How do you buy a Comic Store?

[shadroch]

Times have changed.

When I opened my first store,it was $300 a month rent plus month security deposit. $1200 for my first months comics in advance,my personal collection plus $300 purchase from Koch, $40 for 2,000 comic bags for sale, $75 for 15 t-shirts, $75 for a used card display for my new books, $150 for a phone deposit and $50 for a 6 foot display case. I used a Dom Perigone box as a cash box and $200 in change. The next week I bought 25 long boxes to sell.

After a month or two, I spent $300 on Dungeons and Dragons stuff, and took in a $500 poster display kit on consignment.

I was working midnites so my shop was open 2-8, five days a week. Closed Sunday and Monday.

I put almost every dollar of profit back I to the shop for more than six months, and it was a one man operation.

[youmechooz]

monthly expenses for an "average" store... (fyi,I have over $200K of inventory in my store on rotating basis...you probably can't start with just 10K (as that wouldn't even give you a week and half of sales))

 

I spent $40K fixturing my store, though I suspect one could thriftly do it for $10-15K

Figure $2000-3000 for proper signage both over store and on roadside

 

figure $10,000 a month min to buy merch from diamond (that gives you 16-18K retail sales, if you don't discount and sell through 100%)

figure $2000-$2500 a month for rent if you are in a nice complex ($8-12 a square foot...obviously a smaller store would be less)

figure $400 a month for CAM (if in a nice complex)

figure $100 a month for insurance

figure $250 a month for utilities

figure $250 a month for internet and phone

figure $100 a month for water and sewage

figure $2000+ a month for salary (unless a small store you will go at it alone, then you still have to budget your salary)

 

available cash to buy collections good and bad

 

License fees (state and city depend)...

Deposits for utilities and sewer, etc

 

all in all, it is a very expensive venture to run a store these days...

 

I wouldn't even consider it unless you have $50-100K in cash, and 50K+ in existing but Sellable, inventory

You have a very expensive store.

Maybe 5,000+ sqft?

from the looks of it, your store is way beyond average.

There is maybe 1 store in all of georgia that maybe might buy $10k of merch from diamond a month, unless you talking retail.

The $40k in fixtures alone tells me your store is above average.

Fixtures are expensive for sure.

Even if i asked my wife, mrs moneybags, for a loan, id never spend $40k on fixtures. None of your friends are carpenters?

$250 for internet and phone a month? Was it that? A t3 line? I just signed up for broadband internet and phone at my store for $65 a month, taxes and fees included.

So weird, 2500 a month with a $400 cam. For me, common area better have a six flags park.

Paying for my own water and sewage, i would kill myself, especially in a multi-tennant building.

You have been doing this a long while and you are obviously successful.

You should move. Florida Sounds super expensive to open any store.

I decided on 1 city over another because store signs in one city had to be channel letters, would never pay $8k for a sign.

Im getting the cheapest sign they have and having a friend stand outside when it gets dark to shine a flashlight on it.

[youmechooz]

on top of rent? so cruel.

Like Gator says, it's standard especially in good centers. Someone's got to pay for parking maintenance, lighting, landscaping, insurance, security, ...

But honestly you are only paying for lighting and maybe parking maintenance. Security isnt included in 98% of any retail spaces . Landscaping is low maintenance shrubs and trees so landcapers are only called Once every 6 months, insurance doesnt concern anyone since you need to purchase your own. Sigh, im getting nickel and dimed to death.

[shadroch]

on top of rent? so cruel.

Like Gator says, it's standard especially in good centers. Someone's got to pay for parking maintenance, lighting, landscaping, insurance, security, ...

But honestly you are only paying for lighting and maybe parking maintenance. Security isnt included in 98% of any retail spaces . Landscaping is low maintenance shrubs and trees so landcapers are only called Once every 6 months, insurance doesnt concern anyone since you need to purchase your own. Sigh, im getting nickel and dimed to death.

 

Snow removal, air conditioning, garbage removal, public bathrooms are covered by this, no?

Gators store sounds great, but isn't a start up or what someone buying a retirement business would be looking at.

[ChrisInBaltimore]

Times have changed.

When I opened my first store,it was $300 a month rent plus month security deposit. $1200 for my first months comics in advance,my personal collection plus $300 purchase from Koch, $40 for 2,000 comic bags for sale, $75 for 15 t-shirts, $75 for a used card display for my new books, $150 for a phone deposit and $50 for a 6 foot display case. I used a Dom Perigone box as a cash box and $200 in change. The next week I bought 25 long boxes to sell.

After a month or two, I spent $300 on Dungeons and Dragons stuff, and took in a $500 poster display kit on consignment.

