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

Yeah I agree that staffing is a major issue and honestly, just like any other store, there will be some turnover in either getting the best people for the job and keeping those people happy. I feel that treating them with respect and rewarding them for a job done well will keep people happy. Customer service, especially in retail, is hard to learn and typically if you don't understand it in the beginning, you will never get it. I have seen people work for years in a retail store that just don't understand the complete package involved. Having people that know their stuff is good, it depends on how they use it.

I remember when I worked at Toys R Us, people would come in and want to buy a Xbox for their child and was dead set on it. Then I asked them to name 5 games they would buy for their child and when they saw what games were available they were shocked.

It is a case by case bases, you take the features and benefits of each console but not exactly by name. Looking at what they need or want are two different things especially on what they may be using it for. Selling someone a PS3 when they don't need one is not good customer service just because it is new and expensive. Sometimes they may just need a PS2 or a retro system like a N64.
 
Some good news, the Landlord has signed the lease. There is still a bit of paperwork/process that needs to happen before the deal is completely done but this is very good. Right now its just the Small Business Loan with the bank that needs to be processed through the proper channels. That should take a couple of weeks, but it is all looking very good.

I am getting a General Contractor for the build out and hopefully that does not cost too much. I really hope it doesn't because I might be over budget. When I have everything done, I will show what cost went to what so that may help anyone else thinking about opening a store. Its typically the things you don't think of.
 
[quote name='bingbangboom']Some good news, the Landlord has signed the lease. There is still a bit of paperwork/process that needs to happen before the deal is completely done but this is very good. Right now its just the Small Business Loan with the bank that needs to be processed through the proper channels. That should take a couple of weeks, but it is all looking very good.

I am getting a General Contractor for the build out and hopefully that does not cost too much. I really hope it doesn't because I might be over budget. When I have everything done, I will show what cost went to what so that may help anyone else thinking about opening a store. Its typically the things you don't think of.[/quote]

Is there any way you could do a quick rundown anyway? I just got an email today saying they are increasing their franchising fees to $30,000 per store. I'm still thinking about opening a PNT, but it looks like I would need to make my decision by the end of April before the fees go up.
 
[quote name='pinebarrens']Is there any way you could do a quick rundown anyway? I just got an email today saying they are increasing their franchising fees to $30,000 per store. I'm still thinking about opening a PNT, but it looks like I would need to make my decision by the end of April before the fees go up.[/QUOTE]

What exactly rundown would you want? There are many things that factor into the franchise and if it is a right fit for you or not. If you honestly feel your gut is in it to open one, then do it. If not, wait and be prepared on what that means. I would say, if you are just looking into it, wait and get all the information you need first. If you are close to signing, then do it.

I do see a bright future for Play N Trade and if you are looking at it, I'm sure you do too.
 
Don't do this for money, do it out of love for games.

Do the complete opposite of Gamestop. Have reasonable prices for used games; not a dollar and some change less than a new copy.

And if I walk in looking for a game that's come out in the last 6 months I don't want to hear: "Did you preorder it?"
Speaking of pre-ordering is there really something different going on with video games as opposed to every other product industry. Can Gamestop really not return copies of a game that didn't sell the way any other store might do with a book, dvd, or ANYTHING else? Will EA (for example) not exchange for new stock or refund for games that didn't sell at a store? Because I find it hard to believe that it's really necissary to preorder EVERYTHING.
 
[quote name='bingbangboom']Are you located in Utah? I noticed your gamertag.[/quote]
Yeah, I live in Bountiful, Utah. It's sad it closed down. But they didn't give very much for trade in on games. They said they would give me $15 for Final Fantasy VII, so I went to the CD Store down the street and they gave me $45 for it.
 
[quote name='GonzoGamer']Don't do this for money, do it out of love for games.

Do the complete opposite of Gamestop. Have reasonable prices for used games; not a dollar and some change less than a new copy.

And if I walk in looking for a game that's come out in the last 6 months I don't want to hear: "Did you preorder it?"
Speaking of pre-ordering is there really something different going on with video games as opposed to every other product industry. Can Gamestop really not return copies of a game that didn't sell the way any other store might do with a book, dvd, or ANYTHING else? Will EA (for example) not exchange for new stock or refund for games that didn't sell at a store? Because I find it hard to believe that it's really necissary to preorder EVERYTHING.[/QUOTE]

THanks for the comments, first off... you really can't do this just for the love of the games, otherwise you may just be playing games all day. It sounds like a dream job but you have to make it that with good business skills and the love of the games. It is a fine balance you need to find.

As far as pre-ordering, the main reason why it is pushed more and more are a few factors...

1. Pre-ordered games make it easier to order the games. So if you have 200 pre-orders, you know that you will order at least that much, at least for the first day.

2. Typically, with games the cost is pretty high and generally the bulk amount is what you will sell within the first two weeks. So knowing the demand for the game will help you gage the interest for that game and what you may need to order after the games release.

3. Depending on the vendor, you do not really get a credit for a game from the publishers. It really depends on which distribution vendor you use and if they offer that. EA typically does but you still basically take a hit. And it is really up to the publisher to even offer you that, sometimes they don't. So if you order 100 copies of a game and then a month later they get cut in half price, you may get credit you may not but that is still not dollars you can use for other things other then with the vendor.

4. Videogames is a whole other machine vs. the other media we see like movies, music and books. around 98% of all games are not pre-shipped. Some high profile games like Halo 3 and Madden are pre-shipped for their release dates but the majority are not. This causes shipping issues and that old case of a game not coming to your store on the "release day" instead you get it the next day.

5. Another thing is videogame prices tend to drop radically compared to the other media. A movie might be around $20 for 3 or more years. A videogame can drop to almost half it's price in a month or two. CDs typically stay at around $10 since they come out, but videogames go low price pretty quickly. Thats why Gamestop typically has a high selling price for used games because they would not get any credit if that game drops below the price for the trade in. Now typically PNT prices are better than the $5 markdown. I have picked up some good deals that worked with a Buy 2 get 1 free deal... so 3 recent Xbox 360 games cost me around $100.

But again, the way alot of the Gamestops are run is if you do not get a certain amount of pre-orders you get fired, it is simple as that. The difference is to bring it up if someone mentions it as part of conversation. Depending on the game, you can get to know your customers so instead of just asking every person if they want to pre-order Grand Theft Auto IV, even though they might be purchasing Bratz Ponyz... you can see what games they may like and suggest something they will enjoy.
 
[quote name='Bioshocked360']Yeah, I live in Bountiful, Utah. It's sad it closed down. But they didn't give very much for trade in on games. They said they would give me $15 for Final Fantasy VII, so I went to the CD Store down the street and they gave me $45 for it.[/QUOTE]

Yeah, problem with the Utah stores is someone was very ambishes with opening... multiple stores... at the same time. So they had opened all these stores throughout Utah, but couldn't really run them. I heard they sold a few to other people, some of them actual customers, at a very low price. It is unfortunate but these things happen and should serve as a warning to other owners. During my training we had a few people who were planning to open multiple stores without any real retail experience or even experience with running one store.

I do want to open multiple stores, when I am ready and thats how other people should be too. I know of someone who is opening a store but she purchased the rights to three and now doesn't even know if she will open three stores because just getting one open has been alot of work.
 
[quote name='Sleepkyng']what sort of CRM are you using, if you don't mind me asking.[/QUOTE]

I had to look CRM up and I think you mean the sort of software for the POS and database?

It is done with the franchise, custom POS system and I think works pretty well. I have heard issues with the POS system, but I think alot of that has come from the lack of training. After I went to basics training, they showed the system briefly but i remembered a few things. I went to a local store and he didn't know how to take advantage of some features, so I think its really working on learning the system. With any POS system there are always problems and kinks, you just have to learn it.

One nice thing speaking of the system is that they have a custom wishlist built into the membership. So say your looking for Marvel vs. Capcom 2 for PS2. Someone trades it in and you have it on your list, it will actually tell us someone is looking for it, so we can call to see if they want it. If not we will go down the list.

