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Ok, So a dream of mine for a long time is to open up my own gaming store. This would be a one stop shop for all the big game systems (GW, PP, Magic, etc.) and I would have regular tournys for all of them, and a nice big gaming area. I would be opening this with a friend of mine and we would share the burden. Now getting past start-up costs, loans, things like that. What have you (the customer and shop owners) seen in various independent retailers that works, and what doesn't work.

SOME IDEAS I have that work:
-Rewards program: Get a card stamped ten times (every ten dollars you get a stamp) get ten dollars in store credit (I see this ALOT in successful stores)
-large gaming space (places that have small or no gaming space don't seem to do as well

On the picket fence about...
-Charging to use gaming space (have seen it, the place is still around but ironically doesn't sell table top games anymore)
-discounts (on what and how much)

This might help you get a perspective on things.

http://www.houseofpaincakes.com/2011/08/musings-of-game-store-owner-marketing.html

Husband and wife team and they been giving their viewpoints on what it is like to run a hobby store.
Excellent Read on a quality game store ran in a successful manner.

Fattimus_maximus wrote:Ok, So a dream of mine for a long time is to open up my own gaming store. This would be a one stop shop for all the big game systems (GW, PP, Magic, etc.) and I would have regular tournys for all of them, and a nice big gaming area. I would be opening this with a friend of mine and we would share the burden. Now getting past start-up costs, loans, things like that. What have you (the customer and shop owners) seen in various independent retailers that works, and what doesn't work.

SOME IDEAS I have that work:
-Rewards program: Get a card stamped ten times (every ten dollars you get a stamp) get ten dollars in store credit (I see this ALOT in successful stores)
-large gaming space (places that have small or no gaming space don't seem to do as well

On the picket fence about...
-Charging to use gaming space (have seen it, the place is still around but ironically doesn't sell table top games anymore)
-discounts (on what and how much)

You come up with the cash, I'll work at the counter.

In truth, I have had this thought myself... hell, I imagine tons of gamers have. It all comes down to a question of finances and profitability, though- no matter how fun or great it is, or how fulfilling, if it doesn't pay the bills, who has time for it?

Fattimus_maximus wrote:Ok, So a dream of mine for a long time is to open up my own gaming store. This would be a one stop shop for all the big game systems (GW, PP, Magic, etc.) and I would have regular tournys for all of them, and a nice big gaming area. I would be opening this with a friend of mine and we would share the burden. Now getting past start-up costs, loans, things like that. What have you (the customer and shop owners) seen in various independent retailers that works, and what doesn't work.

SOME IDEAS I have that work:
-Rewards program: Get a card stamped ten times (every ten dollars you get a stamp) get ten dollars in store credit (I see this ALOT in successful stores)
-large gaming space (places that have small or no gaming space don't seem to do as well

On the picket fence about...
-Charging to use gaming space (have seen it, the place is still around but ironically doesn't sell table top games anymore)
-discounts (on what and how much)

-Discounts are bad. Get ahold of Dave Wallaces book on this. You can also see a ton of discussion and retailing theory about that and other topics at http://forums.delphiforums.com/gamestore/messages/?msg=1129.1 If you have trouble getting access, you can get there from the GAMA website.
-Don't charge for tables or gaming space. Bad idea.
-Yes, gaming space is good.
-Rewards program can be good if done correctly.

Now some reality:
-If you don't have money, or collateral, it's not happening. Horrible time to be trying to get a loan, even with a lot of collateral.
-Don't bother doing anything else until you have a business plan, and with the business plan have gone and talked to a bank.
-Economy sucks hard right now. Many older and well established stores going under. Newer stores open and close so fast I don't even want to know their names for the first 25 hours.

Charging for gaming space - no.
Snacks and soda - yes.
If you run sales, do it maybe 3 time a year.
Rewards card, not a bad idea.

Location Location Location and overhead are your next concerns. Is it easy to get to, is it next to some fast food or take out places? Big plus. Parking?

http://www.rpg.net/columns/list-column.phtml?colname=businessofgamingretail

Adam LongWalker wrote:This might help you get a perspective on things.

http://www.houseofpaincakes.com/2011/08/musings-of-game-store-owner-marketing.html

Husband and wife team and they been giving their viewpoints on what it is like to run a hobby store.
Excellent Read on a quality game store ran in a successful manner.

Good find. Just read it and would agree 100%. A lot of 'tried and true' advertising is worthless to a FLGS. Partly because of our niche and who those advertisers mostly hit, and partly due to papers and billboards having much less impact these days. Not worth the money, very low CPI, and pretty much equivalent to tossing money into a fire.

I looked into this years ago but never pulled my finger out to make it happen.... LGS in this country are few and far between though, especially in the area I live. I think there are a few in London, but that's 60 miles away from me. It would be great to see one in Oxford, but that would mean competing with GW, and I really don't have the time or finances to do that.....

I see these threads crop up and I cringe when discounting is one of the first things that prospective store owners think about (even as an aside).

Discounting works with a lot of businesses, especially those who specialise in piling high and selling cheap.

While discounting has its place what you really need to think about is 'added value'. That which isn't costing you margin to achieve.

