Video Game Rental Store

T

The Legendary Ninja

CAG Veteran
Hello,

I'm in the process of writing a business plan for a store specializing in video game rentals. Like a Blockbuster for video games only, but a smaller scale. I would rent games for the Playstation 3, XBOX 360, Wii, DS, and PSP only. I would rent new releases for $7.99 for 7 days and rent older games for $5.99 for 10 days. I would allow 3 day grace period for both price points, but after that would charge $1 a day on credit card until game is returned, But if it's a good customer who late occasionally, I would probably waive the late fees.

I also would rent out the Playstation 3, XBOB 360 and Wii consoles. Don't have a price point yet, but because members would have to add a valid credit card to become a member at my store, no need for security deposits. I was thinking $40-45 for 7 day rental of the consoles.

I also would sell complete used games (game, original case, manual) and would probably sell it around $5 cheaper than Gamespot who used games are not usually completes. With the used games I may also sell PS2 and Retro games as well.

I also would rent out imports as well ( Only no region protections), these also would go for $5.99 for 10 days.

Plus will also sell video game accessories, mags, guides, candy, and soda.

Well that's a sample of my idea, have more ideas for the store brewing, but this is the blueprint at least. I would love any input (good or bad) and what you like to see in this type of store

thanks and God Bless
 
Yeah I agree. You really need to think about just going mainly with an all you can eat type business model. Otherwise I don't really see you being able to successfuly compete against Blockbuster game pass or Gamefly. I would never pay as much money as you're describing to rent a game.
 
[quote name='bleak']Yeah I agree. You really need to think about just going mainly with an all you can eat type business model. Otherwise I don't really see you being able to successfuly compete against Blockbuster game pass or Gamefly. I would never pay as much money as you're describing to rent a game.[/QUOTE]

Actually initially I was thinking about doing a monthly membership plan like 1 game $12; 2 games $20, and it would be unlimited rentals, and keep how long you want as well, but what about the people who do not want to join a plan where their credit card is charged every month? Do i still offer the pay for a rental for 7 or 10 days, and if so for how much?

thanks
 
Honestly, I'd advise against it.

Store rentals are going the way of the dodo bird with the mail services, and you'll have a hard time luring the holdouts from the chain stores they already use. I just really can't see you having very high odds of staying afloat.
 
[quote name='dmaul1114']Honestly, I'd advise against it.

Store rentals are going the way of the dodo bird with the mail services, and you'll have a hard time luring the holdouts from the chain stores they already use. I just really can't see you having very high odds of staying afloat.[/QUOTE]

Not to put you down OP but I agree with this sentiment. You could do everything right but there are so many things going against independent businesses these days...
 
I'm gonna third the idea of going against this. Not only do you have a crappy economy, but people will damage your discs, and for a start-up business, you cannot afford damaged product.

The only advantage that you would have would be that you rent DS and PSP games, but again, PSP games get damaged easily. You'd lose more product than you'd rent out.
 
Ill fourth it........The overhead will kill this startup I believe with the way things are now....things like gamefly and netflix are taking control of the rental business. Especially game rentals. You would have to have multiple copies of games when a game first comes out as well as a enormous library of old games......I just don't know. But everything has to start somewhere I guess. you are just picking a rough time to start it.
 
Well, maybe it wasn't such a great idea after all, :( ; What about scratching the renting idea and sale used games at cheap prices, ( cheaper than gamspot for sure) I was looking at small retail spaces, I would sell used games for old and new consoles.
 
[quote name='The Legendary Ninja']Well, maybe it wasn't such a great idea after all, :( ; What about scratching the renting idea and sale used games at cheap prices, ( cheaper than gamspot for sure) I was looking at small retail spaces, I would sell used games for old and new consoles.[/QUOTE]

Know your competitors: their name is Gamestop ;)

There's really not much of a profit margin in new games. Your absolute best bet, if you want to start a new/used game business, is to find a city that doesn't have a GameStop within 15 miles. You will be the only store there and people will have no choice. Your business would boom.

If you're ready to start a new/used business, you should go ahead and buy a PnT store.

http://www.entrepreneur.com/business-opportunities/playntradevideogamefranchisebusiness/171130.html
http://www.playntrade.com/franchise
 
what could be an idea would be a used game store with a rental ...i knew one place that did this years about (probally 15 years) and they failed because they had no idea how to run a business...

