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Anyone see this on eBay?

Started by ubiquiti,

21 posts in this topic

MikeS

MikeS

Posted
Posted

Wow, that's a surprise. Guess Barry (owner) is getting out of the biz. They just moved to that location earlier this year. Guess the high profile location in a large shopping center was just too much rent.

 

They had a 50% off sale last weekend - that's probably when they took the pictures to make it look like it's always a full store. Haven't really done much shopping there in quite a few years.....like most So. Cal. stores - not much in the silver/bronze back stock, but lots of graphic novels, action figures, etc.

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BlackShotzy-migration

BlackShotzy-migration

Posted
Posted

50% off sale last weekend?? The store's already been raped..TWICE. First by the 50% off sale, secondly by whatever was halfway decent in stock that's going with the current owners that you must always allow for when factoring these "deals".

 

God help anyone that steps up to this half empty plate at HALF the opening bid.

 

You're basically buying a lease, location, and fixtures for $150K as the stock could most probably be duplicated for well under $50K

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lighthouse

lighthouse

Posted
Posted
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=2537719852&category=64

 

That seems like an awful lot of money.

They must be losing money I would guess - otherwise wouldn't they have said it is currently operating at a profit?

 

Wholesale on the inventory is probably around $22,000 (COGS is typically around 45% but legitimate wholesale is more like 11%).

 

Fixtures from what I can see would run around $16,000 to replicate. How much of that value carries through in the sale depends on how much remodeling you want to do.

 

Lease value is marginal at best. If they just moved in, they are paying full market, and there is no customer memory of the location.

 

The customer base is worth around $20,000, if they really do have 200 monthly subs. That's probably an exaggeration, but who knows...

 

The real potential value to this deal is the Diamond Account, depending on what terms they have. All new accounts begin at COD Certified for six months which is a bear for new shops to deal with. If this store is even marginally successful, they should have net 14 with Diamond by now. If they have been very successful, net 21.

 

Having net 14 terms with Diamond is worth around $20,000, net 21 is worth more like $40,000. The reason for this is simple. A Diamond account at net 21 can afford to pad their orders with tons of extra big-ticket items that they can dump at cost on eBay. Order 20 of every DC Direct statue that comes out, and dump them all at cost +10% on eBay. You have the money back before the bill is due, and more importantly, all your regular comics you ordered from DC are now at a higher discount... Getting your orders for $300 a month less than your competitors is huge...

 

So based on the info given, the shop is worth between $50K to $100K... but it really depends on what their status with Diamond is like, and what their real sub pulls are like... $200K is way too much... and of course, the assumption is that something is rotten in Denmark, because why else would the choose to sell?

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Lofwyr

Lofwyr

Posted
Posted

I live less than 30 miles away from fullerton and i've been to 21st century comics. The location honestly isn't bad at all, however he's being a little sketchy about the details. There are quite a few (very competitive) comic stores still within driving range to soak up business. EVERY comic store in socal sells basically the same [!@#%^&^]. They have all become diamond vendors with little to no floor space devoted to backissues. There's only a few stores i'd call "unique" in the immediate area and that store ain't one of them. The only thing it has going for it is the store's proximity to a university and a few schools but that's about it. The storefront name is pretty well known but i'm guessing the owner is in some dire financial straits. For $200,000+ there's a million and one better investments to consider over this dead dog. 893scratchchin-thumb.gif893naughty-thumb.gif

 

Caveat Emptor.

 

 

 

 

 

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Rickdogg

Rickdogg

Posted
Posted

I've purchased a handful of back issues from this place. Friendly people, owners and employees alike. It's too bad that another So cali comic store is soon to be extinct.

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Polyphemus

Polyphemus

Posted
Posted

I emailed him to see about the lease. It is really high:

 

The lease runs through 12/31 - the landlord is very willing to make an

extension. The store is 3600 Sq ft, and the total monthly payment,

including common area charges, is $6155, with due dates 7/10, 8/10, 9/10,

10/10, and 11/10. 12/10 was paid as part of the first & last month deposit.

 

The storage is a 10' x 30', and is $249 per month.

 

Barry

 

That's crazy cost.

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Lofwyr

Lofwyr

Posted
Posted
I emailed him to see about the lease. It is really high:

 

The lease runs through 12/31 - the landlord is very willing to make an

extension. The store is 3600 Sq ft, and the total monthly payment,

including common area charges, is $6155, with due dates 7/10, 8/10, 9/10,

10/10, and 11/10. 12/10 was paid as part of the first & last month deposit.

 

The storage is a 10' x 30', and is $249 per month.

 

Barry

 

That's crazy cost.

 

 

Holy crud! Not only would you be $200k+ in the hole after buying his overpriced store you'll be hit with $6155 a month. $73,860 a year in lease 893whatthe.gif and possibly more if you choose to use that storage space. Obviously the owner is smoking some nice crack there. I'm guessing the suspicious initial 200k+ buyout exists to pay _HIS_ own debt.

 

That's pretty outrageous even by Socal standards. I'd expect that kind of rent in a REALLY high traffic area like santa monica, pasadena, etc.. but not fullerton.

 

 

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500Club

500Club

Posted
Posted
I emailed him to see about the lease. It is really high:

 

The lease runs through 12/31 - the landlord is very willing to make an

extension. The store is 3600 Sq ft, and the total monthly payment,

including common area charges, is $6155, with due dates 7/10, 8/10, 9/10,

10/10, and 11/10. 12/10 was paid as part of the first & last month deposit.