It also keeps tracks of all purchases so we can check to see what type of games they like. Comes in handy for parents who shop for their kids but can't remember what games they like, we can pull up their previous transactions and help them that way.

There are a bunch of little things in there that are pretty cool and they are adding more to it.
 
[quote name='GonzoGamer']

Do the complete opposite of Gamestop. Have reasonable prices for used games; not a dollar and some change less than a new copy.

[/QUOTE]

After seeing their amazing financials last year, I don't know if this is good advice. While the hardcore gamer can laugh at what some "loser" gamestop employee says or hate their low trade-in prices, to the average customer Gamestop is the place to buy videogames. Play N Trade sounds like a solid business, and from reading this thread for months BingBB sounds like he really knows his shit and has a grasp of the work it will take to be successful, and I wish him all the luck in the world.

This is just my opinion, but it seems to me that a lot of people on here think that the hardcore, "elitist" gamer is the one that buys all the games and makes all the calls in this industry. I think hardcore gamers are such a small minority in the gaming world, that we believe everyone we see on these types of boards represent everyone that is out there buying videogames. My guess is that a very large percent of the customer base of Mario Galaxy had no idea who Shigeru Miyamoto is. Again this is just my opinion, and once your store opens, I'm hoping you can better answer some of these types of questions.
 
[quote name='hufferstl']After seeing their amazing financials last year, I don't know if this is good advice. While the hardcore gamer can laugh at what some "loser" gamestop employee says or hate their low trade-in prices, to the average customer Gamestop is the place to buy videogames. Play N Trade sounds like a solid business, and from reading this thread for months BingBB sounds like he really knows his shit and has a grasp of the work it will take to be successful, and I wish him all the luck in the world.

This is just my opinion, but it seems to me that a lot of people on here think that the hardcore, "elitist" gamer is the one that buys all the games and makes all the calls in this industry. I think hardcore gamers are such a small minority in the gaming world, that we believe everyone we see on these types of boards represent everyone that is out there buying videogames. My guess is that a very large percent of the customer base of Mario Galaxy had no idea who Shigeru Miyamoto is. Again this is just my opinion, and once your store opens, I'm hoping you can better answer some of these types of questions.[/QUOTE]

Yeah, this is not just like cattering for the hardcore crowd, you really have to get a mix. But truth is that the majority will not be the hardcore audience because that audience is not that large. It is a mix between hardcore and casual. A very large portion of the audience does not even buy all their games, typically they are gifts or in the cause of younger gamers they have no real other option. So you want to get those parents interested and wanting to come into the store. I honestly don't think you can really compete on price but you can compete on value.

Everyone would love low low prices, but not everyone can be Wal-Mart. It is just the facts especially with opening up. Its quite possible that I might have to keep my prices inline directly for used items with Gamestop.

I talked to someone at corporate about the many store closings I have witnessed and we agreed on a few things. He said while each store is different, typically its that first 6 months that something happens. The main problem is that they do not have enough capital aka money to get the business running.

In the case of one store that I visited in CA, its actually featured in the Halo 3 Midnight Launch video. There were a few things that caused it to closed.

The two biggest factors were the location, when they moved into the spot, the "outdoor lifestyle" mall was only 40% filled. This means the traffic was not really there yet. Especially with a mall, you need that traffic because you are paying a premium on that rent. That was the other factor, the rent was over $8,000 a month. Without the customer flow, it could not really succeed.

Another problem was the type of customer was very high end and they just did not receive many trade ins. Stores cannot survive without getting a constant flow of trade in videogames. Thats where you make your money and there are ways you can go about doing this. The best way is to offer a premium on trade ins to bring people into the store. Bulk trade ins also help, so if you offer "Trade in 10 games and get an extra 40%" it will catch peoples eye.

One other odd choice by the owner was to hire a in-house graphic designer for their items. The franchise provides this at very high quality but the owner did not like what they had to offer. That was another huge expense with little pay off.

It is unfortunate but these things happen so its very important you make the right choices early on. The way the representative said it was the old saying... "you can lead a horse to water" or something... i forgot but basically they can only show you the right way on doing these things but it is up to the owner to take advantage of it.

But again this shows why the franchise may have been very strict on what location they would want for me because they didn't want me to fail. My original "dream" location would have had a very high rent which could have caused it to be ultimately unsuccessful.

There are a few problems with my location and the main one is that it has not been "aged" so I will have to work extra hard on driving people to the location. I believe the tenant mix will help, especially with Rita's Water Ice right next to us and the summer months will allow us to build on that momentum.

When I have the POS system ready to go, I can start accepting trade in videogames. This means I can start building a used inventory before we open. I will be doing some sort of CAG event and building it up so people can come down, trade in their games before we open. All the credit is stored on their membership but we can also do a tournament and such. I am looking for all types of games, including older retro games. You can also set up any pre-orders you may need, especially if you know there is a game coming out and you want your credit to go toward that or just hold on to it.

But again thanks for the comments because I do think it is important because it really is not about just my store, or Play N Trade but the entire industry.
 
Bingandboom,

I'm new to this forum and this was one of the threads that initially interested me. I do wish you well on your endeavors and glad to see another store besides EB and GS open up. Frankly, I used to enjoy going to EB and Gamestop, but over the last few years or so, the stores are just becoming bland. You've been to one, then you more or less know what to expect at the other. I will give credit to Gamecrazy, as they have a much more varied selection, esp old school games and consoles, but I have no idea how much longer they will be around due to Hollywood video closing. I would be more than happy to support a local business, especially a game store. I'm sick of the big box mentality we are coming to and the arrogance and impersonal service it renders.

I'm not what you would consider a "hardcore" gamer, a collector, or anything of the sort. Basically, I love to play games, period. As for my 02 in addition to the numerous excellent suggestions here:

Definitely carry a bit more old school games and items. It seems EB and Gamestop's focus is evolving more and more towards the latest gen consoles only. I remember at one time I could get some really decent retro stuff at the local stores and the website. From what I gather, they are also phasing out original GB games soon.

I remember a poster in the begining of this thread mentioning pricing used items according to condition. I couldn't agree more. Why is a console that's been trashed the same price as one that looks almost 100 times better? Additionally, price used items fairly. Sorry, but I don't know too many people who are going to pay 80-100 bucks for a used original DS when they can get a new Lite for $30-50 more.

I like accessories as much as the next guy, but I hate when something I don't need is being pushed on me. If I want it, then I will get it.

Appearance and orginization. This is crucial, IMO. Nothing turns me off than a junky disorganized store. That also indicates to me that the staff may not care about customer needs and concerns.

A knowledgeable, freindly and respectful staff who love gaming and want to fulfill the customer's needs. Acknowledge the customer when they walk in the door, but on the same token, don't smother them either. Cut the scripted crap and be sincere. If you have to invest some money to send your employees to a customer service workshop, then it will definitely have long term benefits.

I also realize that some customers can be a nightmare to deal with. I have worked in retail and I am a testament to that fact. Respect definitely goes both ways. Also, have a well staffed store. There is nothing more aggravating than to have one person working in a store when it is jam packed with people. EB and GS seem to pull this quite a bit as of late.


I am an older gamer, in my 40s. Please don't assume that I am getting something for my kids. You would be amazed at how many middle age and up people are gaming today. There is a huge hidden and relatively untapped market there.

Make yourself stand out from the competition. Make your store unique and not just a "place" for videogames. Create an inviting place for gamers and not just an "in-n-out" heartless place'. This is what Eb and GS have come to. It's like going to the video store. Not a place you want to spend much time at, but get what you need and get out.

I live in York, so I will definitely visit once you open. I have visited the P&T location in Alexandria, VA when I lived in the DC area and I was impressed.

I know you have had a ton of reponses here, but I wanted to chime in. Sorry for the long post. Again, good luck.


BTW, this is an awesome site and forum. I just found it today by accident!

gil
 
I don't know if you're still taking suggestions but, don't hire people who are douche bags. I got way too much of that vibe whenever I walked in to a gamestop.
 
