Opening a Game Store UPDATE! [Archive]

digitalpress

06-08-2005, 07:32 PM

MAJOR NEWS UPDATE (11/18/2005):
http://www.digitpress.com/forum/viewtopic.php?p=846424#846424

There's a vacant storefront near my home, and there are no other decent video game stores in a 10 mile radius. There IS a Blockbuster Video in this shopping center, however. The location is GREAT, and for a long time I've been scoping out this area for the perfect spot, just in case I decided to make this move.

I know others who have done this, including my good friend Sean Kelly and other friends who run or have run 'Mom and Pop" game shops (Buyatari and mikeetler for two other forum member examples). I also think I've got enough knowhow on the product to do things right. And ideas... I've got a lot of ideas.

As if the planets had come into sudden alignment... after 20 years at my job I'm truly feeling its time for a change, at almost the same time my wife has stopped working entirely (she's been doing behind the scenes Digital Press work that you'll be seeing soon enough).

I'm going to chat with the landlord tomorrow and find out the details. I've got a lot of things to plan out, but I've never been *this* close to pulling the trigger! I'm excited, and even if this first shot doesn't quite get off the ground, I can feel the change coming soon regardless.

Where am I going with this? I guess it's just a simple question, one I've asked before: if you had your own game store, what would you put in it?

Tale to be continued.

stuffedmonkey

06-08-2005, 07:38 PM

Sweet! Can I just be the first of many to wish you all the success in the world. I hope that you have an internet front end to the store as well, so that we can all get in on the goods.

MarioAllStar2600

06-08-2005, 07:41 PM

Joe, awsome! I wish you the best of luck with the store. You are doing what I one day dream to do. If theres a man who should be running a gamestore.... it's you.

I am guessing you are going to be carrying everything. From pong to current? I sure do want to see the store when it opens. If you have the space throw some arcades in there to!

Flack

06-08-2005, 07:42 PM

Congrats and best of luck!!!

Aussie2B

06-08-2005, 07:45 PM

Good luck, Joe! Sounds like a perfect job for you. :)

I don't know what ideas you have in mind, but you might want to consider renting games, selling/renting out anime, selling various kinds of merchandise, and having PCs set up for LAN parties. I've seen independent stores do all those things, and it seems to work well for them. A lot of interests seem to be common among gamers, so you can always play on that.

digitalpress

06-08-2005, 07:57 PM

You folks have already hit on a couple ideas that I consider "mission critical". A LAN center with networked PC's; a row of arcade machines; possible rentals... I've also thought about having weekend "exhibits", a kind of mini-museum where select systems/items are showcased under glass. That plus strippers. There need to be strippers.

NOTE: One or more of these ideas may not make it into the final product. 8-)

Aussie2B

06-08-2005, 08:03 PM

If you have arcade machines, be sure to get a Neo Geo in there. You'll get more bang for you buck as far as store space goes if you have a 4-slot in it. Beats having just one game per machine. :)

Lady Jaye

06-08-2005, 08:10 PM

Sounds like a great project, Joe!!!

One thing you didn't mention (dunno if you thought of it): among the stuff sold, you could sell current and back issues of DP the zine, plus Tony Fox's CDs, the DP t-shirts, etc. I'm sure that it would work, and that it would bring new members here.

Especially if the store were to called Digital Press. Heck, in terms of tie-in merchandise, you'd be ahead of the average startup mom and pop store... :D

mikeetler

06-08-2005, 08:11 PM

a row of arcade machines

Check with town and county revenue offices about these, since some places require a license (up to $50/year per machine though some towns charge by the coin slot!). I got a nasty letter from Howell twp at one point but was able to get around it by claiming they were for sale and only turned on for demo purposes.

-Mike

mgriff

06-08-2005, 08:12 PM

Make it known that you accept trade-ins for classic systems as no national chains accept pre-ps1/n64 games

digitalpress

06-08-2005, 08:15 PM

Wavelflack

06-08-2005, 08:15 PM

You need a snack bar. The decor should be taken straight from 1982.

Make it look like "Flynn's", or the place in "Joy Sticks".

The giant joysticks game would be cool too.

I know, it's not going to be an arcade. Still..

tholly

06-08-2005, 08:17 PM

Good luck if you do start up a store. You def. have the knowledge about games needed for something like this. A lot of good ideas were already thrown out there for you, so, I can't think of anymore now....my main thing I would like to see is trade ins on old games.....and since I'm only in PA, I should be able to make the trek to your store to check it out when it opens up......

....hmmm....a brick and mortal Digital Press.....very interesting stuff

kirin jensen

06-08-2005, 08:19 PM

That plus strippers. There need to be strippers.

