Purchasing a Videogame store: What would make you want to come to my place?

[quote name='Koggit']prices + selection, all that matters.

Whether it's the nicest place on earth or the biggest shithole, all that matters is price & selection.[/QUOTE]

Wal-Mart has proven that.

Everything about going there is a hassle, and yet people go there anyways.
 
[quote name='whoknows']Wal-Mart has proven that.

Everything about going there is a hassle, and yet people go there anyways.[/QUOTE]

I agree but everyone knows that. They basically advertise that fact that they have low low prices and well... nothing else.

You still have to hunt someone down to get the game out of the glass case. Employees are not trained on the games so can't really answer any questions. And if you play a game there, it is something preselected but most the time you can't cause it is broken or just turned off.
 
Hey everyone, just wanted to tell you that we should be open in November and work on the actual build out has started. We had a successful event and just got my car wrapped in time. Here are some pictures...

http://www.flickr.com/photos/38788542@N00/?saved=1

Once we are closer to open I may do a pre-opening event for trade ins to build up our used inventory. We are closer to opening than ever so hope to see any local CAGs come in once we are open.
 
[quote name='DAWG26']I envy you so hard.[/QUOTE]

Thanks I think but it is going to be alot of work and the timing could be better both in the year and with the current economic status. I just have to work very hard and use the knowledge that I do know to push me forward and learn on the run.
 
I see your sign is up, well the one on the sign that shows what shops are there.

Once you're open I'll pop in and make good on my promise to buy something.
 
[quote name='benjamouth']I see your sign is up, well the one on the sign that shows what shops are there.

Once you're open I'll pop in and make good on my promise to buy something.[/QUOTE]

Thanks, Hopefully you have a ton of games to trade in because I will need them!
 
I used to run the online Starland and helped manage the local stores in the DC area, some things I gathered from my experience there;

a- New games is a tough spot. You make almost no profit from them but you need to carry certain things to keep people coming in (having new games makes you reputable.) Unless you have a fairly large order, shipping kills the price you buy new games at.

b- Accessories is one of your biggest mark ups. You'll love them. Contact Yobo, amongst other people.

c- Ignore imports. They were relevant in the Saturn days. Not only will you pay a ton of money for them, but they hardly sell and they are even more succeptable to sitting on the shelf than domestic games. There are a couple of small exceptions, like limited edition accessories which are universal and unique (we hammered out alot of pearl pink GBA remakes since there was no domestic pink GBA on the market.)

d- Invest in products to help your presentation of games that go beyond EB. We had a shrinkwrap machine (just a hot paper-cutter like handle that came down on a roll sheet of plastic to seal the plastic,) followed up by a simple hair dryer to shrink the plastic to conform to the item. Great for used games. Also, a CD buffing machine, which was great if the CD was more damaged than simple cleaning tools (you can charge for games that require it's use, both on trade in values and as a standalone service.) Don't buy a Gamedoctor, they destroy the cosmetic appearance of your disc, you need an actual professional machine.

e- Like others have said avoid gutting new games, you will draw some customers in on that principle. You will need a glass showcase, you can't have games sitting out on a shelf or theft will destroy you.

f- Make sure you have some sort've inventory control. We used to reduce the tradein value on anygame we had 2 or more of, and wouldn't bring in 5 of one copy period.

g- As others have said, carry games EB won't. This is where we brought in most of our people, by offering games for all systems.

h- Yellow pages works wonders, a very small ad that has the word "video games" in it catches eyes. The owner of Starland scored some amazing deals because of this small ad (we're talking $10,000+ inventory grabs for several hundreds of dollars.)
 
Question: What are the Benefits of buying into a Play N Trade franchise? I take it most of your profit will come from the sale of used games (ie. gamestop makes 48% of its profit off of used games). But paying a franchise fee will also cut in to that profit, why not go independent? I am not trying to discourage you, myself like you entrepreneur who would like to open his open Game Store one day, I am very curious. (i thought I posted this, but I guess not lol)
 
[quote name='BigPopov']I used to run the online Starland and helped manage the local stores in the DC area, some things I gathered from my experience there;

a- New games is a tough spot. You make almost no profit from them but you need to carry certain things to keep people coming in (having new games makes you reputable.) Unless you have a fairly large order, shipping kills the price you buy new games at.

b- Accessories is one of your biggest mark ups. You'll love them. Contact Yobo, amongst other people.

c- Ignore imports. They were relevant in the Saturn days. Not only will you pay a ton of money for them, but they hardly sell and they are even more succeptable to sitting on the shelf than domestic games. There are a couple of small exceptions, like limited edition accessories which are universal and unique (we hammered out alot of pearl pink GBA remakes since there was no domestic pink GBA on the market.)

d- Invest in products to help your presentation of games that go beyond EB. We had a shrinkwrap machine (just a hot paper-cutter like handle that came down on a roll sheet of plastic to seal the plastic,) followed up by a simple hair dryer to shrink the plastic to conform to the item. Great for used games. Also, a CD buffing machine, which was great if the CD was more damaged than simple cleaning tools (you can charge for games that require it's use, both on trade in values and as a standalone service.) Don't buy a Gamedoctor, they destroy the cosmetic appearance of your disc, you need an actual professional machine.

e- Like others have said avoid gutting new games, you will draw some customers in on that principle. You will need a glass showcase, you can't have games sitting out on a shelf or theft will destroy you.

f- Make sure you have some sort've inventory control. We used to reduce the tradein value on anygame we had 2 or more of, and wouldn't bring in 5 of one copy period.

g- As others have said, carry games EB won't. This is where we brought in most of our people, by offering games for all systems.

h- Yellow pages works wonders, a very small ad that has the word "video games" in it catches eyes. The owner of Starland scored some amazing deals because of this small ad (we're talking $10,000+ inventory grabs for several hundreds of dollars.)[/quote]

QFT

This man knows EXACTLY what he's talking about. Let me go one further and add that the independent store i work for DOES NOT sell incomplete games for any of the disc based systems. We buy them but we don't give crap for them and flip them on ebay. It may not mean much to most but it's nice to know you'll always get the original case/instructions and you can make mad money selling incompletes through another outlet.
 
Okay for the few questions... the main one is Why go with Play N Trade? Honestly, after the past year or so with trying to get my store open, I can honestly say that I didn't really need Play N Trade to open my store. I know some people may think I am a like inside corporate guy, but in reality the goal is to create something branding wise that can compete and be well known in the next few years. They are at 200+ stores open now and more spreading. It is just like Subway, anyone can make a sandwich, but it is going to Joe's Subs vs. Subway.

I wasn't completely educated with the way the distribution works and I really thought the franchise would help with that. It is 50/50... right now it is not at the point where I think it should be. But I can tell you that it is better than it was last year. I am hoping that eventually when it is at 500 stores open, that it really gets the industry takes notice. We are not Gamestop, we are not Wal-Mart, we are something competly different.

Again, with all my headaches through the process, I don't really blame Play N Trade although having a third party there did slow down the process and it doesn't help that I am paying them money while getting my store open, even though they are doing very little. (BTW, I pay $300 a month till my store is open on top of my $22,000 franchise fee.)

As far as running the store, the store works in a cycle and new and used games are part of that. You need new games to get people to trade in their games, then those games come back used and that is the cycle. Plain and simple, that is your profit. Accessories are really solid with mark up because typically it is cheap and easy to stock. They also don't tend to drop in price.

I have heard people ask for imports before but that won't be a strong feature. It will be something if they request it, I will try to get it for them and mark it up, cause I would have to for shipping and franchise fee, plus service of finding the product. If someone really wants imports use Play Asia.

The thing with gutting games, honestly, it is part of the business. I know it sucks, but thats how the business works. Typically most people don't really care, we are all the exception here because well, we go on forums and just love games. I will be storing these games in better cases, not just paper ones. We can also offer free disc cleaning on the game if they are worried, it can be for that disc or any disc, that should solve any problems.

We will have a shrinkwrap machine and a disc cleaning machine as it will be a standard service.

The POS system helps with inventory with giving use an updated count of games so we can lower the price if we determine it warrants it. This includes incomplete games. We will accept them and sell them because honestly there is very little reason not to. They will be cheaper and can be thrown into a customer's purchase to make it sweeter. You remember, we take back all games from all systems, so I doubt we will find complete games for games beyond say PS1.

