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Starting a LCS: Am I crazy - someone, please, set me straight!

Started by Dr Carl,

61 posts in this topic

thehumantorch

thehumantorch

Posted
Posted
To make money no.

Every time I see someone say that you can't make money opening a comic shop I cringe and bite my tongue. But so many folks here have said it that I've ground my teeth down.

It is very easy to make money running a comic shop. You just have to be smart about it.

 

If it was easy they wouldn`t keep closing. Not everyone is as smart as you.

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MrBedrock

MrBedrock

Posted
Posted
To make money no.

Every time I see someone say that you can't make money opening a comic shop I cringe and bite my tongue. But so many folks here have said it that I've ground my teeth down.

It is very easy to make money running a comic shop. You just have to be smart about it.

 

If it was easy they wouldn`t keep closing. Not everyone is as smart as you.

The problem isn't that folks aren't smart. The problem is that too many people start a "comic shop" as a hobby and don't think of it as a business. If a comic shop is run as a business (which is not that hard to do) it can make money.

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DrWatson

DrWatson

Posted
Posted
To make money no.

Every time I see someone say that you can't make money opening a comic shop I cringe and bite my tongue. But so many folks here have said it that I've ground my teeth down.

It is very easy to make money running a comic shop. You just have to be smart about it.

 

If it was easy they wouldn`t keep closing. Not everyone is as smart as you.

The problem isn't that folks aren't smart. The problem is that too many people start a "comic shop" as a hobby and don't think of it as a business. If a comic shop is run as a business (which is not that hard to do) it can make money.

I've got a surprise for you.

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fastballspecial

fastballspecial

Posted
Posted
To make money no.

Every time I see someone say that you can't make money opening a comic shop I cringe and bite my tongue. But so many folks here have said it that I've ground my teeth down.

It is very easy to make money running a comic shop. You just have to be smart about it.

 

Bedrock,

Your last sentence says it all. Most dont get into to it to make money. Its a nostalgia thing with most that and a lack of or never ever possessed any sense on inventory, accounting or general business practices.

 

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Bookery

Bookery

Posted
Posted
The problem isn't that folks aren't smart. The problem is that too many people start a "comic shop" as a hobby and don't think of it as a business. If a comic shop is run as a business (which is not that hard to do) it can make money.

 

I agree, for the most part.

 

However, there is another factor. You've been in business a long time... it was much easier in prior decades. I opened in 1984 (actually, even earlier, but that's a longer story). It was a lot easier to open a small hole-in-the-wall store back then.. you could make a lot of mistakes (and I did) and still survive. If you got stuck with 20 copies you over-ordered... well that was 20 x half of 65-cents, or whatever.

Now it's 20 x half of $3.99... or more. And inflation would only account for a fraction of the increase.

 

In the 1980s property taxes were minimal. Now in many parts of the country they are a significant part of you budget... whether directly through ownership or through higher rents. Advertising was simpler then... the newspaper, a few TV stations, radio. Now there are thousands of potential advertsing arenas, many even free, but much harder to reach individuals, as they may not come across your venues.

 

I think if you have the budget to open big... there's still a chance. But if you open a very small operation... particularly in an area that already has competition... you are going to have problems. Unless the competition is doing something significantly wrong, you must ask yourself, what are YOU bringing to the table that the others aren't, and is it significant enough to bring customers your direction?

 

 

 

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MrBedrock

MrBedrock

Posted
Posted
To make money no.

Every time I see someone say that you can't make money opening a comic shop I cringe and bite my tongue. But so many folks here have said it that I've ground my teeth down.

It is very easy to make money running a comic shop. You just have to be smart about it.

 

If it was easy they wouldn`t keep closing. Not everyone is as smart as you.

The problem isn't that folks aren't smart. The problem is that too many people start a "comic shop" as a hobby and don't think of it as a business. If a comic shop is run as a business (which is not that hard to do) it can make money.

I've got a surprise for you.

Nothing surprises me anymore. I play a lot of poker.

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SharpComics.com

SharpComics.com

Posted
Posted
To make money no.

Every time I see someone say that you can't make money opening a comic shop I cringe and bite my tongue. But so many folks here have said it that I've ground my teeth down.

It is very easy to make money running a comic shop. You just have to be smart about it.

 

If it was easy they wouldn`t keep closing. Not everyone is as smart as you.

The problem isn't that folks aren't smart. The problem is that too many people start a "comic shop" as a hobby and don't think of it as a business. If a comic shop is run as a business (which is not that hard to do) it can make money.

I've got a surprise for you.