NOTE: One or more of these ideas may not make it into the final product. 8-)

I don't know why this makes me laugh, but it does. ROFL

It sounds like you have a concrete idea of what you want to do.

My only suggestion? Pinball. Lots and lots of pinball.

And best of luck to you. :)

Wavelflack

06-08-2005, 08:23 PM

Real question: What happens when kids come in and point at the DP guide? You can't buy and sell for the same price, and a reasonable person knows that. But when a kid brings in Legend of Zelda, and you offer him $5, he points out that the guide says $10. And when you sell it for $10 but the guide says $5, the next guy in line bitches about it.

Normally, you can blow off other people's prices. I did this when I sold cars. "KELLY BLUE BOOK SAYS...(etc.)", to which I would reply "I buy cars at the Dallas Auto Auction, which does not price cars by Blue Book. When KBB starts selling cars to ME, then I will offer cars at precisely those prices."

The issue is that YOU are now the authority. You can't shunt it off to another party, or whatever.

I don't see this is a major problem, just something to maybe work up a contingency for.

-hellvin-

06-08-2005, 08:29 PM

Awesome man, I hope everything turns out well for you. If this idea pans all the way through I'd love to come visit some day ;D.

dan2357

06-08-2005, 08:33 PM

I hope this works out for you also.
I would love to open a store myself, but I am only able to buy things, and never part with them. Heck I have never even offered anything for sale on these boards before.
old trade in are a must, If not for the amount of turn over cash just think you could start destroying games just to make the ones in your personal collection more rare. LOL
Please if it do come to be, DO NOT throw all your lose carts in a bin like they used to at EB (etc.) It used to make me cry when I would see little kids throwing them all around to find what there looking for.
Snack bar seems cool but food and drinks usually don't mix well with electronic equiptment, and you would have to deal with public health board and such.
Best of luck to ya.

tylerwillis

06-08-2005, 08:48 PM

Similar to the PC LAN and arcades, do be sure to have a TV hooked up with a multi-player game and change it frequently.

Hope this comes to pass for you, I'm thinking of doing the same myself.

drummy

06-08-2005, 08:48 PM

Good luck Joe! I want to start my own "Mom N' Pop" game store one day.

nesgamer

06-08-2005, 08:54 PM

cityside75

06-08-2005, 08:55 PM

I have a secret dream to do this as well. I just started my own business in the GIS/Mapping field, but I'd trade it all for a successful video game store.

I've seen a lot of Mom & Pop game stores come and go around here (Chicagoland), but no one seems to have been able to crack the nut, they always end up going under. I always root for them and try to bring some of my business to them even if I have to pass 3 Funcoland/Gamestop's to get there, and I'll usually ask the owner/manager some questions.

One thing that seems to be a decent moneymaker is console repair. I don't know how good you are with that, or if you know someone that is good at it, but it seemed to be a good way to get people in the door with a couple of the places around here, especially since the newer systems break down so much.

If you could offer reasonably priced repair on older systems (blinking NES's), as well as newer consoles you might at least have a corner on a part of the market that the big guys don't touch. Even if it isn't super profitable, it could help raise awareness about your store.

I'm torn on kiosks for demoing games. While it seems like a great way to drive traffic, they always seem to attract tons of kids that are abusive to the controllers, have no intention of buying the games, and don't want to play for just a minute and move on. One place around here used to allow you to use any system and game for a couple of bucks for 15 minutes. I thought that seemed cool, but the store didn't last too long, so I'm not sure if it worked well or not.

One way I can always tell when a store is in the "death spiral" is when the merchandise starts to stagnate. It seems like that starts to happen when the owner doesn't keep the pricing up to date. I know it must be time-consuming but especially with newer games, the pricing has to be updated frequently. Just before it finally closed, one of my favorite stores still had a ton of older PSX games with yellowed price tags, many still at $15-25. I'm sure a lot of people saw that and didn't bother to even look around much more. The most successful used game store around me is a used CD store called Disc Replay. It's not unusual to go in there and find a PS2 or Xbox game with 4 price tags on top of one another, but they keep up with market pricing and always seem to move a lot of merchandise.

On the business side of things, make sure you have all your ducks in a row before you jump in, I would highly recommend writing a business plan. I would also recommend setting up an LLC (Limited Liability Company) if you think you will do this at some point. It offers you a ton of protection on your personal assets by keeping personal and business assets completely separate. Also, make sure that you know who's going to balance the books, deal with taxes, payroll, etc. All of that stuff can be incredibly complicated and time-consuming, especially in the beginning.

I hope that you are able to make this work - I'll be rooting for you! I'm going through the whole new business thing right now, so feel free to e-mail me if you have any questions.

Arcade Antics

06-08-2005, 09:01 PM

You need a snack bar. The decor should be taken straight from 1982.