[quote name='Gil64']Bingandboom,

I'm new to this forum and this was one of the threads that initially interested me. I do wish you well on your endeavors and glad to see another store besides EB and GS open up. Frankly, I used to enjoy going to EB and Gamestop, but over the last few years or so, the stores are just becoming bland. You've been to one, then you more or less know what to expect at the other. I will give credit to Gamecrazy, as they have a much more varied selection, esp old school games and consoles, but I have no idea how much longer they will be around due to Hollywood video closing. I would be more than happy to support a local business, especially a game store. I'm sick of the big box mentality we are coming to and the arrogance and impersonal service it renders.

I'm not what you would consider a "hardcore" gamer, a collector, or anything of the sort. Basically, I love to play games, period. As for my 02 in addition to the numerous excellent suggestions here:

Definitely carry a bit more old school games and items. It seems EB and Gamestop's focus is evolving more and more towards the latest gen consoles only. I remember at one time I could get some really decent retro stuff at the local stores and the website. From what I gather, they are also phasing out original GB games soon.

I remember a poster in the begining of this thread mentioning pricing used items according to condition. I couldn't agree more. Why is a console that's been trashed the same price as one that looks almost 100 times better? Additionally, price used items fairly. Sorry, but I don't know too many people who are going to pay 80-100 bucks for a used original DS when they can get a new Lite for $30-50 more.

I like accessories as much as the next guy, but I hate when something I don't need is being pushed on me. If I want it, then I will get it.

Appearance and orginization. This is crucial, IMO. Nothing turns me off than a junky disorganized store. That also indicates to me that the staff may not care about customer needs and concerns.

A knowledgeable, freindly and respectful staff who love gaming and want to fulfill the customer's needs. Acknowledge the customer when they walk in the door, but on the same token, don't smother them either. Cut the scripted crap and be sincere. If you have to invest some money to send your employees to a customer service workshop, then it will definitely have long term benefits.

I also realize that some customers can be a nightmare to deal with. I have worked in retail and I am a testament to that fact. Respect definitely goes both ways. Also, have a well staffed store. There is nothing more aggravating than to have one person working in a store when it is jam packed with people. EB and GS seem to pull this quite a bit as of late.


I am an older gamer, in my 40s. Please don't assume that I am getting something for my kids. You would be amazed at how many middle age and up people are gaming today. There is a huge hidden and relatively untapped market there.

Make yourself stand out from the competition. Make your store unique and not just a "place" for videogames. Create an inviting place for gamers and not just an "in-n-out" heartless place'. This is what Eb and GS have come to. It's like going to the video store. Not a place you want to spend much time at, but get what you need and get out.

I live in York, so I will definitely visit once you open. I have visited the P&T location in Alexandria, VA when I lived in the DC area and I was impressed.

I know you have had a ton of reponses here, but I wanted to chime in. Sorry for the long post. Again, good luck.


BTW, this is an awesome site and forum. I just found it today by accident!

gil[/QUOTE]

Thanks for your comments and it was not too long. I really appreciate the thought behind it because you seem to understand why this is more than just hardcore games. You may infact be the target audience. It is just like when women go to shop for games themselves, and get asked what games their boyfriends or husbands like.

I don't think customer service is or should be a scripted method, it is much more organic. There are so many possibilities that may and could happen with customers. One thing that I will appreciate is that it will be my store. Typically I have been restrained by the rules and operations of any company I have worked for. There have been many times that I wanted to take care of a customer but couldn't because of the rules. Well I would make my own rules. There have also been cases of the exact opposite where a customer may be threatening me and wanting to go to a supervisor withing the company. I won't have that problem considering I am the owner. It is a fine line.

I do also think that fundamentally I want to establish that my store and Play N Trade, is very much different than any competitor around. The layout and just way we go about thinking is different than other stores. The layout adds to the experience instead of hampering it, but I know from past retail stores that having a cool looking store is not enough. I remember a store called Another Universe that was a cool pop comic book store in the mall. Was very cool and had all sorts of stuff, but by the time I felt like going back there it was already closed.

Making people come back is what will be very important and spreading that word of mouth. We do thinks different, we carry old retro games and systems. You can play the game first. It is trying to be the most inviting experience not just for you but your entire family. So your wife may not be a gamer, she may still enjoy coming to the store.
 
[quote name='XxFuRy2Xx']I don't know if you're still taking suggestions but, don't hire people who are douche bags. I got way too much of that vibe whenever I walked in to a gamestop.[/QUOTE]

Part of the standard drug test will include douche bag testing.
 
Bingandboom,

I'm new to this forum and this was one of the threads that initially interested me. I do wish you well on your endeavors and glad to see another store besides EB and GS open up. Frankly, I used to enjoy going to EB and Gamestop, but over the last few years or so, the stores are just becoming bland. You've been to one, then you more or less know what to expect at the other. I will give credit to Gamecrazy, as they have a much more varied selection, esp old school games and consoles, but I have no idea how much longer they will be around due to Hollywood video closing. I would be more than happy to support a local business, especially a game store. I'm sick of the big box mentality we are coming to and the arrogance and impersonal service it renders.

I'm not what you would consider a "hardcore" gamer, a collector, or anything of the sort. Basically, I love to play games, period. As for my 02 in addition to the numerous excellent suggestions here:

Definitely carry a bit more old school games and items. It seems EB and Gamestop's focus is evolving more and more towards the latest gen consoles only. I remember at one time I could get some really decent retro stuff at the local stores and the website. From what I gather, they are also phasing out original GB games soon.

I remember a poster in the begining of this thread mentioning pricing used items according to condition. I couldn't agree more. Why is a console that's been trashed the same price as one that looks almost 100 times better? Additionally, price used items fairly. Sorry, but I don't know too many people who are going to pay 80-100 bucks for a used original DS when they can get a new Lite for $30-50 more.

I like accessories as much as the next guy, but I hate when something I don't need is being pushed on me. If I want it, then I will get it.

Appearance and orginization. This is crucial, IMO. Nothing turns me off than a junky disorganized store. That also indicates to me that the staff may not care about customer needs and concerns.

A knowledgeable, freindly and respectful staff who love gaming and want to fulfill the customer's needs. Acknowledge the customer when they walk in the door, but on the same token, don't smother them either. Cut the scripted crap and be sincere. If you have to invest some money to send your employees to a customer service workshop, then it will definitely have long term benefits.

I also realize that some customers can be a nightmare to deal with. I have worked in retail and I am a testament to that fact. Respect definitely goes both ways. Also, have a well staffed store. There is nothing more aggravating than to have one person working in a store when it is jam packed with people. EB and GS seem to pull this quite a bit as of late.


I am an older gamer, in my 40s. Please don't assume that I am getting something for my kids. You would be amazed at how many middle age and up people are gaming today. There is a huge hidden and relatively untapped market there.

Make yourself stand out from the competition. Make your store unique and not just a "place" for videogames. Create an inviting place for gamers and not just an "in-n-out" heartless place'. This is what Eb and GS have come to. It's like going to the video store. Not a place you want to spend much time at, but get what you need and get out.

I live in York, so I will definitely visit once you open. I have visited the P&T location in Alexandria, VA when I lived in the DC area and I was impressed.

I know you have had a ton of reponses here, but I wanted to chime in. Sorry for the long post. Again, good luck.


BTW, this is an awesome site and forum. I just found it today by accident!

gil
 
I don't know if you're still taking suggestions but, don't hire people who are douche bags. I got way too much of that vibe whenever I walked in to a gamestop.
 
[quote name='Gil64']Bingandboom,

I'm new to this forum and this was one of the threads that initially interested me. I do wish you well on your endeavors and glad to see another store besides EB and GS open up. Frankly, I used to enjoy going to EB and Gamestop, but over the last few years or so, the stores are just becoming bland. You've been to one, then you more or less know what to expect at the other. I will give credit to Gamecrazy, as they have a much more varied selection, esp old school games and consoles, but I have no idea how much longer they will be around due to Hollywood video closing. I would be more than happy to support a local business, especially a game store. I'm sick of the big box mentality we are coming to and the arrogance and impersonal service it renders.

