. kasrkin, extra noise marine sonic weapons, etc) items helps (at least for GW stuff)
also, spread the word! no one will come to the store if no one knows it's there! ;)

Lord Anubis
08-29-2009, 02:00 AM
Actually, I'd toss one more thing out... make sure you have ample parking.

There are two nice, independent game stores here in Los Angeles, both of which are closer than the local GW store. I never go to either of them because there's no lot-- only street parking. Which in Los Angeles means 90% of the time there's no parking. :(

So I can look for parking for fifteen or twenty minutes and then walk six or seven blocks to their store and back to my car... or I can drive an extra fifteen minutes and park in a huge mall structure 30 seconds after I pull off the street.

EmperorEternalXIX
08-29-2009, 03:22 AM
A Friend of Mine is going to do it. He's going to open a Game Store!!

I know it's a bad time, and the Economy is horrible, but....

What could possibly go wrong??


If YOU were going to open a Game Store, what would you do? Thanks all. A friend of mine had a brilliant idea for a place that has only two things:

1.) A really nice set of tables for warhammer
2.) A bar.

A liquor license is tough to get but even the lower end ones that just allow you to sell beer would make a pretty huge difference. At almost every game club I've ever seen there are a ton of people and there's never any means to buy food other than sodas or candybars. Imagine if you went to a place that allowed you to saunter up to the barkeep during your opponents' deployment to score some nachos and a guiness? (Of course, the food at least would have to not be allowed in the gaming area).

His idea was for more of a bar with gaming tables in it, then a gaming store with a bar in it, but the principle seems like it'd generate at least enough revenue to break even.

Grabnutz
08-29-2009, 05:17 AM
1. Get a strong online presence going before you take the store. Engage local gamers there first. Find out what they play, what they buy and wehre from.
2. Supplement the store with an internet mail order busienss. Having the store means you can get decent trader discounts from most publishers and you can some of these onto your online customers (like Wayland Games).
3. Watch how GW keeps its local crows loyal. Hobbyists running the store and supporting local events.
4. Keep your accounts everyday and keep them honest. The last thing you want is trouble with the revenue in any country.
5. Make sure you know how to run a business - go to night classes.

Bung
08-29-2009, 05:58 AM
First of all:
WHen playing people new to the Hobby, let them win, make it though but let them win, dont bring out the worst Combos you can think about.

One local gamestore had to close, cause the owner wasnt able to attract new customers cause of his attitude to win every game.

Denzark
08-29-2009, 06:00 AM
My top tips:

1. By and sell second hand minis as well. Sometimes you will make large profits - particulalrly when a parent clearing a loft brings in a load of RT or 2nd Ed stuff they don't know what the value is.
2. Good online presence.
3. My last FLGS had space for 8 networked PCs playing team fortress or some such - constant revenue.
4. If you have space for a games table and a knackk for terrain...
5. In UK you need a food hygiene certificate to sell food. Get this by doing a cheap course. Then sell munchies - microwave pizzas and toasties etc, to the hungry hoards. At a huge mark up.
6. If you can serve beer do it.

Drunkencorgimaster
08-29-2009, 09:35 AM
I have never run a store, but I think CRP is correct about a diverse product line. I have seen stores come and go and the fastest to exit are those with all their eggs in one basket. Sell GW, but also sell comics, sell WWII models, sell trading cards, sell hot dogs, etc.

ThePov
08-29-2009, 09:41 AM
Agreed, Diverstity is key. The FLGS I was at most recently had a fair area devoted to GW, but they were also a decent-sized sci-fi/fantasy book store, had an entire wall devoted to board games, TWO walls of various RPGs, ran frequent TCG tournaments, noteably Magic, and even had a good bit of more Niche games like Classic Battletech, and since they had an event every day for at least one of the various games, they always had a good amount of customers. The more of the general hobbyist/gamer crowd you can cater to, the better.

Culven
08-29-2009, 11:48 AM
I think that another key to a successful store is to have a set schedule of events. Maybe friday night will be for Magic, saturday is for warhammer/40K, etc. Knowing which days will have players for a specific game means that the players will know when they are most likely to find an opponent for a pick-up game. Also, a community building/painting table tends to be a big help. This provides a place where the players can sit and chat whilst building their army. Having beer available also tends to help with the casual atmosphere that makes the older players want to stay around.

Another key will be foot traffic. A location where non-players or those who are unfamiliar with the local game community will be able to stumble across the store really helps. For example, my FLGS is subleased from a movie theatre with direct access into the lobby (and more importantly, the bar). This means that everyone going in to see a movie will walk past the store. With the nearby military base, this has lead to many gamers recently transferred to the base finding it when going to a picture show. Also, the store has done some promotional events to tie in with the theatre's promotions.

jbaidacoff
08-29-2009, 12:00 PM
Good advice from CRP. Diversity is important, but don't overdo it or you'll end up stocking a lot of crap that's eating up cash.