1. they were opened whenever the owner felt like running it (one day 10 to 2 next day 2 to 4 some times not open for days)

2. they had no idea what video games were like (was like 40 years old and said they dont even play video games)

3.... took a shop in a mall that was dead (was lucky to seen 20 people walk past on a weekday )

try to beat gamestop at its own ideas but dont know how this would work

offer people a 3 day free game try out.... charge their credit card 1.00 if they dont return the used game within 3 days charge them normal price (i can see nightmares with this cause people will say ummmm i never knew i was going to get charge more then 1.00 that is why i think gamestop will never do this)

could also always go the way blockuster used to and take the rental fees off thegames

rent the game for 5.00 for 5 days if you lke the game they would be able to take the 5.00 off the price of the game...


ALSO a question... Dont you need a licence from nintendo and sony to RENT their items. i think in the past you did (that is why you saw so few places renting video games)

i been tempted a lot of times to open up a used game handheld game store since i have tons of stock... at least count i have over 100 Ds games and probally 120 psp games... but even at yard sales the demand for handheld are slim to none...

you would probally need close to 250,000 to 500,000 to even complete with places around here... it the proof very few people swap video games locally is go into a local MCVANS store and you will see the same stock sitting there for months and never nothing new
 
[quote name='Scorch']Know your competitors: their name is Gamestop ;)

There's really not much of a profit margin in new games. Your absolute best bet, if you want to start a new/used game business, is to find a city that doesn't have a GameStop within 15 miles. You will be the only store there and people will have no choice. Your business would boom.

If you're ready to start a new/used business, you should go ahead and buy a PnT store.

[/QUOTE]


For sure, those pesty Gamestops, i like them okay, but their service is lousy, and their used games are okay quality (scratches, etc). I was thinking about PnT at a time, but really like to do more own thing instead of a franchise. I think if I offer great selection of used games (mostly completes with case, artwork, and manual) and price it $5.00 less than Gamespot, and maybe do some ( buy 3 used games, get 1 used game free) type of deals as well. I was also thinking, just to drub up interest and business. I would sell a limited amount of new games at a huge discount, like John Madden 2010 for PS3 for only $35; that will get people in the store; than maybe they will buy some used games, accessories, etc. with the extra cash they have. Maybe I can compete at a small level.
 
I think in the next 5 years your going to see a very very huge decline in the rental space. You will see game rentals over xbox live and PSN instead of retail chains.
 
[quote name='Anthem85']I think in the next 5 years your going to see a very very huge decline in the rental space. You will see game rentals over xbox live and PSN instead of retail chains.[/QUOTE]

i say within the next 18 months your going to see a major jump to downloads only and if the PSP GO makes it big i would say most all of the next systems will be downloads only .... what will


SUCK
 
Don't let these guys poo poo your idea if this is your dream. I think it's totally do-able that you can pull this off, but it's going to take a good deal of work. You're going to have to really put the hours in to make your shop attractive to your customers and get to know them. The main thing you're going to need is loyalty, and I also think creating an experience can be helpful.

Teens are your core customer so I think the best way to get them spending is to get them hanging out there. Make it a real friendly environment. Kids don't have a lot of places to hang out nowadays, if you could make it sort of a hang out that could really help. Maybe get a couple arcade machines and a pinball machine and just set them on free play, or at least cheap like 25 cents a go. Get a vending machine/snack machine.

I would think probably combining the idea with a cyber gaming cafe might be successful. Have tournaments, like Street Fighter 4, whatever the FPS du jour is, etc. The main thing is you've got to instill loyalty because you're not going to be able to compete on an even playing field price-wise with the big corporations.

Anyways, I hope you don't give up on your idea, because I still think that if you're willing to put the work in and you've got a vision, then you can be successful.
 
The major jump to downloads is a long way away folks. I'm sorry but we're not South Korea and it takes a while for most people to download games. Plus, people are generally resistant to change, and I don't see the big companies cutting people much of a break on the pricing. I'd rather buy a disc and be able to re-sell it.
 
[quote name='bleak']Don't let these guys poo poo your idea if this is your dream. I think it's totally do-able that you can pull this off, but it's going to take a good deal of work. You're going to have to really put the hours in to make your shop attractive to your customers and get to know them. The main thing you're going to need is loyalty, and I also think creating an experience can be helpful.

