Retail 101: A Hobby Store Primer
I realize this isn't the prototypical StarCityGames article, but I'm reasonably sure most of us have daydreamed about owning our own game store. No, I don't own a hobby store - nor do I want to! Frankly, the bottom line profit from a hobby store is dismal, and the possibility of actually earning a decent living is nearly impossible. That's not to say it wouldn't be fun, and I am sure many of you have pondered the thought of having your own little store at some point. Some of you may already have one!
A glance at some of the articles on various Magic web sites gives a bit of a bio about the authors and how many tournaments they've won, or how much money they've made on the Pro Tour. This is done to qualify their level of expertise, and give credence to the information they are offering. Nobody is going to take some 1400 rated scrub's advice on drafting seriously, but when a valid Pro Tour player drops a few notes, folks tend to pay attention.
So for the record, I've been in retail management for twenty-five years. I've been responsible for stores ranging from 1,000 square feet to 15,000 square feet, and have had staffs as small as two and as big as thirty. I did run a game store for two years, for Wizards, complete with tournaments. I know what it takes to run a successful business - and trust me: Virtually every game store I've walked into isn't maximizing their profits.
Take heed, current game store owners, or those of you who strive to run one down the road! My advice won't make you a millionaire, but it will at least give you a fighting chance of staying open.
Determine Your Product Mix And Line Up Distributors Prior To Opening
Don't open up a store thinking that a few Magic singles and your old comic book collection are going to sell. With the exception of a few chase rares, collectible items have a very slow sales rate. If you think your Stunted Growth and Fallen Angel is going to pay your rent, you're sadly mistaken.
Take time and have a cohesive plan for your assortment mix. Check out the competition in town and see if there is a niche that is missing. Perhaps there isn't a good anime dealer in town, or maybe nobody sells collectible medieval weaponry. Finding a niche that will drive business to your store can make a huge difference on your bottom line.
Furthermore, investigate who you will be buying your product from. Shop around and find out which distributor is going to give you the best deals on your purchases. A few dollars isn't much, but when you multiply it over many items and many months, it can be huge.
Last, investigate the distributors and get references. Great prices mean nothing if they deliver fewer items that they promised, or ship it late. If you aren't getting your product on time, you surely can't turn around and sell it to your customers.
Location, Location, Location. (And Rent!)
Yep - location is everything. Hobby and gaming stores have a market that's mostly made up of males between the age of ten and twenty-five. Finding a spot in a strip mall near a retirement planned community probably isn't going to net you much interest. Look for strip mall spots or stand-alone spaces near theatres, amusement centers, or near neighborhoods where you know there are a lot of families.
Check the rent. Unless you plan on subsidizing the rent out of your own pocket, be sure you find a spot with a price tag that won't bite your ass - and keep in mind that you are going to be dealing with utility bills as well. Try to negotiate a lease that gives you an early out if it turns out you just can't make it work.
Make sure the size of the space works for you as well. Yes, you can run tournaments by cramming tables in every possible nook and cranny, but players who aren't comfortable in your store aren't likely to return. If you are going to run tournaments or have casual ongoing play, then find a spot with a reasonably-sized separate game area, or perhaps use rolling fixtures instead of fixed ones to allow you to create a gaming area in just a few moment's time.
Don't Hire Clowns
I can't tell you how many game stores simply hire the sixteen-year-old kid that plays there... But just because the kid is good at Magic and you like him doesn't make him a good employee. While it's handy that the kid knows the stack, that isn't going to put money in your register.
Look for a few folks you can trust - folks who want your business to thrive and won't be diving out from behind the counter to watch a game in progress. Unless you want to work seven days a week from open to close, somebody else will be running your store some of the time; check their references, look over their work experience, and don't worry if they know how to play D&D. You can teach them the product mix; it's much harder to teach them to care about customers.
Treat Your Customers Right
Customer service is an art. Merely nodding at some stranger wandering into your store and continuing your conversation on Onslaught Block mechanics with a regular isn't good customer service.