Nothing surprises me anymore. I play a lot of poker.

 

Poker..... :cloud9:

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DrWatson

DrWatson

Posted
Posted
To make money no.

Every time I see someone say that you can't make money opening a comic shop I cringe and bite my tongue. But so many folks here have said it that I've ground my teeth down.

It is very easy to make money running a comic shop. You just have to be smart about it.

 

If it was easy they wouldn`t keep closing. Not everyone is as smart as you.

The problem isn't that folks aren't smart. The problem is that too many people start a "comic shop" as a hobby and don't think of it as a business. If a comic shop is run as a business (which is not that hard to do) it can make money.

I've got a surprise for you.

Nothing surprises me anymore. I play a lot of poker.

Okay then, I have a gift for you.

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Dick Pontoon

Dick Pontoon

Posted
Posted
To make money no.

Every time I see someone say that you can't make money opening a comic shop I cringe and bite my tongue. But so many folks here have said it that I've ground my teeth down.

It is very easy to make money running a comic shop. You just have to be smart about it.

 

If it was easy they wouldn`t keep closing. Not everyone is as smart as you.

The problem isn't that folks aren't smart. The problem is that too many people start a "comic shop" as a hobby and don't think of it as a business. If a comic shop is run as a business (which is not that hard to do) it can make money.

I've got a surprise for you.

Nothing surprises me anymore. I play a lot of poker.

 

Poker..... :cloud9:

 

Liquor in the front, poker in the rear!

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Topnotchman

Topnotchman

Posted
Posted

Can a comic/gaming/_____ shop can be profitable in a town of 150,000. The answer is yes. I have been self employed since 1997 and have been running multiple business platforms. Its all about making good day to day decisions. I live in a town of 12,000 and very few people were on board with my idea's. Good thing I didn't listen to them.

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underthebigw

underthebigw

Posted
Posted
To make money no.

Every time I see someone say that you can't make money opening a comic shop I cringe and bite my tongue. But so many folks here have said it that I've ground my teeth down.

It is very easy to make money running a comic shop. You just have to be smart about it.

 

That's the thing, Richard. You are not just smart, but smart about running a shop. You've hired good and loyal people, are shrewd about what sells and how to sell it, etc.

 

From my perspective, I've seen both good and bad shop owners. It's very easy to tell who is going to make it, who is going to subsist only because of lack of competition, and who is going to fail.

 

The two biggest pitfalls I see shop owners fall into are

 

 

  • insisting it's 1978 and make it a "comics only" shop. Those days are gone, and to pretend they aren't and delude yourself into believing you can operate your own extended collection as a business is to doom yourself to failure.
     
  • Rely on Diamond exclusively. So many store owners are complacent and will not look for merchandise outside of Diamond. Big mistake.
     
     

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the blob

the blob

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Posted

I've often pondered more of a pop culture collectible shop...basically cool vintage stuff, so you get all sorts walking in the door (like someone here does in mass). New comics, sure, but don't hi. Tt folkss over the head with them. There a lot of collectors out there who don't want to go into a comic shop per se but are into nerdy stuff too

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HouseofComics.Com

HouseofComics.Com

Posted
Posted

Yeah, I think this is a pass too, as an investment. I'm not against comic book stores--I considered going in on one this year, but it had a lot going for it.

 

In this case, I'd consider investing on a case-by-case basis for something specific. Ie, not be a general partner, but if the other two are committed, maybe do the back issue buying and then pay them 30% for everything that sells or something like that. Something that's helpful to them but not much of a risk to you. Unless the sales trend is straight up at this store, $800 before rent is not going to keep anyone happy for long. The guys may be into it now but they aren't going to be into it five years from now with no pay.

 

And I agree, a lot less dead inventory in the 80s compared to now. A great time to start to develop a dominant position in a good community.

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BEAUMONTS

BEAUMONTS

Posted
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I would probably pass, reason being.

"Has 2 LCS already - one very small, "old-timer" shop with only comic books that's been around 25 years; one newer comic/game store that's been around 10 years."

What if the shop I open isn't "really" successful but does well enough to be enough of a parasetic drain on the other two longer term shop's to possibly put them in trouble and close them down. I understand that this is part of business, but if the business I open up is for my own "hobby" interests, I don't know how I would feel effecting other peoples bread and butter income, especially in this economy.

If there was a larger population base I would not have this opinion.

meh(shrug)

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Gatchaman

Gatchaman

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Posted

 

 

  • insisting it's 1978 and make it a "comics only" shop. Those days are gone, and to pretend they aren't and delude yourself into believing you can operate your own extended collection as a business is to doom yourself to failure.
     
