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How to Open a Trading Card Shop with Magazine Exchange
Posted by: | CommentsAs part of our continuing series on how to open a trading card shop, we spent some time with Roger Barry from Magazine Exchange. Take a listen as he provides some tips to be successful in this industry as a shop owner and shares more about how Magazine Exchange can help a new shop.
Roger was also kind enough to answer some follow up questions for us:
Question: How do I get product for my store?
Roger at Magazine Exchange: “Getting product is easy. Brick and mortar retailers may in many cases purchase directly from manufacturers although many find it easier and more efficient to purchase from Authorized Hobby Distributors. When buying form a distributor you are not required to purchase in case quantities and in most circumstances you do not have to prepay, which is common with direct purchasing from a manufacturer.
“It is also very important to know your customers and purchase the right products in the right quantities for your store. If you try to purchase everything in the same quantities, you are going to have problems. If you have a lot of kids coming to your shops or set builders, maybe look at lower priced products and products that have larger sets. If you have high-end customers coming in looking for the thrill of expensive packs, work to stock those.
“Several times a year there will ultimately be some products that get ‘hot’ that collectors will be clamoring for. This happens usually because a rookie or rookies start performing well, the product was under ordered initially, it is just limited all around or it has some type of surprise content. With less to go around and demand heightened, that can make it tough to provide your customers the product at a price that works for your business. At that point, it may be best to just move on to the next products than spend all of your time trying to find these hot products at a price that makes sense for your business. At Magazine Exchange we work with our customers to find what those products might be to give you the opportunity to get in on those products before they get hot.”
Question: How do I grow the business once I get started?
Roger at Magazine Exchange: “We are finding that the most successful brick and mortar store locations are those that have become engaged with their collecting communities. Loving sports is a passion for many of us; as is collecting. The combination of these two passions is what drives the sports trading card business. You can become engaged with you collecting community by offering trade nights, case break parties, draft day parties, birthday parties, tailgate parties, etc. When you are hosting one of these organized in store events where one of your customers opens a pack of trading cards and gets a great card, the excitement is contagious. You can feel the atmosphere in your store become charged. When your collectors are fired up and engaged, you will find they will spend more time and money in your store.”
Question: Where should I advertise to get customers for my hobby shop?
Roger at Magazine Exchange: “Of course the ‘new’ way of advertising is social media. A mix of e-mail, Facebook, tweets and good old fashioned phone calls have been a very cost effective way of advertising for many shops. We find that a good message, a little creativity and not being afraid to become involved with your collectors goes a long way. When you engage with your customers and host organized in store activities, you will reap the benefits of word-of-mouth advertising. It remains the most powerful form of advertising there is.
“Also, do not be afraid to ask your distributor and the manufacturers for support of these organized activities or for advertising. Remember that you are not alone! Distributors and manufacturers are frequently willing to help with prizes for an event or even co-op advertising for it. There are a number of great distributors in our industry and they along with the manufacturers are more than willing to help you with your events!”
Authorized Distributors like Magazine Exchange can offer you signage for your store.
Another great service that partnering with an Authorized Distributor can provide is assistance with signage for your store. Roger partnered with Upper Deck to create a great electric sign that can really help to showcase the fact you are a direct reseller of Upper Deck products. Make sure to ask distributors what they may have available to help you decorate and merchandise your store.
Looking for more information on how to open up a trading card shop of your own? Check out the first stories on how to open up a shop here:
How to Open a Trading Card Shop with Southern Hobby
How to Open a Trading Card Shop from a Shop Owner’s Perspective – Part 1
How to Open a Trading Card Shop from a Shop Owner’s Perspective – Part 2
How to Open a Trading Card Shop with Grosnor Distribution
The information provided in this story is for assistance only and is not intended to be and must not be taken alone as the basis for an investment decision. Opening a trading card store, like any other business, presents certain risks for the business owner. Each reader of this information should make such investigations as it deems necessary to arrive at an independent evaluation of an investment.
Popularity: 1% [?]
How to Open a Trading Card Shop with Grosnor Distribution
Posted by: | CommentsAs part of our continuing series on how to open a trading card shop, we spent some time with Dave Yeates from Grosnor Distribution in Canada. Take a listen as he provides some tips to be successful in this industry as a shop owner and some insight into creating a business plan.
Dave was also kind enough to answer some follow up questions for us:
Grosnor Distribution is one of two Authorized Distributors for Upper Deck in Canada.
