How do you buy a Comic Store?

[cmixer]

Let's say I had the time & money to buy a store (& was willing to relocate); but didn't want to start from scratch. -- How do you find a Store for sale? I'd have to imagine there are people (if i was patient) who wanted to retire from LCS ownership. -- Do they advertise on CraigsList? Any other hints/ideas?

[1Cool]

Advertise on Craigslist? I'm curious how that ad would be worded.

 

I'd just pick a city and start contacting all the shop owners in person. It's probably a tough time to buy because a lot of people are making good money but you never know. Good luck.

 

 

[aardvark88]

I would say every city has a weak comic shop that is about to fold and is looking for any well-meaning collector/fan (not necessarily logical business person) to make an offer on a barely running LCS with 3 or less subscribers remaining. Just wait for the bankruptcy auction next year to pick up overstocked toys, comics, mags for 5c each.

[The Less Blob]

Go into a comic shop with $500 in your pocket and many of them will be fine with selling out to you. Getting the landlord to let you take over the lease might be trickier.

 

 

"It's probably a tough time to buy because a lot of people are making good money but you never know. Good luck."

 

They keep on closing around me, but that is probably more of a function of high rents. If they paid $700 a month rent rather than $6,000 they'd probably thrive.

 

On the other hand, 2 shops I know had pretty low rents by NYC standards (below $1500 a month), the owners just decided they could make more money with their time elsewhere and didn't want to pay someone to run the store/steal from them.

 

What does a 500 square foot spot in a generic strip mall cost around you in Ohio?

[The Less Blob]

I would say every city has a weak comic shop that is about to fold and is looking for any well-meaning collector/fan (not necessarily logical business person) to make an offer on a barely running LCS with 3 or less subscribers remaining. Just wait for the bankruptcy auction next year to pick up overstocked toys, comics, mags for 5c each.

 

of course, are they weak because of a bad location, impossibly bad local economy, etc.?

 

i wouldn't be that interested in buying a bunch of back issue inventory to the prior store couldn't unload unless it is just because their prices were insane or somethin.

 

really i think it's the pull list. do they have 50+ people who regularly pick up a stack of books?

[1Cool]

Go into a comic shop with $500 in your pocket and many of them will be fine with selling out to you. Getting the landlord to let you take over the lease might be trickier.

 

 

"It's probably a tough time to buy because a lot of people are making good money but you never know. Good luck."

 

They keep on closing around me, but that is probably more of a function of high rents. If they paid $700 a month rent rather than $6,000 they'd probably thrive.

 

On the other hand, 2 shops I know had pretty low rents by NYC standards (below $1500 a month), the owners just decided they could make more money with their time elsewhere and didn't want to pay someone to run the store/steal from them.

 

What does a 500 square foot spot in a generic strip mall cost around you in Ohio?

 

Not sure about that - never checked myself. I do know all the shops in my area seem to be thriving and a couple of the owners say their profit are as high as ever.

[manetteska]

Do you like (suburban) Chicago?

 

http://chicago.craigslist.org/nwi/bfs/5423076663.html

[1Cool]

Well there you go. That's how the Craiglist ad would be worded.

[Junkdrawer]

Let's say I had the time & money to buy a store (& was willing to relocate); but didn't want to start from scratch. -- How do you find a Store for sale? I'd have to imagine there are people (if i was patient) who wanted to retire from LCS ownership. -- Do they advertise on CraigsList? Any other hints/ideas?

Speak to a big store and tell them what you'd like to do. Its very possible that they can fill your store instantly with merchandise and get you on the payment plan.

[DeadOne]

Here's another:

 

http://annarbor.craigslist.org/bfs/5417735945.html

[loadstone]

Here's another:

 

http://annarbor.craigslist.org/bfs/5417735945.html

 

"All money currently in the business checking account"

 

Is this usual practice when selling a business?

[The Less Blob]

Not sure about that - never checked myself. I do know all the shops in my area seem to be thriving and a couple of the owners say their profit are as high as ever.

---------

 

so the economy of ohio is kind of blech, but the comic shops are booming? or are you in a city that happens to be outpacing the rest of the state (cincinatti is doing pretty well, right?)

 

 

[The Less Blob]

Here's another:

 

http://annarbor.craigslist.org/bfs/5417735945.html

 

So, lemme see, in terms of COGS, maybe the profit is $160K on $320-$330K in retail sales? Is that pushing it?

 

and then there is rent.

 

and then there are utilities/insurance.

 

and it sounds like he has at least 3 people on payroll if he is never around.

 

i guess if you bought the place you can trim staff.

 

How much actual profit does that generate?

[Robot Man]

I get people all the time telling me "you should open a comic book shop". I usually tell them heck no, but if I were retired I'd work there.

 

Then again, maybe not even that. Right now comics are a fun hobby. If I were to be confined 8-10 hours a day in a shop maybe 7 days a week, possibly not so much. My fun hobby would probably turn into the grind that working any where can be...

