Good or bad time to start an LCS

[COI]

Open a used/new video game store, and give EB/Gamestop some competition.

[Lego]

Open a used/new video game store, and give EB/Gamestop some competition.

 

I often wonder how carefully-balanced that business model must be for one of those places to be successful. You're printing your own money if you can make it work, that's for sure.

[Silver Surfer]

Informative post. (thumbs u Just a guess but I take it New Orleans is not the best place at the moment to own/run a comic shop given what people have gone through [and still are] over the last few years?

[jmg3637]

If you really want to have a LCS I would suggest looking into buying an existing store. There are several in the LA area that would like to sell so the owner could retire. For an LCS you neeed a steady base of customers and they must produce a stream of revenue to cover the new material as well as the rent/employees etc.

 

For example I know that the Golden Apple store in the San Fernando Valley recently changed hands, not sure if the one in Melrose did or not. The owner of both stores, Bill Liebowitz, died a few years ago.

 

 

If you want to buy and sell used books on the net it is an entirely different situation. I personally feel that business model has a better chance for success, and certainly less risk.

[dekeuk]

You want to make some quick cash, start a Chinese food take-out joint and post VERY long hours - hard work, but you can really rake it in.

I love those places.

 

Really?

 

Ever eat in Buffalo, NY ?

[ChiSoxFan]

Informative post. (thumbs u Just a guess but I take it New Orleans is not the best place at the moment to own/run a comic shop given what people have gone through [and still are] over the last few years?

 

Katrina didn't help the situation, for certain, but frankly, the local scene had seen a drastic reduction in stores well before that happened. Katrina did shut down one of the bigger players on the scene (they took huge amounts of damage to their location), but the good news is, it looks like they'll be reopening sometime soon (from what I heard).

 

The store I go to currently -- which I've been extremely pleased with -- is one of only 3 in the immediate area (when the other one reopens, we'll be up to 4). There's another couple of shops an hour or so away (both to the north of us, across the lake) and one in Baton Rouge.

 

On the bright side, things have slowly shown signs of recovery locally -- and we did have a one-day comic show earlier this year (the first we'd seen in ages) that had a great turnout (better than I'd expected). Hopefully, that's a sign of a comic turnaround in the area.

[t3quila]

Open a used/new video game store, and give EB/Gamestop some competition.

 

I often wonder how carefully-balanced that business model must be for one of those places to be successful. You're printing your own money if you can make it work, that's for sure.

 

Not a good long term business, the next generation of consoles will have an even bigger online presence, bricks and mortar game shops are living on borrowed time.

[jimhouston1]

Here is an idea I had but never tried.

 

In New York we would buy a hero sandwich for lunch . Some places called it a sub sandwich and some places called it a hogie.

There were stores that only sold heros - like Busco's off Tremont Ave. in the Bronx.

 

I thought it would be great to open a "Super Hero Sandwich Shop" that sold subs and new comics.

 

To get customers hooked on comics I thought I could give a comic to each person that bought a sandwich until they really wanted to follow and collect a character. It could be any old comic

that the buyer might grab off a comic rack.

 

We use to get an hour for lunch - so I pictured guys eating their sandwiches and reading the free comics. I hoped eventually they would buy the new comics I would sell.

 

I went as far as finding out that I could not use the name Super Hero because Marvel and DC had joint rights to that name.

 

A few years later a place opened in the Hampton Bays called "The Great American Hero Shop"and they had made up super heros as art work on their walls but they did not sell comics.

 

If anyone uses my idea - I want a free Well Done Roast Beef Hero with Salt Pepper and Mayo.

 

[cavecarson]

If you really want to have a LCS I would suggest looking into buying an existing store. There are several in the LA area that would like to sell so the owner could retire. For an LCS you neeed a steady base of customers and they must produce a stream of revenue to cover the new material as well as the rent/employees etc.

 

For example I know that the Golden Apple store in the San Fernando Valley recently changed hands, not sure if the one in Melrose did or not. The owner of both stores, Bill Liebowitz, died a few years ago.

 

 

If you want to buy and sell used books on the net it is an entirely different situation. I personally feel that business model has a better chance for success, and certainly less risk.

