Do Local Comicbook Stores need a new business model?

[POSminus-migration]

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

 

Maybe he figures, if he has to sell to Speculators, better to get 3 of them in the store than just 1?

 

Quite the opposite. Rather than sell all the copies to a few speculators or hanging his extra copies on the wall at an inflated price he is limiting customers to 1 each and trying to keep more customers happy. There is huge demand for the book and this store owner is taking the least selfish approach and trying to satisfy every customer. I would go out of my way to deal at this store.

 

I used the term "speculator" because I was assuming the LCS had already taken care of their Pull List/regular customers. To me, anyone who didn't order a copy or didn't have it on their Pull List is speculating in some form. (Just buying a copy is speculating that the story would be worth the $4). I also assumed Dhurley was speculating (and not a regular anymore as he said it was his old LCS) because he wanted to buy 3 copies. So really, we agree, sounds like a great store. I like the way Sam T put it above:

 

They need those 3 copies to represent 3 independent chances to also sell other items. Can't you imagine the difficulties of owning a shop and maintaining a complex inventory and the risks taken every time an owner orders "extra" books? "

 

As for the "huge demand" you should go to my LCS, they have plenty of 1st prints on the shelf.

[Bomber-Bob]

Just curious. I posted in this thread sometime this afternoon and it is gone.

Anybody else or was it just me ? It seemed like a harmless response ?!?

[Zapp Comics]

 

FF 587 1st prints, in my area, were sold out at most shops. Not all, but most. Our business decision is to limit them 1 per customer. This seems to be the only reasonable way to ensure everyone gets one at cover price. We were able to keep it on the shelf at cover price for everyone this way.

 

It satisfies all of our regulars and we're also serving new faces as well. Selling multiples to one buyer to flip on Ebay or speculate on does absolutely nothing for my business. We were able to offer at cover price "hot" books like Cap 25 and ASM 583 at cover price. Lots of good will was created. Everyone that wanted it to own or read got it at regular price.

 

Buyers that show their faces once a year to scarf up copies to flip and speculate on end up frustrated and upset that they couldn't have them all. Happens every time. I'll stick with my approach at the risk of alienating those buyers. Same thing happens whenever there's a tough Bowen piece or hot variant or whatever. Total strangers show up to buy stuff that you can easily sell to your regulars.... Then you never see them again until next time there's a hot one. Serving those buyers is bottom of priority list and always will be.

[mikephoen]

FF 587 1st prints, in my area, were sold out at most shops. Not all, but most. Our business decision is to limit them 1 per customer. This seems to be the only reasonable way to ensure everyone gets one at cover price. We were able to keep it on the shelf at cover price for everyone this way.

 

It satisfies all of our regulars and we're also serving new faces as well. Selling multiples to one buyer to flip on Ebay or speculate on does absolutely nothing for my business. We were able to offer at cover price "hot" books like Cap 25 and ASM 583 at cover price. Lots of good will was created. Everyone that wanted it to own or read got it at regular price.

 

Buyers that show their faces once a year to scarf up copies to flip and speculate on end up frustrated and upset that they couldn't have them all. Happens every time. I'll stick with my approach at the risk of alienating those buyers. Same thing happens whenever there's a tough Bowen piece or hot variant or whatever. Total strangers show up to buy stuff that you can easily sell to your regulars.... Then you never see them again until next time there's a hot one. Serving those buyers is bottom of priority list and always will be.

 

(thumbs u

 

Completely agree.

[thehumantorch]

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

 

Maybe he figures, if he has to sell to Speculators, better to get 3 of them in the store than just 1?

 

Quite the opposite. Rather than sell all the copies to a few speculators or hanging his extra copies on the wall at an inflated price he is limiting customers to 1 each and trying to keep more customers happy. There is huge demand for the book and this store owner is taking the least selfish approach and trying to satisfy every customer. I would go out of my way to deal at this store.

 

I used the term "speculator" because I was assuming the LCS had already taken care of their Pull List/regular customers. To me, anyone who didn't order a copy or didn't have it on their Pull List is speculating in some form. (Just buying a copy is speculating that the story would be worth the $4). I also assumed Dhurley was speculating (and not a regular anymore as he said it was his old LCS) because he wanted to buy 3 copies. So really, we agree, sounds like a great store. I like the way Sam T put it above:

 

They need those 3 copies to represent 3 independent chances to also sell other items. Can't you imagine the difficulties of owning a shop and maintaining a complex inventory and the risks taken every time an owner orders "extra" books? "

 

As for the "huge demand" you should go to my LCS, they have plenty of 1st prints on the shelf.