I'm not what you would consider a "hardcore" gamer, a collector, or anything of the sort. Basically, I love to play games, period. As for my 02 in addition to the numerous excellent suggestions here:

Definitely carry a bit more old school games and items. It seems EB and Gamestop's focus is evolving more and more towards the latest gen consoles only. I remember at one time I could get some really decent retro stuff at the local stores and the website. From what I gather, they are also phasing out original GB games soon.

I remember a poster in the begining of this thread mentioning pricing used items according to condition. I couldn't agree more. Why is a console that's been trashed the same price as one that looks almost 100 times better? Additionally, price used items fairly. Sorry, but I don't know too many people who are going to pay 80-100 bucks for a used original DS when they can get a new Lite for $30-50 more.

I like accessories as much as the next guy, but I hate when something I don't need is being pushed on me. If I want it, then I will get it.

Appearance and orginization. This is crucial, IMO. Nothing turns me off than a junky disorganized store. That also indicates to me that the staff may not care about customer needs and concerns.

A knowledgeable, freindly and respectful staff who love gaming and want to fulfill the customer's needs. Acknowledge the customer when they walk in the door, but on the same token, don't smother them either. Cut the scripted crap and be sincere. If you have to invest some money to send your employees to a customer service workshop, then it will definitely have long term benefits.

I also realize that some customers can be a nightmare to deal with. I have worked in retail and I am a testament to that fact. Respect definitely goes both ways. Also, have a well staffed store. There is nothing more aggravating than to have one person working in a store when it is jam packed with people. EB and GS seem to pull this quite a bit as of late.


I am an older gamer, in my 40s. Please don't assume that I am getting something for my kids. You would be amazed at how many middle age and up people are gaming today. There is a huge hidden and relatively untapped market there.

Make yourself stand out from the competition. Make your store unique and not just a "place" for videogames. Create an inviting place for gamers and not just an "in-n-out" heartless place'. This is what Eb and GS have come to. It's like going to the video store. Not a place you want to spend much time at, but get what you need and get out.

I live in York, so I will definitely visit once you open. I have visited the P&T location in Alexandria, VA when I lived in the DC area and I was impressed.

I know you have had a ton of reponses here, but I wanted to chime in. Sorry for the long post. Again, good luck.


BTW, this is an awesome site and forum. I just found it today by accident!

gil[/QUOTE]

Thanks for your comments and it was not too long. I really appreciate the thought behind it because you seem to understand why this is more than just hardcore games. You may infact be the target audience. It is just like when women go to shop for games themselves, and get asked what games their boyfriends or husbands like.

I don't think customer service is or should be a scripted method, it is much more organic. There are so many possibilities that may and could happen with customers. One thing that I will appreciate is that it will be my store. Typically I have been restrained by the rules and operations of any company I have worked for. There have been many times that I wanted to take care of a customer but couldn't because of the rules. Well I would make my own rules. There have also been cases of the exact opposite where a customer may be threatening me and wanting to go to a supervisor withing the company. I won't have that problem considering I am the owner. It is a fine line.

I do also think that fundamentally I want to establish that my store and Play N Trade, is very much different than any competitor around. The layout and just way we go about thinking is different than other stores. The layout adds to the experience instead of hampering it, but I know from past retail stores that having a cool looking store is not enough. I remember a store called Another Universe that was a cool pop comic book store in the mall. Was very cool and had all sorts of stuff, but by the time I felt like going back there it was already closed.

Making people come back is what will be very important and spreading that word of mouth. We do thinks different, we carry old retro games and systems. You can play the game first. It is trying to be the most inviting experience not just for you but your entire family. So your wife may not be a gamer, she may still enjoy coming to the store.
 
[quote name='XxFuRy2Xx']I don't know if you're still taking suggestions but, don't hire people who are douche bags. I got way too much of that vibe whenever I walked in to a gamestop.[/QUOTE]

Part of the standard drug test will include douche bag testing.
 
Bingandboom,

Thanks for your response. I believe you will do very well. You seem to know the industry well, and that's also crucial. Also given the fact that you won't have to work within the strict parameters of a huge comapny, that will definitely be a plus. I also want to clarify that not everyone who works at EB or GS is bad. I've met some really cool people there, but over time, they have become disillusioned at the path that the new company is taking.
 
Bingandboom,

Thanks for your response. I believe you will do very well. You seem to know the industry well, and that's also crucial. Also given the fact that you won't have to work within the strict parameters of a huge comapny, that will definitely be a plus. I also want to clarify that not everyone who works at EB or GS is bad. I've met some really cool people there, but over time, they have become disillusioned at the path that the new company is taking.
 
[quote name='bingbangboom']Unfortunatly I cannot change the wall colors, it is a PNT standard but one of the reasons the walls are black is to cut down on glare on the TVs so when you play it won't be hard to see. Another reason is so that the product tends to stand out more, your eyes don't really look at the paint but instead they look at the actual product. It is alot better than their original stores that had the purple/orange/yellow color scheme.

The stores are also marketed not just to kids but parents and older gamers, they did alot of focus testing and stuff with the layout. But, no porn in here lol[/quote]

I know its not really your choice, but product stands out more on gray than black. I've known a few people who own their own stores and they made a point to get gray slot wall.

My old store was a Microplay, we were yellow and black and I hated it.

I also wish you luck with your store/venture. Franchises can suck, and I don't know about PnT, but I certainly hope you can carve out a niche in this Gamestop world.
 
I have written a lot here but just one other tip, do not excessively sticker games. Gamestop has like 5 stickers on each game, and please, do not put stickers on the cover inserts of games (gamestop has been doing this as of late). We want to play our games and we don't want to have to sit with a bottle of goo gone for 30 min just to be able to get our games sticker free and clean. The gamestops here are not bad, but its the little things they do like this that annoy me and make me want to shop on amazon or ebay instead. They honestly have some really good employees working at gamestop here but they are governed by the corporate world, I am sure they would like to go above and beyond but because of the rules they cannot, therefore they have become the disallusioned gamestop employees we all know and love. Seriously, if I was in your area I would make it a point to patronize your store.

I have always been treated fairly in gamestop, but it does seem that most gamestops here are out to take parents for all they are worth (as are most retail stores here, thank god I don't have kids), so they are probably treating the 40 year old man who is buying games for himself like he is buying games for his kid, which would mean lots of upsells, preorder requests and other corporate mandates. There are also many 40 year old men who SAY they are buying games for their kids, but are really buying games for themselves (god forbid they get caught playing these childish video games without hiding behind their kids!), this seems to be the norm around here, and every time I try to talk to someone older about games, they hide right behind their kids because they don't want to admit they play games.
 
[quote name='mike.m']I know its not really your choice, but product stands out more on gray than black. I've known a few people who own their own stores and they made a point to get gray slot wall.

My old store was a Microplay, we were yellow and black and I hated it.

I also wish you luck with your store/venture. Franchises can suck, and I don't know about PnT, but I certainly hope you can carve out a niche in this Gamestop world.[/QUOTE]

There have been a few variations but I don't think it will be anything too dramatic and I don't think the colors from black to grey will change it up that much. I would even imagine that down the road they may even have another redesign but this one can last for a long time.
 
[quote name='Gil64']
I remember a poster in the begining of this thread mentioning pricing used items according to condition. I couldn't agree more. Why is a console that's been trashed the same price as one that looks almost 100 times better? Additionally, price used items fairly. Sorry, but I don't know too many people who are going to pay 80-100 bucks for a used original DS when they can get a new Lite for $30-50 more.
[/quote]

You have to start understanding the middle class here in the US. I know of a lot of people who buy used games to even save $5. Not everyone that loves video games has the money to buy them. Sometimes they want to treat themselves and if they can get a used DS for $50 less, that's a lot to them.
 