The games I will stock will be based on what I think will bring the best mix and value to the customer. I won't just stock a game cause it is out, I mean like crappy Wii games just because they release them, doesn't mean I buy them. Now if a customer request it, I will get it in. And I don't mean Carnival Games, but like say Ninjabread Man... not worth stocking.

The Yellow Pages will work but I want to wait till I am open to do that.

Thanks for all the ideas and questions!
 
Hey, just wanted to share some pictures of some of the inventory I am stocking up on.

100_0442.jpg


100_0441.jpg


100_0440.jpg


100_0439.jpg


Don't get too excited... half of them are Imagine Girl games. But this should be enough to fill out the majority of current games to at least get me started. When we are actually open we will stock up again on more current games. This is mainly to get the store looking full. I didn't really want to buy um... lets say shit games, but I have to think about everyone but also just getting the shelf looking full. I also have some WiiFits and Rockband bundles.

We are closer to opening and the plan is still November and just hoping we get in and open in about 4 weeks.
 
[quote name='Inf^Shini']Good luck with your store! Too bad you're in another state, I would've paid you a visit :D[/QUOTE]

Thanks, hopefully we will get a ton of CAGs in.
 
[quote name='Inf^Shini']Good luck with your store! Too bad you're in another state, I would've paid you a visit :D[/quote]
Same here
 
[quote name='bingbangboom']Thanks, hopefully we will get a ton of CAGs in.[/quote]

I wish I wasn't half way across the country or I would stop in. This thread has been very interesting to see all the advice and also see your store coming along too.

Good luck.
 
I know I'm jumping in this thread late but there's one thing that I WISH that GS/EB would do that no other store does.

Give the regular trade in value for COMPLETE used games that aren't scratched to hell and missing the manual or tears in the cover, etc.

If some kid brings in only a disc and nothing else then give him a reduced trade in value and sell it back for the value that it's worth and NOT the full used price. Some people would be willing to pay for the "crap" version if it's discounted below the "real" used copy that comes with everything in good condition. I really wish that game trade-in places would reward me for keeping my used games in near mint condition.
 
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[quote name='Nobi-Wan']I know I'm jumping in this thread late but there's one thing that I WISH that GS/EB would do that no other store does.

Give the regular trade in value for COMPLETE used games that aren't scratched to hell and missing the manual or tears in the cover, etc.

If some kid brings in only a disc and nothing else then give him a reduced trade in value and sell it back for the value that it's worth and NOT the full used price. Some people would be willing to pay for the "crap" version if it's discounted below the "real" used copy that comes with everything in good condition. I really wish that game trade-in places would reward me for keeping my used games in near mint condition.[/QUOTE]

There are two sides to this argument and it really depends on the store. When you get that trade in price anywhere you go, it should be for the complete package. That means disc in near mint, case with near mint cover art and booklet. If any of this is not the case, you mark the trade in down and also charge less for the game.

Problem is most of the time, these games get charged used as if it were a complete game. I can tell you that if someone brings in an incomplete game, most stores don't mind and even like it better. This way they can charge less for the trade-in but charge the same amount for the used game, thus making more mark up.

I can tell you that I will be following this practice on a case on case base. Particularly with complete packages with the case and book. A disc, unless they are heavy and unplayable scratches, we can clean up to be like new. But getting an official printed art and booklet, that maybe worth quite a bit to some. Reducing a game because it is just the game is a no brainer, infact might be used better to bundle with other games because you have more ability to play with the pricing.
 
I hope you didn't pay full price for Project Slypheed. That game is clearanced out everywhere. The PnT in Manchester, MO (only one in the state) was selling that game for $60 when I went in there this summer. That game, even when it first released, was only $40 new. I got my copy for $8 from CC.

Did you end up buying a lot of that stuff at TRU or not?
 
[quote name='MSUHitman']I hope you didn't pay full price for Project Slypheed. That game is clearanced out everywhere. The PnT in Manchester, MO (only one in the state) was selling that game for $60 when I went in there this summer. That game, even when it first released, was only $40 new. I got my copy for $8 from CC.

Did you end up buying a lot of that stuff at TRU or not?[/QUOTE]

Yeah, the problem was I just picked one copy of most games just to make it easy because everything is either behind a glass area or locked up. I figured it is basically a wash. I think it was one of the few Xbox 360 games that were $20. Main reason was just to add diversity to the selection because I know how fusterating it can be when you can't find a game. Once I do more ordering when we are open, I will have a better control of selection and quantities. If anything, the main reason for buying new games is so that they turn over and get traded in.

The PNT pricing system is very odd and it is something I have to keep an eye on. Many owners don't really understand how trade in pricing works and how you really have to be on top of that. One example I gave was now I have seen Brothers in Arms on sale for $40. To me, the trade in value should be based on a game that is $40 not $60, because that game will drop in price very soon. So, sometimes, people will trade it in for a value of say $25-15 when it should be $10 or less. Then when that used game price drops to say $35 or $25, you still make money. But if you traded in that game and gave $25 and the used price drops to $25, then you are not making any money but instead loosing money with franchise fee and credit card transactions.

Most the stuff I got at Toys R Us and if I wanted to, I can return some, problem is I have like 5 or so receipts that are over 8' long. Again, hopefully they will sell, if not I will just exchange them for something else. You would be surprised what games sell, especially during the holiday season.
 
So I read to about page 17 of this behemoth of a thread and figured I'd add a few things that may or may not have been said in the next 40 pages. Sorry if you've read any of this already.

- Try getting store copies of a few major gaming mags and making them mandatory reading material for your employees to keep them up to date on the industry as well as new and upcoming games. If they're gamers anyways reading the mags shouldn't be a problem for them, plus it won't cost very much ($12 for a year of EGM, probably not much different for gamepro, game informer = ~$40 a year?)

- You could use the mags as browsing materials for customers to check out and possibly find some games they'd be interested in. Things like holiday shopping guides in the mags could generate some buys.

----------------------------------------------------------------------------------
****Tourneys & Pre-Orders****
- Offer free entry into tournaments for pre-ordering a game. That gets people to the tournaments, and gives them a reason to pre-order from you instead of the competition.

- Offer a deal on pre-orders like, pre-order a 360 game get 1/2 off 800 ms pts. (That shouldn't hurt you much because I'm pretty sure they're sold for $10 and the retailer only pays maybe $6 for them? Anyways, that'd be a reason to pre-order) Or offer $5 off a three month ms live card with a pre-order, something along those lines seems like a nice bonus yet shouldn't cost you much if anything, plus they'll be buying more merch.

- Possibly offer a free t-shirt for paid entry to a tourney.
- Maybe offer 25% off a used game with tourney entry? Or as a top 5-10 finish prize. That way they'd feel like they're getting a prize and you wouldn't be losing money on a new game, just a slight dip in profit margin on one used game.

- You already said no couches for tourneys, but you could get like 10 folding chairs for relatively cheap I'm sure and simply store them in the back and break them out for tournaments. Space effective, cost effective, and more comfortable than standing.

- Of course, all the promotions I mentioned for pre-order/ tourney entry, wouldn't all have to be combined but you could rotate them, or offer the customer a choice of whichever they prefer?
-----------------------------------------------------------------------------------
****TV / electronic usage****

- It might be a little too costly to pay for cable or whatever but have you thought of the possibility of having G4 playing on a television during open hours?

- For your kiosks you could put multiple consoles on one television using a coaxial or RF switch (I can't think of the proper name for them, but I have one that my dvd player, 360, wii, and super nes are all connected through.) I know that they're not terribly expensive so it wouldn't be a huge burden.

- If there's wifi or something available ( I know you mentioned internet connected systems) you could consider having a laptop available in the store on which customers could look up reviews for games or something along those lines while in store. Possibly just use you personal laptop but under a different, restricted, account?

- For music you could get some classic game soundtracks playing, or even play some podcasts in the store. 1up has a lot of good podcasts, might be a little too mature to play in the store, but I'm sure you could find some clean podcasts to play.
-----------------------------------------------------------------------------------------

- Find some ways to hide some gamer related easer eggs in your store.

- Find a way to get customers to browse your games in the store and read the boxes, they could find they're interested in some of them. You could do a trivia game using questions related to some of the older games you stock to get 5% off a used game or something.