 

I was disagreeing with dhurley not you. And I can understand his frustration; many of us would be disappointed if we were limited to 1 of a book we thought had a big upside. God knows I did pretty well with my 15 copies of Peter Parker #1.

 

I would disagree with your statement that any customer who didn't have the book on their pull list/regular is a speculator. Many may have heard of the death and decided to check it out. Bringing in new fans or reintroducing comics to fans who have the left the fold is the best possible outcome to killing me off.......

 

[Sam T]

Hey Mike I'm just curious if you think you couldn't maybe find a back issue middle ground. Maybe stocking low grade key issues, the kinds that might have "mainstream" appeal. Wolverine #1 is super cheap to get outside of super high grades, looks great on the wall and has so much appeal that a "normal person" might be willing to spend $20-$50 on a book that might cost ya $5-$10.

[mikephoen]

Hey Mike I'm just curious if you think you couldn't maybe find a back issue middle ground. Maybe stocking low grade key issues, the kinds that might have "mainstream" appeal. Wolverine #1 is super cheap to get outside of super high grades, looks great on the wall and has so much appeal that a "normal person" might be willing to spend $20-$50 on a book that might cost ya $5-$10.

 

This is flawed in a number of ways. First, any customer who wants a Wolverine #1 either owns a copy already, or will buy one on ebay for $10 themselves if they want one. Second, if people were bringing in actual good books that I could buy for 50% of fair market value, I wouldn't have gotten out of back issues in the first place! Third, wasting valuable wall space on a $20ish book that might turn once every six months (at best) is not a good business plan.

[ciorac]

Hey Mike I'm just curious if you think you couldn't maybe find a back issue middle ground. Maybe stocking low grade key issues, the kinds that might have "mainstream" appeal. Wolverine #1 is super cheap to get outside of super high grades, looks great on the wall and has so much appeal that a "normal person" might be willing to spend $20-$50 on a book that might cost ya $5-$10.

 

This is flawed in a number of ways. First, any customer who wants a Wolverine #1 either owns a copy already, or will buy one on ebay for $10 themselves if they want one. Second, if people were bringing in actual good books that I could buy for 50% of fair market value, I wouldn't have gotten out of back issues in the first place! Third, wasting valuable wall space on a $20ish book that might turn once every six months (at best) is not a good business plan.

 

How about keeping a short box or two behind the counter? Or a few wall books to keep the flames burning at least to a degree? Abandoning collectors back issues completely seems flawed to me.

[Jeffro.]

 

How about keeping a short box or two behind the counter? Or a few wall books to keep the flames burning at least to a degree? Abandoning collectors back issues completely seems flawed to me.

 

A store with no back issue stock insures that I will never visit more than once.

[Bookery]

A store with no back issue stock insures that I will never visit more than once.

 

I would have no interest in operating a shop that didn't carry collectible back-issues. That said... admittedly this is a personal choice and not necessarily a great busines decision. For most shops, I agree with Bedrock's views. Most places are small, and simply can't devote large amounts of space to iffy back-issue sales.

 

From a customer standpoint, we should be doing everything right. At 16,000 sq.ft. we have the largest comics shop in the nation. So we have the space to carry back-issues, and we do. We have about 10,000 gold-silver-bronze books on display, and another 50,000+ warehoused in various degrees of accessibility. We have another 25,000 or so modern back-issues (90s-up) in the main section, and an additional 35,000 back-iisues available in our 2-story Discount division at only $1 each. Another 100,000 comics await processing.

 

Yet for all that, back-issues are not a huge percentage of our sales (about 10%), and the vast majority of that is to out-of-state dealers and collectors who pass through. Here in our part of the mid-West, property is cheap (which is why can afford 16,000 sq.ft. and a Los Angeles or Manhattan store cannot). However, by comparison, major back-issue collectors are relatively scarce.

 

Our greater Metro area has a population of about 1 million. We've been around 27 years so I pretty much know, or know of, all the major collectors in the area. Out of 1 million population there are approximately:

 

-- 2 serious golden-age collectors (and they have fairly narrow niches).

-- Maybe 2-dozen significant silver-bronze collectors (ones who don't flinch at a $100 issue periodically).

-- 1 pulp collector.

-- 0 major buyers of collectible paperbacks.

 

There are additional dabblers... a buyer of westerns in the $5 - $25 range, the occasional impulse buy of a "neat cover" by someone who doesn't otherwise actively collect that era or title, etc. And that's it.

