Friday, July 16, 2004

Comics-store primer: At Newsarama, Brian Hibbs thinks there's a "huge, untapped market for Direct Market comic book stores," and offers some advice for those thinking of opening their own:
 
"Discount (or margin) is your lifeblood in retail – every percentage point is desperately needed because it represents your profit. I know some fans will read this and think '50% off? Sweet!', but out of that you have to pay rent, utilities, employees, inventory, insurance, and, if you’re lucky, yourself.
 
"Because your margin is so precious, you are strongly advised to not discount comics for regulars. Go back to the top of this column and read that quote from Mel Thompson again. Two-thirds to three-quarters of your business will be people new or returning to comics – these people aren’t primarily concerned about discounts as much as they are about having a clean, well-lit well-stocked location with a friendly and gregarious staff. Discounting costs you much more than you can often see. If you are a 50% account, and you give a mere 10% discount, you’ve given up twenty percent of your profit. Don’t do it, no matter how tempting it seems – you’re not going to drive sales up enough to offset your loss of income."