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Do Local Comicbook Stores need a new business model?

Started by Sam T,

141 posts in this topic

Sam T

Sam T

Posted
Posted

I'm worried about my LCS. There used to be 3 in my city, now there's 1 and they've had to relocate twice in the last decade for cheaper rent. I know a lot of people on these boards either own or work at an LCS so maybe you can give me a little insight into the numbers.

 

Where do you make most of your money? Gaming, trades, back issues or new releases (if someone has $50 to spend, which one of these areas would you prefer they spent it)? My LCS can't come close to competing on price with DCBS or In-Stock Trades for new titles. For back issues ebay offers an unlimited selection with better prices and the selling area on this board trumps everything in terms of price.

 

I'm wondering if a model similar to magazines at bookstores could work. They don't make any money off the magazines but they don't pay for them and whatever they don't sell they send back so they also can't lose any money on them. They're just there to get you in the door so you might buy something else. Could an LCS survive without profits from new releases?

 

I see at least one major obstacle from this kind of idea (besides needing to get everyone publishes to distributors on board), he CGC mentality on condition. People still insist new releases can be collectible but if its a new release that isn't a 9.8 then its only going to be worth less than cover price. Now if an LCS is taking a shipment, unpacking it, then repacking it and sending it back to Diamond, what are the odds of anything retaining such a high grade?

 

Just some stuff I've been thinking about a lot in the last year or so, thanks guys.

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kimik

kimik

Posted
Posted

I think location is the key. The LCS I have my file at does well because it is located close to the University of Alberta. Their location probably charges a higher rent, but being closer to the key target market is key.

 

They also are the best store in town as far as grading and pricing of back issues and carry a fairly decent selection of commons and the odd minor key. I think they also do well with the card gaming market as well, but since I am not in that space I can't comment on how popular it is right now.

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JiveTurkeyMoFo

JiveTurkeyMoFo

Posted
Posted

I think there is one LCS within 30 miles of me, and I only really frequent it for supplies and boxes. Having said that, the owner is a savy guy who has grown his business during the last decade despite all the other comic shops that have folded in the area. If you were to ask him how he did it, his answer would come down to:

 

- Don't depend on new issue sales to pay the bills.

 

- Offer a deep supply of back issues that are fairly graded and priced fair. When I worked for a LCS some 15 years ago, I know we had customers whose only interest lay in back issues. In many cases, those folks were willing to drop several hundred, if not several thousand, dollars at a moment's notice to get what they wanted. If you aren't catering to those folks, your slitting your own wrists in this hobby.

 

- Don't compete with eBay. Offer the customer those things (personal service, a friendly environment, new issue pulls) that they can't get online and they'll keep coming back AND will be willing to pay a few extra bucks.

 

 

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joe_collector

joe_collector

Posted
Posted
I think there is one LCS within 30 miles of me, and I only really frequent it for supplies and boxes. Having said that, the owner is a savy guy who has grown his business during the last decade despite all the other comic shops that have folded in the area. If you were to ask him how he did it, his answer would come down to:

 

- Don't depend on new issue sales to pay the bills.

 

- Offer a deep supply of back issues that are fairly graded and priced fair. When I worked for a LCS some 15 years ago, I know we had customers whose only interest lay in back issues. In many cases, those folks were willing to drop several hundred, if not several thousand, dollars at a moment's notice to get what they wanted. If you aren't catering to those folks, your slitting your own wrists in this hobby.

 

- Don't compete with eBay. Offer the customer those things (personal service, a friendly environment, new issue pulls) that they can't get online and they'll keep coming back AND will be willing to pay a few extra bucks.

 

I would also add:

 

- Don't automatically sell all your best books on EBay. This is the flip side of you last point, and if you don't at least offer your latest acquisitions to your regular clientel before hitting EBay, then don't expect them to be back.

 

I knew a guy like this, and he used to laugh that he "gets much more on EBay than he could through his store" (ignoring that the only reason these books "walked in" is because he *had* a physical location) so he lost any rapport he had with his regulars and closed down ~2 years ago.

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mikephoen

mikephoen

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First, every successful business (local comic store or Fortune 500 company) should be constantly adapting their business model to changing market conditions.

 

Over the 17 years I've had my store, I've tried a lot of different product lines. Some things have worked (magic), some haven't (sports cards!). When I opened in 1994 back issues were the bread and butter. I don't have exact statistics from back then but I would estimate 40-50% of sales were from back issues. In 2010 less than 1% was from back issue sales. The only 'back issues' we do, for the most part, is the $1 bin.