- This one's probably not feasible but maybe section games by genre? That way if somebody wants to just browse for a game in a genre they like they don't need to ask what games are in that genre but can simply head over to that section.

- Only hire employees of 7+ on the hotornot scale, sex sells. ;)

Good luck with the store, I so wish we had a good game store where I lived. Tournaments would be so cool. Once again sorry if any of this has been stated earlier in the thread, I wasn't up to reading an entire book series tonight. :p
 
I hate to be so brutal but most of these ideas won't work because:

[quote name='jordanv99']So I read to about page 17 of this behemoth of a thread and figured I'd add a few things that may or may not have been said in the next 40 pages. Sorry if you've read any of this already.

- Try getting store copies of a few major gaming mags and making them mandatory reading material for your employees to keep them up to date on the industry as well as new and upcoming games. If they're gamers anyways reading the mags shouldn't be a problem for them, plus it won't cost very much ($12 for a year of EGM, probably not much different for gamepro, game informer = ~$40 a year?)
--Magazines tend to provide info much later than websites like IGN/Gamespot, it would be better to give their register computer access to the internet. Also, you learn a lot about random games through word of mouth with customers.

- You could use the mags as browsing materials for customers to check out and possibly find some games they'd be interested in. Things like holiday shopping guides in the mags could generate some buys.
--If the magazines got left out they'd get stolen (just the way it is).


----------------------------------------------------------------------------------
****Tourneys & Pre-Orders****
- Offer free entry into tournaments for pre-ordering a game. That gets people to the tournaments, and gives them a reason to pre-order from you instead of the competition.
--Fine for a limited time but if you do a lot of pre-orders you'd never get the chance to have paid tournaments as most people who play in tourneys are likely to pre-order anyway.

- Offer a deal on pre-orders like, pre-order a 360 game get 1/2 off 800 ms pts. (That shouldn't hurt you much because I'm pretty sure they're sold for $10 and the retailer only pays maybe $6 for them? Anyways, that'd be a reason to pre-order) Or offer $5 off a three month ms live card with a pre-order, something along those lines seems like a nice bonus yet shouldn't cost you much if anything, plus they'll be buying more merch.
--Margin on MS points/live memberships does not exist. Average profit is roughly $1-$2 before shipping.

- Possibly offer a free t-shirt for paid entry to a tourney.
- Maybe offer 25% off a used game with tourney entry? Or as a top 5-10 finish prize. That way they'd feel like they're getting a prize and you wouldn't be losing money on a new game, just a slight dip in profit margin on one used game.
--Bonuses for prizes are great, but people would likely abuse prizes for entry (pay $5 for tourney just to get the 25% off $50 used game). Also, you lose a lot giving everyone a discount.

- You already said no couches for tourneys, but you could get like 10 folding chairs for relatively cheap I'm sure and simply store them in the back and break them out for tournaments. Space effective, cost effective, and more comfortable than standing.

- Of course, all the promotions I mentioned for pre-order/ tourney entry, wouldn't all have to be combined but you could rotate them, or offer the customer a choice of whichever they prefer?
-----------------------------------------------------------------------------------
****TV / electronic usage****

- It might be a little too costly to pay for cable or whatever but have you thought of the possibility of having G4 playing on a television during open hours?
--Most customers dont care enough to watch, they just want the flashy new Halo/Gears/whatever.

- For your kiosks you could put multiple consoles on one television using a coaxial or RF switch (I can't think of the proper name for them, but I have one that my dvd player, 360, wii, and super nes are all connected through.) I know that they're not terribly expensive so it wouldn't be a huge burden.
--Only problem here is that if the kiosk is locked the employee would have to come out every time someone wanted to switch a console or you'd have to leave it alone with the customers (which never works out...)

- If there's wifi or something available ( I know you mentioned internet connected systems) you could consider having a laptop available in the store on which customers could look up reviews for games or something along those lines while in store. Possibly just use you personal laptop but under a different, restricted, account?
--That laptop had better be bolted down and remember every 5 year old kid is going to be all over it to and they treat things rough.

- For music you could get some classic game soundtracks playing, or even play some podcasts in the store. 1up has a lot of good podcasts, might be a little too mature to play in the store, but I'm sure you could find some clean podcasts to play.
-----------------------------------------------------------------------------------------

- Find some ways to hide some gamer related easer eggs in your store.

- Find a way to get customers to browse your games in the store and read the boxes, they could find they're interested in some of them. You could do a trivia game using questions related to some of the older games you stock to get 5% off a used game or something.
--Unfortunately employees probably won't have time to answer such questions and customers will claim they got the answer right even if they didn't resulting in angry customer syndrome.

- This one's probably not feasible but maybe section games by genre? That way if somebody wants to just browse for a game in a genre they like they don't need to ask what games are in that genre but can simply head over to that section.
--Not a bad idea but alphabetizing is best since not all customers will realize such and such is an action/adventure or whatever and come ask you where it's at.

 - Only hire employees of 7+ on the hotornot scale, sex sells. ;)
--Pretty sure this is a joke but good luck.

Good luck with the store, I so wish we had a good game store where I lived. Tournaments would be so cool. Once again sorry if any of this has been stated earlier in the thread, I wasn't up to reading an entire book series tonight. :p[/quote]

Once again, this isn't a personal attack, i don't intend it that way at all, it's more my observations based on two years working in a locally owned game store.
 
[quote name='jordanv99']So I read to about page 17 of this behemoth of a thread and figured I'd add a few things that may or may not have been said in the next 40 pages. Sorry if you've read any of this already.

- Try getting store copies of a few major gaming mags and making them mandatory reading material for your employees to keep them up to date on the industry as well as new and upcoming games. If they're gamers anyways reading the mags shouldn't be a problem for them, plus it won't cost very much ($12 for a year of EGM, probably not much different for gamepro, game informer = ~$40 a year?)

- You could use the mags as browsing materials for customers to check out and possibly find some games they'd be interested in. Things like holiday shopping guides in the mags could generate some buys.

----------------------------------------------------------------------------------
****Tourneys & Pre-Orders****
- Offer free entry into tournaments for pre-ordering a game. That gets people to the tournaments, and gives them a reason to pre-order from you instead of the competition.

- Offer a deal on pre-orders like, pre-order a 360 game get 1/2 off 800 ms pts. (That shouldn't hurt you much because I'm pretty sure they're sold for $10 and the retailer only pays maybe $6 for them? Anyways, that'd be a reason to pre-order) Or offer $5 off a three month ms live card with a pre-order, something along those lines seems like a nice bonus yet shouldn't cost you much if anything, plus they'll be buying more merch.

- Possibly offer a free t-shirt for paid entry to a tourney.
- Maybe offer 25% off a used game with tourney entry? Or as a top 5-10 finish prize. That way they'd feel like they're getting a prize and you wouldn't be losing money on a new game, just a slight dip in profit margin on one used game.

- You already said no couches for tourneys, but you could get like 10 folding chairs for relatively cheap I'm sure and simply store them in the back and break them out for tournaments. Space effective, cost effective, and more comfortable than standing.

- Of course, all the promotions I mentioned for pre-order/ tourney entry, wouldn't all have to be combined but you could rotate them, or offer the customer a choice of whichever they prefer?
-----------------------------------------------------------------------------------
****TV / electronic usage****

- It might be a little too costly to pay for cable or whatever but have you thought of the possibility of having G4 playing on a television during open hours?

- For your kiosks you could put multiple consoles on one television using a coaxial or RF switch (I can't think of the proper name for them, but I have one that my dvd player, 360, wii, and super nes are all connected through.) I know that they're not terribly expensive so it wouldn't be a huge burden.

- If there's wifi or something available ( I know you mentioned internet connected systems) you could consider having a laptop available in the store on which customers could look up reviews for games or something along those lines while in store. Possibly just use you personal laptop but under a different, restricted, account?

- For music you could get some classic game soundtracks playing, or even play some podcasts in the store. 1up has a lot of good podcasts, might be a little too mature to play in the store, but I'm sure you could find some clean podcasts to play.
-----------------------------------------------------------------------------------------

- Find some ways to hide some gamer related easer eggs in your store.

- Find a way to get customers to browse your games in the store and read the boxes, they could find they're interested in some of them. You could do a trivia game using questions related to some of the older games you stock to get 5% off a used game or something.