[quote name='SaraAB']I have written a lot here but just one other tip, do not excessively sticker games. Gamestop has like 5 stickers on each game, and please, do not put stickers on the cover inserts of games (gamestop has been doing this as of late). We want to play our games and we don't want to have to sit with a bottle of goo gone for 30 min just to be able to get our games sticker free and clean. The gamestops here are not bad, but its the little things they do like this that annoy me and make me want to shop on amazon or ebay instead. They honestly have some really good employees working at gamestop here but they are governed by the corporate world, I am sure they would like to go above and beyond but because of the rules they cannot, therefore they have become the disallusioned gamestop employees we all know and love. Seriously, if I was in your area I would make it a point to patronize your store.

I have always been treated fairly in gamestop, but it does seem that most gamestops here are out to take parents for all they are worth (as are most retail stores here, thank god I don't have kids), so they are probably treating the 40 year old man who is buying games for himself like he is buying games for his kid, which would mean lots of upsells, preorder requests and other corporate mandates. There are also many 40 year old men who SAY they are buying games for their kids, but are really buying games for themselves (god forbid they get caught playing these childish video games without hiding behind their kids!), this seems to be the norm around here, and every time I try to talk to someone older about games, they hide right behind their kids because they don't want to admit they play games.[/QUOTE]

I agree, there are many employees at Gamestop that are actually very good. Heck, there have been former employees that end up buying PNT stores. But just like any retail store, they just get tired and beaten down because they didn't sell enough pre-orders or other odds and ends. Typically they are very young and don't have much retail experience and instead are hired for their videogame experience.

Thats why you tend to see the mangers to be older, odd thing is sometimes I see the Managers rotate from store to store. Don't know if this is a new strategy or not.

But with Gamestop and Play N Trade, you are trying to be successful and there are things you need to do to be successful. Its the means about getting that way that may be different. But the way the business breaks down...

1. Trade ins/Used Games
2. Pre-Orders
3. Memberships
4. Accessories

Thats what you make your money on and is why you typically see all of these work together in some faction. I have actually pushed to try to get a magazine for the PNT membership. Magazines really though, they can be almost free because they don't make money on selling the mag, its all about the advertisements. So the higher the subscriber base, the more money the mags can charge for ads.

I did forward information about EGM/1UP to the founder as it may be something we would want to look to as to build the brand of Play N Trade. But the other end is that it is too much of a risk and a large chunk of money that would have to be used to buy that up. Maybe down the road if they are not purchased, but I think it would help alot.

But back to the other stuff, they are told to ask because as much as you hate it, being asked repeatedly... it actually works. They wouldn't do it if it didn't work. Its just like how McDonald's ask if you want fries with that... the sales of fries did go up. So if you ask enough people your sales will go up. I think the difference is not to ask but to inform the customer. They appreciate that better.

If you ask "Do you have a membership?" vs. "I see your purchasing alot of games, we have a special membership that would save you money today and for the the whole year" they may be more adpt to listen to the second because you are informing them of value and savings.
 
[quote name='DarkRider23']You have to start understanding the middle class here in the US. I know of a lot of people who buy used games to even save $5. Not everyone that loves video games has the money to buy them. Sometimes they want to treat themselves and if they can get a used DS for $50 less, that's a lot to them.[/QUOTE]

I agree but it is about offering options. Especially when it comes to kids and families, they are not shopping for one child but many. So having something affordable allowing them more value is something they appreciate. So while a brand new handheld may only be $30... that extra $30 may get them a game and a case.

For families, they know that most of the games get beat up so having it used is not a big issue because the new one might look the same by the end of the day.
 
Hi bingbangboom,

I am thinking about opening up a PNT store in Michigan and I wanted to know if you could share some lessons learned from your experience in the past year or so with PNT. I have some thoughts and questions that I have gathered from reading this excellent thread, but please feel free to add your own:

1) Seems like location was a big setback for you. Can you share your thoughts on how to make the process smoothers - I know you mentioned scouting locations BEFORE signing the lease - can you share the PNT criteria for locations with me?

2) Seems like you paid more for your real estate lawyer than you had intended. What would you say one should budget for a real estate lawyer?

3) I have drafted 95% of my business plan. If I share the financial projections with you, would you be able to validate them with me and possibly share your business plan with me as well so that I can see if my plan is worthy of getting the nod from the bank?


4) PNT recommends $10k in initial marketing. Is that enough for you to get the word out and make an impact or would you recommend more? Also, what forms of marketing did or did not work for you?

5) Anything else that you can think of that you would do differently if you could start over? What was most time consuming? What was much harder than you thought it would be? Where could the franchise do a better job?

Please share your thoughts with me - I have researched them for a year, I've run the numbers over and over now based on what other stores have told me and what the franchise has told me, I'm at the stage where I want to apply for a bank loan, but before I go thru that process, before I think about signing the lease, I want to make sure I have all my bases covered so that when I move forward, I can try and minimize (to a certain extent), the setbacks.

Any ideas or tips would be greatly appreciated.

Thanks,
MichiganGamer
 
[quote name='MichiganGamer']Hi bingbangboom,

I am thinking about opening up a PNT store in Michigan and I wanted to know if you could share some lessons learned from your experience in the past year or so with PNT. I have some thoughts and questions that I have gathered from reading this excellent thread, but please feel free to add your own:

1) Seems like location was a big setback for you. Can you share your thoughts on how to make the process smoothers - I know you mentioned scouting locations BEFORE signing the lease - can you share the PNT criteria for locations with me?

2) Seems like you paid more for your real estate lawyer than you had intended. What would you say one should budget for a real estate lawyer?

3) I have drafted 95% of my business plan. If I share the financial projections with you, would you be able to validate them with me and possibly share your business plan with me as well so that I can see if my plan is worthy of getting the nod from the bank?


4) PNT recommends $10k in initial marketing. Is that enough for you to get the word out and make an impact or would you recommend more? Also, what forms of marketing did or did not work for you?

5) Anything else that you can think of that you would do differently if you could start over? What was most time consuming? What was much harder than you thought it would be? Where could the franchise do a better job?

Please share your thoughts with me - I have researched them for a year, I've run the numbers over and over now based on what other stores have told me and what the franchise has told me, I'm at the stage where I want to apply for a bank loan, but before I go thru that process, before I think about signing the lease, I want to make sure I have all my bases covered so that when I move forward, I can try and minimize (to a certain extent), the setbacks.

Any ideas or tips would be greatly appreciated.

Thanks,
MichiganGamer[/QUOTE]

Sure, here are a few things I might be able to help you with...

1. PNT has recently restructured its corporate staff so the VP of Real Estate that I dealt with is no longer there. Instead they have two people to move the process along better. They should be looking at the same thing.

Visibility - They really would prefer if you can look into your store from the street. The main reason for this is because you have a unique store. Not many people know what a PNT is, so having that ability of letting people drive past a store with a bunch of TV's and a cool look. It helps. Also for promoting and tournaments, it helps to generate additional traffic. Say you are doing a midnight launch for a major game, people see a line outside your store, they might come check it out.

Neighboring Tenants - Basically the stores around you, if they are in the same shopping center or even in your area. There are pros and cons with any store but you want more pros. Things that are family friendly like karate or dance studios, schools, ice cream shops. Also fast food work too. Small electronic shops like Radio Shack and Cellular stores. Movie theaters do help also. Stuff you want to stay away from are things that may not help your businesses like doctor offices, real estate offices, dollar stores, quick cash loan stores, liquire and cigarette outlets. Also nothing adult related like porn shops or exotic dancing.

Demographics - You want to find a nice middle ground area. If you go somewhere that is too poor or too rich, it will hurt you. Trade ins are where you make the most money and thus being the most successful.

I recommend not confining yourself too much to a certain area, explore more than what you think and don't try to think about how far it takes to get there because you want to be successful not just a quick drive to work. Also you want to meet their guidelines which is 1200 - 1600 sq ft. I wouldn't even bother with anything else because it will just slow you down.

2. Yeah budget for one, you can ask your real estate broker how much one may cost.

3. Yeah I can review it, but I havn't opened a store yet so it is really hard for me to say what is good or bad when it comes to the financials but I can help with the plan itself.

