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So You Wanna Be a Game Store
Owner...?
I get really popular
e-mails.
The first asks something
along the lines of, "I was thinking of opening a
game store and was wondering what type of advise you
could give me."
The second usually asks
something like, "What's it like owning your own
business and stuff."
So I figured that I was
give the long and short of everything this week to
make things a bit easier and clearer for everyone.
There is a lot of information on this subject.
There are also a lot of opinions. I guess I just
have to figure out where to start.
One more thing before we
get started though. I would like to preface all of
the following by saying that I am not trying to
discourage anyone from getting into our business. I
am discouraging people that don't need to be in our
business to stay out. Stores opening and closing
doesn't help our business, it just hurts it. It
hurts it a lot. I'm being as serious and honest
here as possible. Take it for what it is.
First, let me be
completely serious and say, "FINISH SCHOOL!" For
some reason people believe that owning a game store
takes no skill. They think that any guy with an
understanding of gaming game run a good store.
That's so far from the truth that I can't even laugh
at it. It really makes me pity those people. Give
yourself a serious moment and think about it. If
that were the case, wouldn't everyone run a game
store as a side business?
I would recommend taking
a couple of business courses as well. I would
consider a management course or two. Maybe even
take an advertising class. I would also recommend a
class on taxes if you can find on in your area.
These seem like simple things, but I can tell you
that things you learn from them do have practical
uses.
Most of you don't know
this, but I am basically five courses short or so of
having a degree in commercial art and advertising.
I would have finished if the whole store situation
didn't come up, but that's another situation
altogether. Regardless, I can tell you without a
shadow of a doubt that many of the things I learned
in those courses has come into use. I sometime do
wish I had a couple more business classes though.
Thinking about it more...maybe something in
marketing.
Once you've got your
education out of the way, it's time to start setting
things up. You need to have a plan laid out. I
don't mean a simple plan either (no, not the band).
I mean an elaborate plan. Something like a five
year projection. And when you make it, be
realistic. Whatever you think you will need to
spend, increase that number by 20%. Whatever you
think you will reasonably make, decrease that number
by 20%. Also, plot to use part of your loan money
to live on just in case. (Oh yeah, most businesses
are started on pretty big loans for those of you
that don't know.) Then go back and rework your
chart. Then if the numbers work out, your
predictions MIGHT be viable.
Be completely honest
with yourself at this point. You aren't going to
jump in and make millions. It doesn't work like
that. You have to be aware that you don't make much
in our business. I'm not saying that you can't be
comfortable and eventually live well off of it. But
don't expect serious dividends for the first four or
five years.
Assuming you find a way
to get the startup cash (or capital in business
lingo), you will need to decide what to buy next.
By the way, most stores will need $20,000 + to get
started decently. Some get as much as $60,000.
Damn, getting off track again. Oh yeah...your
newfound money. You have to decide what to buy with
it.
What was your first
thought when I said that?
Just think about it.
If you thought about
what games to buy, you probably aren't cut out for
handling the business end of this industry. This
money have to buy shelves, cash registers, ponit of
sale systems (or POS), racks, tables, chairs, etc.
And then, after those are purchased, you can start
deciding what to put on them. That's when you can
start thinking about what games to buy.
This is an even tougher
process. If you know nothing about business (which
I hope you did if you took those classes I told you
about) you are going to have a hard time figuring
out what displays and fixtures you will need to be
successful. You'll also have to decide where to put
everything to maximize sales. There are a lot of
things to consider.
It's tough. You almost
have to learn to be closed minded and open minded at
the same time. You have to learn which of your
customers to listen to and which ones to...well...to
put it nicely, to not listen to so much. Your
decisions can directly reflect how much money you
make.
I also hope that you are
a people person. You're going to have to deal with
lots of folks in this line of business. You'll also
have to take on a lot of new responsibilities. Just
toady in my store, let me think about what roll I
played:
Salesperson
Manager
Janitor
Customer Service Rep
Online Rep
And that was just
today. That's not including the times I have to be
the book keeper, window washer, mail person, etc.
Oh, and those of you thinking you will hire someone,
think again. Most stores don't have the capital to
allow themselves to hire some on in the beginning.
The owner fronts a lot of the work.
It's very common for
stores wanting to open their doors with an employee
or two and not be able to afford them. Also, if you
pick some employees, don't automatically pick from
your friends. If someone else that's better
qualified comes take them. Your friends have to
understand that bidness is bidness.