Make it look like "Flynn's", or the place in "Joy Sticks".

The giant joysticks game would be cool too.
Chalk up another vote for this idea -- though I'm definitely partial to the arcade from the Greydon Clark disaster-yet-entertaining-on-some-sick-level Joy Sticks.

Sticking with the movies (and TV) theme - maybe a Lucy skit thing where the store is divided down the middle with classic on one side (complete with TVs and/or music from only that era - Starcade episodes, Saturday Supercade, Joy Sticks, whatever) and more contemporary on the other (TVs here could actually show current stuff, movies, shows, etc.)

mieu_c

06-08-2005, 09:40 PM

If there is one guy that can do this.. it's you!

I say make the place like it's "THE" place to be in town. A gamers haven. A cool little bar in the corner... so you can get your chips and BEER!! With a couple of couches and chairs set up for game play. Did I mention BEER? Any place that has games and BEER is my kinda place.

Me and Lucavi talked about opening a place like that here in New O'. More or less a bar with a ton of old games in a chilled back atmosphere.

Whatever it is you do... I'm sure it will be great!

Hey...I still owe you a beer....

speaking of beer........... :-P

GULP GULP GULP :cheers:

Ed Oscuro

06-08-2005, 09:53 PM

The official DP Store? I'd be sure to visit! That's a great idea.

I'm with the folks saying there should be some space for people to hang out - to a little extent. Maybe a few arcade cabinets somewhere, you've gotta figure it out so you don't just have the customary ratty plywood shelves from wall to wall, plus that should help keep money coming in the door, rather than letting it walk out the door.

I'll only condone the beer if you give some of the better brands a chance LOL

Keranu

06-08-2005, 09:55 PM

One question: Will this be near the Chicago area at all or even in or near Illinois? :P

I am a about an hour away from Sean Kelly's "Video Games Etc." store and I try to go there once a month. It's truely an awesome store and it gets better each time I go there (been there three times now).

Lothars

06-08-2005, 10:08 PM

I have to say good luck and if anyone can do it it's you, I have tons of faith also have to say that I would love to come and visit the store if it does come to frutation.

well anyway just had to say good luck

kainemaxwell

06-08-2005, 10:12 PM

Good luck in this venture Joe!

FantasiaWHT

06-08-2005, 10:15 PM

Just one question....

Are you selling franchises?

I know the perfect location for a video game store but I don't have the tiniest idea where to begin.

Like where the hell do you get your video games (the new ones at least) from?

tholly

06-08-2005, 10:30 PM

Sniderman

06-08-2005, 10:32 PM

One question: Will this be near the Chicago area at all or even in or near Illinois? :PErrr...Joe's in New Jersey...

(Sean's store) is an awesome store and it gets better each time I go there (been there three times now). Indeed. I made a pilgramage there from Ohio one day. Well worth the roadtrip, and a roadtrip I plan to re-enact this year.

gepeto

06-08-2005, 10:49 PM

I pulled the trigger.

I was at a good steady paying job 4 yrs ago when I felt change was a coming. I was nervous I felt I needed more. Yet I was blinded by the lure of the steady paycheck vacation etc.

I was listening to the radio while I was getting ready for work and a minister was on and he had said People always have a hard time trying to figure out what they want to do or be in life. Waste years being in situations they are not happy in. It is not as hard as people make it. It is very simple to figure out. Whatever you enjoy doing so much that you would do for free that is your calling. You will be the most happiest and find the most fullfillment. work toward your calling.

I took that advice and left my good job of 10 years. To enter the field I was meant to be in. I opened my own company and I have never looked backed. In the end It was the best decision I have ever made. Total freedom. Had I stayed I at my old job I would have been doing the routine cycle.

The funny thing is When I told people I was leaving they thought I was crazy they said don't do it. Mainly life has force most people to think in the bubble afraid of change. Now when I go visit my old job. People tell me I did the best thing. Now they wish they could leave. Some (alot) of people will want you to fail even those that pat you on the back. The way I see it if you are in your calling and it fails it won't be because the effort wasn't truly there. I truly truly love what I do.

You have been involved with games for who knows how long. Got industry contacts, dp, and friends and more. I say go for it fill up that faith meter and full steam ahead good luck.

towerofsong

06-08-2005, 11:28 PM

Great idea and good luck with it. If anyone could run a succesful game store it's probably you. And when it opens I think i'd come to America just to see it :D
All the best, make sure offer something everyone else doesn't and keep your pricing up to date. There is a shop in Liverpool called TNT Games, it's so damn expensive its untrue, their prices hardly ever change, and well the place is always empty...I wonder why.