Welcome the guest into your store; show them around and see if they have any special needs. Allow them to look if that's all they want to do - and regardless of whether they buy or not, thank them for coming in. They may not be buying today, but they might be back. It doesn't matter if they are seven or seventy, punks or businessmen; treat them all kindly and with respect.
Sell Snacks
The markup on candy, soda, and chips is huge. If you have kids hanging out in your store for hours on end, they are going to get hungry and thirsty. Don't be a tyrant about it, but try to discourage outside food and drink in order to maximize your own sales of the munchies. Selling only $20.00 a day in snacks will add at least $300.00 to your bottom line. And three hundred bucks covers your closing employee's wages for each month!
Add Two Or Three Arcade Games
Generally, arcade game distributors will consign their games, so there isn't anything out of your pocket. They simply take a cut of the income generated. It's a pretty brainless way to add to your profits. As long as you have the right games, kids will stuff quarters in there all day.
Keep Your Store Clean
Gamers don't have a reputation for being neat and tidy. They will trash your store. Crap will be left on the tables, the garbage cans will fill up, and the bathroom can get disgusting in a hurry. They aren't going to clean your store: That's your responsibility, and an important one. While a regular doesn't care about the filth in your store, the occasional shopper or gamer looking for a new spot to play might.
Nothing will turn off a mom or dad faster than a glance at your restroom's grimy, disgusting floors. Take pride in your store, and make it a showplace, not a garbage heap.
If your chairs are falling apart, replace them. Sitting in a bent chair for six hours during a tournament isn't fair to anybody. If your tables wobble, fix them. Nobody says you have to spend a million dollars on your fixtures, but don't let your store fall apart either.
Diversify Your Tournaments
Fine; Yu-Gi-Oh! sucks and Heroclix figures look like Cracker Jack giveaways. Well, believe it or not, Magic isn't the only game in town, and maybe your competitors dropped the ball on Mage Knight. There might be a regular group of six to twelve people who want to play Mage Knight once a week - and you know what? If nobody else wants their money, it might as well be you!
Don't try to be everything, but do try to find two or three other games that will generate income for you. Investigate the other shops in town, find out what they are and aren't running. Query your own customers to see what gaps there are in town.
Empower Your Regulars
Maybe you suck at painting Stormhammer figurines, but a few of your customers are incredible at it. Work out a deal with them. Sell of a few of their figurines for them on consignment - and in return, have them give a weekly class on painting techniques. You get somebody hooked on something like Stormhammer, and boom! Your register is going to be ringing up some pretty healthy sales.
Run a monthly gaming session teaching folks how to play the games you sell. It really doesn't pay to run D&D at your tables for existing knowledgeable players; let those folks play at their houses... But you certainly can run a level 1 campaign for beginners. Get them started and watch the guidebooks fly off your shelves. Surely one of your regulars will be glad to do this for you.
If folks want to learn how to play Magic, Yu-Gi-Oh!, or Pokemon, teach them. They'll appreciate it and return the favor by purchasing boosters and participating in your tournaments. Care about your customers and they'll care about you.
Eliminate Disruptive Behavior
I'm sure not going to game at a store that allows a bunch of punk kids to sit around trash talking, cursing, and practicing their skateboard tricks in the store. Neither are a lot of folks.
Regulars aren't necessarily the best customers - and in many cases, all you are doing is babysitting them for free. They hang out, rarely buy product, and if they are disruptive, they actually hurt your business. Don't give out a million warnings. Tell them once. If they can't respect your rules, get rid of them. Let them be some other game stores problem, not yours.
Get Rid Of Junk
If merchandise isn't moving, or it's taking up way too much space for the return it's giving you, either reduce the display space or mark it down and get rid of it. Just because you are attached to the five hundred old comic book titles you've accumulated over the years doesn't mean somebody else will be.
If you've devoted a huge chunk of your display space to something, and it simply isn't selling, it's a lost opportunity to get something else up there. Mark it down, eat the loss, and try again with something better. Yes, it stings to sell something for twenty-five cents on the dollar - but it stings worse to not sell something for zero on the dollar.
Tony Marovitz
Long-time Magic player, longer-time retailer.
