 

Here is the full percentage breakdown of 2010 sales by category for my store. I won't give the exact dollar figures, but it was our best year so far, with sales in the high 6 figures.

 

Books(TPs and HCs and manga) - 29.4%

Comics (New releases) - 13.0%

Tournament Entry Fees - 2.5%

Games and Game Supplies - 46.1%

Back Issues/$1 Bin - 0.5%

Comic Supplies - 1%

Toys and Statues - 3.2%

Anime - 3.6%

Everything Else - 0.7%

 

As you can see, games (almost exclusively Magic the Gathering) is our biggest category. Single issue comics are a distant (but still very important) third. Magic had a huge 2010 both for us and globally, which helped pump it's percentage up. Dollar wise single issue comics were about even with 2009, and tps/hcs up, but both categories lost a few percent because of Magic's dominating performance. For us, magic singles (about 40% of the overall games category) are the most profitable item. We also added Anime to the mix at the very end of 2009, so it was about .25% of sales in 2009, but grew to 3.6% in 2010. I'm thrilled with it's growth.

 

I'm sure a lot of people here think this post should be in the death of the LCS thread with numbers like that. No back issues, single comic sales at only 13% of net sales... but I think diversity in LCSs will ensure a long survival of the medium. The single issue may only be one 'department' in the overall 'geek experience' store but I believe it will remain an important one for a long time to come.

 

What plans do we have for 2011? I'm thinking of trying apparel again. It was a colossal failure in my second year, but hey, it's been 15 years. Might be time to give it another try!

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thehumantorch

thehumantorch

Posted
Posted
First, every successful business (local comic store or Fortune 500 company) should be constantly adapting their business model to changing market conditions.

 

Over the 17 years I've had my store, I've tried a lot of different product lines. Some things have worked (magic), some haven't (sports cards!). When I opened in 1994 back issues were the bread and butter. I don't have exact statistics from back then but I would estimate 40-50% of sales were from back issues. In 2010 less than 1% was from back issue sales. The only 'back issues' we do, for the most part, is the $1 bin.

 

Here is the full percentage breakdown of 2010 sales by category for my store. I won't give the exact dollar figures, but it was our best year so far, with sales in the high 6 figures.

 

Books(TPs and HCs and manga) - 29.4%

Comics (New releases) - 13.0%

Tournament Entry Fees - 2.5%

Games and Game Supplies - 46.1%

Back Issues/$1 Bin - 0.5%

Comic Supplies - 1%

Toys and Statues - 3.2%

Anime - 3.6%

Everything Else - 0.7%

 

As you can see, games (almost exclusively Magic the Gathering) is our biggest category. Single issue comics are a distant (but still very important) third. Magic had a huge 2010 both for us and globally, which helped pump it's percentage up. Dollar wise single issue comics were about even with 2009, and tps/hcs up, but both categories lost a few percent because of Magic's dominating performance. For us, magic singles (about 40% of the overall games category) are the most profitable item. We also added Anime to the mix at the very end of 2009, so it was about .25% of sales in 2009, but grew to 3.6% in 2010. I'm thrilled with it's growth.

 

I'm sure a lot of people here think this post should be in the death of the LCS thread with numbers like that. No back issues, single comic sales at only 13% of net sales... but I think diversity in LCSs will ensure a long survival of the medium. The single issue may only be one 'department' in the overall 'geek experience' store but I believe it will remain an important one for a long time to come.

 

What plans do we have for 2011? I'm thinking of trying apparel again. It was a colossal failure in my second year, but hey, it's been 15 years. Might be time to give it another try!

 

Wow Mike, I had no idea how important MTG is to your store and probably most

LCS'. Magic may be the only reason any LCS have survived. For the record, I was into MTG for a long time and it is a wonderful game.

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Spyderfan

Spyderfan

Posted
Posted

I believe that's what has turned some of the comic collectors off is too much "other" product in the stores and not enough of what they came there for.....COMICS! Magic the Gathering "dungeon" parties going on in the shop isn't very cool either. Just my opinion.

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thehumantorch

thehumantorch

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Posted
I believe that's what has turned some of the comic collectors off is too much "other" product in the stores and not enough of what they came there for.....COMICS! Magic the Gathering "dungeon" parties going on in the shop isn't very cool either. Just my opinion.

 

I changed LCS because mine was paying too much attention to MTG and

repeatedly missed new books from my pull list. Bringing in new product lines

to build the business is smart but neglecting established customers to do it will

drive them away.