Lemmy Kilmister

06-08-2005, 11:43 PM

Are you going to do any sort of mail order or internet based orders also? Or were you mostly just looking to open a mom and pop's business?

squidblatt

06-08-2005, 11:50 PM

I thought you already had a game store. And for some reason I thought it was in Detroit. Don't know why.

I'd like to see more sideline items in stores. The tackier, the better. Also, I wish stores carried more books about the industry. I have a feeling that they wouldn't be big sellers, but a little selection of game related literature would be nice.

You might want to host events, too. Actively supporting the local community may turn out to be the heart of what I hope becomes your great success.

And don't forget about the neon.

Arcade Antics

06-09-2005, 12:05 AM

Real question: What happens when kids come in and point at the DP guide?
Excellent point.

I think that it would be easy enough to work with though. The Guide has Collector prices, and in any event, a deal could be handled in the same way as any other store with a similar business model.

F'rinstance, a shop that buys and sells and trades books or dvds and the like. If the cover price of a book is $40, they might give a customer $10 in cash and sell it for $20. The customers usually know that going in, or at the very least, before they make a deal. Even though they know their book will sell for twice what they're getting for it, they understand that the store is a business and needs to make a couple of bucks.

So if the Guide has a game at $20, it could be purchased for $10 and sold for $30 or whatever math makes sense. (I'm just using random round numbers here. :) )

Mr Mort

06-09-2005, 12:33 AM

Best of luck with the venture, should you choose to go with it.

I do have a couple of ideas:

-Monthly/weekly/bi-weekly tournaments:
Halo, Street Fighter, Tekken, Madden, Puzzle games, Racing games, any competitive gaming series that has a well-established fanbase.
Give the first and second place winners a pre-determined amount of STORE CREDIT instead of a game, that way they might opt to buy something more expensive and just pay the difference.
It's a great way to get people in the door and get your name out in the local gaming community

-Sell or Rent anime: You can make decent money renting out anime, as your investments on each DVD would pay for themselves after 10 rentals or so (depending on how you price it). Also, the majority of anime watching folk (aka "otakus") also are into gaming.

Best of luck again, keep us posted. :D

98PaceCar

06-09-2005, 12:37 AM

RetroYoungen

06-09-2005, 01:05 AM

Best of luck (though I know you don't need it, I'll send some your way anyway) if you decide to go through with this idea of yours. Like everybody else has said, if anyone has the game know-how to do it, it's you my friend.

Who knows, it might even get some of us West Coast gamers over there... you know, to make you sure you don't mess anything up or anything... ;)

TEND

06-09-2005, 01:13 AM

If you were to do this, I would come down from Winnipeg!
Good luck, and keep us updated!

Promophile

06-09-2005, 01:24 AM

best of luck man. I would love to open a gamestore or work in the industry, but I don't have the balls to take the plunge and enter such a crowded field.

Gzilla23

06-09-2005, 01:30 AM

You should definately do some internet sales. I would buy from you just cause I know the pricing would be fair and the merch would be quality. I'm sure a lot of DP people would do the same and that could help you in the beggining stages of getting the store up and running. Cash flow is always a good thing. Good luck and keep us all posted

Fuyukaze

06-09-2005, 01:47 AM

I want to say you will do perfect. I want to say you have all the knoledge needed to survive the initial strugles of gaining a solid customer base. These are things I want to say. I want to say these things but find it hard to. I think you have a better shot at it then most people do though as I believe you know enough about the market to know what will move, what wont, and what will simply be stared at. Good luck. If you do pull the trigger, I hope the best. Also, I hope you get a web page up and running as well.

Ed Oscuro

06-09-2005, 02:46 AM

If you have arcade machines, be sure to get a Neo Geo in there. You'll get more bang for you buck as far as store space goes if you have a 4-slot in it. Beats having just one game per machine. :)
Or a CPS-2...*cough*

Anyhow, here's the contingency plan for the Guide users: Set up a topic on DP and ask us to price it in absentia LOL

Uh, so maybe that wouldn't work so well. Hmm, just set up a system where you give trade-ins and mark-downs. I think a good place to take a look would be at the Neo-Geo.com site, find that ratio and go from there...though you'd want to adjust your ratio for certain titles. If it's an R1, you'd want your buy and sell price farther apart than for rarer titles, I'm guessing.

dojosky

06-09-2005, 02:57 AM

Yes I'd say Do It !!!!! :D that has been one of my long time Dreams to do this here in California myself it's been several years maybe 10+ since I always wanted to do this so badly myself... a few years ago I almost opened one up but decided to wait but nowadays I've been thinking of doing the same thing so I say DO IT !! you will succeed and do Fine :D hope your dreams and goals comes TRUE ! that'd be very COOL !!! 8-) keep us posted on your new store and bet you would call it digital press video games !!! unless I am dead wrong LOL ...but just do it follow your heart and mind !!

lendelin

06-09-2005, 03:14 AM

Great news. It is exciting to try something new. I'm sure it will work out because of your insider knowledge about games and what retro-gamers want.

