Opening a Game Store

[MarioMania]

I been thinking about how people open a store

How do 1 go to get game to sell, ie 360, PS3, PS2 & the DS
How about Retro Games like on Nintendo, Sega, Sony, Microsoft & NEC
How much Profit do you need to stay in Business
If there's a Gamestop in the same city, how do you stay in the game with the big boys
How about for Crime
How many people to hire??

Thanks for the Info guys

If I missed anything, just add it in

[ScourDX]

Best way to keep your overhead low and maximize profit is to setup a website.

[Icarus Moonsight]

For a physical location? Without a franchise, going it solo... You'd have to be somewhat liquid (no less than $10,000 cash, I'd be more comfortable moving with more though), have some sort of business credit line or know some interested investors. The franchise option (like PnT) is easier, I'd think, to get up and started. But you have less options and freedom of venture because you're under brand contract. I hear they offer training, education and seminar type stuff for the 'breaking-in'. I don't know how I feel about PnT and franchising as a whole in game stores... I've seen and heard about closures, that would be my number 1 concern before I would commit to anything.

Regarding new stock, forget about it. Unless you are very well funded, and have good distributer contacts as you're coming out the door. At least until you're better established. You're not going to be able to compete with chain retail and GS in that sphere. You're a little guy, you need to be wary of loss. That's a pit you can easily side-step from day 1.

The gap in the market is the older stuff. That has two edges. You have locked in clients with this product (since they have few options to start with), but anyone not interested in anything other than here and now is not going to find value with you. To help address that, you can swing last gen easily enough, and also take in used current stuff.

All that said, you're eaither going to need a decent amount of starting stock or make some contacts within the big retro game dealers. Buying in bulk nets discounts after all. You really don't want to enter into an order contract if you can help it. But, if you are lacking in start stock, a min periodic order contract might be needed.

Labor/hiring mostly depends on your perticulars. If you can afford it, get what you need. Of course, you might have to man it alone, or with partners, family and/or friends for a while.

There's a lot going on starting something like this... That's just what I've thought about. I'm sure there are aspects that I haven't even considered yet.

[betamax001]

If there's a Gamestop in the same city, how do you stay in the game with the big boys

If you have at least ANY games older than PS2, you will stay in the game even with GameStop.

[Nightram]

I'm considering this too in a few years, and that's some good advice Icarus. I worry about a couple of things:
1. Gamestops do draw in a lot of business, so you'll either have to work out a deal with them to send customers your way that are looking for retro stuff, or go up against them with pricing.
2. In a few years, is DLC really going to kill a physical store's bottom line?

[Icarus Moonsight]

I like the co-opetitive approach myself. If you're not into current new stock, you can send business back and forth. Gamestops can send you a bugger full too. I'm sure most in Management roles would be more than happy to do so as well. In North Carolina, I found out about a small indy retro shop from a flyer on the counter at Gamestop... They guy working even drew me a map.

[portnoyd]

How do 1 go to get game to sell, ie 360, PS3, PS2 & the DS
- There are independent distributors which can help you out. You also get the advantage of breaking street dates because no one gives a shit if you do. However, you will want to keep new game stock down because games that don't sell attack your bottom line. When you get a customer base, you'll want just enough new titles to satisfy them and feel no pain if you don't have something and they go to GS. Eventually, you will want to move away entirely from new stuff. If you really want the advantage on new titles, sell them at cost. Yes, you lose profit which dampens the blow of other new titles not sold, but you shouldn't have much of that to begin with.

How about Retro Games like on Nintendo, Sega, Sony, Microsoft & NEC
- You'll need to build stock prior to opening the store - just get the shelves full. From there, your customers will bring the games to you as trade-ins.

How much Profit do you need to stay in Business
- Entirely too vague of a question. What's your rent? How much do you need to keep yourself afloat? This is math you need to do on your end. Anyway, you will make your money from used games. Buy low, sell high. Buy a stack of NES games for $10, sell 2 of them at $5 each and the rest are gravy.