I was working midnites so my shop was open 2-8, five days a week. Closed Sunday and Monday.

I put almost every dollar of profit back I to the shop for more than six months, and it was a one man operation.

 

Sounds like a lot of work. Was it fun?

 

I live in a densely populated area outside the city. The neighborhoods around me on one side are traditionally what people consider starter homes. Then across the street there are single family homes that many upgrade into. In other words, I'm surrounded by a lot of famalies with children. There is this old shut down mom and pop grocery store that has sat for a long time. It is dead central between these two neighborhoods. I always tell my wife that would be the perfect spot to open a store. It would be walking distance for thousands of kids. I'd try to make it a comic store, game store, and video game hangout.

 

I love dreaming about it...

[G.A.tor]

Most everyone has heard the old adage "location location location "

 

I highly recommend before opening a store you identify what is the best location you can afford

 

 

[Dale Roberts]

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?

 

You have no idea what you are getting into. Not saying you can't be successful, but if you are not willing to work 60 hours a week on this, you probably can't make it work.

 

Anyone making good money is not going to want to sell (broad generalization). Anyone who is breaking even or losing money is probably willing to sell, but you need to consider if it is a problem that can be fixed, or a problem with the area or the store.

 

I just hate to see you get in over your head. Its going to be your life for at least 2 years and maybe the entire life of the store, depending on your market.

[aardvark88]

"location, location, location.

 

Recommendations:

 

1. pick a zip code for your shop that has discretionary income.

2. foot traffic from corner location, window displays.

3. near colleges or a university for educated readers (female and male).

4. near magnet businesses (e.g. McDonald's, theaters, public library)

5. easy access off of hwy, near transit (bus or metro rail line) or decent free parking

6. competition: another toy store/chain close to u?

7. rent, lease, CAM costs

 

You would be working essentially 6 days a week and on the 7th day, you sell at local comicon, part-time eBay, network/sell at Sunday flea markets to meet more families.

[Batman1fan]

Have you ever worked in retail before? It's a lot of work and hours and that's just working for someone else. I'm 45 years old now and I've collected comics since I was 8. I thought for years that the path to happiness would be owning my own comic store and I even looked into it a bit. Thank God it never happened and I'll tell you why. My other hobby that I HAD since I was 10 or so was guns, first toy and then real guns. Back in 2003, I was hired at a large new Sporting goods store as the handgun manager, which I thought was a sort of dream come true. It wasn't. I had worked retail before, so the hours didn't bother me, I was used to them. But you know hat happened? As the years went by, my interest in the hobby of guns began to diminish, to the point that as a hobby, I had no interest in it anymore. Finally, last year, I quit that job that I came to detest and found another career that I really enjoy but has nothing to do with my hobby. I also sold off all of my guns, books related to guns and everything else related to guns. I'm thankful that I still enjoy the comic book hobby, but I myself could never work in it. People like Dale and Rick who are able to make a living doing what they enjoy are inspirational, just know that it doesn't work out that way for most people. After working 8 hours a day, I enjoy coming home and doing something with comics. Now, if I was working 12-14 hours a day in a comic store, there's no way I could come home and relax by working with comics some more. It's something to think about, anyway. Good luck in whatever you choose to do!

[AKA Rick]

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?

 

I'd actually find in general it's not that hard to start from scratch and would be better quite frankly.

 

If you buy a store, the fact you're inquiring on these boards implies maybe you're not experienced, so could easily fall victim to buying into swampland.

 

Most stores that are for sale are due to failure in location and business support (customers). Those diamonds in the rough who do thrive are rarely for sale, unless a retirement or cash out situation.

 

The stores you'll end up finding are ones where you may inherit a bad lease and unsellable inventory that's overvalued.

 

For that reason, if you're going to want to get into the business with a professional approach, what you should do is this:

 

If you're going to buy an existing store

 

1) Ask to see their last 5 years tax returns, as proof there's existing sustainable business.

 

2) Scout out the store on Wednesday (new comic day) and weekends, the days where retail traffic should be highest.

 

3) Evaluate the inventory to see what is sellable and what's taking up room, the very room you're paying rent for, so don't want to turn it into a warehouse

 

4) The location, do a crime report for the area and identify any issues whether it's well traveled, accessible via public transit, parking issues, etc.

 

Then you can go into it with a bit more knowledge.

 

I'd recommend, since you mentioned relocating to do this:

 

1) Pick a place you want to be, not that you have to be. So, if you like California, Florida, New York, Idaho, etc. pick a place you'll be happy at.

 

2) Find a location where you feel a store would do well, but also not next to established competition. Build your own fan base, maybe be near a college/university or school. Pick a place that's not off the beaten path, but that's convenient to get to and park.