What you need is probably more hands-on practical advice what goes in a store and doesn't and how to run it.

One very general rule: diversify as much as possible, and try to avoid getting labeled.

A book section would be indeed great, and I think also profitable!

digitalpress

06-09-2005, 07:04 AM

Wow, you people are great. Thanks so much for the support and advice! I'm sure that if time permits I'd operate product sales via the web as well but that will depend on resources, and from what I've seen from others doing this it may take some time before those resources are available. A "brick and mortar" DP is more what I'm shooting for.

Game on, brothers and sisters.

Sylentwulf

06-09-2005, 08:33 AM

Theres a GREAT shopping center about 15 minutes from me, not a videogame store of ANY kind otehr than wal-mart for THIRTY-FIVE MILES. I've considered it many many times considering I already have a full store worth of stock available to me.

The problem?

Simple, I don't want to work that much. Realsitically for at least the first few years, you're talking 60-80 hours per week EASY. Plus the fact the you HAVE to hire some other people, and trust THEM not to steal or screw things up. I have big problems with both of those things. With 5 years of retail work, and 4-5 years of owning my own online business, I know just how thieving people can be, and can't imagine hiring some misc. person to entrust my entire store to.

And working 60-80 hours per week with the risk of not making any money/losing money/going out of business just doesn't appeal enough to me. Wish I wasn't so lazy though, because the location is BEGGING for a store...

digitalpress

06-09-2005, 08:48 AM

Simple, I don't want to work that much. Realsitically for at least the first few years, you're talking 60-80 hours per week EASY.

I'm well aware of that. Sean still puts in 60 hour weeks and his store is established. I'm really ALL FOR THAT. I enjoy working, and would feel much more productive in a field that I enjoy as well.

Plus the fact the you HAVE to hire some other people, and trust THEM not to steal or screw things up. I have big problems with both of those things. With 5 years of retail work, and 4-5 years of owning my own online business, I know just how thieving people can be, and can't imagine hiring some misc. person to entrust my entire store to.

I hear that! The good news is that a) my wife is an automatic full-time employee and b) I have lots of trusted friends in my area.

Thanks for the input. I'd much rather hear about the various pitfalls and be prepared than to walk into a disastrous situation. As I've said, I have some close friends who have been through this and am getting some valuable guidance and tactics.

Flack

06-09-2005, 09:18 AM

anagrama

06-09-2005, 09:27 AM

Wow, fantastic! :) All those recent references to 'giving up the day job' make sense now ;)
Is the store likely to be called Digital Press then? Or have you got someting else planned?

digitalpress

06-09-2005, 09:30 AM

Wow, fantastic! :) All those recent references to 'giving up the day job' make sense now ;)
Is the store likely to be called Digital Press then? Or have you got someting else planned?

I'm pretty sure "Digital Press" would be in there somewhere, unless I can't come up with something that makes sense with that in the title.

The-Bavis

06-09-2005, 09:46 AM

Sounds like a great idea! Although I have not taken a risk as big as this concerning a job, I did leave a job I was pretty happy with to move to a field I was more interested in. Turns out, I didn't like it so much and have pretty much moved back to my old job which I now have a big appreciation for. I have no regrets about taking the chance, though. I'm glad I tried it and now I know. If your store doesn't make it, you will know you tried and did all you could. If anyone can make it, I'm sure it's you.

As far as suggestions go, I like the arcade and LAN ideas. I don't like the snack bar because food has a horrible profit margin and you have lots more regulations and just plain mess to deal with. If you think food is a good idea, when you have big events, just have a caterer/hot dog trailer come to the event and give you a cut of the profits. I really like the half-store new stuff, half-store old stuff idea.

Also, I agree with whoever said not to tack up plywood shelves and stuff. You'll have to pony up the dough and make the place snazzy and nice to make people feel like they are at a real business and not the pawn shop.

Last comment - when you open, you really need to play up your industry knowledge and respect. Respect amongst the collectors, that is. Make it known that your publication is THE source for the video game collector and that you are the person to be trusted. When you open, call all the local papers and local interest magazines. If you tell them your story, it's sure to intrigue the human interest article writer at a few of them to give you free advertising in the form or an article. That's how most of those articles start, with a phone call from someone involved. It's not a time to be sheepish since it's your cash and dream on the line!

GrandAmChandler

06-09-2005, 09:47 AM

There should be an opening event where only DP members are invited before the store opens! Like on a Friday night or Saturday or something. It would be awesome.

kevincure

06-09-2005, 09:51 AM

Good luck Joe!