4. I don't know about $10,000 for initial marketing, but it depends on what you want to do. I know they want at least $2,000 a month when you are opened and $5,000 for your grand opening budget which is not your pre-opening budget, thats for the big event about a few months after you open. There are a number of things you can do, once I get the key and loan money, I will be getting a new car (need one anyway) and a car wrap. They actually recommend more underground marketing like flyers and things like that. They do have an advertising broker firm that can help you to figure out what to do with radio, tv and print advertising. You want return on investment, it is something that goes with advertising. So, paying like $5000 for a commercial on tv that might not really get a direct impression on someone is not as positive as say using that $5000 on t-shirts and swag to give people along with giftcards. That will keep your branding going and get people into the store.

5. Well the location hunt took the longest, I would have got a good Real Estate Broker ASAP and look beyond where you think. Also go aggressively and look for locations to give your broker. Keep up with this. The franchise is trying to make the real estate stuff better but still, do what you need to do. I think the franchise could help with the pre-opening stuff better and planning. The business plan they help you with a joke. Also have more money then you think you need. Raise your capital by $20,000 - $50,000 then you think you need. This will releave some stress that may hit you once you find various things you will have to pay for. That will help you focus on your store getting up and running.

If you have not gotten a SCORE counselor yet, get one. It is free and will help you out a ton.

Also know this is a big commitment and will take more time then you think.

Hope that helps.
 
I haven't read much of what has been posted but I wanted to say it is great if you cater to more hardcore gamers, however, most of the money is in casual gamers so don't forget to do things that will bring nonCAGs to a store like yours over Gamestop. Just my two cents - I dunno if something along these lines have already been said.
 
[quote name='Green Card200']I haven't read much of what has been posted but I wanted to say it is great if you cater to more hardcore gamers, however, most of the money is in casual gamers so don't forget to do things that will bring nonCAGs to a store like yours over Gamestop. Just my two cents - I dunno if something along these lines have already been said.[/QUOTE]

You can't have a store just for hardcore gamers or casual gamers. These are terms that cause so much problems with the industry because they are not exact labels. Do you consider someone to be a casual gamer if they play only solitare or if they only have a DS but own all the brain training games including things like Professor Layton and the Curious Village? Is someone exactly a hardcore gamer cause they only play Call of Duty 4, Halo 3 and GTA? Or is a hardcore gamer one that plays titles not really in the mainstream such as imports or something like Ikrauga.

So you may not be as hardcore as you though? But you have to cater to a wide audience and I believe Play N Trade does that. Having local tournaments is something that more avid gamers may love as it gets them out to compete against others. The ability to try games for the first time is something that a novice gamer may enjoy.
 
[quote name='bingbangboom']Sure, here are a few things I might be able to help you with...

1. PNT has recently restructured its corporate staff so the VP of Real Estate that I dealt with is no longer there. Instead they have two people to move the process along better. They should be looking at the same thing.

Visibility - They really would prefer if you can look into your store from the street. The main reason for this is because you have a unique store. Not many people know what a PNT is, so having that ability of letting people drive past a store with a bunch of TV's and a cool look. It helps. Also for promoting and tournaments, it helps to generate additional traffic. Say you are doing a midnight launch for a major game, people see a line outside your store, they might come check it out.

Neighboring Tenants - Basically the stores around you, if they are in the same shopping center or even in your area. There are pros and cons with any store but you want more pros. Things that are family friendly like karate or dance studios, schools, ice cream shops. Also fast food work too. Small electronic shops like Radio Shack and Cellular stores. Movie theaters do help also. Stuff you want to stay away from are things that may not help your businesses like doctor offices, real estate offices, dollar stores, quick cash loan stores, liquire and cigarette outlets. Also nothing adult related like porn shops or exotic dancing.

Demographics - You want to find a nice middle ground area. If you go somewhere that is too poor or too rich, it will hurt you. Trade ins are where you make the most money and thus being the most successful.

I recommend not confining yourself too much to a certain area, explore more than what you think and don't try to think about how far it takes to get there because you want to be successful not just a quick drive to work. Also you want to meet their guidelines which is 1200 - 1600 sq ft. I wouldn't even bother with anything else because it will just slow you down.

2. Yeah budget for one, you can ask your real estate broker how much one may cost.

3. Yeah I can review it, but I havn't opened a store yet so it is really hard for me to say what is good or bad when it comes to the financials but I can help with the plan itself.

4. I don't know about $10,000 for initial marketing, but it depends on what you want to do. I know they want at least $2,000 a month when you are opened and $5,000 for your grand opening budget which is not your pre-opening budget, thats for the big event about a few months after you open. There are a number of things you can do, once I get the key and loan money, I will be getting a new car (need one anyway) and a car wrap. They actually recommend more underground marketing like flyers and things like that. They do have an advertising broker firm that can help you to figure out what to do with radio, tv and print advertising. You want return on investment, it is something that goes with advertising. So, paying like $5000 for a commercial on tv that might not really get a direct impression on someone is not as positive as say using that $5000 on t-shirts and swag to give people along with giftcards. That will keep your branding going and get people into the store.

5. Well the location hunt took the longest, I would have got a good Real Estate Broker ASAP and look beyond where you think. Also go aggressively and look for locations to give your broker. Keep up with this. The franchise is trying to make the real estate stuff better but still, do what you need to do. I think the franchise could help with the pre-opening stuff better and planning. The business plan they help you with a joke. Also have more money then you think you need. Raise your capital by $20,000 - $50,000 then you think you need. This will releave some stress that may hit you once you find various things you will have to pay for. That will help you focus on your store getting up and running.

If you have not gotten a SCORE counselor yet, get one. It is free and will help you out a ton.

Also know this is a big commitment and will take more time then you think.

Hope that helps.[/quote]

Thanks for the response.

I read somewhere that you budgeted about $160k. Maybe I thought I read that, not sure...but my budget is more like $200k with about $50k in operating capital for 6 months, along with $15k in advertising. Is that a reasonable startup expense estimate?

Also, if you happen to have info on any of the following, would you mind sharing them with me:

1) documents that outline PNT location requirements (I know that you talked about this above, but any actual docs that they give out to you?)

2) tips and tricks to negotiate with landlord - were you able to bring him/her down on their $/sq ft (including CAM)? Were they willing to give you a few months of free rent to get you going? Anything that you learned along the way (you had mentioned that they sometimes used you as leverage, etc)

3) anything that you did to make the loan process with the bank easier for you?

Now that the loan is approved and you have the location, how has the support from the franchise been so far?
 
[quote name='bingbangboom']

Also know this is a big commitment and will take more time then you think.

Hope that helps.[/quote]


Do you have a full time job or are you devoting all your time and energy to get this going? How much of your time do you think you spent on average on PNT related issues since you have had your bank loan approved and found the location?
 
[quote name='MichiganGamer']Thanks for the response.

I read somewhere that you budgeted about $160k. Maybe I thought I read that, not sure...but my budget is more like $200k with about $50k in operating capital for 6 months, along with $15k in advertising. Is that a reasonable startup expense estimate?

Also, if you happen to have info on any of the following, would you mind sharing them with me:

1) documents that outline PNT location requirements (I know that you talked about this above, but any actual docs that they give out to you?)

2) tips and tricks to negotiate with landlord - were you able to bring him/her down on their $/sq ft (including CAM)? Were they willing to give you a few months of free rent to get you going? Anything that you learned along the way (you had mentioned that they sometimes used you as leverage, etc)

3) anything that you did to make the loan process with the bank easier for you?

Now that the loan is approved and you have the location, how has the support from the franchise been so far?[/QUOTE]

Well I can't give you any documents but it basically is what I told you. No real tips or tricks, just find a good real estate broker and let him handle it. You don't know what that area is so no point in trying to negotiate something that you have no idea about. We got two months free for getting the store built. Just be aggressive in finding a location and keep looking, but keep your ideal location in mind. Meaning don't settle, you want to be successful and your location may make or break that.

Send me your business plan and I can see if I can help out with it with some feedback on what my SCORE consoler told me. If you havn't got a SCORE counselor then get one. Your financial planning will depend on various factors including where you are going to be. It is hard to say what really your cost will be until you go through a store and seeing what stuff cost. You are prob a little higher than normal at $200k though.