[aardvark88]

I would say every city has a weak comic shop that is about to fold and is looking for any well-meaning collector/fan (not necessarily logical business person) to make an offer on a barely running LCS with 3 or less subscribers remaining. Just wait for the bankruptcy auction next year to pick up overstocked toys, comics, mags for 5c each.

 

of course, are they weak because of a bad location, impossibly bad local economy, etc.?

 

their prices were insane or somethin.

 

really i think it's the pull list. do they have 50+ people who regularly pick up a stack of books?

 

Decent location next to a highschool and bus route. Free parking on the street. In a vibrant city with strong economy in Canada. Retail prices highest in the city because vendor charges max. exchange rate instead of his cost in US rate per Diamond invoice.

 

Shop has 3 ppl picking up comics; 1 subscriber left.

Has strange retail hours of 3 pm to 11 pm Mon. to Friday. Occassionally opens on weekends 2 pm to 10 pm when boss feels like it. No space for evening gaming or sports cards.

[KPR Comics]

Here's another:

 

http://annarbor.craigslist.org/bfs/5417735945.html

 

So, lemme see, in terms of COGS, maybe the profit is $160K on $320-$330K in retail sales? Is that pushing it?

 

and then there is rent.

 

and then there are utilities/insurance.

 

and it sounds like he has at least 3 people on payroll if he is never around.

 

i guess if you bought the place you can trim staff.

 

How much actual profit does that generate?

That would be impressive, but suspect. Would love to see the P&L. And if he can run it remotely and it's such a cash cow, why sell?

[revat]

I would say every city has a weak comic shop that is about to fold and is looking for any well-meaning collector/fan (not necessarily logical business person) to make an offer on a barely running LCS with 3 or less subscribers remaining. Just wait for the bankruptcy auction next year to pick up overstocked toys, comics, mags for 5c each.

 

of course, are they weak because of a bad location, impossibly bad local economy, etc.?

 

their prices were insane or somethin.

 

really i think it's the pull list. do they have 50+ people who regularly pick up a stack of books?

 

Decent location next to a highschool and bus route. Free parking on the street. In a vibrant city with strong economy in Canada. Retail prices highest in the city because vendor charges max. exchange rate instead of his cost in US rate per Diamond invoice.

 

Shop has 3 ppl picking up comics; 1 subscriber left.

Has strange retail hours of 3 pm to 11 pm Mon. to Friday. Occassionally opens on weekends 2 pm to 10 pm when boss feels like it. No space for evening gaming or sports cards.

 

could be a front for other more profitable illicit industries. Or just an occasionally fun hobby for someone who is so rich they don't care. or both.

 

There's a cafe/bar in the same strip mall plaza. Its nice on the inside, but drinks are expensive and its always empty, except the owner, pretty woman in her 20's, and usually a few of her friends. Their service is awful, but they're generous with their drinks. Her rich husband gave her a bar to run, she hangs with her friends all day, they don't give a lick about profit, and he can write off the losses against his other income, and give his wife a purpose and keep her happy all at the same time.

[paul747]

Here's another:

 

http://annarbor.craigslist.org/bfs/5417735945.html

 

So, lemme see, in terms of COGS, maybe the profit is $160K on $320-$330K in retail sales? Is that pushing it?

 

and then there is rent.

 

and then there are utilities/insurance.

 

and it sounds like he has at least 3 people on payroll if he is never around.

 

i guess if you bought the place you can trim staff.

 

How much actual profit does that generate?

That would be impressive, but suspect. Would love to see the P&L. And if he can run it remotely and it's such a cash cow, why sell?

 

Cause its not ! he says what he made and that's equal to his inventory. So... what did he spend? you can have 300,00 k in revenue and spend 275,000.00

[fastballspecial]

Here's another:

 

http://annarbor.craigslist.org/bfs/5417735945.html

 

So, lemme see, in terms of COGS, maybe the profit is $160K on $320-$330K in retail sales? Is that pushing it?

 

and then there is rent.

 

and then there are utilities/insurance.

 

and it sounds like he has at least 3 people on payroll if he is never around.

 

i guess if you bought the place you can trim staff.

 

How much actual profit does that generate?

 

You can do very well if you have the right location and you are cost efficient. Most are not and treat it like a hobby and lose their shirt.

 

One of my LCS just retired after almost 20 years. His last year was his best, but he was tired of the grind. He did very well buying in bulk and selling $1 books along with wall books. He bought books for $.05 and sold for $1 do the math.

 

What I have always tried to remember is its easy to run it if you are single. It would be very hard if you were raising a family and depending on the income because it will fluctuate.

 

 

[aardvark88]

Instead of running a brick n mortar store, would it not be more efficient to try to run a new bi-monthly comicon in your local area? Guess it depends on how many other comicons u are competing against in one's city.

 

For the other weekends, just set up your comic/toy wares to sell at the local Sunday flea markets or collectibles shows. Instead of struggling to bring foot traffic to your shop, go to where the families already are on the weekends.