Also, you can't worry
about internet discounters. It's not worth
competing with. They work off of much smaller
margins. The also have less overhead.
Oh yeah there's that
word too. Overhead is the term used for the general
expenses a person or company has to pay every
month. This includes things like internet, phone,
electricity, etc. You have to set up all that stuff
too. But anyway, people come in and discount
themselves right off of the business. They make so
little profit, they can't live on it and their store
gets closed. The problem is then, you have a bunch
of players wanting a place to play and a cheap place
to buy because that's what they are used to. They
won't find it, become disgruntled, then....ah well.
Long story short, it's pretty silly of an idea.
Oh, I almost forgot.
There's the store itself. Where is it going to be?
You'll have to go through some lease negotiations.
You need to look at a lot of buildings. You need to
figure out which is best of you and your situation.
You'll need to read over LOTS of paperwork with a
fine tooth comb. It can be along process, but it
must be done.
So yeah, it's a pain in
the rear. People are going to tell you that you are
wrong and crazy for carrying something or not
carrying something. You'll get criticized by
someone for one reason or another. It comes with
the territory. People like to complain about
businesses. Gamer customers like to REALLY
complain.
I think this is where I
point out to all of you guys that think it's an easy
job that it's not. Where's that time where I get
to, "sit around all day and play games"? That's not
on my things to do list on any day. Once all the
above is done, then their cleaning, dusting,
rearranging, etc. to be done.
I'm sure all of this
makes me sound bitter. But the truth is, I'm not.
I'm not super happy with it, but I'm definitely
content. If someone walked in today with a $15/hour
job that's guaranteed for 30+ hours for at least 3
years, I'd sell my shop and go to it. I treat my
store seriously, like a job. That's what it is, no
matter how you look at it. Those that don't aren't
near as successful and aren't in business near as
long.
Goodness gracious. This
is all just the tip of the iceberg. I have a neat
game though. Whoever wants to ask me more questions
about owning a store, feel free to ask. I will use
the questions in a column next week or the week
after.
So get to asking.
Let's switch gears to a
lighter note. The time where I get to play games.
I'm taking a day off to go play cards. That's not
something I get to do often (I've had a total of 10
days off for myself in the last 4 years -- not
exaggeration).
We are having a team
sealed event this weekend in Dallas. It's the last
PTQ in our area for the team Pro Tour. My team
consists of myself, Jonathan Pechon (fellow Pojo
writer) and Jason Krysak. We have done well s a
team and expect to be drafting at the end of the day
if our luck holds up. Anyone interesting needs to
go to
www.aussiefox.com .
Also, don't forget that
the Fifth Dawn Pre-Releases are just around the
corner. This looks like possibly the most
interesting Magic set to date. It's going to make
for some crazy sealed deck and draft events. I'd
also expect a lot of the sets cards to make their
way into standard. Don't forget to check out your
local prerelease events. I'll be at the Dallas
event like I always am. I'll be selling stuff, but
I will hopefully be playing this time around as
well. I will be signing autographs if you ask
nicely, but I'll only sign creatures. Preferably
dragons, but any creature will do :)
I have an alternate game
pick of the week to try out this week. If you
haven't given it a look, try out City of Heroes.
It's an online multiplayer super hero game. It's
just like playing in a comic book. It's fun stuff.
You get to create everything from your powers to
your costume. It's definitely worth checking out.
If you want to find me to play with, I'm on the
Champion server and I go by then name of PowrDragn
(no surprise).
My card of the week this
week is Electrostatic Bolt. In the past few months,
this card has pretty much just become better than
shock in almost every way. It's quickly become one
of the definitive cards in the format. IF your
environment is full of artifacts and small creatures
put some of these in your deck.
I don't really have a
good and bad play of the week this week. I've been
a bit sidetracked and I also didn't get a ton of
responses. It's probably a glut of City of Heroes
going to my head.
In any case, I'm going
to leave you guys there for this week. I'll have a
ton more things to address and talk about next week.
Send me e-mails asking
me questions about my store and/or running one and I
will use those for next week. Also, remember to
send me your good and/or bad plays of the week. I
do still send prizes for those.
Until next time,
DeQuan Watson
PowrDragn on IRC
PowrDragn on City of
Heroes (champion server)
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