I know one local gameshop that has been making money since it opened with a few simple ideas. One: they won't take scratched discs as trade-in (which leaves them with much less bad inventory). Two: they have 42" HDTV's (4) LAN'ed which you can play for a few bucks an hour. Any game in their used inventory can be played. They make more from this than they make from their game sales. Why? Comfortable couches, snack food, and TVs better than what most people have at home.

If I have any other advise, it's to know your business. That's much more important than knowing videogames. Liking videogames has never made anyone a dime. Knowing how to secure good, honest distributors, how to price correctly, how to manage inventory and security (and taxes), that's how to make money.

Good luck!

s1lence

06-09-2005, 10:10 AM

The pitfall my parents ran in to was Wal-Mart. Their computer store (Yukon Software) was open for one year and specialized in C64, Apple, and IBM software. They also sold things like blank disks and a little bit of hardware.

Their store opening in the summer of 1985 and was open for one year. They only made a profit one month, and that was the month they managed to sell two computer systems. They took a loss the other 11 months, mainly because the only thing they focused on was new software, which had an average mark up of $3-$5 bucks per title.

The last few months their store was open, Wal-Mart began selling software for cheaper than my parents could buy it. I remember specifically one of the Bard's Tale games. My parents could buy it through their sources for $35 and sell it for $40 and Wal-Mart had it for $29.95. So my parents did what anyone else would do, they bought stuff from Wal-Mart and then marked it up a little, but that's a pretty doomed business plan when your store is 5 minutes from said Wal-Mart.

I don't know what rent is up that way, but it will take a lot of Atari carts to pay rent. Make sure you have something with a bigger profit margin, like consoles and stuff. Also, charging for LAN games, that's straight profit and a great idea.

Wal-Mart is evil!!! I've heard of them doing that to many smaller local businesses. A friend of mine had a business is a smaller minnesota town and had a visit from a wal-mart rep. The guy actually was told that do not attempt to underprice wal-mart because we will guarantee that our prices will be lower, even if it means you are put out of business. A local store can be a great niche business an idea I have had as well, I just need to find a good supplier which seems to be my roadblock. Joe you have some of the most valuable video game knowledge around so I know you can make it fly. Make sure you have a good amount of capital in order to keep it open even if it is a losing business for a couple years, it takes most companies awhile to get out of the red, ie Amazon.com. I hope I can follow suit and open my own soon as well. Its a volatile market so the best of luck and efforts to you. :)

Flack

06-09-2005, 10:26 AM

Wal-Mart isn't inherently evil, but if you go head to head with them you will lose. If there's one nearby, you will need to make sure your business model is different than theirs. If you are both, say, trying to sell new games for the cheapest price, then yes you will lose. But if you are buying/selling used games, classic systems, arcade games, and having LAN play, etc, then you shouldn't have any problems (and might even benefit from their traffic!).

Hey DP, someone said you were teaming up with Anthony1 and his Xbox lan center, is that the case?

Promophile

06-09-2005, 10:39 AM

Used games are where the biggest profit margins are. There's a reason every gamestop/EBgames commerical you hear is about trading games in. I'm suprised walmart doesn't take used games.

FantasiaWHT

06-09-2005, 10:42 AM

Go the video game title way with your store...

"Digital Press Presents: The Store!"

hehe

or maybe "DP: Brick and Mortar". "DP: Cart and Cartridge"?

Or really confuse people with "DP Games"

*old, slightly deaf man walks in "Is this EB Games"? "No sir, this is DP Games" "That's what I said!"*

And yeah, Walmart isn't evil, they're just extremely good at giving the customer what they want- the lowest prices- by any means.

Also things have changed now- there's all sorts of industry self-regulation on the prices of brand new games. Basically everyone has to sell the games at the same price (with the exception of special sales, not exactly sure how that works) to avoid places like Walmart and Target using games as loss-leaders like they do for DVDs.

But regardless, staying away from competing with them or any similar stores on the same level is an exercise in futility. Take a different route.

And I still haven't heard word on franchises ;)

s1lence

06-09-2005, 10:47 AM

Ok, so evil may be a bit extreme, they do run a business very well. I just don't like the tactics that they use to do it. For sure used is where the money is at, much greater profit margins are avalible there, as long as you have a good supplier/supply.

WanganRunner

06-09-2005, 10:50 AM

Used Games are indeed the biggest money-maker.

Honestly, the best use of your storefront is as a place to BUY games. Take trade-ins, and unlike EB and Gamestop, take trade-ins on EVERYTHING, EVERY system, every accessory, etc..., and pay fairly well for them. Then don't sell a damned single bit of it in your store....sell it ALL on ebay (bigger customer range = more $$$). Keep enough new stuff on shelves to keep people coming in the door, offer a HUGE store credit vs cash incentive so they'll come in, trade loads, and walk off with 1 or 2 shiny new games. Advertise everywhere about how you take trade-ins, become THE local place for everyone to sell their games.

