How much would it take to open a shop?

[Weimer]

Chris means profit margins when he says gas brings people in and isn't the focus. Profit margins on junk food, sodas, supplies, and everything else people buy instead at a gas station are almost always higher than profit margins on gasoline sales for the gas station. Most gas stations make very little profit on their gas sales. It's simply a way to get people to stop there and come inside and spend money on the stuff that does make them a profit.

Your post is precisely why it works too. People who stop and spend $50+ to fill up their car figure, "Oh hell, why not go grab a cold soda and a candy bar or two? I just spent $50 on gas, another $3-4 isn't going to make much of a difference." Except that $3-4 they just spent, 80% of it went to the gas station in the form of pure profit.

Candy Bar 89 cents in a gas station about 32 cents cost

I don't know exact prices and profit margins for every single gas station item, I was just using those numbers for simplicity sake to show him my point. The beverages have far better profit margins than anything else. Especially bottled water.

 

[cgilmo]

some of the shops best sellers

 

[Weimer]

It's like liquid money. Cha-ching.

 

[Adamlind2011]

some of the shops best sellers

mmmmm, I'm thirsty!!! Sounds like you have a nice set up

 

[MojoDan]

If I were starting a business, the most important factor in my budget analysis would be cash reserve.

Just my opinion but I would have 2x the number that I had invested in the shop saved for slow months/opportunities to buy other products/collections.

Good idea for a thread btw

 

[matchpenalty]

Video box breaks is nice option I would think a lot of shops should do. Wouldn't surprise me if Topps, Panini, UD ect require it as proof some day for missing hits, damaged cards ect. Also a nice record for patch guys to show that in fact it was pulled from a box and not a switch fake. But you have to film box break where every card is shown. Chris from hobby box is about only guy that does it right. With the camera between him and cards and you can see every card. Not just like most where you can't even see most cards and breaker just shows hits to camera.

 

[Casebusters]

These are the 3 points I agree with !!!!

What about advertising.

What do you card shops do to advertise?

google places, and not just set it and forget it
have an active involvement there and more people see it than you think.

Because of iphones and the likes, it is so easy to have people find your store...This is like finding geocaching with a garmin GPS...
Set up everything with google (and keep it active!!) and iphones will find you!!!

To stay afloat for at least one year (figure rent is $6k/month), plus inventory, wax, supplies, etc, you'd need a bank loan for $150k-$250k

if your overhead is 6k a month then you are in the wrong shopping center
find a cheaper place, high rent districts are wasted on sports cards because people will drive an extra mile or two.

I'm hoping to get this place, which is a thrift shop now, I know the owner of the store, says they are trying to find a building to buy as this place is too small for them...
Its 1100 sq ft for $800 and the store next to it is $350 for 500 sq feet...

Chris means profit margins when he says gas brings people in and isn't the focus. Profit margins on junk food, sodas, supplies, and everything else people buy instead at a gas station are almost always higher than profit margins on gasoline sales for the gas station. Most gas stations make very little profit on their gas sales. It's simply a way to get people to stop there and come inside and spend money on the stuff that does make them a profit.

Your post is precisely why it works too. People who stop and spend $50+ to fill up their car figure, "Oh hell, why not go grab a cold soda and a candy bar or two? I just spent $50 on gas, another $3-4 isn't going to make much of a difference." Except that $3-4 they just spent, 80% of it went to the gas station in the form of pure profit.

Candy Bar 89 cents in a gas station about 32 cents cost
This is in the FCB store, and it's a great money maker

Gotta have the munchies when opening packs and looking through boxes of cards!!!

Gotta have a reason for them to come to the store and hopefully they like what they see!!!

Location doesn't matter too much but it helps sometimes!

 

[Casebusters]

Video box breaks is nice option I would think a lot of shops should do. Wouldn't surprise me if Topps, Panini, UD ect require it as proof some day for missing hits, damaged cards ect. Also a nice record for patch guys to show that in fact it was pulled from a box and not a switch fake. But you have to film box break where every card is shown. Chris from hobby box is about only guy that does it right. With the camera between him and cards and you can see every card. Not just like most where you can't even see most cards and breaker just shows hits to camera.

+1...

Guess you haven't seen any of my video breaks

 

[Casebusters]

I wouldn't worry about singles as you can accumulate them through buying collections.
Wax and supplies are the 2 biggies.
You should be able to pick up used showcases off of Craigslist. I've paid anywhere from $40-$75 for the showcases in my basement.

I'm sure you could get some type of shelving off of Craigs list also.

The cost of supplies to start with probably will cost $500 for a decent supply.

I did this recently, without buying any of the inventory up front.


Supplies, $2500
wax, $22,000

you will need at least 8 display cases, they are around $100 each

You will need slat wall, that runs about $125 a sheet installed, 8 sheets on two walls

Store fixtures, another $1500

tables, chairs, an open sign, a cooler with a door for beverages

you see where this is going?

That's actually cheaper than I had figured in my head chris. I figured 75-85k?

The #1 thing you need is connections


If you are serious, call me at the retail store in the morning and I will help you with those connections.

If I won that $92M powerball last night you'd have a FCB North tomorrow, lol

When I win the Powerball, I am doing a 1952 Topps Case Group Break (are there any out there?)
and giving the slots away for free!!!
and opening my card store!!!

 

[fkw]

Physical Store??

It would take a lot of $$ and NO BRAINS!