 

Fortunately, we are near several major highways and interstates, so we, like I said, make up our sales primarily to out-of-staters, with some individual collectors or dealers dropping more annually then nearly all of our local market put together.

 

But for small shops in this day and age to try and carry significant back-issue stock? That's a recipe for disaster.

 

 

 

[HouseofComics.Com]

Fascinating post from The Bookery! (thumbs u

 

I always thought that the passage of time and the explosion in Marvel/DC product from 1980 to present also pretty much made back issues a non-starter. In the mid-80s you could still have a large pct. of 1960-present Marvel and DC without taking up the entire store. Now? No way. Just way too many titles. Plus, at the time a collector could have every Spider-Man appearance fit in two long boxes. Now it would be over two boxes just for Amazing, and then toss in a bunch of major other titles that made it 100-issues plus, all the one-shots and minis, there's no way it's not taking up a closet!

[mikephoen]

 

How about keeping a short box or two behind the counter? Or a few wall books to keep the flames burning at least to a degree? Abandoning collectors back issues completely seems flawed to me.

 

A store with no back issue stock insures that I will never visit more than once.

 

Back issue buyers had 15+ years to prove their worth to me as a business owner. They're lucky I had products that actually made money over that time or they wouldn't have got that long. If an amazing collection walked in the door, I would still buy it, and just sell the books on here or on through an auction house. The same as everyone else.

 

[mikephoen]

A store with no back issue stock insures that I will never visit more than once.

 

I would have no interest in operating a shop that didn't carry collectible back-issues. That said... admittedly this is a personal choice and not necessarily a great busines decision. For most shops, I agree with Bedrock's views. Most places are small, and simply can't devote large amounts of space to iffy back-issue sales.

 

From a customer standpoint, we should be doing everything right. At 16,000 sq.ft. we have the largest comics shop in the nation. So we have the space to carry back-issues, and we do. We have about 10,000 gold-silver-bronze books on display, and another 50,000+ warehoused in various degrees of accessibility. We have another 25,000 or so modern back-issues (90s-up) in the main section, and an additional 35,000 back-iisues available in our 2-story Discount division at only $1 each. Another 100,000 comics await processing.

 

Yet for all that, back-issues are not a huge percentage of our sales (about 10%), and the vast majority of that is to out-of-state dealers and collectors who pass through. Here in our part of the mid-West, property is cheap (which is why can afford 16,000 sq.ft. and a Los Angeles or Manhattan store cannot). However, by comparison, major back-issue collectors are relatively scarce.

 

Our greater Metro area has a population of about 1 million. We've been around 27 years so I pretty much know, or know of, all the major collectors in the area. Out of 1 million population there are approximately:

 

-- 2 serious golden-age collectors (and they have fairly narrow niches).

-- Maybe 2-dozen significant silver-bronze collectors (ones who don't flinch at a $100 issue periodically).

-- 1 pulp collector.

-- 0 major buyers of collectible paperbacks.

 

There are additional dabblers... a buyer of westerns in the $5 - $25 range, the occasional impulse buy of a "neat cover" by someone who doesn't otherwise actively collect that era or title, etc. And that's it.

 

Fortunately, we are near several major highways and interstates, so we, like I said, make up our sales primarily to out-of-staters, with some individual collectors or dealers dropping more annually then nearly all of our local market put together.

 

But for small shops in this day and age to try and carry significant back-issue stock? That's a recipe for disaster.

 

 

 

Very interesting post.

 

Here in Calgary retail space rent in crappy areas is about $25 a square foot. A 16,000 square foot store would have a monthly rent of over $33,000! You would need a Savannah collection or equivalent to walk in the door every year to make rent selling back issues. If you want to be in a trendy area, your rent would be 5 times that!

[ComicConnoisseur]

Despite all the hype of Action 1`s and AF 15`s going for big bucks, the reality is most comic books are worth less then a dollar post-1976,they are like any other disposable media now, you buy a paperback and dvd,enjoy them then move on to the next movie or book, same with modern post 1976 comics, read them ,enjoy them then move on to the next story. I guess the days of the majority of collectors trying to get every Marvel comic are over.

[Dale Roberts]

A store with no back issue stock insures that I will never visit more than once.

 

I would have no interest in operating a shop that didn't carry collectible back-issues. That said... admittedly this is a personal choice and not necessarily a great busines decision. For most shops, I agree with Bedrock's views. Most places are small, and simply can't devote large amounts of space to iffy back-issue sales.