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ciorac

ciorac

Posted
Posted
First, every successful business (local comic store or Fortune 500 company) should be constantly adapting their business model to changing market conditions.

 

Over the 17 years I've had my store, I've tried a lot of different product lines. Some things have worked (magic), some haven't (sports cards!). When I opened in 1994 back issues were the bread and butter. I don't have exact statistics from back then but I would estimate 40-50% of sales were from back issues. In 2010 less than 1% was from back issue sales. The only 'back issues' we do, for the most part, is the $1 bin.

 

Here is the full percentage breakdown of 2010 sales by category for my store. I won't give the exact dollar figures, but it was our best year so far, with sales in the high 6 figures.

 

Books(TPs and HCs and manga) - 29.4%

Comics (New releases) - 13.0%

Tournament Entry Fees - 2.5%

Games and Game Supplies - 46.1%

Back Issues/$1 Bin - 0.5%

Comic Supplies - 1%

Toys and Statues - 3.2%

Anime - 3.6%

Everything Else - 0.7%

 

As you can see, games (almost exclusively Magic the Gathering) is our biggest category. Single issue comics are a distant (but still very important) third. Magic had a huge 2010 both for us and globally, which helped pump it's percentage up. Dollar wise single issue comics were about even with 2009, and tps/hcs up, but both categories lost a few percent because of Magic's dominating performance. For us, magic singles (about 40% of the overall games category) are the most profitable item. We also added Anime to the mix at the very end of 2009, so it was about .25% of sales in 2009, but grew to 3.6% in 2010. I'm thrilled with it's growth.

 

I'm sure a lot of people here think this post should be in the death of the LCS thread with numbers like that. No back issues, single comic sales at only 13% of net sales... but I think diversity in LCSs will ensure a long survival of the medium. The single issue may only be one 'department' in the overall 'geek experience' store but I believe it will remain an important one for a long time to come.

 

What plans do we have for 2011? I'm thinking of trying apparel again. It was a colossal failure in my second year, but hey, it's been 15 years. Might be time to give it another try!

 

If your back issue stock was less $1 books and more collectible books, do you think your revenue percentage would be markedly improved? When I owned comic stores, I'd have been dead without deep backstock that was priced well

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whisp

whisp

Posted
Posted
First, every successful business (local comic store or Fortune 500 company) should be constantly adapting their business model to changing market conditions.

 

Over the 17 years I've had my store, I've tried a lot of different product lines. Some things have worked (magic), some haven't (sports cards!). When I opened in 1994 back issues were the bread and butter. I don't have exact statistics from back then but I would estimate 40-50% of sales were from back issues. In 2010 less than 1% was from back issue sales. The only 'back issues' we do, for the most part, is the $1 bin.

 

Here is the full percentage breakdown of 2010 sales by category for my store. I won't give the exact dollar figures, but it was our best year so far, with sales in the high 6 figures.

 

Books(TPs and HCs and manga) - 29.4%

Comics (New releases) - 13.0%

Tournament Entry Fees - 2.5%

Games and Game Supplies - 46.1%

Back Issues/$1 Bin - 0.5%

Comic Supplies - 1%

Toys and Statues - 3.2%

Anime - 3.6%

Everything Else - 0.7%

 

As you can see, games (almost exclusively Magic the Gathering) is our biggest category. Single issue comics are a distant (but still very important) third. Magic had a huge 2010 both for us and globally, which helped pump it's percentage up. Dollar wise single issue comics were about even with 2009, and tps/hcs up, but both categories lost a few percent because of Magic's dominating performance. For us, magic singles (about 40% of the overall games category) are the most profitable item. We also added Anime to the mix at the very end of 2009, so it was about .25% of sales in 2009, but grew to 3.6% in 2010. I'm thrilled with it's growth.

 

I'm sure a lot of people here think this post should be in the death of the LCS thread with numbers like that. No back issues, single comic sales at only 13% of net sales... but I think diversity in LCSs will ensure a long survival of the medium. The single issue may only be one 'department' in the overall 'geek experience' store but I believe it will remain an important one for a long time to come.

 

What plans do we have for 2011? I'm thinking of trying apparel again. It was a colossal failure in my second year, but hey, it's been 15 years. Might be time to give it another try!

 

Wow Mike, I had no idea how important MTG is to your store and probably most

LCS'. Magic may be the only reason any LCS have survived. For the record, I was into MTG for a long time and it is a wonderful game.