Make sure you stay on top of trends - there's good money to be made from the parents of 12 year olds hooked on the latest craze. This will help support more serious hobby ventures that might be slow at times.

Keep the store clean and have room for gaming tables. A mall location is not ideal for that reason as rents are too high to waste space on tables. A good location is important but it doesn't have to be in a high rent area your should be a destination ship, not one that lives on walk by traffic. Access to parking and transit are helpful. The best stores I can think of, such as Sentry Box in Calgary and Phoenix Games in Kitchener, Ont. are off of the main drag in a building with character and good space for playing.

Be freindly and open to new ideas.

Good luck.

Jim B.

Gotthammer
08-29-2009, 12:51 PM
When you hire staff don't hire surly guys who stand at the counter talking to their surly friends all day. Hire people interested in the product, but who also have retail experience of some sort. I hate going into a LGS and feeling like I'm walking uninvited into a clubhouse rather than that I'm a welcome and valued customer.

Herald of Nurgle
08-29-2009, 02:13 PM
First point would be to split your 'store' into 3 areas. You have yourself as a head. Then the other two would be Business and Hobby - each represented by a member of staff. That means that you don't need to worry as much

Next is you need to remember the three Es:
- Events - you need demand, and you need to remember to stoke such demands.
- Economics - a 5% discount could mean a 10% increase in business, for example. Run the models to see the X which makes your business un profitable
- EASY! - don't do anything too hasty and don't do anything too stupid

warpcrafter
08-29-2009, 02:27 PM
When you hire staff don't hire surly guys who stand at the counter talking to their surly friends all day. Hire people interested in the product, but who also have retail experience of some sort. I hate going into a LGS and feeling like I'm walking uninvited into a clubhouse rather than that I'm a welcome and valued customer.

That is sooo right. My friends recommended a comics/gaming store to me and I went there only to find out that all of the staff were the owner's family, and they were quite open in their desire to be anywhere else. None of them knew anything about the gaming element of the store, and were poorly educated in general. I made a game of going in there when I was in a bad mood just to pester them with questions about upcoming GW releases, just to see how irritated I could get them. I never bought anything from them, but they never failed to cheer me up despite themselves.

Inquisitor Hate Machine
08-29-2009, 02:35 PM
Beyond what CRP says, I'll add this

"The only expense you can control is PAYROLL"

You'll have to suffer for a few years before you can pull 30-40+K a year from the business... Shoot for 20 for you and hourly for one or two other staff. The more staff, the more you have to pay.

Vulkan He'stan
08-29-2009, 03:00 PM
sell 'used' minis my local store does it and i always buy something from it. its cool cuz some are painted and very well i might add. and have really nice gaming tables

Exitus Acta Probat
08-29-2009, 03:19 PM
I think that another key to a successful store is to have a set schedule of events. Maybe friday night will be for Magic, saturday is for warhammer/40K, etc. Knowing which days will have players for a specific game means that the players will know when they are most likely to find an opponent for a pick-up game. Also, a community building/painting table tends to be a big help. This provides a place where the players can sit and chat whilst building their army. Having beer available also tends to help with the casual atmosphere that makes the older players want to stay around.

Another key will be foot traffic. A location where non-players or those who are unfamiliar with the local game community will be able to stumble across the store really helps. For example, my FLGS is subleased from a movie theatre with direct access into the lobby (and more importantly, the bar). This means that everyone going in to see a movie will walk past the store. With the nearby military base, this has lead to many gamers recently transferred to the base finding it when going to a picture show. Also, the store has done some promotional events to tie in with the theatre's promotions.



Those are two big ones,
everything else is covered...
but my big one is going to sound quite a bit of cynical...

TRUST NO ONE!

Someone mentioned a lawyer? Don't just have one for contract negotiation/partners...have one as a friend!
Employees/regular customers/partners/owners(if you are not owning, just runnig the show)/manager(if you are the owner)...It doesn't matter HOW much you trust someone, once it becomes your business/livelihood you will discover quickly that your moral thresholds are different than others'. What you consider varying degrees of theft/dishonesty etc will NOT jive with your customers, employees, managers etc...
Your suppliers really do see you ONLY as a number...no matter how much of a buddy they seem.
They may handle you as a friend, and if you no longer are a customer of theirs they may even maintain a friendship with you...but get behind and you ARE a number no matter what you think. They may give you consideration for time in service (so to speak), but ultimately they would give that to any 'good' customer.

you will arrest at least a few GOOD customers....people you would have considered hiring at one point.
if you are around for a bit, you will certainly fire and MAY arrest at least one (if not more) employees...
you will be dumped by a rep/supplier
you will get screwed by your city planner/engineer/fire inspector/tax collector (what have you)

Take ANY horror story you've heard, and realize it has happened to someone some where...