 

Great post and it is the best way to go! You have the opportunity to see the books and look at profit margins and retail stores have slim margins with a 50% cost of goods, overhead and markdowns leave you with about a 3%-10% profit margin. See what the store has thrown off as profit ( and owner income) you can look for overhead mistakes (areas that you can cut costs and improve profits) look at the lease is it high because it was signed 5-10 years ago when business was better? The owner may also hold paper because financing a business now is a little tough.

 

I'd also recommend that you work in retail for awhile or even better in a comic shop, the day to day may not be as much fun as you expect.

 

Good Luck and you are a braver man than I and I've owned retail stores before (not comics)

[FlComicFan]

I'm surprised at the amount of negative opinion on a comic board. One of the very few things posted I agree with is check to see if a existing store is available for sale as it will save you time/effort and you will receive their higher discounts from Diamond right away. Plus more than likely you can purchase a store for less than the cost of their fixtures and stock let alone what their exisiting customer base is worth. A comic store is a very specialized business and not one most business people would jump into. Unfortunately most comic stores are owned and operated by comic fans with no business acumen.

 

Before you do anything check bizbuysell.com for stores listed for sale. I believe last I checked there were 2 or 3 in California posted for sale.

 

Next go to loopnet.com and see what a lease in your area is going to cost you. Your monthly rent will be your largest expense other than cost of goods. From this you can figure out a rough gross your store would need to make to be sustainable if not profitable.

 

Once you have these basic figures available to you then stop and consider if the area needs a comic store. It is very difficult to take exisiting business away from established stores. For some weird reason comic fans are not only very loyal (which will work in your favor eventually) but seem to be gluttons for punishment instead of trying out a new place. This is likely because so many comic stores came and went during the boom/bust period.

 

I have to unpack my weekly books but I'll post some more ideas later.

 

 

 

 

[BaltimoreLauren]

 

I'd also recommend that you work in retail for awhile or even better in a comic shop, the day to day may not be as much fun as you expect.

 

 

Agree'd. I currently work at a chain bookstore. In fact I've been in retail for 5 years! It's really an experience, and while I do meet a lot of awesome and great people, I also meet really terrible people too, and some days its nothing but unhappy, terrible customers.

[Reno McCoy]

 

I'd also recommend that you work in retail for awhile or even better in a comic shop, the day to day may not be as much fun as you expect.

 

 

Agree'd. I currently work at a chain bookstore. In fact I've been in retail for 5 years! It's really an experience, and while I do meet a lot of awesome and great people, I also meet really terrible people too, and some days its nothing but unhappy, terrible customers.

 

So true. I used to work at B Dalton, which is another name for Waldenbooks. I used to love that job. Working with books and dealing with customers who wanted to read. Great stuff. But some days, it was as if every single customer woke up on the wrong side of bed. So for 8 hours, my life was hell, and the love of books couldn't see me through it.

[dekeuk]

 

 

 

It is very difficult to take exisiting business away from established stores. For some weird reason comic fans are not only very loyal (which will work in your favor eventually) but seem to be gluttons for punishment instead of trying out a new place.

 

 

It probably has a lot to do with the fact the fans become friends with the owner and employees of their store.

 

This is not the case when you shop at Wal-mart ........... You don't chat with the Wal-mart greeter about the latest cheap import they just got from China.

 

 

 

 

 

[BaltimoreLauren]

 

I'd also recommend that you work in retail for awhile or even better in a comic shop, the day to day may not be as much fun as you expect.

 

 

Agree'd. I currently work at a chain bookstore. In fact I've been in retail for 5 years! It's really an experience, and while I do meet a lot of awesome and great people, I also meet really terrible people too, and some days its nothing but unhappy, terrible customers.

 

So true. I used to work at B Dalton, which is another name for Waldenbooks. I used to love that job. Working with books and dealing with customers who wanted to read. Great stuff. But some days, it was as if every single customer woke up on the wrong side of bed. So for 8 hours, my life was hell, and the love of books couldn't see me through it.

 

I'm on the same boat. I love books, but I don't know if it can keep me. A few classics from my customers:

 

Customer: I'm looking for the Wrath of The Grapes and Killing Mockingbirds.

 

~~

 

Customer: If I find out this book (hold's up To Kill a Mockingbird) is not the right one and the one she (her child) needs is by a different author, can I return it?

