I'm opening up a brick and mortar this year and want some advice!! 7 7

[the blob]

wow, is a $14,000 POS system really worth it? I go to a shop in Manhattan that employs 2.5 people plus the owner, who seems to live like he is getting a solid six figures out of the business (house in the suburbs, etc.), and they don't have this stuff. 2 cash registers, 2 credit card machines.

 

(before one looks at him as an example re: its easy to make money at this... he has been in business 20+ years with a VERY good lease in manhattan and has a very established group of regular customers who have high paying jobs... it is not a model many others can count on .. and when his lease is up and the landlord jacks his rent, he will be gone...)

 

 

seems like before one invests like that, one should have a business that warrants it

Edited January 29, 2017 by the blob

[grebal]

^It's a 24/7 diner with a drive thru and two dozen employees wandering about, and even with that long list sometimes we don't have enough tech, and must send a server out to parking lot at the DT line and use an extra ipad-terminal.

 

But I specifically mentioned that this system is too big for his needs and he should investigate the purely ipad-based (as opposed to Windows pc-based) systems. I included it so he can have idea of per-unit costs, and the peripheral stuff like printers and credit card readers he'll probably need.

[Genesis Comics]

I'm familiar with Aloha/NCR as I've working in the restaurant industry for 20+ years...echoing the comments it's way too much for what I'm doing, but I do appreciate the comparison and the financials involved

I am currently taking a look at comicsuite offered by Diamond...it was mentioned earlier in the thread although I already had it on my list of things to look at...I have yet to find a shop in the area that uses it.

If anyone is on Long Island (preferably) or somewhere between Long Island and Boston and you have comicsuite and wouldn't mind me stopping in to chat you up about it, please send me a PM!!

It seems like it would be very helpful and time saving but the cost is high (although it appears if you get a certain level of software there is a 3500-7000 credit towards certain trade paperbacks which is nice....I plan on calling this week to get the details) They offer a payment plan which I would have to work into my ever increasing monthlies

The key will be finding the right place at the right price...looked at a few spots this week...all were over my budget (but I figured they would be...just trying to gauge all different size places and see what a few hundred more gets you).

This week is finishing up the "paperwork" involved for a business, learning more about comicsuite, continuing to organize my MTG cards and comics for sale (everything had gotten mixed up after my last show (had some friends help to pack up and things are everywhere ) and hopefully getting my logo back from a friend who's working one up...unfortunately Dr. Balls is retired

Maybe I'll check out a couple of storefronts if I have the time as well.

Thank you everyone for your feedback...it is appreciated!! Keep up the comments/advice/warnings etc!

 

 

[DavidTheDavid]

All I can say is, best of luck to you, sir.

 

I just made a big career change, and in some ways, it's a setback for the time being. But the payoff could make it well worth the effort, and risk. Plus, it's something I've wanted for a long time. So I'm doing it. Hell or high water.

[the blob]

^It's a 24/7 diner with a drive thru and two dozen employees wandering about, and even with that long list sometimes we don't have enough tech, and must send a server out to parking lot at the DT line and use an extra ipad-terminal.

 

But I specifically mentioned that this system is too big for his needs and he should investigate the purely ipad-based (as opposed to Windows pc-based) systems. I included it so he can have idea of per-unit costs, and the peripheral stuff like printers and credit card readers he'll probably need.

 

So many big numbers on that invoice, I was dizzy and confused. ..

[the blob]

Are we talking Nassau or suffolk?

[Buzzetta]

Are we talking Nassau or suffolk?

 

At this point they are both expensive ventures in either.

 

I think the rest of the boards would drop their collective jaws if they knew what real estate taxes are on the island.

[Genesis Comics]

Are we talking Nassau or suffolk?

 

 

Suffolk...currently looking in the Patchogue/Medford area and also plan on looking in the Ronkonkoma area

[Moondog]

I commented early on in this thread - suggesting that if the OP did not have at least $150K to invest in this enterprise that he should forget it. I'm not changing my mind about that, but one can estimate the costs of doing business rather easily. One can also determine rather accurately the gross profit one will gain from sales of various merchandise. After this exercise one can then determine the sales necessary to achieve those goals.

 

I may have missed some posts, so the assumptions I'm making could be wrong, so if they are please correct me.