 

From a customer standpoint, we should be doing everything right. At 16,000 sq.ft. we have the largest comics shop in the nation. So we have the space to carry back-issues, and we do. We have about 10,000 gold-silver-bronze books on display, and another 50,000+ warehoused in various degrees of accessibility. We have another 25,000 or so modern back-issues (90s-up) in the main section, and an additional 35,000 back-iisues available in our 2-story Discount division at only $1 each. Another 100,000 comics await processing.

 

Yet for all that, back-issues are not a huge percentage of our sales (about 10%), and the vast majority of that is to out-of-state dealers and collectors who pass through. Here in our part of the mid-West, property is cheap (which is why can afford 16,000 sq.ft. and a Los Angeles or Manhattan store cannot). However, by comparison, major back-issue collectors are relatively scarce.

 

Our greater Metro area has a population of about 1 million. We've been around 27 years so I pretty much know, or know of, all the major collectors in the area. Out of 1 million population there are approximately:

 

-- 2 serious golden-age collectors (and they have fairly narrow niches).

-- Maybe 2-dozen significant silver-bronze collectors (ones who don't flinch at a $100 issue periodically).

-- 1 pulp collector.

-- 0 major buyers of collectible paperbacks.

 

There are additional dabblers... a buyer of westerns in the $5 - $25 range, the occasional impulse buy of a "neat cover" by someone who doesn't otherwise actively collect that era or title, etc. And that's it.

 

Fortunately, we are near several major highways and interstates, so we, like I said, make up our sales primarily to out-of-staters, with some individual collectors or dealers dropping more annually then nearly all of our local market put together.

 

But for small shops in this day and age to try and carry significant back-issue stock? That's a recipe for disaster.

 

 

 

I would tend to disagree with Tim (to some extent) on back issue stock.

 

I have never been in a comic store which is in a reasonable sized market (say at least 50,000 people to draw from) that could not sell back issues. Now many of them don't sell back issues, but it is because they don't have anything that anyone wants, and what they do have that is desirable is over priced.

 

Here are the keys to selling back issues.

 

1. Get new product in. Any store which never gets in new back issue product will at some point quit selling anything, unless they happen to get out of town traffic or new customers (and we know how hard those are to come by).

 

2. Communicate with your customers. I can't tell you how many stores I have been in that I had to initiate communication with the supposed sellers. Mostly, the employees are there to work the cash register. Talk to your customers (all of them) and find out what they are looking for, and then try to get it. Store owners can get off their butts and find stuff just like I do (if they wanted to).

 

3. Understand that when a customer comes into a comic store, they are generally there to buy something. If you don't have anything for them, then get something new to sell.

 

4. Don't try to get a premium price for everything. I know stores all over the place that still have Darkhawk back issues. Get that out of there, make some quarter boxes and get some books that people want. There is simply no reason to carry a series that was cancelled more than 3 years ago(unless it is a true collectible), unless it is in a discount area.

 

5. Focus. Look at what people are buying and listen to what they are asking about. It changes pretty quickly, so you have to be able to adapt.

 

6. Buy everything that comes in the door. Now alot of stuff you need to buy very cheaply, but there is a market for (almost) everything. If you can't sell it through your store, sell it on ebay or at a weekend convention.

 

7. Be willing to adjust your prices if something doesn't sell. Got an Ultimate Spider-man #1 sitting on the wall for 3 years for $125.00? Guess what, nobody wants it at that price. But you might be able to sell it for $70.00, take that $70.00 and buy something else that you can sell for #125 in 3 weeks.

 

8. Grade your books correctly. Even under-grade most of your stuff(maybe not the good stuff). What good does it do to have an X-Men #23 in your back issue box if it is priced at 3 times what it is sellable at. Remember, generally speaking, you have a fixed customer base.

 

9. Have an occasional sale. Turn some inventory and some cash. Make a sign that you are also BUYING comics.

 

Back issue comics are the ONLY high profit product in a comic dealers store. It would be very foolish in my opinion not to utilize every profit option available for a comic book store. Especially the one with the best margin.

[JiveTurkeyMoFo]

Make a sign that you are also BUYING comics.

 

I've met a few collectors over the years who have brought their collections to a show like MegaCon in hopes of selling it to an out of state dealer like Dale or Harley. When I asked them why, its because they said that no LCS is even willing to make them an absurd offer, nevermind something approaching 40%-50% of FMV. So they wait, in some cases many months, until a major convention is in the state, drive a few hours, and hope they can sell their goods.