Buy Wholesale lots of games on ebay. Those lots are priced so that if resold on ebay, they'd bring only a tiny margin, but at higher brich-and-mortar prices (no built-in shipping expense = higher prices) you can make a ton of cash selling them. Same for wholesale lots of generic peripherals, USB gamepads are a good bet.

Mod and Repair systems. You can charge an arm and a leg for this and it'll still be less than Sony or Nintendo charges because of the shipping expenses. You'll be offering the customers a deal, but still making a killing.

I'm sure your collection is enormous, so display a bunch of it in the store. It'll motivate people to buy more stuff.

As a store, you'll get E3 tickets. Give them to customers, but not at random. Do a promotion like "whoever spends the most here in April gets to go to E3 in May with one of our tickets", etc...

Try to get your own refurbished hardware biz going. EB/Gamestop make a ton off this. If people consider your refurbushed hardware to be as good as new, they'll buy that instead, and you'll make a better a margin than you would off a piece of new hardware.

Damn, I want to run a game store.

jgenotte

06-09-2005, 11:00 AM

Great idea. One question:

Are you going to use your own collection to start? If not where is the product going to come from?

I really think you should have games/items from as many systems as you can. For me, this is what makes a game store good. This alone will not be enough, though.

For example:
There is an AWESOME game store two blocks from my house. They have top loaders, sega CDXs, rare games of all sorts, but they are way overpriced, so I never go there. It is a real shame to have such a wonderful inventory, but to have it worthless to me.

My fav store in town is called "Cool Stuff." They sell music, movies, and games. They are fair, honnest, and knowledgeable. They price their games at 75% of DP listing, which I think is fair.

All in all, I think you will do great as long as you dont get greedy, stingy, or rude.

Good luck,
-james

digitalpress

06-09-2005, 11:03 AM

AtariBuff

06-09-2005, 11:14 AM

Joe, I wish you all the best :)

The next time being in the States I promise to visit the "Digital Press Realtime" store :D :D :D

ubersaurus

06-09-2005, 11:28 AM

Just one question....

Are you selling franchises?

I know the perfect location for a video game store but I don't have the tiniest idea where to begin.

I didn't answer this question before because I didn't understand the question. I still don't... can you elaborate?

He wants to know if you're planning on starting a chain with this as a base.

I wouldn't expect enough financial strength to go chain for some years.

Unlike others, I'd be wary of making it TOO arcadey. Arcades aren't all that profitable-having the machines can bring in extra cash (I'm seeing DDR in there somewhere if you can handle the sound), but I wouldn't make them the focus. You are, after all, still selling things.

Accepting tradeins on older games could be a good advantage, as major chains will not do that for anything older than NES, or PS1. When I was in Japan, I noticed the game stores accepted pretty much everything, and had massive numbers of older Famicom games. Naturally I don't know if you'd get that kind of stock, but how they displayed it was excellent-most of the stores I went to had them in little baggies clipped to hooks on the wall, deep about 3 or 4 carts. To keep them from getting stolen, they all had little plastic wires that the employees had to clip off to get them down. The REALLY rare and pricey stuff was kept in a glass case.

I like the idea of having an area set up for people to rent and play games.

Sylentwulf

06-09-2005, 12:43 PM

In the arcade cab department, I wouldn't even THINK about trying to charge for playing. Put a few in there for free play, and either mechanically insert a timer, or just put a clock above it where you can see it. You're NOT going to make any money off of any cabs in your store, but it's a good way to bring business in who would then buy games while they're there.

Having my wife help would also be the only way I would do it Joe, but she works for the state mental health hospital, and they're paying for almost 100% of nursing school atm, so I would at least have to wait until she finishes school ;) And I have no friends offline, so there goes that thought.

My only other problem was getting set up with suppliers by nintendo, sony, microsoft, and ass. publishers/game distributors, but I'm sur eyou have a few connections you can get those set up quicker than I could ;)

chadtower

06-09-2005, 01:22 PM

In the arcade cab department, I wouldn't even THINK about trying to charge for playing. Put a few in there for free play, and either mechanically insert a timer, or just put a clock above it where you can see it. You're NOT going to make any money off of any cabs in your store, but it's a good way to bring business in who would then buy games while they're there.