 

1. The OP wants this to be his career so this will be a professionally-run shop with a lighted outside sign, POS system, and all the appropriate fixtures and lighting necessary to conduct business. Approx cost: $25K

2. The OP will make this his full-time job. That translates to at least 60 hours per week in the shop, manning the counter, stocking shelves, ordering product, etc. No small business owner can get away with a 40-hour week starting a new shop like this.

3. He will have to have normal business hours. Something like 10 am to 8 pm Mon-Fri. 10-6 Sat. Noon - 5 Sun.

4. He will have to hire some part-time help to man the shop on the day he's not working (probably Sun). This part-timer will also need to be available to fill in when the owner needs to be away from the shop to go to the doctor, get a haircut, etc. Approx yearly cost: $10K.

5. Let's assume that the OP can purchase new product: comics, graphic novels, Magic cards, toys, plush, statues, t-shirts, bags, boards, and other supplies, etc. at approximately 50% off. Beginning inventory cost: $50K

6. The OP will need to make a living from the store. I'm not sure what that number is on Long Island, but in suburban Chicago, a single guy living in a modest apartment can get by for $45-$65K. Let's call it $50K

7. He does not own the building and will have to pay rent, taxes and common area/maintenance charges. Yearly cost for 1,200 square feet: $40K.

7. Let's assume that he has some sort of collection of back issues that will become inventory. Cost - zero.

 

A well run shop keeping an extremely close eye on expenses with a gross profit margin of 50%, will net around 10%-20% of sales. For every $100,000 in sales that's $10-$20K. To break even on his annual overhead ($100K - being very conservative here but remember it it includes his $50K salary), he will need to generate at least a half-million dollars in sales.

 

It's not impossible, but highly improbable starting out.

 

 

 

 

 

 

[World Devourer]

Don't do it!

 

I mean this with respect!

 

Online has less overhead and less risk.

 

The topic need not have gone any further than this...

[Moondog]

It also means that he'll need to turn his inventory at least 10 times annually.

[shadroch]

If so many shops are going under, it seems like you should be able to find a POS fairly cheap.

Hopefully you already have found cheap showcases and racks.

Edited January 30, 2017 by shadroch

[Moondog]

If so many shops are going under, it seems like you should be able to find a POS fairly cheap.

Hopefully you already have found cheap showcases and racks.

 

Right, Bill. I made that assumption with my low cost of the racks, sign, POS, etc.

[thehumantorch]

Great posts. I know they come from year's of business experience and they clearly spell out what it takes to make a comic business work.

 

Do you think it's feasible to run a part time comic store, open 20 to 30 hours per week, in a very low rent, no wage situation? Think of it as a part time experiment to see if it's for you and to see if you can grow it into a full time store?

[kav]

My experience with shops that open and go out of business and the very very few that make it is the ones that make it it's always a lucky fluke and nothing that can be planned. It is indeed a roll of the dice with house odds strongly against you.

[Shrevvy]

It also means that he'll need to turn his inventory at least 10 times annually.

 

In that example, he would turn his inventory 5x per year, not 10x. $100k of retail inventory at $50k cost. Rev is $500k with COGS at $250k. So, inventory turns would be $250k annual COGS divided by the $50k of inventory or 5x.

[MyNameIsLegion]

if your'e playing the long odds, you might as well go double or nothing, and open a restaurant inside the comic shop too- what could possible go wrong?

 

 

 

 

( but you don't see Grebal opening a comics store, and he has restaurants, so that should tell you something about how difficult it is)

 

 

 

[nocutename]

I am not as knowledgeable in this area as others on the boards. I have seen two comic shops in my area go down in the past several years for different reasons. But two new shops popped up in their place. Neither are the same and cannot replace the closed shop in terms of back issues and social environment.

 

One new shop, Spiders Den on Yonkers Ave in Westchester County, NY, does have a POS system. He discusses it in a podcast. He is an extremely nice person and I am sure if you are upfront with him, he would show you the entire system. I am not sure if it is the Diamond system but again, you can listen to the podcast.

 

Then I would recommend listening to the entire first season of this podcast as there is some valuable information and he does interview store owners. Ep 7 is where Spider Den is interviewed and I believe he discusses the POS in it but I cannot be certain. He is in a few eps.

 

You are looking for the season one which doesn't have a denotation.