- This one's probably not feasible but maybe section games by genre? That way if somebody wants to just browse for a game in a genre they like they don't need to ask what games are in that genre but can simply head over to that section.

- Only hire employees of 7+ on the hotornot scale, sex sells. ;)

Good luck with the store, I so wish we had a good game store where I lived. Tournaments would be so cool. Once again sorry if any of this has been stated earlier in the thread, I wasn't up to reading an entire book series tonight. :p[/QUOTE]

Thats alot but thanks for the comment, let me try to answer somethings...

- I won't be getting magazines for the staff, mainly because the news typically is a little too late. We have access to the internet, so that works out better. I also feel that they should want the knowledge and it will help them. It is something I personally try to keep on top of, prob too much.

- We are working out a deal with Future Publishing, they do the Nintendo Power and Xbox Magazines and a few others. They are available for sale and it is possible that there may be a deal similar to Gamestop for a subscription to a magazine.

****Tourneys & Pre-Orders****

- I can make deals on tournaments to push pre-orders. This is on a customer bases, promotions or even with the premium membership card. Works better depending on what the game is, so giving a discount when you pre-order Gears of War 2 for a Gears of War tournament is better than say doing a Mario Kart tournament.

- I can do promotions with the pre-orders also but might not pick the Xbox Live cards. Maybe like a pre-order coupon when they pick up their game, maybe for a used game. It will depend on the game or what I want to do. I have more options then other places though but there have been increase competition especially with big box stores offering gift cards.

- There are space issues with using chairs but also the level the TVs are more designed for standing. Matches shouldn't take that long so standing shouldn't be a problem. It also adds to the excitement also, compared to just sitting on your couch playing; it is more like playing in the Arcade. Again, the longest matches would be say Madden because other tournaments should have restrictions to make a quicker tournament, either it be time or kills or points.

****TV / electronic usage****

- I won't be running G4 or any tv into the building due to cost but also, have you watched G4 latelty, not really all about videogames anymore.

- TV usage isn't really a main issue. Infact, I have an extra unit so I will have Rock Band playing on it.

- We can and will have wifi, some stores have done "wifi wednesday" where people come in and play with their DS or PSP. Think of it as a mini tournament, but also good for younger kids that may want to share Pokemon.

- I did think about music from videogames but we will have to wait and see. No to podcast because they are really unexpected and hard to follow if you just listen from say the middle. Another reason is that we have 8 tv's playing videogames so that sound can be a problem for some people.

- With hiring on the hotness scale, can't really do that. Have to hire people that are best suited. I mean, I wouldn't want to be known as the store with hot chicks that don't help anyone. Remember, my target is not just you, but also your mom. Unless she is into hot chicks too!

- The amount of games is just not large enough to separate by genre. Also there are games that have multiple genres, I mean where do you put Mirror's Edge? Good customer service can help out verses just letting a customer not know what games are like. Also they can try any game before they buy it so not only will they know the genre, but they will know if they like the game.

Thanks again for the comments.
 
JDN169, I totally understand what you're saying, no worries on the offending bit ;)

-I just figured that the magazines would be semi-effective at keeping the employees up-to-date, of course not up to the minute but good enough since some things written in magazines are embargoed from being posted about online until a certain date. It'd also be a easy format to read about things in since they wouldn't really have to search around gamespot for info.

-Also being stolen wouldn't matter too much since they'd have already been read over by staff and their basic usefulness would be fulfilled. I understand the OP's position on the idea though.
----------------------------------------------
-I guess I should have clarified the bit on pre-orders and tournament stuff more. Pre-ordering a game would be good for a tourney for that game or for a game in the same genre if that game doesn't have a tourney planned.

-I didn't know the profit margin on live points/time was so slim. I just knew that my friend working at Best Buy can buy 1600 live points for $16 instead of $20 so I figured there would be at least a $4 profit on 1600 points for Best Buy.

-The other incentives would obviously have to have stipulations involved with them as well and probably not as high as 25% for simply joining the tourney, but a top 3 finish maybe? You'd still be making money on even a brand new used game if you allowed them to use it on that. Buy game for $33, sell used for $53 - 25% = $39.75 or $6.75 profit. Maybe not that big of a profit but it gives you a useful prize that will get the customer to come back to your store and buy something instead of just giving them a $15 prize that nets you no return.

-I figured the chair thing might be a problem with the height of the TVs.
----------------------
-Haven't seen G4 lately, for some reason that's about the only channel my school doesn't get.

-As far as locking up the switches for the kiosks, the one I have simply requires moving a little slider to switch between consoles, so you could just leave a hole in the case for them to move the slider. Doesn't seem like there's any problem with having plenty of TVs though so probably a moot point.

-About the laptop, it could simply be housed behind the counter with the employee and brought out for use on request, just put a sign up making it known that it's an option. Or even have the monitor locked in a clear case but a wired keyboard and mouse accessible.

-The trivia thing could just be printed out on some entry forms, completed and then entered into a weekly / monthly / whenever, drawing for a prize or something. Similar to how Family Video does a weekly quote. Designate an employee to just make a weekly, five question fill in the blank sheet with a prize of a $5 used game gift card or something.

-As far as the 7+ hotness for employees thing goes, it was mostly a joke. But do try to make sure you hire at least semi-attractive people, that doesn't mean just women either. Obviously you don't want a store that employs only super models because that's intimidating, but you don't want your employees to be the kind of people who can't go out and find a date. Hate to say it, but we're a shallow species, people will prefer to go into a store and deal with people who are easy on the eyes over people who aren't.
------------------------------------------------------

Also, I noticed some pictures of the store size on page 35 or something of this thread, it looks like it has pretty tall ceilings. You should install a ladder on tracks and wheels like they have in huge libraries, because well, it'd be awesome. :bouncy:
 
[quote name='jordanv99']JDN169, I totally understand what you're saying, no worries on the offending bit ;)

-I just figured that the magazines would be semi-effective at keeping the employees up-to-date, of course not up to the minute but good enough since some things written in magazines are embargoed from being posted about online until a certain date. It'd also be a easy format to read about things in since they wouldn't really have to search around gamespot for info.

-Also being stolen wouldn't matter too much since they'd have already been read over by staff and their basic usefulness would be fulfilled. I understand the OP's position on the idea though.
----------------------------------------------
-I guess I should have clarified the bit on pre-orders and tournament stuff more. Pre-ordering a game would be good for a tourney for that game or for a game in the same genre if that game doesn't have a tourney planned.

-I didn't know the profit margin on live points/time was so slim. I just knew that my friend working at Best Buy can buy 1600 live points for $16 instead of $20 so I figured there would be at least a $4 profit on 1600 points for Best Buy.

-The other incentives would obviously have to have stipulations involved with them as well and probably not as high as 25% for simply joining the tourney, but a top 3 finish maybe? You'd still be making money on even a brand new used game if you allowed them to use it on that. Buy game for $33, sell used for $53 - 25% = $39.75 or $6.75 profit. Maybe not that big of a profit but it gives you a useful prize that will get the customer to come back to your store and buy something instead of just giving them a $15 prize that nets you no return.

-I figured the chair thing might be a problem with the height of the TVs.
----------------------
-Haven't seen G4 lately, for some reason that's about the only channel my school doesn't get.

-As far as locking up the switches for the kiosks, the one I have simply requires moving a little slider to switch between consoles, so you could just leave a hole in the case for them to move the slider. Doesn't seem like there's any problem with having plenty of TVs though so probably a moot point.

-About the laptop, it could simply be housed behind the counter with the employee and brought out for use on request, just put a sign up making it known that it's an option. Or even have the monitor locked in a clear case but a wired keyboard and mouse accessible.

-The trivia thing could just be printed out on some entry forms, completed and then entered into a weekly / monthly / whenever, drawing for a prize or something. Similar to how Family Video does a weekly quote. Designate an employee to just make a weekly, five question fill in the blank sheet with a prize of a $5 used game gift card or something.