It is quite a bit of awesome, fun and all that jazz....but it is a TERRIBLE prospect for someone who really and truly is optimistic. It will destroy your happy AND your hobby if you are not careful.

And after all that, I would still love the economy to turn around enough for me to start fresh with a new place where I have moved.

Valkerie
08-29-2009, 07:00 PM
A friend of mine had a brilliant idea for a place that has only two things:

1.) A really nice set of tables for warhammer
2.) A bar.

A liquor license is tough to get but even the lower end ones that just allow you to sell beer would make a pretty huge difference. At almost every game club I've ever seen there are a ton of people and there's never any means to buy food other than sodas or candybars. Imagine if you went to a place that allowed you to saunter up to the barkeep during your opponents' deployment to score some nachos and a guiness? (Of course, the food at least would have to not be allowed in the gaming area).

His idea was for more of a bar with gaming tables in it, then a gaming store with a bar in it, but the principle seems like it'd generate at least enough revenue to break even.

I would have to respectfully disagree with the bar idea, mainly on liability issues. Around here, bars aren't allowed to have anyone under 21 in them. Even if the bar area is separate from the gaming area, as long as they are allowed to take beer into the gaming area, how can you be sure they aren't letting underage kids drink? And that's assuming parents let their kids go to a bar/game store in the first place. Anything that potentially reduces your customer base can't be a good thing.

Liquidice
08-29-2009, 07:38 PM
Yes, serving beer and liquor is a horrible Idea. Remember poeple act stupid when they have a little to drink.

One huge thing is SPACE don't cram everything together, everyone hates being crowded.
Make sure to have weekly contest IE: Painting/modeling contest, have a good and diverse campaign for fantasy,40k, and other games. With magic, I'd buy all the cards you can, at one of my local stores the owner buys cards at around %50 percent or lower of selling price. Another thing to do is to put some money in some display cases and showcase your store, don't have your windows covered up with posters or stickers, let the outside look in.

I also like the idea of the gaming computers, but you have to take in account space consumption (room for desk,charis, keyboard/mouse. BTW make sure to use an optical mouse, becaus ppl tend to steal mouse balls. Also make sure to lock all your cable up.

crazyredpraetorian
08-29-2009, 11:48 PM
Good advice from CRP. Diversity is important, but don't overdo it or you'll end up stocking a lot of crap that's eating up cash.

Make sure you stay on top of trends - there's good money to be made from the parents of 12 year olds hooked on the latest craze. This will help support more serious hobby ventures that might be slow at times.

Keep the store clean and have room for gaming tables. A mall location is not ideal for that reason as rents are too high to waste space on tables. A good location is important but it doesn't have to be in a high rent area your should be a destination ship, not one that lives on walk by traffic. Access to parking and transit are helpful. The best stores I can think of, such as Sentry Box in Calgary and Phoenix Games in Kitchener, Ont. are off of the main drag in a building with character and good space for playing.

Be freindly and open to new ideas.

Good luck.

Jim B.

I was located in a mall for 8 years. I did quite well in the mall. The rent was no higher than a strip mall. Once again it is about lease negotiation and lease terms. Malls charge differently for square footage than strip malls do. Strip malls charge for total square footage. Malls charge only for the retail space. I had free warehouse and gaming space because it was behind a permanent wall. Also, strip malls charge CAM or common area maintainence, malls only charge Permanent tenants(stores holding a 3-10 year lease) for CAM. Temporary (stores with a 1 year or less lease) do not get charged CAM. CAM can cause your rent to double or even triple.

The pros for temp leases are:
1. Cheaper rent
2. Less commitment
3. Ability to downsize or expand as you like.
4. Cheaper signage

Cons
1. The mall can force you to move at their discretion if a Permanent tenant wants your space.
2. You have to buy expensive signage for your entrance.
3. Higher rent that escalates if anchor stores move out.


As far as alcohol goes, I used to have adult night every Friday night after 9pm at my south store. We would hoist a few brews and play a game. At my north store, once a month, I closed at 6pm. After 6, I charged a cover charge for 18 and up. I had the event catered, supplied all sodas, and gave the customers a $10 credit. Alcohol was BYOB. It was legal. Although, there is some liability risk here in Texas. We policed it pretty well and never had a problem.