Me: Ma'am, if you find out there's another book by the same title that all schools seem to require kids to read, you have made the biggest literary discovery.

 

~~

 

Customer: Do you have any books on that guy who's on TV who works with dogs?

Me: I'm not too sure, let me find out--

Customer: Do you hate dogs or something?!

Me: No ma'am, my dog died of cancer two months ago.

(Her face went bright red, and she sulked out of the store without saying anything.)

 

I also get plenty of kids who will try to get mom or dad to buy them comics, but the parent's get so horribly offended that their kid wants to read a comic (since comics aren't real reading material, derp derp) that they throw them at me and ask why I'm selling such garbage.

 

 

 

 

 

[Hedge Collector]

...You don't chat with the Wal-mart greeter about the latest cheap import they just got from China.

 

I don't know why I find that so funny.

[Reno McCoy]

 

I'd also recommend that you work in retail for awhile or even better in a comic shop, the day to day may not be as much fun as you expect.

 

 

Agree'd. I currently work at a chain bookstore. In fact I've been in retail for 5 years! It's really an experience, and while I do meet a lot of awesome and great people, I also meet really terrible people too, and some days its nothing but unhappy, terrible customers.

 

So true. I used to work at B Dalton, which is another name for Waldenbooks. I used to love that job. Working with books and dealing with customers who wanted to read. Great stuff. But some days, it was as if every single customer woke up on the wrong side of bed. So for 8 hours, my life was hell, and the love of books couldn't see me through it.

 

Customer: Do you have any books on that guy who's on TV who works with dogs?

Me: I'm not too sure, let me find out--

Customer: Do you hate dogs or something?!

Me: No ma'am, my dog died of cancer two months ago.

(Her face went bright red, and she sulked out of the store without saying anything.)

 

::

 

Sorry to hear about your dog, but that's a pretty funny story.

 

Have you spoiled the ending for any of your customers yet? Try it sometime when you're looking to spice up your day. As you're ringing up the sale, simply say something off the cuff like, "Oh, I love that book. I cried for days when the wife died at the end."

 

 

[Paratrooper]

 

I'd also recommend that you work in retail for awhile or even better in a comic shop, the day to day may not be as much fun as you expect.

 

 

Agree'd. I currently work at a chain bookstore. In fact I've been in retail for 5 years! It's really an experience, and while I do meet a lot of awesome and great people, I also meet really terrible people too, and some days its nothing but unhappy, terrible customers.

 

So true. I used to work at B Dalton, which is another name for Waldenbooks. I used to love that job. Working with books and dealing with customers who wanted to read. Great stuff. But some days, it was as if every single customer woke up on the wrong side of bed. So for 8 hours, my life was hell, and the love of books couldn't see me through it.

 

I'm on the same boat. I love books, but I don't know if it can keep me. A few classics from my customers:

 

Customer: I'm looking for the Wrath of The Grapes and Killing Mockingbirds.

 

~~

 

Customer: If I find out this book (hold's up To Kill a Mockingbird) is not the right one and the one she (her child) needs is by a different author, can I return it?

Me: Ma'am, if you find out there's another book by the same title that all schools seem to require kids to read, you have made the biggest literary discovery.

 

~~

 

Customer: Do you have any books on that guy who's on TV who works with dogs?

Me: I'm not too sure, let me find out--

Customer: Do you hate dogs or something?!

Me: No ma'am, my dog died of cancer two months ago.

(Her face went bright red, and she sulked out of the store without saying anything.)

 

I also get plenty of kids who will try to get mom or dad to buy them comics, but the parent's get so horribly offended that their kid wants to read a comic (since comics aren't real reading material, derp derp) that they throw them at me and ask why I'm selling such garbage.

 

 

 

 

 

I worked at a B. Dalton years ago while in college, so I've had my share of crazies. Every Holloween the mall my store was in held a showing of Rocky Horror Picture show, and half the crowd would dress up in the most ridiculous outfits that some were arrested for public nudity (no joke). And after the movie a lot of them seemed to congregate at my store.

 

My biggest pet peeve though was the pervs that would sneak the sex books and playboys to the childrens section and leave them there. I caught a 6 year old checking out a playboy one day...the mom was not too happy.