Teens are your core customer so I think the best way to get them spending is to get them hanging out there. Make it a real friendly environment. Kids don't have a lot of places to hang out nowadays, if you could make it sort of a hang out that could really help. Maybe get a couple arcade machines and a pinball machine and just set them on free play, or at least cheap like 25 cents a go. Get a vending machine/snack machine.

I would think probably combining the idea with a cyber gaming cafe might be successful. Have tournaments, like Street Fighter 4, whatever the FPS du jour is, etc. The main thing is you've got to instill loyalty because you're not going to be able to compete on an even playing field price-wise with the big corporations.

Anyways, I hope you don't give up on your idea, because I still think that if you're willing to put the work in and you've got a vision, then you can be successful.[/QUOTE]

Thanks for the encouragement bleak, you are so right, I'm willing to work hard, and even though it may seem impossible to go against the big dogs, people have and have been successful. :applause:
 
[quote name='The Legendary Ninja']Hello,

I'm in the process of writing a business plan for a store specializing in video game rentals. Like a Blockbuster for video games only, but a smaller scale. I would rent games for the Playstation 3, XBOX 360, Wii, DS, and PSP only. I would rent new releases for $7.99 for 7 days and rent older games for $5.99 for 10 days. I would allow 3 day grace period for both price points, but after that would charge $1 a day on credit card until game is returned, But if it's a good customer who late occasionally, I would probably waive the late fees.

I also would rent out the Playstation 3, XBOB 360 and Wii consoles. Don't have a price point yet, but because members would have to add a valid credit card to become a member at my store, no need for security deposits. I was thinking $40-45 for 7 day rental of the consoles.

I also would sell complete used games (game, original case, manual) and would probably sell it around $5 cheaper than Gamespot who used games are not usually completes. With the used games I may also sell PS2 and Retro games as well.

I also would rent out imports as well ( Only no region protections), these also would go for $5.99 for 10 days.

Plus will also sell video game accessories, mags, guides, candy, and soda.

Well that's a sample of my idea, have more ideas for the store brewing, but this is the blueprint at least. I would love any input (good or bad) and what you like to see in this type of store

thanks and God Bless[/QUOTE]

Don't do it. You will fail. Seriously.
 
Yeah, this isn't just going against the big dogs. It's that rental stores are a dying breed.

Who wants to go pay the kind of prices your talking about, have to worry about due dates, waste time and gas going to the store etc. when you can just join a mail rental service and not have any of those problems?

Movie rental stores stick around do to old fogeys and people wanting instant gratification, but for games (which skew younger) it's a dying breed.
 
[quote name='The Legendary Ninja']Hello,

I'm in the process of writing a business plan for a store specializing in video game rentals. Like a Blockbuster for video games only, but a smaller scale. I would rent games for the Playstation 3, XBOX 360, Wii, DS, and PSP only. I would rent new releases for $7.99 for 7 days and rent older games for $5.99 for 10 days. I would allow 3 day grace period for both price points, but after that would charge $1 a day on credit card until game is returned, But if it's a good customer who late occasionally, I would probably waive the late fees.

I also would rent out the Playstation 3, XBOB 360 and Wii consoles. Don't have a price point yet, but because members would have to add a valid credit card to become a member at my store, no need for security deposits. I was thinking $40-45 for 7 day rental of the consoles.

I also would sell complete used games (game, original case, manual) and would probably sell it around $5 cheaper than Gamespot who used games are not usually completes. With the used games I may also sell PS2 and Retro games as well.

I also would rent out imports as well ( Only no region protections), these also would go for $5.99 for 10 days.

Plus will also sell video game accessories, mags, guides, candy, and soda.

Well that's a sample of my idea, have more ideas for the store brewing, but this is the blueprint at least. I would love any input (good or bad) and what you like to see in this type of store

thanks and God Bless[/QUOTE]




I wrote you a private message regarding you business plan. It's of particular interest to me cause i'm in the process of doing one very similar to your but don't worry i'm very far from you...I don't live in the U.S. Looking foward to your reply!
 
[quote name='dmaul1114']
Movie rental stores stick around do to old fogeys and people wanting instant gratification, but for games (which skew younger) it's a dying breed.[/QUOTE]

Don't forget the white trash contingent that doesn't have credit cards or internet access.
 
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