Opening a game store - yay or nay.

AvidWriter

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My dad wants to move on to something else and opening a game store in one of those ideas. I said eh because even though you can possibly make money you'd have to compete with EB and gamestop and etc. Also I have no idea how many of the games you'd be able to buy from a distributor at a time and if they dont sell etc. Anyone have any first hand experiece or any feedback. It will be appreciated.
 
[quote name='AvidWriter']My dad wants to move on to something else and opening a game store in one of those ideas. I said eh because even though you can possibly make money you'd have to compete with EB and gamestop and etc. Also I have no idea how many of the games you'd be able to buy from a distributor at a time and if they dont sell etc. Anyone have any first hand experiece or any feedback. It will be appreciated.[/QUOTE]

Well he could do a used game store, that sells used games in premium condition, and actually pays based on condition. You'd be able to offer better prices to the seller, and to the buyer.
 
This question as asked before. Defender had a videogame store once but from what I could tell, it was a tough business to get into.
 
Don't sell new games unless it is a must. Only sell used to start off. The profit margin on used to new is so great that it will help make money faster. Then after, you might want to start bringing in some new, but don't rush it. I don't have first hand in this, but I believe this would be the way to go. At least it is how funcoland did it when they opened up shop in MN years ago.
 
[quote name='allout1986']Don't sell new games unless it is a must. Only sell used to start off. The profit margin on used to new is so great that it will help make money faster. Then after, you might want to start bringing in some new, but don't rush it. I don't have first hand in this, but I believe this would be the way to go. At least it is how funcoland did it when they opened up shop in MN years ago.[/QUOTE]


This seems to be the way to go. Location seems to be the biggest factor. Put the store near a college and there will be a high traffic but the games they turn in will be in shitty ass condition. Put the store in a affluent area and you'll have low traffic but you might get some rich dumbasses that trade in rare games they only played once just so they can tell people they played it.
 
Don't do it, it's a low margin business in general. The only way to compete with Gamestop/EB if you don't already have a customer base is to offer higher trade in value which will hurt the bottom line that much more. The independent stores in my area do games as a side business (to cell phones, accessories, and toys/knick-knacks), and already had an established clientele before the GameStop franchise got a foothold. Too much risk with little reward imo.
 
I suggest not opening your own game store. I worked for a mom and pop one and it seems highly unlikely you'll make a dime. We couldn't even make rent, the phone was shut off, we were making around 30 bucks bring in a day (not profit mind you)

Its too hard to compete with gamestop and EB. All people will do is try to scam your store like ours.

I always remember having mothers and children come in with games like cabellas dear hunting and of those racing 3 pack games from wal mart and expect 25 dollar trade in credits.

You may also get a lot of little kids who want to trade one for one. I had this one kid come in every single day and expect to trade some crappy 5-10 dollars wal mart cheap bin GBA games for pokemon games, kingdom hearts chain of memories and etc.
 
the independent game store by me does nearly no business, has over priced rare games ( i mean like 70 bucks for suikoden) just crazy stuff. whenever i go in there, im the only person, i never see lots of cars outside of it. the only reason they stay in business (i think) is either A. they are rich and can take huge hits, or B. they resurface discs for like 4 bucks a pop. so maybe lots of people are bringing in games... then again they must be rich to have bought all the stuff they have and a real resurfacing machine. the point it, the dont do well because there are 10 gamestops or ebs within 10 miles of it.
 
[quote name='iheartmetal']the independent game store by me does nearly no business, has over priced rare games ( i mean like 70 bucks for suikoden) just crazy stuff. whenever i go in there, im the only person, i never see lots of cars outside of it. the only reason they stay in business (i think) is either A. they are rich and can take huge hits, or B. they resurface discs for like 4 bucks a pop. so maybe lots of people are bringing in games... then again they must be rich to have bought all the stuff they have and a real resurfacing machine. the point it, the dont do well because there are 10 gamestops or ebs within 10 miles of it.[/QUOTE]

Dont forget could be a drug front. Looks great on your taxes when all this extra money you have is declared as losses when your really holding on to it.
 
[quote name='gunm']The independent stores in my area do games as a side business (to cell phones, accessories, and toys/knick-knacks)[/QUOTE]

:lol: why you ask their is a place here in Dayton called vac's n videos. Yes they sale Vacuums, Video games, and DVD's. They also do trade ins etc.
 