  • Rely on Diamond exclusively. So many store owners are complacent and will not look for merchandise outside of Diamond. Big mistake.

 

I greatly agree. The more comics you order through Diamond the greater your discount and there are a lot of stores that wind up with a lot of books they don't sell and wind up losing money when they later on are see in their quarter bins.

 

In my comic store I didn't get a very big percentage on my monthly books, but other merchandise I sold the most of I had as much as 500% profit margins and they were the majority of my sales.

 

In this business you have to run a shop more like a bar than a liqueur store. If they stay and drink they will spend more money.

 

Here's a couple pictures of my little game store when I had it -

 

1607drafts1.jpg

PeasantTournament2.jpg

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Dr Carl

Dr Carl

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Well, thank you all again.

 

I'm really appreciate the benefit your collective experience.

 

Here are a couple of key gems I've gleamed:

 

Reasons why an LCS is hard (read further down as to why you don't want to let that necessarily stop you, but you'd be a fool to be unaware of the risk factors):

:

1. Double Dip Recession?

2. Loss in Retail Sales overall

3. Even Border's Doesn't survive

 

Factors Specific to the LCS:

 

4. Going digital - loss in sales (more future than current)

5. Decreased interest in comic books - Smaller Print Runs

6. Loss in sales to online subscriptions - Online Subscriptions at 30-50% off

7. Loss of TPB sales - TPB on Amazon.com or half.com or ebay.com

8. Devaluing of Back Issues if over-order: Lack of value in back issues

9. Use of Online services to sell old Books - Inability to sell old comics, except possibly on consignment

10. 3 comic book shops may be too many for 150,000 people.

 

Reason for Hope:

 

Knowing the risks does not mean not forging ahead (although we'll take our time in the decision making):

 

1. Reduce the competition

Offer to buy out one of the LCS, or buy out the gaming only store and add comics

 

2. Diversify:

Think about any diversification you might want. Get a real sense of the store that could survive, when considering bottom line.

(Gaming?, DVDs?, Video Games, Other Related Items? Superhero videos, collectable toys?)

 

3. Stridently guards their bottom line:

Run the numbers, see what all the costs are, see how many sales you'd need.

Along those lines, make maximal use of the storefront and going online.

For example, Events - signings - local authors? comic con?

 

There you have it. My collective 2 cents so far....

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Topnotchman

Topnotchman

Posted
Posted

You indicated your town is 150,000. What is your metro area? You will have customers who stop in say, once a month to see whats new. Many times a metro area is 2-3 times the size of the supposed town city limits. Your population pull may be larger than you think.

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MrBedrock

MrBedrock

Posted
Posted

 

1. Reduce the competition

Offer to buy out one of the LCS, or buy out the gaming only store and add comics

 

I strongly recommend starting your own store rather than buying an existing store for a few reasons. First and foremost, if an existing store is doing well the purchase price will probably be prohibitively high, and if it is not doing well you do not want to inherit that burden. Secondly, by opening a new store and providing great customer service and selection you will naturally create a competitive advantage for your store over those existing. I'm a firm believer in friendly competition among comic shops simply because the more shops there are the broader the potential customer base for all shops. As much as we want to believe we are a destination business, convenience trumps all. By having many stores conveniently placed the potential for each store's customers to seek out more product increases. And as a result the whole customer base grows.

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jimjum12

jimjum12

Posted
Posted

 

1. Reduce the competition

Offer to buy out one of the LCS, or buy out the gaming only store and add comics

 

I strongly recommend starting your own store rather than buying an existing store for a few reasons. First and foremost, if an existing store is doing well the purchase price will probably be prohibitively high, and if it is not doing well you do not want to inherit that burden. Secondly, by opening a new store and providing great customer service and selection you will naturally create a competitive advantage for your store over those existing. I'm a firm believer in friendly competition among comic shops simply because the more shops there are the broader the potential customer base for all shops. As much as we want to believe we are a destination business, convenience trumps all. By having many stores conveniently placed the potential for each store's customers to seek out more product increases. And as a result the whole customer base grows.

 

Hard to argue with a Tall Texan Who Sees The Big Picture. GOD BLESS....

 

-jimbo(a friend of jesus) (thumbs u

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the blob

the blob

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Posted

how do the gaming stores make money? one former comic shop in brooklyn (the stand) is now mainly card games, used video games and some toys..i wonder how they stay afloat as they dont charge the kids for the tables and what not

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