Why would anyone want to pay so much OVERHEAD (employees, rent, utilities, insurance, display, tax, etc.) and only sell to a 30-50 mile radius only during business hours 5-6 days a week.... when you could make a good website and sell to the whole World 24/7/365, with basically no overhead.

Thats why you dont see 95% of the shops that used to exist in NY anymore, they all sold the shop, bought a laptop, moved to Miami (or in my case Hawaii) set up on the beach and did a couple hours of "work" (lol) a day between dips in the ocean and glaces at the bikini next door And... MAKE FAR MORE $$$ THAN EVER BEFORE!

Bottom line........... Card Shops are just like the Video Store or Record Shop... History!

 

[tonsofcommons]

Physical Store??

It would take a lot of $$ and NO BRAINS!

Why would anyone want to pay so much OVERHEAD (employees, rent, utilities, insurance, display, tax, etc.) and only sell to a 30-50 mile radius only during business hours 5-6 days a week.... when you could make a good website and sell to the whole World 24/7/365, with basically no overhead.

Thats why you dont see 95% of the shops that used to exist in NY anymore, they all sold the shop, bought a laptop, moved to Miami (or in my case Hawaii) set up on the beach and did a couple house of "work"(lol) a day between dips in the ocean and glaces at the bikini next door And... MAKE FAR MORE $$$ THAN EVER BEFORE!

Bottom line........... Card Shops are just like the Video Store or Record Shop... History!

Maybe because that is the dream of some of us. :^)

 

[cgilmo]

Physical Store??

It would take a lot of $$ and NO BRAINS!

Why would anyone want to pay so much OVERHEAD (employees, rent, utilities, insurance, display, tax, etc.) and only sell to a 30-50 mile radius only during business hours 5-6 days a week.... when you could make a good website and sell to the whole World 24/7/365, with basically no overhead.

Thats why you dont see 95% of the shops that used to exist in NY anymore, they all sold the shop, bought a laptop, moved to Miami (or in my case Hawaii) set up on the beach and did a couple hours of "work" (lol) a day between dips in the ocean and glaces at the bikini next door And... MAKE FAR MORE $$$ THAN EVER BEFORE!

Bottom line........... Card Shops are just like the Video Store or Record Shop... History!

and yet my new store is doing pretty well.


Walk in retail isn't dead, especially at the boutique level.

 

[fkw]

Keep it a dream and you wont have financial probs related to extremely bad investment/business ops in the future.

In reality you missed the boat by 30 years. It would have been a good idea back then....

 

[cgilmo]

Keep it a dream and you wont have financial probs related to extremely bad investment/business ops in the future.

In reality you missed the boat by 30 years. It would have been a good idea back then....

Just because you got out for whatever reasons, doesn't mean it can't work in the right environment with the right range of products.

 

[A_Pharis]

Keep it a dream and you wont have financial probs related to extremely bad investment/business ops in the future.

In reality you missed the boat by 30 years. It would have been a good idea back then....

Just because you got out for whatever reasons, doesn't mean it can't work in the right environment with the right range of products.

Wait, you mean because it wasn't working out for one person that it won't work out for anyone?!?!?

THE WORLD IS A LIE!

 

[cgilmo]

Keep it a dream and you wont have financial probs related to extremely bad investment/business ops in the future.

In reality you missed the boat by 30 years. It would have been a good idea back then....

Just because you got out for whatever reasons, doesn't mean it can't work in the right environment with the right range of products.

Wait, you mean because it wasn't working out for one person that it won't work out for anyone?!?!?

THE WORLD IS A LIE!

nope, just the cake

 

[tonsofcommons]

Keep it a dream and you wont have financial probs related to extremely bad investment/business ops in the future.

In reality you missed the boat by 30 years. It would have been a good idea back then....

I guess I was still in my bassinet, so my business sense just wasn't what it is now.

 

[vwnut13]

Your post is precisely why it works too. People who stop and spend $50+ to fill up their car figure, "Oh hell, why not go grab a cold soda and a candy bar or two? I just spent $50 on gas, another $3-4 isn't going to make much of a difference." Except that $3-4 they just spent, 80% of it went to the gas station in the form of pure profit.

I still think that the $0.79 Fountain Sodas attract people just as much as gas.

After all, what percent of people pay at the pump and never even go into the gas station. If gas was used to get you to go in the station, there wouldnt be pay at the pump.

Fountain Soda on the other hand gets you into the station, they make nearly 90% profit, and you almost always buy something else.

 

[scotty21690]

Keep it a dream and you wont have financial probs related to extremely bad investment/business ops in the future.

In reality you missed the boat by 30 years. It would have been a good idea back then....

Just because you got out for whatever reasons, doesn't mean it can't work in the right environment with the right range of products.

Wait, you mean because it wasn't working out for one person that it won't work out for anyone?!?!?

THE WORLD IS A LIE!

nope, just the cake

thanked.

 

[gt2590]

As a former store manager, I can second Bossman's point about wax. It sends people into the store, but it gets low margins (like gas does) and hopefully customers buy something else with better margins.

Also, for new stores, Comic books can be a great idea. It does take a while to build up a customer base, but once it does, nice! It's regular business you can count on like clockwork, it's in the middle of the week, when other business can be slow, and it makes great margins. Most stores can offer a discount and still make good $$$ off it. Plus, the main Distributor offers other products, which you can special order and serve as a back-up source for HTG wax and supplies.