Gatekeeper said:In advance, this is not directed as an attack at you, but at the misinformation I believe you're being given.
I run a successful retail shop and online component with 8 years of experience in the hobby games industry, and am good friends with many other local store owners.
I know many store owners do just fine selling packs at SRP ($3.99), with specials for those who buy in bulk or a box at a time. Historically, the majority of packs sales in a retail store are to those who buy 1-3 packs in a visit. This is where you should be making hand over fist, especially if you have a thriving singles inventory. A store in good standing with its distributors gets a discount on packs that can hardly be defined as next to nothing (the same goes for nearly any product you find in a full service game store). The only shops I've ever seen truly making only a few cents per pack are online vendors only who work with and move such mass volume that they can afford to do that. Usually though, the people ordering from those shops are those ordering in 1/2 box or higher quantities to outweigh the shipping costs.
I don't know on which method your local stores are using to make only making a razor thin margin on singles. I can think of at least 3 different ways to do it, and they're all the wrong way to manage this particular revenue stream. I personally have never been in a shop that pays higher than 60 or 65 percent of their sticker prices for any given single. Most store owners I know only give that price in store credit, and if you want cash you can expect half that (I do things differently, if you want info PM me). This is a great way to make money, but only if you're selling your cards at a price the savvy Magic singles customer wants to buy them at. And yes, that price is likely going to be the price that they can find from an internet retailer. But the point remains that there is plenty of money to be made for retail stores at margins that are not razor thin. One caveat though. This only works if a store is willing to put in the time it takes to best run singles inventory. The market fluctuates so wildly that you will indeed make very little, if not flat out lose money if you don't put that time in. I have at least 4 other points I can make I could make on this subject, but I doubt you guys want to hear them.
Tournaments - There's a couple of different schools of thought on how to run them effectively, and they all have merits and flaws. Attendance is irrelevant for the way I run mine. But the bottom line is whichever you use you'd better be making money. If the way you're doing things isn't making you money, find a better method or stop doing it. Business 101.
Tl,dr: You're either being lied to about how they're running their business in order to garner sympathy, or they're doing things poorly and should probably stop carrying Magic. I get the impression it's the latter.
3.95 a pack? jesus. There is a store caleld Bullmoose here that is basically a chain store that sells DVD's, Video Games, Music, Comics, Books, and Magic Cards. It's the walmart of geekdom basically. They sell their packs for $2.95. So if the card shops want to compete and not just have everyone buy their cards at bullmoose, they have to drop their prices to match. And apparently (again only what i've been told) there is little to be made off of a pack of cards going for $2.95.
Basically I feel like you are an exception, in that you are running your business like a businessman, while 3/4 of the comic/card shops I go into in this region run their business like nerds who got a bank loan to open a store where they could sit around and play games all day. You may not be an exception in your area, but here in bumfuck Maine, I can think of exactly one shop that is run in a smart way like you described. Everyone else, you walk in and it's just a group of young nerds sitting around playing magic forgetting to restock on cards and barely interested in getting off their unwashed asses to come tend to me.
But again it may be the region. A low population state full of northern hicks and white trash, the population isn't high enough to support a huge card industry that attracts lots of high quality business. What I tend to see are guys who are fed up with driving an hour to buy cards so they open a shop in their home town with no business sense and fail within a year or two because a town of 1000 people can't support a card shop run by someone who has no idea how to run a business.
Takuan said:Yeah, not a bad idea to buy some mental missteps in bulk. Good future value. What scared you from eBay, though, out of curiosity?
I have a "friend" who bought some cards from someone else on ebay and then changed his mind when they were on the way. The seller was nice enough to accept his cancellation and refunded his money, asking my friend to send the cards back when they arrived. Instead my friend lied and kept the cards telling him he had already returned them and they should be in the mail. He kept this up until the seller gave up and moved on. Other than giving him a little negative rep, there was no consequences for my friend for essentially stealing $150 worth of cards from someone. It's basically stories like this. I am a very suspicious person and basically assume everyone is trying to rip me off. Ebay, with that kind of mind frame, would be a nightmare for me.