 

3) Don't feel you can do this yourself, because most likely you can't. A lot of people go to local comic stores and poach employees to become their store manager. I'd recommend that. Not the hipster kid behind the counter, but someone who takes their job seriously. You'd be new to town and not know anything, and from the sound of the question, you might be more of a fan than a businessman.

 

4) Build your own inventory, buy collections and distressed goods for pennies on the dollar as your filler material. Then buy what you want at wholesale. Don't inherit bad merchandise overvalued by someone selling their business.

 

5) Design the store the way you want it. 75% of comic shops are horrible by design, cluttered and junky. The better stores seem to have organization, lighting and space, even lounge type areas. If you're planning on running the store 8 hrs a day, 7 days a week, create an environment you don't want to hang yourself in or be disgusted by.

 

6) Know that you will most likely have to supplement your income with online sales or even an eBay store. When nobody is in your store, and there will be a lot of lonely hours, you'll find it a good use of time to create revenue and also build your business through social media postings as well. Do outreach at conventions, have in-store signings and do what it takes to promote your business.

 

Good Luck!

 

 

[AKA Rick]

Have you ever worked in retail before? It's a lot of work and hours and that's just working for someone else. I'm 45 years old now and I've collected comics since I was 8. I thought for years that the path to happiness would be owning my own comic store and I even looked into it a bit. Thank God it never happened and I'll tell you why. My other hobby that I HAD since I was 10 or so was guns, first toy and then real guns. Back in 2003, I was hired at a large new Sporting goods store as the handgun manager, which I thought was a sort of dream come true. It wasn't. I had worked retail before, so the hours didn't bother me, I was used to them. But you know hat happened? As the years went by, my interest in the hobby of guns began to diminish, to the point that as a hobby, I had no interest in it anymore. Finally, last year, I quit that job that I came to detest and found another career that I really enjoy but has nothing to do with my hobby. I also sold off all of my guns, books related to guns and everything else related to guns. I'm thankful that I still enjoy the comic book hobby, but I myself could never work in it. People like Dale and Rick who are able to make a living doing what they enjoy are inspirational, just know that it doesn't work out that way for most people. After working 8 hours a day, I enjoy coming home and doing something with comics. Now, if I was working 12-14 hours a day in a comic store, there's no way I could come home and relax by working with comics some more. It's something to think about, anyway. Good luck in whatever you choose to do!

 

So True!!!

 

For many, once you turn your passion and hobby that you love into a business, you end up hating it and resenting it, removing almost all enjoyment.

[RCheli]

About 18 months ago, another Chicago store was up for sale. It was in an up-and-coming neighborhood (Ukrainian Village) with a nice storefront, but it was a really bad store. They were asking way too much for it, and were reluctant to show me numbers.

 

("How do you want me to assess whether or not I want to purchase your store if you're not going to show me the numbers?)

 

They ended up just closing it.

 

I considered buying it but not quitting my job and hiring someone to run it.

[youmechooz]

on top of rent? so cruel.

Like Gator says, it's standard especially in good centers. Someone's got to pay for parking maintenance, lighting, landscaping, insurance, security, ...

But honestly you are only paying for lighting and maybe parking maintenance. Security isnt included in 98% of any retail spaces . Landscaping is low maintenance shrubs and trees so landcapers are only called Once every 6 months, insurance doesnt concern anyone since you need to purchase your own. Sigh, im getting nickel and dimed to death.

 

Snow removal, air conditioning, garbage removal, public bathrooms are covered by this, no?

Gators store sounds great, but isn't a start up or what someone buying a retirement business would be looking at.

If it snows in your area, yeah. Air conditioning is not covered, its electric and falls in your electric bill. Garbage a d water are usually covered in rent. Unless its a office building, not for a comic store, havent seen a public bathroom. But to answer your question, snow yes, the rest no.

[shadroch]

Before buying any business, insist on being an unpaid intern for at least thirty days, especially if you have no experience in the field.

[youmechooz]

"location, location, location.

 

Recommendations:

 

1. pick a zip code for your shop that has discretionary income.

2. foot traffic from corner location, window displays.

3. near colleges or a university for educated readers (female and male).

4. near magnet businesses (e.g. McDonald's, theaters, public library)

5. easy access off of hwy, near transit (bus or metro rail line) or decent free parking

6. competition: another toy store/chain close to u?

7. rent, lease, CAM costs

 

You would be working essentially 6 days a week and on the 7th day, you sell at local comicon, part-time eBay, network/sell at Sunday flea markets to meet more families.

Doesnt matter where you put your store. With comics, people look for you. Someone that doesnt read comics or play card games isnt going to drive past your store and stop by. Its not like a restaurant where you need to be seen. The best shop in GA is in the middle of nowhere in a lower income part of town next to nothing.