-As far as the 7+ hotness for employees thing goes, it was mostly a joke. But do try to make sure you hire at least semi-attractive people, that doesn't mean just women either. Obviously you don't want a store that employs only super models because that's intimidating, but you don't want your employees to be the kind of people who can't go out and find a date. Hate to say it, but we're a shallow species, people will prefer to go into a store and deal with people who are easy on the eyes over people who aren't.
------------------------------------------------------

Also, I noticed some pictures of the store size on page 35 or something of this thread, it looks like it has pretty tall ceilings. You should install a ladder on tracks and wheels like they have in huge libraries, because well, it'd be awesome. :bouncy:[/QUOTE]

Thanks again for the follow up. The thing that is somewhat concerning with other stores that I have been hearing is the lack of turn out for tournaments. Stores have had to cancel them due to lack of participation which is not a good sign. Typically the fall to winter, forces people to not attend due to various reasons so that may be the case. I think having a referral program with the more people you bring or sign up, you get your entry fee for free.
 
There's a Play N Trade opening in a REALLY bad location in Tacoma, WA. I don't wish bad on anyone, but that store won't make it. Its going in where a Game Crazy used to be. The parking is bad and getting into the strip mall is a nightmare because of the intersection its at near the mall.
 
[quote name='bingbangboom']Thanks again for the follow up. The thing that is somewhat concerning with other stores that I have been hearing is the lack of turn out for tournaments. Stores have had to cancel them due to lack of participation which is not a good sign. Typically the fall to winter, forces people to not attend due to various reasons so that may be the case. I think having a referral program with the more people you bring or sign up, you get your entry fee for free.[/QUOTE]


You could try setting up prize tiers based on the number of participants. 5> people prizes only equal to about $25 total. Higher participation = better prizes, so people would have incentive to get others to come too.

The referral program sounds like a spiffy idea as well. Although if you have another promotion offering free participation (pre-order or something) you could do something along the lines of a free t-shirt or some other swag.
 
[quote name='jordanv99']You could try setting up prize tiers based on the number of participants. 5> people prizes only equal to about $25 total. Higher participation = better prizes, so people would have incentive to get others to come too.

The referral program sounds like a spiffy idea as well. Although if you have another promotion offering free participation (pre-order or something) you could do something along the lines of a free t-shirt or some other swag.[/QUOTE]

The problem with stating or going with the goal of higher participation = higher prizes is the fact that you are trying to advertise the tournament with a big grand prize. Otherwise it is hard to get people to enter the tournament. Again, these are used as marketing to generate buzz and get people to know about the store. The more people that come in and bring friends the better. If we have more people and less money from entry fees I actually consider it better. The thought is that more than likely that you will get some sort of sale down the road.

I do have an idea for a Tournament Package for all participants in the tournaments that would basically be a small coupon book on various items. These would be limited to entry participants and non transferable. But really it is about generating word of mouth, I know from experience, with the Rock Band tournament, I really was expecting more people. We got a fair share, but I would have liked more. Once we open though I feel that number would double considering our only real promotion was handing out flyers and the coffee shop where we had the tournament.
 
We do have slight progress with the space. We finally have a full sprinkler system. Something we have been going back and forth with the landlord on for about six months, they finally installed it. We are still awaiting state and township approval, hopefully that doesn't take too long. My contractors state that completing their work should not take that long, about 2 weeks or less. The one nice thing is that the fixture company comes in and sets up everything in the store in one day. So it basically goes from an empty black room to a full store in the matter of a few hours.

As far as hiring right now, we will wait till we are open to take applications because we expect the first few weeks will be slow. This will allow us to set up interviews inside the store and get more applications.

Hopefully we can make my November deadline but I highly doubt it. Thats just the way it is :/
 
Hey there everyone, especially Play N Trade Owner -

I am looking at starting a franchise of this company in the Triad, NC - I have yet to have a conversation with PlayNTrade, but everything should check out. I like alot of the aspects of what PlayNTrade has to offer but I do have a few concerns that you may be able to shed some light on.

Ok here we go...

Well yesterday, I went down to Charlotte, NC where there are 3 locations and 1 being built. I was surprised to see how closely three of them were located near each other. 2 of them were owned by the same owner and then obviously the third was owned separately. The first store being built looked huge, about two 20 * 60 locations while the three operating stores were only 20 * 60... Now one of the locations had only been open for 2 weeks and said business was doing well. It was crisp, clean, busy, professional staff of all ages and backgrounds... It was great.

The next two stores I attended had me a little frazzled. There were stains on the carpet - clutter of used video games and video game accessories everywhere. It was completely less tidy then even EB games (and I hate to say that). One of the stores had 3 16 year old kids in the back, playing on a computer of some sort with no customers in the store minus my father, best friend and me. A simple hi, was all I was greeted with. Obviously I would attribute this to poor management and holding employees responsible. This would not be such a concern of mine except that with a franchise, if there is one poorly managed store in close proximity of my store, it could reflect poorly on my business. I was wondering in what ways does the Play N Trade corporation hold the owners of these franchises accountable for one customer service - and stained flooring. To be honest - I was almost embarrased to think I was considering a franchise such as this.

After viewing the last two stores - I saw an over abundance of used video games, and accessories. One store had about 7 guitars for the ps3 piled up in the corner. Just gave me the feeling of being rundown - But I digress on the cleanliness of the stores... My question is - As a franchise owner - do we have the ability to say no to games because we have an abundance, or just dont want a specific game?

What qualifications for a location does the company have?

Sorry to cut this short - but have to run.

thanks for any reply
 
[quote name='PlayNTradeInterested']Hey there everyone, especially Play N Trade Owner -

I am looking at starting a franchise of this company in the Triad, NC - I have yet to have a conversation with PlayNTrade, but everything should check out. I like alot of the aspects of what PlayNTrade has to offer but I do have a few concerns that you may be able to shed some light on.

Ok here we go...

Well yesterday, I went down to Charlotte, NC where there are 3 locations and 1 being built. I was surprised to see how closely three of them were located near each other. 2 of them were owned by the same owner and then obviously the third was owned separately. The first store being built looked huge, about two 20 * 60 locations while the three operating stores were only 20 * 60... Now one of the locations had only been open for 2 weeks and said business was doing well. It was crisp, clean, busy, professional staff of all ages and backgrounds... It was great.

The next two stores I attended had me a little frazzled. There were stains on the carpet - clutter of used video games and video game accessories everywhere. It was completely less tidy then even EB games (and I hate to say that). One of the stores had 3 16 year old kids in the back, playing on a computer of some sort with no customers in the store minus my father, best friend and me. A simple hi, was all I was greeted with. Obviously I would attribute this to poor management and holding employees responsible. This would not be such a concern of mine except that with a franchise, if there is one poorly managed store in close proximity of my store, it could reflect poorly on my business. I was wondering in what ways does the Play N Trade corporation hold the owners of these franchises accountable for one customer service - and stained flooring. To be honest - I was almost embarrased to think I was considering a franchise such as this.

After viewing the last two stores - I saw an over abundance of used video games, and accessories. One store had about 7 guitars for the ps3 piled up in the corner. Just gave me the feeling of being rundown - But I digress on the cleanliness of the stores... My question is - As a franchise owner - do we have the ability to say no to games because we have an abundance, or just dont want a specific game?

What qualifications for a location does the company have?

Sorry to cut this short - but have to run.

thanks for any reply[/QUOTE]

Let me answer a few of your concerns. The truth is that each store is independently owned and operated, which means not every store will be run the same way. This can be said about most businesses, but it does suck if there is a few bad apples out there. Typically most stores are fairly clean, although I have seen a couple that when just opening can be sort of a mess, just getting things together. There is almost a rush of to get open that sometimes people open too soon. One I visited recently seemed pretty good but their back cash wrap area was a mess. It happens and he explained that they are going to have something built to handle that. As long as whom ever is managing and knows about it tries to handle it, then at least you know something may happen.

Stains on the carpet, that is harder to say. It is possible that it may get cleaned but one of my reasons for going with concrete flooring is so we wouldn't have that issue. Especially during the winter, it just ruins it once the foot traffic drags in snow, water and mud.

About the poor management, it happens and it is everywhere. It is sad but most of the time these stores don't stay open for long because of this. The whole reason for Play N Trade is to be better than everyone else and that includes outstanding customer service. If an employee doesn't understand that then they are not an employee for long. Being a videogame store, you may see more of this behavior and typically the reason for keeping someone on staff like this, especially early on is "they know alot about videogames". To me it doesn't really matter, you learn the business if you are good. I would rather have a great sales person that offers quality customer service then someone who knows the Contra code.