 

The storage is a 10' x 30', and is $249 per month.

 

Barry

 

That's crazy cost.

 

I'm starting to feel bad for this guy. It looks like he's an established seller who has overextended himself. I foresee yet another retailer having to close shop. frown.gif

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Illiterati-migration

Illiterati-migration

Posted
Posted
I emailed him to see about the lease. It is really high:

 

The lease runs through 12/31 - the landlord is very willing to make an

extension. The store is 3600 Sq ft, and the total monthly payment,

including common area charges, is $6155, with due dates 7/10, 8/10, 9/10,

10/10, and 11/10. 12/10 was paid as part of the first & last month deposit.

 

The storage is a 10' x 30', and is $249 per month.

 

Barry

 

That's crazy cost.

 

I'm starting to feel bad for this guy. It looks like he's an established seller who has overextended himself. I foresee yet another retailer having to close shop. frown.gif

 

Yo, who is going to buy (much less sell) a STORE on Ebay?? I think he was probably looking to get some buyers to consider the operation, and with a price tag like that, he couldn't possibly have been serious about selling it there. At least now he might get some inquiries from people who will say "Seriously, how about $xxxxxx for the whole works?" And hopefully he will say yes. And it will be good.

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lighthouse

lighthouse

Posted
Posted
I emailed him to see about the lease. It is really high:

 

The lease runs through 12/31 - the landlord is very willing to make an

extension. The store is 3600 Sq ft, and the total monthly payment,

including common area charges, is $6155, with due dates 7/10, 8/10, 9/10,

10/10, and 11/10. 12/10 was paid as part of the first & last month deposit.

 

The storage is a 10' x 30', and is $249 per month.

 

Barry

 

That's crazy cost.

 

 

Holy crud! Not only would you be $200k+ in the hole after buying his overpriced store you'll be hit with $6155 a month. $73,860 a year in lease 893whatthe.gif and possibly more if you choose to use that storage space. Obviously the owner is smoking some nice crack there. I'm guessing the suspicious initial 200k+ buyout exists to pay _HIS_ own debt.

 

That's pretty outrageous even by Socal standards. I'd expect that kind of rent in a REALLY high traffic area like santa monica, pasadena, etc.. but not fullerton.

 

 

I hate to break this to you... but $1.71 a foot including CAM is fairly typical for a location with decent traffic. Truly high traffic locations can run $2.50-$3.00 a foot easily... The worst location in the crappiest part of town is still gonna run you $1.00 a foot, and you'll have to pay a fortune in advertising to get people to drive to you...

 

The amount per foot is very reasonable here, the question is whether you need 3600sqft...

 

If they truly only have $200K retail in inventory then they are wasting the space... Anything less than $100 a foot in inventory is dumb, and the better (more profitable) stores push that to $200-$250 a foot... It comes back to inventory turns, of course. If you are turning your inventory 30 times a year you can run it much softer. But comic shops are lucky to turn the ancillary product lines more than 5 times a year. You get 40-45 turns from your new releases and 5 or less from the rest of the merchandise...

 

A 3600sf store can be profitable with a retail inventory around $500K-$600K, or if it is using substantial space for gaming tournaments. But $200K in inventory is just not enough for the store they have pictured...

 

You are getting a $6000 deposit in the deal (assuming it is included in the transfer). But there's a whole lot of questions here, including the willingness of the owner to sign an enforceable non-compete agreement. With your $200K, there is no doubt in my mind he could open a better store than yours and take your customers... Twenty years of experience goes a long way...

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Darthdiesel

Darthdiesel

Posted
Posted

The amount per foot is very reasonable here, the question is whether you need 3600sqft...

 

This made me think, 'house...I'd probably take the whole place and split it up; part comic shop and the other side would be a strip joint....kids on one side (as if comics were really for kids anymore) and their dads on the other side, getting lap dances while their boys are battling it out in a Heroclix tournament. The champagne room would be on top of the long boxes of X-Factors and Rich Rich's a la Chuck-style wink.gif

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lighthouse

lighthouse

Posted
Posted
The amount per foot is very reasonable here, the question is whether you need 3600sqft...

 

This made me think, 'house...I'd probably take the whole place and split it up; part comic shop and the other side would be a strip joint....kids on one side (as if comics were really for kids anymore) and their dads on the other side, getting lap dances while their boys are battling it out in a Heroclix tournament. The champagne room would be on top of the long boxes of X-Factors and Rich Rich's a la Chuck-style wink.gif

 

Oh man... you told everybody... mad.gif

 

Now I gotta come up with a new plan... tongue.gif

 

It would make the transition for my employees easier... I have had six former employees who later started stripping... we could make that process a lot smoother...

 

"No, sorry... there's no bagging and boarding to do... But you could change into this t-back and go next door for a while..." 893scratchchin-thumb.gif

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Darthdiesel

Darthdiesel

Posted
Posted

It would make the transition for my employees easier... I have had six former employees who later started stripping... we could make that process a lot smoother...

 

WOW! What a scary correlation - working for 'House leads to stripping? 893scratchchin-thumb.gif

 

What is Goth Princess' status on her road to G-String Fame? I hope your former employess all resembled her, or else your area's gay strip club dancers would be comprised of your stereotypical zit faced, overwieght, prematurely balding, secretion oozing fanboy hires that you've loosed upon the world...

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