 

http://www.flatsquirrelproductions.com/podcast

 

This is the direct link to iTunes podcast - https://itunes.apple.com/us/podcast/my-comic-shop-history/id984071950

 

 

 

 

I'm familiar with Aloha/NCR as I've working in the restaurant industry for 20+ years...echoing the comments it's way too much for what I'm doing, but I do appreciate the comparison and the financials involved

I am currently taking a look at comicsuite offered by Diamond...it was mentioned earlier in the thread although I already had it on my list of things to look at...I have yet to find a shop in the area that uses it.

If anyone is on Long Island (preferably) or somewhere between Long Island and Boston and you have comicsuite and wouldn't mind me stopping in to chat you up about it, please send me a PM!!

It seems like it would be very helpful and time saving but the cost is high (although it appears if you get a certain level of software there is a 3500-7000 credit towards certain trade paperbacks which is nice....I plan on calling this week to get the details) They offer a payment plan which I would have to work into my ever increasing monthlies

The key will be finding the right place at the right price...looked at a few spots this week...all were over my budget (but I figured they would be...just trying to gauge all different size places and see what a few hundred more gets you).

This week is finishing up the "paperwork" involved for a business, learning more about comicsuite, continuing to organize my MTG cards and comics for sale (everything had gotten mixed up after my last show (had some friends help to pack up and things are everywhere ) and hopefully getting my logo back from a friend who's working one up...unfortunately Dr. Balls is retired

Maybe I'll check out a couple of storefronts if I have the time as well.

Thank you everyone for your feedback...it is appreciated!! Keep up the comments/advice/warnings etc!

 

[Genesis Comics]

I am not as knowledgeable in this area as others on the boards. I have seen two comic shops in my area go down in the past several years for different reasons. But two new shops popped up in their place. Neither are the same and cannot replace the closed shop in terms of back issues and social environment.

 

One new shop, Spiders Den on Yonkers Ave in Westchester County, NY, does have a POS system. He discusses it in a podcast. He is an extremely nice person and I am sure if you are upfront with him, he would show you the entire system. I am not sure if it is the Diamond system but again, you can listen to the podcast.

 

Then I would recommend listening to the entire first season of this podcast as there is some valuable information and he does interview store owners. Ep 7 is where Spider Den is interviewed and I believe he discusses the POS in it but I cannot be certain. He is in a few eps.

 

You are looking for the season one which doesn't have a denotation.

 

http://www.flatsquirrelproductions.com/podcast

 

This is the direct link to iTunes podcast - https://itunes.apple.com/us/podcast/my-comic-shop-history/id984071950

 

 

 

 

I'm familiar with Aloha/NCR as I've working in the restaurant industry for 20+ years...echoing the comments it's way too much for what I'm doing, but I do appreciate the comparison and the financials involved

I am currently taking a look at comicsuite offered by Diamond...it was mentioned earlier in the thread although I already had it on my list of things to look at...I have yet to find a shop in the area that uses it.

If anyone is on Long Island (preferably) or somewhere between Long Island and Boston and you have comicsuite and wouldn't mind me stopping in to chat you up about it, please send me a PM!!

It seems like it would be very helpful and time saving but the cost is high (although it appears if you get a certain level of software there is a 3500-7000 credit towards certain trade paperbacks which is nice....I plan on calling this week to get the details) They offer a payment plan which I would have to work into my ever increasing monthlies

The key will be finding the right place at the right price...looked at a few spots this week...all were over my budget (but I figured they would be...just trying to gauge all different size places and see what a few hundred more gets you).

This week is finishing up the "paperwork" involved for a business, learning more about comicsuite, continuing to organize my MTG cards and comics for sale (everything had gotten mixed up after my last show (had some friends help to pack up and things are everywhere ) and hopefully getting my logo back from a friend who's working one up...unfortunately Dr. Balls is retired

Maybe I'll check out a couple of storefronts if I have the time as well.

Thank you everyone for your feedback...it is appreciated!! Keep up the comments/advice/warnings etc!

 

 

Thanks for the links...I'll definitely check them out!

[the blob]

Are we talking Nassau or suffolk?

 

 

Suffolk...currently looking in the Patchogue/Medford area and also plan on looking in the Ronkonkoma area

 

You should be able to get an 800-1100 square foot space in some strip mall type scenario for $1200-$2000 a month, no? (I was just looking at an 1100 square foot listing in west hempstead in nassau for $2000, I'd think those suffolk places might be cheaper)

 

I don't know if there are commercial rental taxes and other odds and ends on top of that. My folks used to live in Center Moriches... I wonder if the comic shop there is still around?

Edited January 30, 2017 by the blob