They have had people go out and check the stores out but I have yet to really hear a report of this. Typically it is for training but not really to check standards, it can be requested though. But if a store is that bad, they may not even think about asking for someone else to come in and point out what they are doing that is bad.

Location qualifications change, there is no science and if you read back it was a huge fusteration but I think I did find a very good spot. The real estate guy I had dealt with is no longer with PNT, but to him it basically had to be 1200 - 1600 sq ft, had good visibility into the store from the street, favorable neighboring tenants. There are a few other issues but those were the main ones. If you see the pictures I have, it is pretty much on the street which is harder to find than you think. Typically there are in plazas, like you see most Gamestops. The sort of agnst against that was you may be getting the same customers over and over and not growing. Like if you are near a supermarket, people have one super market they go to all the time and might be harder to pull them away to go to a different plaza. But there are pros and cons.

With taking used inventory in you do have the option of rejecting a trade for a variety of reasons due to stock, quality or just don't want it. Honestly I have seen this before and I cringe at the thought, typically it is because you have too much inventory or it is an old game. The safest solution is just give them a very very VERY low price on the game. Some times a customer just wants to get rid of it, offer them a buck. More than likely you will then turn that game for profit or use it as a prize for something, it is cheaper than swag or a t-shirt. With the guitars, because it is just a big piece of plastic, the best way to handle it would be to try to not put everything on the floor. Another option is to create sale bundles with used copies of Guitar Hero. Even though it is a big franchise people are still getting into it. If you have a used bundle of Guitar Hero with controller and the game for $40 or less, someone might be willing to buy it. That way you get rid of two things. Or even bundling it with a console like a used PS2, that customer may just be a casual user and they just want it to play with friends and family.

We won't be doing cash trade in at our store which reduces suspicious products. Typically you will see someone come in with a bag full of games or consoles that are still sealed. They want cash for them not credit so they will just go somewhere else, this also reduces cash on hand if anything where to happen. Let Gamestop take that trade in, the customer won't be back to buy anything anyway.

Hope that helps.
 
[quote name='mike.m']There's a Play N Trade opening in a REALLY bad location in Tacoma, WA. I don't wish bad on anyone, but that store won't make it. Its going in where a Game Crazy used to be. The parking is bad and getting into the strip mall is a nightmare because of the intersection its at near the mall.[/quote]

You just described the Fenton, MO Gamestop to a T, and it's sales are up 50% this year. It's one of the top 5 selling Gamestop's in St. Louis. This area has some competition (BB, CC, WM, Target, GC) all within 2 minutes but they do land office business.

The difference I believe is name recognition and the employees there are much better than the standard game store employees.

So in theory if the parking situation is bad, you have to have GREAT customer service to make up for it and get people to come back.
 
BigBangBoom,

Thought I'd chime in here, haven't read through all 44 pages yet, but I plan to finish soon.

I've been gathering information for the idea of opening up my own game store. I'm on the west coast (near Seattle, WA) so not sure if Play N Trade would be a good idea for a franchise option. I really wanted to open up my own store, start from scratch (creating all of the components of marketing, company name, etc).

I'm curious, what made you choose to open a franchise versus opening up your own store?

Are you doing this alone or do you have a business partner of some sort (not counting the franchise company)?

Also...although I haven't read through this whole thread yet, what have been the biggest hurdles while planning the opening of the store? I noticed it's been almost a year since the first post, yet you have not opened the store yet. Was that by choice or because of a long process involved?

I have a great location, no competing stores for my city, high foot and vehicle traffic (with view of store front) and surrounded by a community with disposable income, mostly young families and kids in middle/high school. I know the risks involved, haven't convinced myself quite yet if I really want to take the plunge.

I've been writing my business plan this week and I have tons of ideas, alot of what I've come up with matches your points, which have all been well made.

Thanks for any comments.
-Scott from (near) Seattle, WA
 
[quote name='Landsharkk']BigBangBoom,

Thought I'd chime in here, haven't read through all 44 pages yet, but I plan to finish soon.

I've been gathering information for the idea of opening up my own game store. I'm on the west coast (near Seattle, WA) so not sure if Play N Trade would be a good idea for a franchise option. I really wanted to open up my own store, start from scratch (creating all of the components of marketing, company name, etc).

I'm curious, what made you choose to open a franchise versus opening up your own store?

Are you doing this alone or do you have a business partner of some sort (not counting the franchise company)?

Also...although I haven't read through this whole thread yet, what have been the biggest hurdles while planning the opening of the store? I noticed it's been almost a year since the first post, yet you have not opened the store yet. Was that by choice or because of a long process involved?

I have a great location, no competing stores for my city, high foot and vehicle traffic (with view of store front) and surrounded by a community with disposable income, mostly young families and kids in middle/high school. I know the risks involved, haven't convinced myself quite yet if I really want to take the plunge.

I've been writing my business plan this week and I have tons of ideas, alot of what I've come up with matches your points, which have all been well made.

Thanks for any comments.
-Scott from (near) Seattle, WA[/QUOTE]

Hi, thanks for the read so far.

The main question... why Play N Trade? The simple and hopeful answer is a national brand name. It helps and is something I could not create on my own. The hope is that as more and more stores open that "Play N Trade" will become a larger brand name enough to compete with Gamestop and Best Buy. Again we are many years off from that but each year they expand and grow, I think they are over 200 stores now with over 400 stores sold, that pretty much means that there will be over 300 next year, possibly close to 400. That is a large chunk of stores and word will spread if the stores are managed and deliver on a great experience. The other issue is that I was pretty much in the dark about the whole thing, but honestly now, I could have done it all by myself, saved money and time which go hand and hand.

I think it is a nice package but for what I have paid so far, it hasn't compeltly delieverded yet mainly because I am not open and right now that is not Play N Trade's fault. Majority of the what has taken so long is that it took so long to find a location that met their guidelines. But then there were still issues with just opening a store, it is a huge experience and there is no handbook. If Play N Trade had one, it would be great, but it is kinda on your own, you are buying a business for yourself pretty much. Even though it is a franchise, it is really up to you to get it open.

That said I do think that Play N Trade really has a great future especially since they brought on a new CEO earlier this year. It is a legit CEO, former Activision etc., I just wish that they would do a few things to really make it a true national competing brand name. This includes print, commercials, and better website.

Truth is that if you talk to like 90% of new business owners, they could tell you that the process is a very long one despite what anyone says to you. It sucks but it is part of the process, especially with state and township issues. Most of the time you are depending on others to get something done, but they don't do it. Like what has delayed me for a long time is issues with the landlord, it is not Play N Trade's fault. Now that we have this resolved... 6 months too late, we are getting closer.

I got a SBA loan with my brother which may be harder to do and one thing I would recommend is make sure you have more than enough capital because things will not match your business plan. Right now, I think i need $10,000 - $15,000 extra capital and really no way to get it besides just charging on my card and hoping I can pay it off down the line. The way the ecomemy is right now, vendors are doing almost everything either COD or just straight charge, not really a 30 day credit.

One problem with my plan is that I didn't quite balance everything out exactly right and I thought I had more money for my general contractor, so it is kinda going to have to squeek through. Again I should be ok but the problem is that I am going to be opening at the height of the selling season so I would need more inventory aka more credit/capital.

Also you may think you have the dream location... find another dream location and hope on that one. Because most of the time, that first location you want. There will be some reason why you can't get in there. Maybe other tenants, the landlord, rent, space etc... there is just stuff... the location I got was the 8th location I found.

Just try to stay positive, as I have tried to, hope for the best. Really I mean, you are just really putting everything all in and hoping it falls your way. We have faced alot of problems, more than most people will, but you will have issues. My goal is that once I am open, it is something I am really depending on myself and what I can do to succeed. I know that every customer that comes in is the best customer in the world because I am full vested in the business.

I would recommend contacting the SBA for more information with getting your business started or if you want to go with the franchise. If you want information about the franchise and havn't contacted them yet PM me. If anything and you do sign up I get $1000. Again I am just trying to be honest but not like I have given an unrealistic expectation about what Play N Trade is.
 
Bingbangboom,

Thank you very much for the reply, it was very helpful! I appreciate the time and inside knowledge you've shared.