You can email me at [email protected] or just PM me. Right now I do have a full time job but about a month before we are ready to open I will move over to working on my store full time and getting it ready. It depends how much work I will need to do before the store is open because the income coming in will stop basically when you open, so keeping a job as far as you can is good. But you also have to see where your commitments are.
 
I just noticed this news story on Joystiq

http://www.joystiq.com/2008/04/09/gamer-doc-new-retail-franchise-targets-gamestop-with-themed-sto/

Basically it is a similar concept to Play N Trade... so similar that the president is actually a former employee of PNT, he was incharge of getting people to sign on to the franchise. I also notice the public relations person was with PNT too. Sort of strange, but even stranger is the concept.

It is basically your standard PNT or Gamestop store, but with a theme. There are three...

- Battlezone: To give it a "FPS" feel.
- Spaceship: Sci-Fi feel (Borg).
- Cartoon: Cartoon feel.

Now, I am not trying to knock their idea but I do see something very odd with this idea. With all of them, you will be basically pushing away one group of customers. Something too cartoony will keep away hardcore gamers and something too "FPS" will keep away families. Another thing is that you don't really know whom your customers are so you may pick the wrong store type. In addition, having three different themes don't really unite the franchise together, especially if one theme may not be chosen as much.

But there is the link, what do you think?
 
We are closer to getting the loan money finally. We have a signed leased, business insurance and should have enough to cover our end of the cash. Hopefully we get the money next week and can really move forward.

I also did get a pretty much final quote from the fixture company that includes all the store fixtures, computer equipment, tvs and signage. It is over $52,000, so thats alot of money and hopefully I did budget it out correctly. I went with the more expensive packages for these things because I feel over time it will look better and hold up. Also there is more of a wow factor.

This includes 32" TVs for all the game stations and a 46" TV for behind the cash wrap. I also got lighted indoor signs that go behind and infront of the cashwrap. We can't have a lighted sign on our store front, so hopefully this helps a little bit.

I still need to get a very good drawer system (black) for cataloging all of the videogames. I have looked at IKEA but eh, I will have to go down there to see if anything catches my eye. It would be similar to what Gamestop uses behind their cash register.

So if anyone knows where to get one, that would be great.
 
[quote name='MichiganGamer']2) tips and tricks to negotiate with landlord - were you able to bring him/her down on their $/sq ft (including CAM)? Were they willing to give you a few months of free rent to get you going? Anything that you learned along the way (you had mentioned that they sometimes used you as leverage, etc)[/QUOTE]
I apologize if I step out of line here and not give you exactly pertinent advice, but I thought sharing my experience here might be helpful.

I found a location for my internet cafe (back in the day) that was heavily trafficked by my main demographic. The area was on the edge of the ghetto, but closer to 'good' than 'bad'. Two of the three spaces in this strip mall were empty, and the building itself was in disrepair (needed paint, a decent landscaper, etc.). After trying multiple times to find the owner and being rebuffed by the single occupier (who was using the "see, nobody wants to rent here, you should give me cheap rent' argument), I finally found him. It turned out he lived on the other side of the country and had no idea what his strip center looked like. After pricing a landscaping and painting service, I went to the owner with a full blown plan, essentially agreeing to maintain the building aesthetics (no heavy lifting, just what I mentioned) in exchange for cheap rent. REALLY CHEAP RENT. I built the proposal on the premise that:

1. His property value would increase significantly.
2. He would almost certainly get a new tenant in th 3rd spot if I cleaned up the place (and to build in risk so he felt taken care of, put it in the contract that my rent would increase if no tenant was found in nine months).
3. I would handle the on the ground issues.

I got the right to transfer my lease and signed a 10 year lease. It was risky for both of us because I was taking on significant responsibilities outside my sphere of knowledge and he was trusting a 22 year old with the keys to the kingdom, but it worked out. As expected, a cell phone seller jumped in less than two months after I cleaned the place up.

When I sold my place two years later, my own financials came out to about a push (I made money above my investment and paying myself a meager salary, but it was trivial). Where I scored a ton of money was in 'selling' my lease. Two years on, the area was much better and my building was in the most attractive spot in the general area. When it was all said and done, I essentially (and not directly intentionally anyway) ended up a real estate farmer.

Just something to think about. Really whack ideas can really work out.

One last tip because I can't help myself. A lawyer and an accountant are must haves from the very beginning. The best ones don't advertise and aren't particularly interested in your business since they don't need/want new clients. Those are the ones you should be looking for. They shouldn't just be help, they should be a part of your team, your inner circle.
 
[quote name='speedracer']I apologize if I step out of line here and not give you exactly pertinent advice, but I thought sharing my experience here might be helpful.

I found a location for my internet cafe (back in the day) that was heavily trafficked by my main demographic. The area was on the edge of the ghetto, but closer to 'good' than 'bad'. Two of the three spaces in this strip mall were empty, and the building itself was in disrepair (needed paint, a decent landscaper, etc.). After trying multiple times to find the owner and being rebuffed by the single occupier (who was using the "see, nobody wants to rent here, you should give me cheap rent' argument), I finally found him. It turned out he lived on the other side of the country and had no idea what his strip center looked like. After pricing a landscaping and painting service, I went to the owner with a full blown plan, essentially agreeing to maintain the building aesthetics (no heavy lifting, just what I mentioned) in exchange for cheap rent. REALLY CHEAP RENT. I built the proposal on the premise that:

1. His property value would increase significantly.
2. He would almost certainly get a new tenant in th 3rd spot if I cleaned up the place (and to build in risk so he felt taken care of, put it in the contract that my rent would increase if no tenant was found in nine months).
3. I would handle the on the ground issues.

I got the right to transfer my lease and signed a 10 year lease. It was risky for both of us because I was taking on significant responsibilities outside my sphere of knowledge and he was trusting a 22 year old with the keys to the kingdom, but it worked out. As expected, a cell phone seller jumped in less than two months after I cleaned the place up.

When I sold my place two years later, my own financials came out to about a push (I made money above my investment and paying myself a meager salary, but it was trivial). Where I scored a ton of money was in 'selling' my lease. Two years on, the area was much better and my building was in the most attractive spot in the general area. When it was all said and done, I essentially (and not directly intentionally anyway) ended up a real estate farmer.

Just something to think about. Really whack ideas can really work out.

One last tip because I can't help myself. A lawyer and an accountant are must haves from the very beginning. The best ones don't advertise and aren't particularly interested in your business since they don't need/want new clients. Those are the ones you should be looking for. They shouldn't just be help, they should be a part of your team, your inner circle.[/QUOTE]

Interesting story, shows how you can start in one spot and end up someone totally different and still be successful.
 
[quote name='MichiganGamer']Thanks for the response.

I read somewhere that you budgeted about $160k. Maybe I thought I read that, not sure...but my budget is more like $200k with about $50k in operating capital for 6 months, along with $15k in advertising. Is that a reasonable startup expense estimate?

Also, if you happen to have info on any of the following, would you mind sharing them with me:

1) documents that outline PNT location requirements (I know that you talked about this above, but any actual docs that they give out to you?)

2) tips and tricks to negotiate with landlord - were you able to bring him/her down on their $/sq ft (including CAM)? Were they willing to give you a few months of free rent to get you going? Anything that you learned along the way (you had mentioned that they sometimes used you as leverage, etc)

3) anything that you did to make the loan process with the bank easier for you?

Now that the loan is approved and you have the location, how has the support from the franchise been so far?[/quote]


Im also a PnT franchisee, im a little behind bing in the process, waiting for my
quote for my fixtures and I sign my lease next week, but ill give you my 2 cents.

Depending on the real estate in your area, I would do 2 budgets, 1 for a new space and 1 for a used space(Vanilla Shell). The difference in build out can be up to 30 to 50k depending on how much TI money you get. A new space can cost 50-60k to build out, and you will be lucky to find a landlord who will give you TI money to cover it all.