 

I also had a gay guy hit on me by asking me if I liked reading "the story of O"....

[FlComicFan]

Standard discount on new books from Marvel and DC can run 45% to 59% I'd say most comic shops are operating getting a 55% discount from the big two. You sell a copy of a $3.99 comic you are making $2.20 less any discount and the cost of a bag/board if you elect to do that (a huge plus) Small Press usually its 45% but so little of your income will come from them its no big deal. Your revenue from new comic and trades should by itself pay all your overhead and put you in the black by itself. If there are stores close by you need to really question if there is a need for another store. Discount wars are business suicide and will just put you out quicker and will hurt the already exisiting stores.

 

Unless you are in a hugely populated area with a terrific demographic you will need to sell other lines to complement the new comics/trades. Unfortunately the comic add ons carry weak margins. Action figures/toys/statues/shirts etc have much much smaller margins. For example a DC Direct action figure if you buy in case pack will run you $10 per and MSRP is $15 Not much to work with there especially when you can pretty much count on some figures never selling. I personally avoid the add ons like the plague. They might make your shop look cool but they dont put money in the bank. In fact they will likely tie up your working capital real fast.

 

Back issues if you work them and buy over the counter are very effective way to make money. You will make 100% to 1000% markup. Once you are open people will be bringing you comics in to sell all the time. Granted a lot will be junk but good silver and bronze age collections turn up all the time. This is where having a brick and mortar trumps just the web/show guys. If you also work them heavily online you can pay a lot of bills just from this.

 

Gaming product is a good add on . I dont know much about it so stick with the collectable games. Magic/Pokemon/Heroclix when it was going etc all sold well and carried nice margins of almost 100% and huge if you singles. If you can provide game space you will likely sell a lot more than if you just sell the product but that brings its own headaches. I do not have game space. I dont have the patience to babysit people all day in the shop.

 

I like sports so I do very well with sports cards but you really need to know how to buy and the market on new product changes almost daily. Again buying over the counter you can do really well even if you just throw up your buys on Ebay. Margins on boxes are decent but the big internet discounters will hurt your business. Again these customers are very loyal and the social aspect will keep them coming back more than discounting etc.

 

I myself dont play video games but the market for used games I think could be very lucrative and most of your cusomers for comics will be game customers as well. Again the margins are very big and you can also make good money doing repairs on consoles.

 

People say comic shops are a destination store but I will always pay more to have a location that is visible and convenient. Your weekly guys will become monthly visits if you are a pain to get to.

 

More later

 

 

 

 

[the blob]

You want to make some quick cash, start a Chinese food take-out joint and post VERY long hours - hard work, but you can really rake it in.

 

unless the market is saturated. there is a a chinese takout place practically every other block where i live. i literally have about 20-25 places that will deliver to me. true, i have yet to see one close, so the owners must be turning a profit, but i can't imagine another 5 hitting this market and surviving. they outnumber the local pizza places in my neck of brooklyn 5:1.

 

and NONE of them make real fried rice! (and by "real" i mean like a "real" chinese place in a chinese part of town (where the fried rice tends to be a lighter in color, I guess they use less soy sauce or oil in the frying process) or "real" as in fried and browned in the frying process. ALL of these places serve yellow/spanish rice as "fried rice" to appease whatever part of the local population that likes yellow rice. DRIVES ME CRAZY. IT'S RIDICULOUS, my wife buys fried rice in manhattan or a more yuppified part of Brooklyn and we drive it home!

 

 

[the blob]

Unfortunately the comic add ons carry weak margins. Action figures/toys/statues/shirts etc have much much smaller margins. For example a DC Direct action figure if you buy in case pack will run you $10 per and MSRP is $15 Not much to work with there especially when you can pretty much count on some figures never selling.

---------------------------

 

but wouldn't it make sense to try and pick these up cheaper as overstock/closeout stuff when you can? it doesn't seem like having the latest set of whatever action figures/toys is going to mean much to the mom who walks in the store and wants to spend $10-$15 on a spidey toy. if you can get them cheap it seems worthwhile to keep that business that walks in the door that is not necessarily going to buy their kid a comic or GN. lord knows i've seen my wife do it enough with "be quiet" impulse buys for my son.