opening a game store

[hashiriya1]

What I really liked about some retro game shops in Japan is that they have game stations where you could try out games. Each game they had on display to try had recommendations for games like it. They also held gaming competitions a couple times per month and that drew big crowd.

[Luke]

What I really liked about some retro game shops in Japan is that they have game stations where you could try out games. Each game they had on display to try had recommendations for games like it. They also held gaming competitions a couple times per month and that drew big crowd.

Being able to play the games and having competitions are great ideas if you already have the surplus cash. Bringing in store traffic is always a plus.

Won't work for a start up company though, to much additional costs.

From main street to Wall street, there are only three models on how to run a business, and I can only see two working in the video game market: Low cost provider and Niche marketing. Good luck on being the LCP, the model is already in motion.

Best chance at surviving in a competitive market place with video games is to open a niche market store. Take RPG's as an example.

Set up a shop that sells only RPG related merchandise. Don't stop at games. Action figures, board games, stickers, any type of merchandise related to the field.

But, even after that, there is a lot of work to be done. Do you sell high profit margin items, or try to push product in bulk? Have a goal to sell consistent best sellers, or sell the rare and sought after games?

[pureevil]

I realy want to open a game store but i'm thinking this might just be a pipe dream.Does anyone here own a game store or have some good advice?

Don't call your store "pureevil", "pureevil's games emporium" or "pureevil video game dealership". No offense, but that doesn't encourage a lot of trust on the customer's end.

lol yeah your right I will call it evil death cave that should bring the punters in

I already do markets one about every six weeks and do ok the problem I am having is geting stock in I know another trader who has a small shop and he gets so much stuff as trade in against his new games he tells me thats where he makes his realy money.His is also wiling to give me some stock no sale return.

who ever said don't let kids in the shop is a fool I sell so many games to kids.

You will fail. Sorry. You have Game who has a monopoly (they own both Game and Gamestation), they were the reason that Playtime (the biggest independent game store in the UK) went bankrupt, despite almost always having cheaper prices, they just don't have the retail clout that Game/Gamestation has, they own both the prime locations and biggest stores.

I respect your opinion and know that you know what your talking about,also you are from the uk like me and every thing you say is true.It worrys me that you think I will fail I know it will be very though and could break me.

From main street to Wall street, there are only three models on how to run a business, and I can only see two working in the video game market: Low cost provider and Niche marketing. Good luck on being the LCP, the model is already in motion.

what is the other model?Being original and first to market?

[Niode]

Please don't double, triple or quadruple post. Keep your replies to one post and direct responses to particular members with the use of the quote tags or a simple @[username] will do.

The problem with being a niche provider is the relatively high cost of stock purchase on retro games. It's not something you can just buy at wholesale like current generation video games. Unless you get lucky, most of the time you're going to have to buy at current market value, this means that your profit margin hangs on you flipping the game in your store for a higher-than-market price. Considering that most retro gamers are savvy, you're going to have a hard time pushing common games on people at a price higher than ebay etc. It's only the rare games that you will get people paying over the odds because they can see the physical product.

Consider how Playtime conducted their business. They sold current gen games which they could acquire cheaply and make a moderate profit on, they also took in trades which they can make a lot of profit on, and they would also buy retro games in the same way. Their retro stock relied on whatever customer's brought in. I could go in a Playtime store and they would have the same retro stock for weeks on end. For particularly common games or games that aren't popular they could stay there for months. This is bad for a retailer, shelf space is VERY valuable when you're renting it by the month. Having something taking up space but not getting buyers means that you are essentially wasting money since something that does sell could take it's place.

If you are going to do the whole store thing (considering we've just had a crash) renting a shop will be quite cheap currently. However, getting a loan for your endeavours at the bank will be much harder. I think you should go to your local council and ask for information about setting up a business and look for grants that the government can give you in doing so, make definite emphasis on wanting to bring more employment opportunities to your area they love that phrase right now, more jobs means more stimulus to the economy.

I would definitely look to diversifying, eg have LAN gaming (if there isn't an alternative in the area), do hardware repairs (buying an Infrared BGA workstation would be very lucrative right now, especially if you can offer a 100% guaranteed fix for the RRoD and YLoD problems of today's consoles, if you don't know how to use it, then hire somebody who does, you could put a notice up at your local University for Electronic Engineering undergrads, students are always looking for work, especially if it gives them experience in their chosen field). You're going to need to offer something that the big guys can't offer and since you can't beat them on price (they will force you out of business by cutting prices aggressively because they can take the hit whereas you can't, you don't want to get into a price war with them, they will win, every time) then you need to look for alternate sources of revenue.

[Luke]

what is the other model?

Customization.

[skyknight]

I think if you can, try starting up as on-line only store, which you could setup at your own place. I don't know how property taxes work in the UK, but that is something people consider in the US when they want to start a business.

I do agree with the above, that you need to define the targeted costumers, as there are many varieties of games outside - just retro, or mixed generation? And how do you want to obtain and sell/trade games, and how many games can you take in and ship out at the same time?

This is a deep thinking process, but I think it could work.

[CRTGAMER]

pureevil, don't know if you caught this on my earlier reply, this independent has been around since 2003 and still hanging in there with all the surrounding Gamestops. They sell Retro and offer Repairs to YLOD/RROD to supplement profits. Maybe E-Mail them for some first hand experience insight.

http://www.lunavideogames.com/aboutlvg/AboutLVG.htm

[pureevil]

@ ctr gamer yeah I will read through it.I am thinking that its a big risk opening a shop and that maybe I should put my effort into something else.

[Anapan]

Another suggestion, take a business management course or hire a secretary part-time to handle that part of it. Paying rent on the building, keeping the books balanced, and analyzing your profit gains is a lot to juggle if you don't have prior knowledge about such things. I often visit the local pawn shops and chat with the owners, and the ones that have stayed open explained to me that most of their profits come from ebay and craigslist, they also told me that the many pawn shops that have recently shut down simply don't know how run a profitable business (that and trouble with the law from too many stolen goods purchases without proper record keeping).

[Erik_Twice]

I recommend against it. There's very little to diferentiate you from the competence and the risk is huge.

You will not be able to give better prices on new games and people who buy retro stuff know how much everything is worth and buy from the same places as you so you can't gain an edge here.

You may be able to charge a bit more because they can see the cartridge and such but it's very risky and I wouldn't rely on it. It is not going to pay the runnings costs. You also have to fight against pawn shops indirectly.

Buying used games puts you in direct competence with the other, more popular shops. Those shops are in better locals and will get better games. People is not going to change shops to sell in yours even if you pay them more because people who sell games for 5 dollars don't care about the money they get.

Think about your average costumer, the guy who buys Madden once per year. Is that guy going to buy in your shop? What are you going to pander to him?

It's far too risky. The customers are naïve and will not change their shop because they won't bother.