 

Kinda sad really, but in Florida especially, its the sign of the times.

 

 

[Ted Knight]

 

I would tend to disagree with Tim (to some extent) on back issue stock.

 

I have never been in a comic store which is in a reasonable sized market (say at least 50,000 people to draw from) that could not sell back issues. Now many of them don't sell back issues, but it is because they don't have anything that anyone wants, and what they do have that is desirable is over priced.

 

Here are the keys to selling back issues.

 

1. Get new product in. Any store which never gets in new back issue product will at some point quit selling anything, unless they happen to get out of town traffic or new customers (and we know how hard those are to come by).

 

2. Communicate with your customers. I can't tell you how many stores I have been in that I had to initiate communication with the supposed sellers. Mostly, the employees are there to work the cash register. Talk to your customers (all of them) and find out what they are looking for, and then try to get it. Store owners can get off their butts and find stuff just like I do (if they wanted to).

 

3. Understand that when a customer comes into a comic store, they are generally there to buy something. If you don't have anything for them, then get something new to sell.

 

4. Don't try to get a premium price for everything. I know stores all over the place that still have Darkhawk back issues. Get that out of there, make some quarter boxes and get some books that people want. There is simply no reason to carry a series that was cancelled more than 3 years ago(unless it is a true collectible), unless it is in a discount area.

 

5. Focus. Look at what people are buying and listen to what they are asking about. It changes pretty quickly, so you have to be able to adapt.

 

6. Buy everything that comes in the door. Now alot of stuff you need to buy very cheaply, but there is a market for (almost) everything. If you can't sell it through your store, sell it on ebay or at a weekend convention.

 

7. Be willing to adjust your prices if something doesn't sell. Got an Ultimate Spider-man #1 sitting on the wall for 3 years for $125.00? Guess what, nobody wants it at that price. But you might be able to sell it for $70.00, take that $70.00 and buy something else that you can sell for #125 in 3 weeks.

 

8. Grade your books correctly. Even under-grade most of your stuff(maybe not the good stuff). What good does it do to have an X-Men #23 in your back issue box if it is priced at 3 times what it is sellable at. Remember, generally speaking, you have a fixed customer base.

 

9. Have an occasional sale. Turn some inventory and some cash. Make a sign that you are also BUYING comics.

 

Back issue comics are the ONLY high profit product in a comic dealers store. It would be very foolish in my opinion not to utilize every profit option available for a comic book store. Especially the one with the best margin.

 

Well said on all points. It's stunning how many dealers think that overgrading and therefore overpricing is s a successful business model. I often ask, are you here to sell comics or keep them? If the answer is sell, then what's stopping you? People are at stores and conventions to buy! They are qualified the moment they walk in the door.

 

Unfortunately, it's not much better at conventions. I always love how angry these same dealers get at other dealers that are selling lots of books for "cheap" prices. Meanwhile, their own inventory is as stale as year-old bread.

[mikephoen]

 

Back issue comics are the ONLY high profit product in a comic dealers store. It would be very foolish in my opinion not to utilize every profit option available for a comic book store. Especially the one with the best margin.

 

Dale makes a lot of good points. Although all of these points should be completely obvious to anyone in retail.

 

This last point however, is false. There are lots of products that a store can sell with great profitability. And if you think back issues have the best margins, that is because you've never sold Magic singles!

[MrBedrock]

Back issue comics are the ONLY high profit product in a comic dealers store.

Even if back issue margins were 1,000,000% (exaggeration alert!) the turn times are such that most savvy retailers will devote the space to quicker moving items. Without getting into the math too much, more money can be made turning 10 items with a 100% margin (which just require product placement) then selling one back issue item with a 1000% margin (which requires special handling and product prep).

[Dale Roberts]

Back issue comics are the ONLY high profit product in a comic dealers store.

Even if back issue margins were 1,000,000% (exaggeration alert!) the turn times are such that most savvy retailers will devote the space to quicker moving items. Without getting into the math too much, more money can be made turning 10 items with a 100% margin (which just require product placement) then selling one back issue item with a 1000% margin (which requires special handling and product prep).

 

 

Thats because most retailers (savy doesn't apply to most) price books way beyond what the market (their individual markets) will bear. And most retailers don't keep the product which WILL sell in stock.

 

Obviously not talking about you, or many other successful business owners, but many. There are ways to make good money off back issues, but it is a market you have to work at and cultivate. I have seen it done.