If there's a Gamestop in the same city, how do you stay in the game with the big boys
- Gamestops will be your friend. Get in good with the closest ones so anyone walking through the door with PS2 or older comes to you when the GS employees mention your store.

How about for Crime
- Don't keep any discs/portable carts on the sales floor, new or used. Shrinkwrap any boxed games. Put any pricey loose carts behind glass. (Drexel has this down pat)

How many people to hire??
- When starting out, expect to be there 24/7. Hire a few people soon after and get a feel for them. Once you trust them, then you can take a day off. Keep your staff number low.

[darkslime]

I would recommend not even trying. Open an online store. Less risk, overhead cost, and you don't need new games with almost no profit just to get people in the stoere.

[StoneAgeGamer]

I would recommend not even trying. Open an online store. Less risk, overhead cost, and you don't need new games with almost no profit just to get people in the stoere.

If you do not want to assume a lot of risk this is the way to go. If your online store gets to the point where you could justify opening a brick and mortar shop you could.

Concentrating on having a good online store first will help you if you eventually want to open a shop for people to come visit.

I put all my own money into my store (never took out a loan) and have been slowly building it over the last 3 years. Now I plan on a complete overhaul of the site with more products, new design, and services early this year. I am pushing for a profitable 2011 (I have not taken a dime from this store since it opened).

Building a good business often takes time, I opened in 2007. You need to build a customer base, get your name out there, etc. I would personally suggest at least having another full-time or at least part-time job for awhile (I still work full time). This is possible if you have an online only store, but much harder if you want to actually open your own shop.

[Jorpho]

http://www.digitpress.com/forum/showthread.php?t=137578

[Mason P.]

II think the best way it start this off at a flea market. You might find that you don't like dealing witht buying and arguing with customers part. It is also less risky than starting with a brick and morter store, and easier than setting up an online shop. If you get good business and start to have alot of stock then look into a small storefront. You then could have a store and still open up on Saturday at the flea market to "advertise" and bring in new stock to the store. Any high end items can be sold via an Ebay store.

[MachineGex]

How do 1 go to get game to sell, ie 360, PS3, PS2 & the DS
- There are independent distributors which can help you out. You also get the advantage of breaking street dates because no one gives a shit if you do. However, you will want to keep new game stock down because games that don't sell attack your bottom line. When you get a customer base, you'll want just enough new titles to satisfy them and feel no pain if you don't have something and they go to GS. Eventually, you will want to move away entirely from new stuff. If you really want the advantage on new titles, sell them at cost. Yes, you lose profit which dampens the blow of other new titles not sold, but you shouldn't have much of that to begin with.

How about Retro Games like on Nintendo, Sega, Sony, Microsoft & NEC
- You'll need to build stock prior to opening the store - just get the shelves full. From there, your customers will bring the games to you as trade-ins.

How much Profit do you need to stay in Business
- Entirely too vague of a question. What's your rent? How much do you need to keep yourself afloat? This is math you need to do on your end. Anyway, you will make your money from used games. Buy low, sell high. Buy a stack of NES games for $10, sell 2 of them at $5 each and the rest are gravy.

If there's a Gamestop in the same city, how do you stay in the game with the big boys
- Gamestops will be your friend. Get in good with the closest ones so anyone walking through the door with PS2 or older comes to you when the GS employees mention your store.

How about for Crime
- Don't keep any discs/portable carts on the sales floor, new or used. Shrinkwrap any boxed games. Put any pricey loose carts behind glass. (Drexel has this down pat)

How many people to hire??
- When starting out, expect to be there 24/7. Hire a few people soon after and get a feel for them. Once you trust them, then you can take a day off. Keep your staff number low.

^this. I totally agree with everything.

I do think you need an alarm system that is monitored. Also, you can run the store by yourself the first year or so. If you make it past that, everything gets much easier. Having someone around about 20 hours a week is fine as long you are using this person wisely(like running an online store/ebay or handing out flyers, doing repairs, disc buffing, etc.)