I was going to open right next door to a comic shop but it had this showcase front that took up space and i didnt like it. My dream would be right across the street from him. Maybe later.

[KPR Comics]

on top of rent? so cruel.

Like Gator says, it's standard especially in good centers. Someone's got to pay for parking maintenance, lighting, landscaping, insurance, security, ...

But honestly you are only paying for lighting and maybe parking maintenance. Security isnt included in 98% of any retail spaces . Landscaping is low maintenance shrubs and trees so landcapers are only called Once every 6 months, insurance doesnt concern anyone since you need to purchase your own. Sigh, im getting nickel and dimed to death.

J, you're not insuring the parking lot. Landlord is. And sure security is included in CAM if security is provided. It's not supposed to be a profit center, but everyone needs to pay their share. Are you not paying CAM?

[Dick Pontoon]

"location, location, location.

 

Recommendations:

 

1. pick a zip code for your shop that has discretionary income.

2. foot traffic from corner location, window displays.

3. near colleges or a university for educated readers (female and male).

4. near magnet businesses (e.g. McDonald's, theaters, public library)

5. easy access off of hwy, near transit (bus or metro rail line) or decent free parking

6. competition: another toy store/chain close to u?

7. rent, lease, CAM costs

 

You would be working essentially 6 days a week and on the 7th day, you sell at local comicon, part-time eBay, network/sell at Sunday flea markets to meet more families.

Doesnt matter where you put your store. With comics, people look for you. Someone that doesnt read comics or play card games isnt going to drive past your store and stop by. Its not like a restaurant where you need to be seen. The best shop in GA is in the middle of nowhere in a lower income part of town next to nothing.

I was going to open right next door to a comic shop but it had this showcase front that took up space and i didnt like it. My dream would be right across the street from him. Maybe later.

 

Are you sure about that? The 2 LCSs I frequent the most are both on the main drag of the towns they are in, and get a fair amount of foot traffic from people who aren’t comic collectors or card players. Sounds to me as if you’re writing off a potential revenue stream, and restricting yourself to a clientele that will only get smaller over time. Maybe MrBedrock or one of the other big shop owners could correct me if I’m off base.

[TheShadowKnows]

Cocaine And Meth

 

(probably something and maintanence)

common area maintanence

[TheShadowKnows]

on top of rent? so cruel.

Like Gator says, it's standard especially in good centers. Someone's got to pay for parking maintenance, lighting, landscaping, insurance, security, ...

But honestly you are only paying for lighting and maybe parking maintenance. Security isnt included in 98% of any retail spaces . Landscaping is low maintenance shrubs and trees so landcapers are only called Once every 6 months, insurance doesnt concern anyone since you need to purchase your own. Sigh, im getting nickel and dimed to death.

 

Snow removal, air conditioning, garbage removal, public bathrooms are covered by this, no?

Gators store sounds great, but isn't a start up or what someone buying a retirement business would be looking at.

Take a look at his convention pictures.Multiple copies of most marvel keys.Action 1-10,most likely.Ricks store is far from a start up.

[Prince Namor]

"location, location, location.

 

Recommendations:

 

1. pick a zip code for your shop that has discretionary income.

2. foot traffic from corner location, window displays.

3. near colleges or a university for educated readers (female and male).

4. near magnet businesses (e.g. McDonald's, theaters, public library)

5. easy access off of hwy, near transit (bus or metro rail line) or decent free parking

6. competition: another toy store/chain close to u?

7. rent, lease, CAM costs

 

You would be working essentially 6 days a week and on the 7th day, you sell at local comicon, part-time eBay, network/sell at Sunday flea markets to meet more families.

Doesnt matter where you put your store. With comics, people look for you. Someone that doesnt read comics or play card games isnt going to drive past your store and stop by. Its not like a restaurant where you need to be seen. The best shop in GA is in the middle of nowhere in a lower income part of town next to nothing.

I was going to open right next door to a comic shop but it had this showcase front that took up space and i didnt like it. My dream would be right across the street from him. Maybe later.

 

Are you sure about that? The 2 LCSs I frequent the most are both on the main drag of the towns they are in, and get a fair amount of foot traffic from people who aren’t comic collectors or card players. Sounds to me as if you’re writing off a potential revenue stream, and restricting yourself to a clientele that will only get smaller over time. Maybe MrBedrock or one of the other big shop owners could correct me if I’m off base.

 

+1

 

If you're opening a new store, the regular comic guys most likely already have their place to get books, and even if you have a superior pull and hold deal (10% off, free monthly Previews), it can take time to build that base, so walk in customers are crucial.