Polite and informed staff.
Clean premises.
Reliable opening hours.
A straight forwards CS policy should one of your clients have a problem.
Etc.

I use the term client over customer because the hobby sector has a more intimate relationship with its target audience than say a supermarket. Exchange of cash for goods and services is only part of the service a store can offer.

A customer can and should become a client.

A happy client is one that will come back.
A happy client is one who will percieve value from your your offering.

For example me and my group regulalrly visit a local hobby shop. It charges full retail and always has, from model kits to RC cars to crafts and wargames.

It has done this for the last 25 years.

They always offer good service, they are knowledgeable, willing to order product in for us and we can rely on them for new release product. Being regular customers we do get slipped the odd bit of loot as well.

If they have a new range of tools or a new supplier we get to try the products out. As long standing customers they know that if the product is good and is needed we will buy it.

They know they are not the cheapest but they are the best at what they offer.

Interestingly a nother hobby store opened a few years ago. They marked their prices well below retail 'to generate some business'. Sure the discount was great they took some custom, they had some of mine. But they were not reliable, had erratic opening hours and the discounting took its toll.

Their customers were the same clients as our tried and trusted store. They sold the same volume of product, maybe less. There just wasn't the volume of clients to justify the discounting, if at all.

The store folded, and I last the saw the owner delivering the post.

Our extortionate full rrp store is still thriving.

With very tight margins and profitability after expenses a new store should concentrate on its service offering, then extend and enhance that rather than jumping into customer rewards and discounting.

YMMV.

Here is some advice and things to consider.

Must have.

If you are wanting to sell table top games, you must have space for table top games.

You must have a CLEAN well lit place to play. I have gone in and turned around and left many gaming stores because they looked worst than Animal House. The space has to be clean.

Staff - More than likely it wil be you and your friend, but you must be friendly. Great people when they come in. I don't mean hound them, but "Hey, welcome to ..." is enough to let them know you they are there.

Nothing sells a product faster than having people actually play it. So have a reason for people to be in the store playing. This normally means no charging for gaming space. But having a regular gaming night for each system is good as you know on X night someone will be there playing.

Discounts: This is a hard one. You can not just say yes we will give X% off everyday, and you can't say never to discounts. You have to know your market. My current store does not give discounts. Town I use to live in gave 10% off MRSP always. They were two different markets.
The best thing to do is figure out your total cost, then estimate your sales for each department before you think about giving discounts. Now Grand Opening Discounts can be good to get customers in the door when you first open, but have it for say the first 30-60 days of operation then go back to retail until you get some numbers.

One store I use to go to that did very well, offered a 10% discount on GW products. This discount was only offered on the Stores Official GW game night and tournaments and only if you played that night. If you just stopped by you got no discount. Worked for them but YMMV.

As far as discounts go the most succesful one I've seen was for the summer (June, July, August) and was like 5% off a total of over $100 and 10% off a total of over $200. Several people bought new armies and took advantage and the owner still pulled a profit. Discounts are something that get done to get people to start buying when sales have dipped. I wouldn't start with one right off of the bat.
A clean place with plenty of room for the different games you sell...ie a place for 40K/Fantasy, a place for MTG, etc. For 40K this also means having decent terrain for people to use. If possible don't have the tables in the same room as where you sell things. Ours has a glass wall that runs across the front of both the game room and shop so people walking by can see the game but don't have to hear everyone trying to talk over the others to be heard.
Being friendly is also a nice boost as noone wants to deal with someone who is grouchy.
Having a game night, ours is Tuesday for 40K and Thursday for Fantasy but can cross over if there are open tables, really helps to get a gaming group going which means they spend more money in your store.
Drinks and snacks will also make things better if a tournament is going on.

Shadowseer_Kim wrote:
Snacks and soda - yes.

I would say policed snacks and soda. Nothing make me leave a gaming store faster than seeing food waste all over the place, flies swarming trash barrels, and tables sticky from spilled soda.

First bit of advice, listen to Migusla, Migsula is wise.

Second bit, try and ebay store and being a dealer at cons first to get a feeling of what sells and what doesn't and build some capital. And find out if you're really cut out for retail.

Third bit, if you're also doing comics (most game shops I know do) then check out this column

http://www.comicbookresources.com/?page=column&id=28

Brian Hibbs is wise, listen to him.

Last bit, good luck! The world needs more great stores!


Automatically Appended Next Post:

mikhaila wrote:

Adam LongWalker wrote:This might help you get a perspective on things.

http://www.houseofpaincakes.com/2011/08/musings-of-game-store-owner-marketing.html

Husband and wife team and they been giving their viewpoints on what it is like to run a hobby store.
Excellent Read on a quality game store ran in a successful manner.

Good find. Just read it and would agree 100%. A lot of 'tried and true' advertising is worthless to a FLGS. Partly because of our niche and who those advertisers mostly hit, and partly due to papers and billboards having much less impact these days. Not worth the money, very low CPI, and pretty much equivalent to tossing money into a fire.

You might try facebook ads, you can target them to show up for only a certain geographic area, and only if someone had ticked off certain interests.