I do have multiple locations in mind. One of which is next to a comic book store (near a large mall), but also has more competition with Gamestop/EBGames. I will be checking for lease availability at my preferred location though (my 1st choice), and yes I'll keep my hopes within the realm of reality, lol.

I haven't investigation or researched Play'N'Trade enough to consider them as a franchise option. I actually kind of wish Gamestop would offer Franchises (in fact, I heard it rumored that they would this year, but this is not the case). I contacted them directly about Franchise options already and they confirmed it's not something they do right now (a very candid answer), but did not elaborate on the future possibility. I would like to note that I'm sure the flexibility would be more enjoyable with a Play'N'Trade franchise than with a gamestop franchise...but that's all heresay of course.

I think I may be ok in the financial department. I understand a lending firm is going to require some kind of collateral, especially with the banks tightening up on loans in general. I have 2 properties, so I look good on paper with lots of equity in at least one of those properties, despite the housing slump. I have not yet talked with a SBA loan officer.

If anyone in the Seattle area has also been seriously considering taking this kind of business venture I'd gladly chat with you. I'd prefer a business partner to not only share the risk and reward, but also to fill in the gaps where I lack information or experience. I am not going to pretend to know everything, although I'm obviously willing to learn along the way. :)

What kind of initial investment have you been seeing so far? You mentioned $10,000 to $15,000 additional capital, is this on top of the current investment? I haven't done the numbers, but imagined up-front costs being close to or over the $100,000 mark. How far off am I?

Also, is Play'n'Trade going to be providing distrubution information for getting the merchandise? How much information do they provide? Have they helped with facility supplies (shelving, marketing flyers/posters, POS systems, etc)? I know there's dozens of companies closing up hundreds if not thousands of stores within the next few months (thank you failing economy), but would imagine a lot of these stores are willing to let go of their furniture (I use that term in reference to sales floor items like shelving, etc) for reasonably cheap.

Of course, this failing economy does tend to create some uncertainties in regards to oepning up a new retail store. However, I'm pretty confident the gaming industry in general isn't going to suffer a whole lot. If people are starting to spend less, vacation less and generall stay in-doors more often, they are going to want something to do while they are at home. :) For instance, Gears of War 2 is currently setup and out-pacing Halo 3 in terms of sales (inside info from Microsoft for ya...I currently work for MS as a side note).

One thing that's really motivating and giving me confidence is that both my parents are business owners, and successful ones at that. One of whom has started multiple business from scratch and the other who tends to 'buy in' to businesses and expand from there. I talked with them about my ideas and tend to get more help and advice along the way. Family can be a great information resource. On another side note, all of my uncles, including my closest cousins have all owned or still own their own business. I think it runs in the family, lol.

Thanks again for the discussion. My mind has been really hungry for this type of information coming straight from soneone who's starting up their own video game store.
 
[quote name='Landsharkk']Bingbangboom,

Thank you very much for the reply, it was very helpful! I appreciate the time and inside knowledge you've shared.

I do have multiple locations in mind. One of which is next to a comic book store (near a large mall), but also has more competition with Gamestop/EBGames. I will be checking for lease availability at my preferred location though (my 1st choice), and yes I'll keep my hopes within the realm of reality, lol.

I haven't investigation or researched Play'N'Trade enough to consider them as a franchise option. I actually kind of wish Gamestop would offer Franchises (in fact, I heard it rumored that they would this year, but this is not the case). I contacted them directly about Franchise options already and they confirmed it's not something they do right now (a very candid answer), but did not elaborate on the future possibility. I would like to note that I'm sure the flexibility would be more enjoyable with a Play'N'Trade franchise than with a gamestop franchise...but that's all heresay of course.

I think I may be ok in the financial department. I understand a lending firm is going to require some kind of collateral, especially with the banks tightening up on loans in general. I have 2 properties, so I look good on paper with lots of equity in at least one of those properties, despite the housing slump. I have not yet talked with a SBA loan officer.

If anyone in the Seattle area has also been seriously considering taking this kind of business venture I'd gladly chat with you. I'd prefer a business partner to not only share the risk and reward, but also to fill in the gaps where I lack information or experience. I am not going to pretend to know everything, although I'm obviously willing to learn along the way. :)

What kind of initial investment have you been seeing so far? You mentioned $10,000 to $15,000 additional capital, is this on top of the current investment? I haven't done the numbers, but imagined up-front costs being close to or over the $100,000 mark. How far off am I?

Also, is Play'n'Trade going to be providing distrubution information for getting the merchandise? How much information do they provide? Have they helped with facility supplies (shelving, marketing flyers/posters, POS systems, etc)? I know there's dozens of companies closing up hundreds if not thousands of stores within the next few months (thank you failing economy), but would imagine a lot of these stores are willing to let go of their furniture (I use that term in reference to sales floor items like shelving, etc) for reasonably cheap.

Of course, this failing economy does tend to create some uncertainties in regards to oepning up a new retail store. However, I'm pretty confident the gaming industry in general isn't going to suffer a whole lot. If people are starting to spend less, vacation less and generall stay in-doors more often, they are going to want something to do while they are at home. :) For instance, Gears of War 2 is currently setup and out-pacing Halo 3 in terms of sales (inside info from Microsoft for ya...I currently work for MS as a side note).

One thing that's really motivating and giving me confidence is that both my parents are business owners, and successful ones at that. One of whom has started multiple business from scratch and the other who tends to 'buy in' to businesses and expand from there. I talked with them about my ideas and tend to get more help and advice along the way. Family can be a great information resource. On another side note, all of my uncles, including my closest cousins have all owned or still own their own business. I think it runs in the family, lol.

Thanks again for the discussion. My mind has been really hungry for this type of information coming straight from soneone who's starting up their own video game store.[/QUOTE]

I have heard about the Gamestop franchise thing before but honestly, I think they just float that rumor out there to have people be concerned about PNT. If anything, Gamestop doesn't need franchises, they do fine enough on their own and they control everything.

I would look into getting a broker, they work for free, or should and they help you out with locations and talking to landlords to get a deal.

PNT does help with vendors, POS system and other things. The POS system is a mixed bag, I have seen great things with it and then tons of complaints, they just released another update to it this week which should help many things.

Honestly, alot of it was either credit cards, some savings but also my dad refinanced his home loan to allow us to do this. $100,000 may be over doing it. For my business plan, and SBA, you are required to put forth 20% of your total request. I think I originally showed like $30,000 but I must have spent closer to $40,000 myself on various things. I would talk to the SBA, but if you have $100,000 then you are more than good.

With a business partner, well, I wouldn't go around just asking random people in the area. No offense, this is a serious commitment and it sounds that you might be better off doing it on your own and looking for a manager that has the experience in running the business. The more partners the more problems, at least that is what I have seen.

Hope that helps :)
 
I have a question of a proposal that has been floated to me by another PNT store owner and his store is very successful. Basically it is called "Renewed" and what it is is offering a premium version to the standard used games market. It seems interesting but let me basically detail what it is...

* All games that are traded in are cleaned, no matter how they look.
* Games are then gutted and artwork is placed into a brand new plastic case.
* If the artwork is messed up, a new one is printed and placed in the case.
* All used games are put into these clear cases vs. black, white or green.
* Sticker price is actually placed over the barcode on the back of the game inside the sleeve. This means no sticker gunk on the actual case and no sticker blocking the cover.

It seems interesting, the sticker thing is a little weird, but it may work out in the long run. I think it is hard to see what the game price is on the back, but we would need to retrain customers to look on the back of the box for the price.

It is possible that we could merchandise by price to keep all the $30 priced games together. The way they recommend right now with the Renewed Program is actually by rating so M/T/E... don't know if I would want to do all that as I think finding a game by name is easier than rating then name.

The whole idea is to bring a new standard to what preowned games mean by offering a completely new package. What are your thoughts?
 
Thank you PlayNTrade Owner,

I do appreciate all the information that you provided me with regards to your business thoughts. I do have a few more concerns regarding the business, but I would like to comment on your used game philosophy that u would be teaming up with the other business owner on.

Personally, I feel it wont provide any more real benefit for the consumer. I think having the games in Alphabetical order is still the best. - I will admit having the price on the box is really annoying - I think the idea regarding the new location of the price might help... I also like the idea of the new box and cleaning the games - so the strategy might work - but i think it needs some more contemplating.

Here are some more questions - that I have...