[quote name='thingsfallnapart']Dont forget could be a drug front. Looks great on your taxes when all this extra money you have is declared as losses when your really holding on to it.[/QUOTE]

hmmm, ill go up there and say "can i get the special edition harvest moon" and wink
 
If you want a store, forget Brick and Mortar. Start on ebay, and move on to online websites (possibly through Yahoo).
 
Game sales and rental are all in a bit of turmoil right now.

Blckbuster and netflix are taking on the rental business and Netflix declared they wont be happy until all the rental stores are out of business (not an exact quote)

Then Gamefly etc are doing the online renting as well as a competing Eb/Gamestop etc.

I would say stay away for the time. Maybe he should look into other hobbies? Maybe paintball, skateboarding etc? Combination kind of all sports shop? Pball, ski, bmx, skate, billiards etc.

Those seem to stick for a while.
 
Anyone trying to get in the gaming business from a retail outlet basis needs their heads examined.

If you want to get into the gaming business find a distributor and try eBay. Invest $2-3K in it and see what you'll make. That will disuade you from selling new games while trying to make rent, electric, phone, internet, insurance and payroll very cheap, very easy and very fast.

Gaming retail is a dead end. I don't know one retail business model that would help you succeed. EB/GS margins are absolutely horrible compared to the dollar volume they do.

Just so you know....

GameStop's Operating Margin is 5.17%
GameStop's Profit Margin is 2.36%
Yahoo Finance GME Company Summary

Now from a consumer standpoint you know they're giving $18-24 as top value for trade ins on games they're selling for $44.99-54.99. Despite that kind of markup they're operating on a 2% profit margin. Meaning they're taking a bath on new games, stagnant inventory and constantly devaluing inventory prices. Who takes a bath when a game goes from $49.99 to $29.99-19.99?

I don't know why anyone would want to be in the retail game industry. It's less profitable than the grocery industry.
 
The place in my hometown (Canadian btw, so a little less competition from Gamestop or Gamecrazy) seems to do OK. Not great, but OK. They offer all sorts of rentals, new and used as well as they have a whole section of the store where you can pay something like $5/hour of gaming if you want to bring your friends in and play games you don't have or want to play a Halo tournament on etc. Not really my thing but the school-aged kids seem to really like and their parents obviously like it too. The store also does repairs for all systems as well as mods (case mods, as well as the other kind). It's really the only place I know of that you can bring your system to and they'll give you a flat price for service or whatever and get it done within a day or two. Everything else about the store is ho-hum, but the unique stuff they offer sets it apart from other places. If they didn't have that stuff itwould've closed down long ago.
 
I suggest trying a flea market first to get your feet wet. That is what I guy where I live did. He just ran his shop out of an indoor flea market for awhile on weekends. After a while he opened an almost daily swap shop that also carries DVDs and VHS. The trade-ins are the thing to shoot for.
 
[quote name='rodeojones903']You would have a better chance making money opening a comic shop, and thats not saying much. :D[/QUOTE]

The customers will probably be more pleasant too. Game stores get some of the STUPIDEST people in all of retail.
 
maybe a used media store, sell used and new movies, used and new cds tapes records, and used and new games. There are stores around pittsburgh and in ohio called The Exchange that do this and they seem to be doing decent. I always see people in there and they give good prices and sell things reasonably too
 
[quote name='Ikohn4ever']maybe a used media store, sell used and new movies, used and new cds tapes records, and used and new games. There are stores around pittsburgh and in ohio called The Exchange that do this and they seem to be doing decent. I always see people in there and they give good prices and sell things reasonably too[/QUOTE]

Yeah. If you can get something other than games to get people interested in your store then that will be to your benefit.
 
Only do it if you do not have any other such retail stores nearby. Also diversify your stock if you do, you do not want to rely on single product. As others have suggested having a store that also trades used music and videos would also be good as well as other stuff, maybe you could focus on imported media? I know that it is really hard to find games that are imports in retail if it is even possible at all.
 
[quote name='Demolition Man']Dude... tell him to name it.... Cheap Ass Gaming. That will drive traffic in for sure. :D[/QUOTE]

I'd fly to NY to shop there out of principle. :D
 
[quote name='capitalist_mao']If you want a store, forget Brick and Mortar. Start on ebay, and move on to online websites (possibly through Yahoo).[/QUOTE]

I totally agree with this. Get your feet wet on ebay, Amazon, yahoo auctions and stores. All you really need for that is a cabinet, a scale, computer, postage supplies, and the werewithal to drive everywhere and find some rare stuff. That's what my husband and I do as a side business. His friend got us into it, and when his job was phased out, he was able to do it full time. He now has a tax id number and everything.
 
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