Get a good Broker, my broker did an incredible job for me, I went to training, came back and had 6 locations to look at, got 2 approved and got the space I wanted, He negotiated my LOI, and it didnt cost me a dime.

As far as your budget, I would scale back the amount you want to spend on advertising at start up, you will need to find out which medium works best in your area, be it TV, radio, print. You spend 15k, and get little or no return on it, your a dead man walking, or very close to it.

As far as going to a bank for a loan, with the credit crunch going on, banks are really starting to say no alot, so I would go with a bank that you have a relationship with, and have atleast a 720+ fico score. I know a couple of franchisees that are having problems now with getting funding, because the banks are saying it looks too risky.

PM me if you have any other questions.
 
[quote name='Sodapop']Im also a PnT franchisee, im a little behind bing in the process, waiting for my
quote for my fixtures and I sign my lease next week, but ill give you my 2 cents.

Depending on the real estate in your area, I would do 2 budgets, 1 for a new space and 1 for a used space(Vanilla Shell). The difference in build out can be up to 30 to 50k depending on how much TI money you get. A new space can cost 50-60k to build out, and you will be lucky to find a landlord who will give you TI money to cover it all.

Get a good Broker, my broker did an incredible job for me, I went to training, came back and had 6 locations to look at, got 2 approved and got the space I wanted, He negotiated my LOI, and it didnt cost me a dime.

As far as your budget, I would scale back the amount you want to spend on advertising at start up, you will need to find out which medium works best in your area, be it TV, radio, print. You spend 15k, and get little or no return on it, your a dead man walking, or very close to it.

As far as going to a bank for a loan, with the credit crunch going on, banks are really starting to say no alot, so I would go with a bank that you have a relationship with, and have atleast a 720+ fico score. I know a couple of franchisees that are having problems now with getting funding, because the banks are saying it looks too risky.

PM me if you have any other questions.[/QUOTE]

Yeah, when I was going through my process with a SCORE consoler he mentioned the bank issue and what banks to go with. Alot of banks are pulling away from SBA Loans and small businesses because they can loose alot of money. You are mainly seeing this with restaurants though cause the risk factor. Also though because the franchise is still young, it is unproven so thats why it may be harder.

Typically though, you can get a land lord to set up a store for a vanilla shell if it is brand new because they want people in there. There are grey shells which is basically an older spot that has fixtures and stuff inside of it and you get it as is. If you want it as a vanilla shell, that means its basically brand new with walls painted and such, you have to pay extra for it to happen. With my lot, I am getting $3200 credit back for not using ceiling tile from my land lord.

But yeah you can see from above how important it is to get a good broker and you might go through a few. I actually had another one original, set up through corp, that was utter crap. Didn't contact me back after an call... two weeks later nothing. Not only that, they were telling corp that they had been taking me around showing me places. Luckly I got a contact from the bank and it has worked out.

So get a SCORE counselor and a great broker to get started.
 
Hey guys, I have been working on the uber website a bit, i've uploaded some videos and some pictures of other stores. The message board is up there too for the local crowd. Will also be good for tournaments and other things. Still working on the front page but will have it complete before we open.

If you have any other suggestions for the site please tell me.

http://playntradechaddsford.uber.com
 
[quote name='xl_prankster_lx']Hope you can get it started even with the shitty economy. Games are fairly recession proof. At least relatively.[/QUOTE]

Yeah, thats what I have been hearing with alot of things with used games. The stores that get hit with it the most are those that sell a massive amount of new games. So you want to make both very attractive so that people trade in games for those brand new titles. A good thing that we do is clean all the disc like they are brand new.
 
Hey bingbangboom, I just wanted to say that this thread has really shown me what I want to do with my future.

Right now I am a store manager for Gamestop, and I absolutely love it every minute. I love having control over the store and feeling like this is my baby. The only problem, is it is not technically my baby, which sucks. I really feel like my next logical step is to own a store just like this. Play N Trade seems like a fantastic option for me, as of short term. I mean, being 20 and going to a bank for a loan of this caliber, usually doesn't end well, lol.

I really appreciate you sharing with all of us your 'adventure' with this whole process, I really enjoy reading how the whole process works. I have learned a lot from this thread, Thanks!
 
[quote name='Pestilence']Hey bingbangboom, I just wanted to say that this thread has really shown me what I want to do with my future.

Right now I am a store manager for Gamestop, and I absolutely love it every minute. I love having control over the store and feeling like this is my baby. The only problem, is it is not technically my baby, which sucks. I really feel like my next logical step is to own a store just like this. Play N Trade seems like a fantastic option for me, as of short term. I mean, being 20 and going to a bank for a loan of this caliber, usually doesn't end well, lol.

I really appreciate you sharing with all of us your 'adventure' with this whole process, I really enjoy reading how the whole process works. I have learned a lot from this thread, Thanks![/QUOTE]

Yeah, get and learn whatever you can about the industry. Gaining knowledge about whatever you can will help you especially on the managing side. Typically what I have heard is that the stores can change depending on the District Manager that you have which is out of your control. I used to work at Toys R Us and I knew it was not my store but I did enjoy it. Might even want to think about possibly gaining a different position with another company. Years at a place do help so you can see repeating year cycles.

But having a goal when your young is good so you have something to strive for. I am only 25 so its not like it is impossible.
 
Hi,

I am a software developer with my own company and I was thinking of developing a flash based, very cool looking application that video store owners such as yourself could embed in your store website and it would allow for the following:

1) FOR GAMERS:
-complete out of the box social networking site for gamers to chat, search for gamers in their area by genre, zip code, blog, write articles, etc.



2) FOR STORE OWNERS

- ability to add/remove/edit info on events
- ability to add/remove/edit info on tournaments
-ability to add/remove/edit info on specials/contests
- ability to add/remove/edit a "video game release calendar" by platform and/or by wishlist
- using this site, store owners would gain deep insight into what games their customers carry and/or want and the store owner can offer trade ins based on what their customer has or wants - so you can create special offers targeted to each customer by a drag and drop front end that will create a custom email to send to your customers to bring in their trade ins and receive newer games or $$....this is something no store owner has today - visibility into buying patterns and what their customers want and my product would give that to you
- ability to get detailed reports, one of which would be on each of their customers and who has what games, wants which games, etc.

I was thinking of offering this service to store owners for a monthly fee. So for everything I wrote there, except the last 2 points, I would charge them $29/month. If they wanted the ability to get detailed reports and see which customer has what games, I would charge them $49/month.

Basically, this is an out of the box social networking site for gamers and for store owners to get detailed views of their customers, their buying patterns, and also offer them customized deals that they can't get by selling their warez on CraigsList for example...and you get all this without having to code this yourself or anything and best of all it's customized to gamers and the gaming community. Your customers get to be part of a social networking site that pays them to play games online, participate with others online for points and exchange those for $1 off or whatever that $ amount might be and do much more to bring traffic to your site. To get an idea of what the front end would look like, please visit www.doof.com - this is how I would build out the front end in flash.

I wanted your thoughts on the following:

1) as a store owner, what else would be interesting from a store owner's perspective - what other things would make you want to subscribe to this product ? what features aside from the ones I mentioned would be useful for your daily business? what kinds of reports or features to gain more insight into customers?

2) to get that level of insight into your customer and offer out of the box services to your customers and not have to maintain the software, upgrades, etc and yet get new features added often and allow your customers the ability to know about contests, tournaments etc all from a convenient back end admin module would you be willing to pay $50/month if it brought traffic to your site and gave you the detailed insight?

3) from the gaming community, I would be curious to know what else would you want in the social networking site? what features would make you want to join and participate?

Please let me know.
 
This might have been mentioned somewhere in the 38 pages of this thread but I'll just mention it in case someone didn't. You just mentioned that you clean all of the used discs before selling them. I read, I believe on a different message board, that someone would occasionally bring their scratched up games to Blockbuster and for a couple dollars they'd use their cleaning/repairing machine to return the game to working condition. Offering a service like that would be a good idea, not that you'd make tons of money from it but it would get people in the store and give people another reason to shop at your store over a Gamestop.
 
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