I was trying to run some numbers with regards to avg sales numbers at a location... The numbers I am running dont seem to be matching up with being a successful business to continue to be profitable....

What are the markup % on new games and accessories?

Do you have any worries regarding the purchasing of games via the internet (downloadable)?

Where exactly is the money that is paid for the franchise fee going? Minus the training and things along that line...

Do u have any pictures of the shopping center u will be at? And the traffic as well?

Are there any demographics that are required for a location?

I hope u are doing great and again thank u for taking the time to answer my questions... i hope that your opening is going well...

Look forward to the response...

sincerely,

john
 
[quote name='PlayNTradeInterested']Thank you PlayNTrade Owner,

I do appreciate all the information that you provided me with regards to your business thoughts. I do have a few more concerns regarding the business, but I would like to comment on your used game philosophy that u would be teaming up with the other business owner on.

Personally, I feel it wont provide any more real benefit for the consumer. I think having the games in Alphabetical order is still the best. - I will admit having the price on the box is really annoying - I think the idea regarding the new location of the price might help... I also like the idea of the new box and cleaning the games - so the strategy might work - but i think it needs some more contemplating.

Here are some more questions - that I have...

I was trying to run some numbers with regards to avg sales numbers at a location... The numbers I am running dont seem to be matching up with being a successful business to continue to be profitable....

What are the markup % on new games and accessories?

Do you have any worries regarding the purchasing of games via the internet (downloadable)?

Where exactly is the money that is paid for the franchise fee going? Minus the training and things along that line...

Do u have any pictures of the shopping center u will be at? And the traffic as well?

Are there any demographics that are required for a location?

I hope u are doing great and again thank u for taking the time to answer my questions... i hope that your opening is going well...

Look forward to the response...

sincerely,

john[/QUOTE]

New games, depending on the game, is about $10 in profit if you sell it at its true price. Some vendors do offer price protection if they drop, but if not, you are really out of luck. So say for Left 4 Dead, the vendor price is around $50.

Accessories is much better, depending on what it is, it can be over 50% in mark up. Again your focus is turning that new product as quick as you can and make it preowned and then selling that. Accessories and other items with high markup also help. These things are like T-Shirts, Drinks and candy. You make more money selling a candy bar than a PS3. Hardware you actually make a net loss if you just sell hardware.

Honestly, because the way our store is made it really adds something to the instore experience. I do see more and more games going online, but I think that percentage is so small on the overall market. It will take a long time to reach what we consider Itunes is.

The fee goes to support and basically use of the brand name. Some owners work closer with the franchise, some don't. It is really your business so it is up to you how you want to use it.

I think I have posted pictures on here before but it is a fairly small shopping center but it is on the road. It is also fairly new, I would say 2 years old. The broker or landlord should supply you with the demographics for that area.

Some of the top things I would look at are visibility, accessibility and neighboring tenants/competition. If a plaza is hard to get into, then that will hurt it. Tenants that have the same customers help also. IF there is competion in the area, it shows that there must be a base in the area already.
 
[quote name='bingbangboom']
* All games that are traded in are cleaned, no matter how they look.
* Games are then gutted and artwork is placed into a brand new plastic case.
* If the artwork is messed up, a new one is printed and placed in the case.
* All used games are put into these clear cases vs. black, white or green.
* Sticker price is actually placed over the barcode on the back of the game inside the sleeve. This means no sticker gunk on the actual case and no sticker blocking the cover.
[/quote]

Here are my thoughts:

-Some games get traded in in immaculate condition, there is no reason to put them on a cleaner. That would be a waste of labor, money, and most cleaners leave some sort of pattern on the disk, why mess up a perfectly good disk?

-Great if the case is beat up, not sure i'd bother if it wasn't.

-So would you be putting PS3 games in regular cases? In my experience colored cases help people find games in the store (everyone knows what 360 cases look like, for example).

-I would much rather have the sticker placed on the outside. I hate getting gamestop games with stickers applied directly to the sleeve, they're a bitch to get off without damaging it.

YMMV
 
[quote name='bingbangboom']I have a question of a proposal that has been floated to me by another PNT store owner and his store is very successful. Basically it is called "Renewed" and what it is is offering a premium version to the standard used games market. It seems interesting but let me basically detail what it is...

* All games that are traded in are cleaned, no matter how they look.
* Games are then gutted and artwork is placed into a brand new plastic case.
* If the artwork is messed up, a new one is printed and placed in the case.
* All used games are put into these clear cases vs. black, white or green.
* Sticker price is actually placed over the barcode on the back of the game inside the sleeve. This means no sticker gunk on the actual case and no sticker blocking the cover.

It seems interesting, the sticker thing is a little weird, but it may work out in the long run. I think it is hard to see what the game price is on the back, but we would need to retrain customers to look on the back of the box for the price.

It is possible that we could merchandise by price to keep all the $30 priced games together. The way they recommend right now with the Renewed Program is actually by rating so M/T/E... don't know if I would want to do all that as I think finding a game by name is easier than rating then name.

The whole idea is to bring a new standard to what preowned games mean by offering a completely new package. What are your thoughts?[/quote]


For me, personally, when I buy used games I ONLY buy used games that come in the original packaging. If they are put in one of those generic game boxes I pass them up, even if it's the last one of the game and I really want it, I'll wait to find one in the original packaging. There has been no exception to this even though I've bought a ton of used games.

The color coding of boxes by system type is really helpful. Another suggestion (actually made by my girlfriend) was to not only have the games boxes color coded (which they are in their original form), but perhaps to have some kind of very low lighting behind the shelving for each console section. So, Green lighting behind the xbox games, blue behind the PS3, etc...something ambient, but not too bright or in your face.

We had thought about color coding the shelves themselves, but that seemed to create a 'rainbow wall' which didn't seem very pleasing to the eye. :)
 
[quote name='benjamouth']You still planning to open this month BingBangBoom ?[/QUOTE]

No :/

We do have the ceiling and stuff but we are waiting on the state and township approval aka paperwork. We thought we already had state approval but turns out it was only for the bathroom. So we had to send that out and it is like a 2-3 week process. Then the township will have to look over it and approve it. Luckly, once we can begin working on the stuff, it shouldn't be a big problem. Everything sounds like the process of finishing should be easy and swift.
 
The reason they say that they clean and repackage everything is it is a standard. So that you know that they are cleaned, no matter what. Now I didn't think about the PS3 cases. It is possible that we will keep a hold of the cases and just swap them at purchase per request.

The sticker is actually not stuck to the case. It is folded and slipped inside, so no adhesive. Just the way the case is and the fact that it has extra label paper, makes it so that it stays in place.

The cleaner is actually fairly easy and easier than the alternative. It doesn't require multiple buffs it does cost a bit more but I think that it maybe worth the money from what I have heard.
 
Here is a new picture of the store interior. Just go the ceiling up...

PNTCeiling.jpg


And here is it at night outside. It is might brighter than I thought it would be. Stands out pretty good considering that I won't have any lighted sign above my door.

PNTNight.jpg
 
http://www.salehoo.com/?aff=z3411&type=v...
check this wholesale website link for video games at wholesale.

If I could have my own game store it would be the best. First It would be a two floor building with complete complete modern furniture like tables and chairs. The first floor would be for kid games. The second would be for any other game that is pg-13 to anything else. I would give out coupons for getting games. And also I would have events like gifts for someone. I think that a game store like that would attract many costumers. Also I would ask for an ID for people who want to trade their games. And i wouldn't need a parent with someone who is underage to be able to trade games.
To go into a place like that I would probably pay whatever they asked me for lol.
 
[quote name='ricktor']http://www.salehoo.com/?aff=z3411&type=v...
check this wholesale website link for video games at wholesale.

If I could have my own game store it would be the best. First It would be a two floor building with complete complete modern furniture like tables and chairs. The first floor would be for kid games. The second would be for any other game that is pg-13 to anything else. I would give out coupons for getting games. And also I would have events like gifts for someone. I think that a game store like that would attract many costumers. Also I would ask for an ID for people who want to trade their games. And i wouldn't need a parent with someone who is underage to be able to trade games.
To go into a place like that I would probably pay whatever they asked me for lol.[/QUOTE]

Yeah but something like this more than likely is not financially realistic. Would be more of an arcade if possible, like a more Dave & Busters sort of thing where they sold games too.
 
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