CaptainLoken
09-01-2009, 12:52 PM
Tell you friend to remember...HE IS IN BUSINESS TO MAKE MONEY!!! To this end, he will have to be a SALES PERSON!!!

I have a game store just 2 blocks from my house. I used to go there several times a week, for the last 12 years.

Now, I do not even bother. Why? Because, the satff do not like Games Workshop. So, their entire selection of GW product has fallen to nothing.

Many people. And I mean MANY people, ask about Warhammer and 40K all the time. The staff, in their general dislike of GW, say that the game is going to die, and that it is too expensive and too complicated, for new players. Instead, they turn everyone to Flames of War or War Machine.

Now, Flames of War and War Machine are cool games, but they are not the only games in town.

My point? Look at all of the SALES that the store is missing out on, simply because the store staff is not happy with Games Workshop.

They are also killing our hobby!!!

Ninthplain
09-01-2009, 01:03 PM
CRP nailed the majority of items.

You can also contact your local business bureau and ask if there have been traffic studies for the stores location. An easily accessable store has the potential for more foot traffic and spontaneous shopping.

If your store is on a more frequently travelled road you have a better chance of higher traffic.

Ninthplain

RWJP
09-01-2009, 01:04 PM
CRPs points are spot on, especially the one about cleanliness...

I've stopped visiting a couple of LGS because they are often pretty grim, expecially the toilets, which are never a pleasant experience.

If you have carpets on the floor, hoover every night (or every other depending on how many customers you get), if you have lino, or wood or whatever else, mop it down the same timings... Clean any toilet facilities every single day...

And keep the place smelling fresh... Lots of sweaty people puts customers off, and the smell can pervade for hours...

Tell your mate Good Luck... It's big undertaking starting a business.

rsheridan5
09-01-2009, 01:07 PM
Buy a few vending machines, and you can make loads of money off of caffiene and late night snacks during a long game. You can also buy ATMs if you are so inclined. One can make a good bit off of one of those, especially if you are in a good location and you put it outside.
I know that isn't game related... but if you are having a tourney some of the proceeds can go to prizes (and rent on a rough month!)
Remember, nobody works as hard as someone who works for himself!
Best of Luck...

steesefactor
09-01-2009, 01:48 PM
Customer service seems to be the biggest thing lacking at most FLGS. Don't let staff play in games while working. Don't let staff get into arguments about which army is best, etc with customers. Just some basic retail training will go a long way.

I'd advise against comics and LAN gaming. There's too much gaming goodness to give over space to comics, and unless you keep up with upgrades on the computers, they'll end up being a dusty pile in the corner because you don't have the latest games.

And creating a community is key. Have regular events, get any local gaming groups involved, anything you can do to get people coming to the store. It's a lot hard to wait and buy something online when you're at the store and can buy something right now!

crazyredpraetorian
09-01-2009, 05:07 PM
Buy a few vending machines, and you can make loads of money off of caffiene and late night snacks during a long game. You can also buy ATMs if you are so inclined. One can make a good bit off of one of those, especially if you are in a good location and you put it outside.
I know that isn't game related... but if you are having a tourney some of the proceeds can go to prizes (and rent on a rough month!)
Remember, nobody works as hard as someone who works for himself!
Best of Luck...

The problem with vending machines is they take up valuable space. I had mini refrigerators that fit under shelving and sold snacks over the counter. If you have extra space then the vending machines are a good idea. Unfortunately, most stores do not have an abundance of space.

crazyredpraetorian
09-01-2009, 05:13 PM
Customer service seems to be the biggest thing lacking at most FLGS. Don't let staff play in games while working. Don't let staff get into arguments about which army is best, etc with customers. Just some basic retail training will go a long way.

I'd advise against comics and LAN gaming. There's too much gaming goodness to give over space to comics, and unless you keep up with upgrades on the computers, they'll end up being a dusty pile in the corner because you don't have the latest games.

And creating a community is key. Have regular events, get any local gaming groups involved, anything you can do to get people coming to the store. It's a lot hard to wait and buy something online when you're at the store and can buy something right now!

To have comics or not.....some stores do great without them. However, if you are in an area that has no comic stores or has a crappy one and the store owner has the knowledge. I say go for it. Getting into comic sales requires knowledge and a decent inventory, don't halfass it or you will fail. Comics are like any other product, they need to be sold, not just rang up. If you do carry comics, use weekly tracking charts to maintain a tight inventory. Personally, I made a ton of cash selling weekly periodicals AKA comics.

TrentL
09-01-2009, 05:21 PM
Try and find a location that has a decent player base of various games, don't specialize like others have said as well.

If you do a Warhammer table or two, don't destroy 400$ of models for terrain like a local store around here did... in an area with few players....yeah he went under :*(