So I been thinking about something lately I want start my own business a local transformers only store and eventually have multiple locations And have an online store , Would you shop at a local transformers only store ? And do you think it would be profitable?
Would I shop at the store? Yeah I would definitely check it out. I'd be worried about the business model and sustaining profit though. A specialty store like that would be very hard to keep in business. I'd suggest starting an Ebay store first and work your way from there. You'd be competing with other Ebayers, BBTS, TFSource etc, but the risk is pretty much zero rather than opening up your store.
As far as the local store goes, you'll probably need to diversify beyond just Transformers. Maybe move into comics, ccgs or other toys as well. The reason is that at first, you might have a good turnout, but its going to end up just being the same collectors coming in that you'll be living off of, and that isn't something to shoot for.
Yeah I was thinking about that too I probably would have to diversify the product besides just transformers
I think your inventory costs would be high, and your margins really low. Its possible with online purchases to have a variety of loose figures, but even this will have a huge commitment for space. Think of any comic book store and how it works, and how little space a comic takes up. Finally, looking at the comic market.... I guess there are 30,000 TF comic fans in North America. Figure out your market. How much product will you have to move to cover your lifestyle and overhead?
even a successful online store like Kapowtoys couldn't sustain a single brick and mortar store. Don't bother trying, it's doomed to fail.
Start with the online store and then go to a shop. The shop has a lot of overhead like rent where as online is just online. I suggest you start online, build a name and clients and when money is sound go full out retail location. All in all , good luck
My wife and I have fantasized about this off and on, except we want to start a business that sells: Transformers (and other action figures and high-end collectibles, of course) Comic books Board games (the really nice Euro-style games that we play) Video games/systems Nerd-wear So, basically Toys R Us/Best Buy/comic shop/Game Stop/TimeWellSpent/Stylin' Online all in one. Note that I said "fantasized."
A store front will be really rough. Even if you get decent wholesale distribution on the figures, your sales will most likely be dependant on quantity vs trying to get top dollar as you'll want stuff moving out as soon as it comes in. The worst part is the crappy case distribution. Before your first month is over you'll probably be up to your neck in bumblebees.
The OP could just do what TFSource does and when there's a shitty case assortment, offer a set shipment, like Hotshot, Vehicon, & Knockout were. Or just play it safe when ordering cases, and after the new stuff goes out mark down all the older stuff to at least cover your ass. I have wondered this as well.. I had been thinking about opening an online shop but wouldn't know how to get product directly from the manufacturer..
I'm sure at some point in our lives we've all dreamed of owning, or at least being able to visit, a Transformers-only store. But even in the good economic times I reckon it would've been difficult to sustain with just TF product. Much better to start an online TF store. I admit it'd not be as cool as sitting behind the counter of your own little shop surrounded by loads of TF, but it's likely to last a lot longer. Just what I was gonna say. I vaguely remember Andy saying at one point that he was selling more BeyBlades than Transformers, which is just all kinds of morally wrong. Toyz and Gamez gave up their brick and mortar store too. Bummer really as Norwich went from having two great import toyshop options to having none (unless there are other b&m stores like that around there I'm not aware of).
Why would you start with a physical store first, which requires a lease, overhead, equipment, shelving, etc. etc. etc. instead of an online store first, which requires none of those? Would I shop at your store? It would depend on if it was close to me, if you carried the stuff I wanted, if your prices were better than other stores, and if I liked the way you conducted yourself. But you'd be competing for my business with every major retail store AND all the other online shops. If you had a physical store only and it wasn't very close to me, I can assure I would not shop there. Since you're likely not looking at ordering hundreds and hundreds of figures at the start, you'd probably have to go through a distributor of Hasbro product (and not Hasbro themselves), and who that would be would depend on where you are.
On top of what Aernaroth said, how would you be able to compete with mainstream stores such as Target, Walmart, TRU, or even (G*A*S*P*) K-Mart. Every privately owned B&M store I've seen is more expensive than the aforementioned, which typically drives customers away, especially when you factor in a fragile economy. An online store seems like a safer bet.
Hell, even setting aside the major retailers, there's half a dozen online competitors ON THIS PAGE, and that's not even scratching the surface. Like comic shops, the majority of stores like this fail within the first few years. It's a tough business to make work.