As someone involved in a local arcade, I can say the opposite is likely. What will happen is he'll end up with a crowd of 12 year olds in, all coming because they can play without paying and have no money. They won't buy any games and they will shoplift. Parents will drop kids off and use the place as a free babysitter. The point of most cabs in a store now isn't really to make money so much as it is to bring in people who have some. The cabs I would stock are the classics you don't see elsewhere but have name recognition. Get a Star Wars. Bemani games bring in a very loyal (and spendy) crowd, but take up space, cost a lot, and are very loud. I would definitely say that a DDR machine, if you wanted to drop that, would bring in not only your target crowed but the portion of that crowd that has disposable income.

Promophile

06-09-2005, 01:59 PM

Exactly Chad, You have to balance "fun" with profitability and customer base.

chadtower

06-09-2005, 02:08 PM

EDIT: erf. Forum problem.

ClubNinja

06-09-2005, 03:24 PM

Parents will drop kids off and use the place as a free babysitter.

Exactly what I was thinking.

An idea from the local arcade Chad mentioned that I think is very nice involves a single charge for unlimited play. Leave the machines in the store on free play, but charge five, ten, or twenty bucks up front for the day's use. Of course, you're designing a store and we're focusing on the side attraction here.

Ed Oscuro

06-09-2005, 03:27 PM

Hmm...what have you in the way of large display lights, Joe? A few might be nice, but those suckers are big enough that they'd quickly overwhelm a small store. What sort of dimensions are you looking at?

Mayhem

06-09-2005, 03:34 PM

Hmmm how did I miss this thread earlier?

Good luck with any venture you decide to go ahead with Joe. A friend of mine here in the UK is looking to establish and start a game store as well, maybe even a chain of them nationwide if things go well enough.

If you're interested, I could see if he's up for having a chat with you. Exchange ideas and the so forth. He's a businessman first (and like you, has books available to buy on Amazon!) but a gamesplayer a very close second, so we're really gunning for him that he can pull it off.

goatdan

06-09-2005, 03:49 PM

A few things...

First, you need to start with a ton of inventory. If you don't, when you open and people first see your store, it will seem empty. Since the first impression is very important, a really well stocked shelf at the beginning will make people want to return in the future to see things again and again.

Secondly - and this may sound crazy - but ignore the DP prices. You'll be dealing with the general public more than game collectors, so having a game like the first Zelda listed for $3.00 in your store will mean you'll never, ever have it in stock because people are still willing to pay $8-15.00 for their own copy.

Thirdly, don't focus on older stuff as much as you do newer stuff. Balance is key. Online, having a store (like the GOAT Store) stocked with a million old items is a benefit because people can get so much at once. But in real life, they probably will only buy one or two things, and most of them will have a modern system while only certain numbers will have older systems. Besides that, you can make more money off the newer systems than you can the older systems.

Fourthly, don't have arcade / pinball games unless you intend on selling them. You won't make much money from them, most communities have insane rules about running them (for instance, the rules in the city of Milwaukee are insane, but are completely different in the surrounding cities in the county). If you aren't selling them, having them as "not a main attraction" (in other words, the arcade being the main part of the store) means that people won't be stopping in to play them, and if they are on freeplay you'll just end up with them getting damaged and you having to pay for them. Selling them is another story altogether, and I know of a few places around town that do that, but I wouldn't suggest bothering with that unless you're really ambitious. That type of inventory takes up a TON of space, and if you're not turning it over quickly you can use that space for things that actually make money.

Fifthly, if you're planning on involving the Web, that adds a million and five layers of complexity. You have to track both inventories in realtime and make sure that the games are removed at the very instant they are sold so that people in the store don't try buying something that has already been sold online.

Sixthly, accepting credit cards totally sucks. But you'll have to do it. PM me for more details.

There is some more stuff too. If you're interested in hearing it, like I said above PM me. Gary and I have sort of had the goal of having a brick and mortar GOAT Store for years now, and even though the GOAT Store doesn't perform badly, we don't feel that it is a good enough vehicle to make enough money to pay for rent with. We do have another plan that has been kicking around that we may or may not be doing that is pretty much unrelated to gaming because of it.

chadtower

06-09-2005, 04:01 PM

An idea from the local arcade Chad mentioned that I think is very nice involves a single charge for unlimited play. Leave the machines in the store on free play, but charge five, ten, or twenty bucks up front for the day's use. Of course, you're designing a store and we're focusing on the side attraction here.

That leaves him with the problem of policing who plays. At TGA, it's fairly simple, since there is nothing else there. If you haven't paid, and you play, you're out. Plus it's a very intimate place, if you've been there a single time they know you. If Joe tried a flat rate model with cabs, he'd have to watch the kids playing while also running his store. Another problem is that I don't know many people who would pay $5 for unlimited play on a small number of regular cabs. I'm not even sure I would want people in my store for the length of time it would take for them to get $5 worth out of a .50 or .25 game.