 

I agree that Magic is important. As I commented in the other thread games are huge for my LCS and they are lucky to have a championship player that runs their tournaments in the store along with the guy is pretty inventive with new way to play magic and rules and such and sets up his own campaigns.

 

Hero clicks was big but sort of lost steam but picking up a bit. But Magic has been around for at least 15 years strong in my mind and I have seen alot of card games come and go but Magic stays on top. I think it is the ease of play personally and anyone can pretty much pop in and learn how to play within a couple days. I gave up on hero click since to many rules and such and you really need to play that for awhile to become good at team building. Magic though as long as you keep your mana costs low it is very easy to build a deck along with all the oppurtunities for sealed deck play or premade deck play it makes it such a versatile game. Even when new rules come in to adapt is fairly easy. Also don't forget that magic can be failrly inexpensive compared to like heroclicks and such.

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tilleycs

tilleycs

Posted
Posted

I think games are very important to one of my LCS's (Foundation's Edge in Raleigh, NC). It has a great location (right across the street from North Carolina State University) and carries everything - new issues, back issues, manga, videos, trades, shirts, action figures, statues, magazines, etc. It's been around for a long time, too, so everyone who's into comics in the area knows about it.

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dhurley

dhurley

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Posted

I walk into my old LCS about two weeks ago and see 3 copies of the Fantastic Four Issue in the poly bags (587?). I pick up all three copies along with a bunch of other new releases. As I am getting checked out the owner tells me I can only buy 1 copy. I ask why..he states he wants to have them if another customer walks in and wants a copy before he gets more next week. I give him a look and buy one copy and the rest of my books.

I walk out and think.... I am standing in front of you willing to buy all three copies and you tell me you rather take the chance that some one will walk in and buys the last two copies until you get more next week.

This makes no sense and I just went on line and bought the other two copies on Ebay...I guess in a couple months when they shut down I wouldn't have to wonder why.

 

thanks for letting me rantrant

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Sam T

Sam T

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Mike, I can't thank you enough for your post. If you had the option of not making (or losing) any money off new releases but have a perfect selection of them, would you take it? And hope that you'd get more people in the door to buy other items?

 

The comics vs gaming conversation kinda bugs me, it reminds me of an Emo Philips joke:

 

"I was walking across a bridge one day, and I saw a man standing on the edge, about to jump off. So I ran over and said "Stop! Don't do it!" "Why shouldn't I?" he said. "Well, there's so much to live for!" "Like what?" "Well... are you religious?" He said yes. I said, "Me too! Are you Christian or Buddhist?" "Christian." "Me too! Are you Catholic or Protestant ? "Protestant." "Me too! Are you Episcopalian or Baptist?" "Baptist" "Wow! Me too! Are you Baptist Church of God or Baptist Church of the Lord?" "Baptist Church of God!" "Me too! Are you original Baptist Church of God, or are you reformed Baptist Church of God?" "Reformed Baptist Church of God!" "Me too! Are you Reformed Baptist Church of God, reformation of 1879, or Reformed Baptist Church of God, reformation of 1915?" He said, "Reformed Baptist Church of God, reformation of 1915!" I said, "Die, heretic scum", and pushed him off. (Emo Philips)"

 

We have so much more in common with the gamers than we have differences and the overlap in the two groups is pretty staggering. I always loved walking past the ridiculous warhammer games being played at my LCS, it wasn't my thing but they're clearly flexing the same nerd muscle as a 3 hour conversation about Jason Todd vs Damian Wayne.

 

I recently told a couple of my friends who play warhammer about the games at my local shop and they went by and set up a series of demos to get reacquainted with the game and up to speed on new rules. It ended up being a refresher for them and I went along for a noobie demonstration with another friend who'd never played before. We were there for 3 or 4 hours and in that time the comic kids (me) were getting into 40k and the 40k kids (my friends) were pushed much closer to comics.

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mikenyc

mikenyc

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Posted

The various game players are a unique group. Whenever I go to a local shop that has tables set up, you walk in and get the feeling that you just walked into a social club in Little Italy.

 

Everyone gives you the stare down and you feel like you are intruding on this secret club. Look I collect comics and my wife calls me a nerd constantly but the game guys are a particular breed.

 

I believe they assume everyone thinks that they are huge dorks so they act very defensive. Suffice it to say, I don't make any eye connect, and keep my head down and run out fearing for my life.

 

Not really, I get my books and hope one of those wizards doesn't cast a spell on me.

 

 

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