Question: How do I write a business plan to open up a trading card shop?
Dave at Grosnor: “The most important thing to do when writing a business plan is to be as accurate as possible in trying to forecast your expenses while being conservative with forecasting your sales. Even though many items in your store will be keystone, assume a 30 or 35% gross margin on sales to allow a little more room for error in case things don’t go as planned. It is much better to be on the short side of a business plan and end up out performing this plan, than to have the opposite occur. Talk with shops and ask them about unexpected costs they had come up. When I started back in this business in 1989, it only took me four months to exceed my yearly forecast in my business plan because I did not factor in all the potential expenses of my business.”
Question: How do I apply for a loan for a trading card business?
Dave at Grosnor: “A detailed business plan will be required to apply for a loan to open a trading card store. Banks are traditionally unwilling to lend people money for trading card stores without having these funds 100% secured by a third party co-signer with ample assets to cover these loans. In my case the Canadian government had, and still has, a program wherein they will match you dollar for dollar and loan you money as a ‘New Venture Loan.’ If you get creative, you can definitely make that work to your advantage and get a good start.”
Question: How do I hire staff for a trading card store?
Dave at Grosnor: “Honestly, the way I look at this is YOU ARE the staff of your new trading card store and you should be prepared to work seven days a week in the beginning. Hopefully you are young like I was when I entered into this business (24) and not afraid of hard work and long hours. I did hire a local kid from the neighborhood that was always very helpful when I asked to assist with odd jobs around the shop. Because of the values tied to your inventory, it is difficult to find people you can trust.”
It is not easy to get collectors in your new trading card shop. It is important to plan in store events and promotions. From there you'll need to come up with a strategy to advertise those reasons why customers should visit.
Question: Where should I advertise?
Dave at Grosnor: “My favorite spot initially to advertise was in the local newspaper. Make sure to add in advertising as a cost in your business plan. Advertising rates are very affordable right now and you specifically target potential customers in the area. Include a coupon for 10% off or even better, a free pack of cards with copy of the ad so you can evaluate the advertising effect on your business and costs. Keep tweaking it until you find something that works as every area is different.”
As you can spend more and more time interviewing shop owners and distributors, they frequently mention a business plan and it really is an important piece to the puzzle in terms of getting your start in the sports collectibles industry. For more on how to create a business plan for your small business, click here.
Looking for more information on how to open up a trading card shop of your own? Check out the first three stories on how to open up a shop here:
How to Open a Trading Card Shop with Southern Hobby
How to Open a Trading Card Shop from a Shop Owner’s Perspective – Part 1
How to Open a Trading Card Shop from a Shop Owner’s Perspective – Part 2
The information provided in this story is for assistance only and is not intended to be and must not be taken alone as the basis for an investment decision. Opening a trading card store, like any other business, presents certain risks for the business owner. Each reader of this information should make such investigations as it deems necessary to arrive at an independent evaluation of an investment.
Popularity: 1% [?]
How to Open a Trading Card Shop from a Shop Owner’s Perspective – Part 2
Posted by: | CommentsAs part of our continuing series of “How to Open a Trading Card Shop,” we hear from two other shop owners who have experienced some success and longevity in the business.
Wayne Wagner has owned and operated Wayne’s Sportscards in Edmonton, AB for 22 years now. Listen to some of the tips he provides to new hobby shop owners.
Another thing that Wayne has done a great job with to help create awareness for is business has been establishing himself as an expert in sports cards and collectibles with his local media. By taking some time to reach out to local stations, he has been able to get on television to talk about the industry and his shop. Take a look at one of his appearances on Breakfast Television in Edmonton by clicking here.
Next up we have Eddie Doria of Red Nails II in Toronto, ON who owns and operates two retail stores. Eddie shares some information on why location is so important and how to hire staff, take a look!
Additionally, you likely have heard a bit about Upper Deck’s Certified Diamond Dealer program. For new shops who want to work with Upper Deck direct, they will need to sign and abide by this agreement. For more on this program and the agreement, we spent a little time with Mark Shaunessy who is the hobby enforcement specialist here at Upper Deck.
I personally have found that those who are serious about opening up a trading card shop will make sure they attend the Las Vegas Industry Trade Show. There you will get some great tips and tactics on how to be successful in this business while meeting great connections in the form of other hobby shop owners, suppliers, manufacturers and leagues who can help you with your business. There is still time to sign up if you haven’t already so I encourage you to register now if you are really interested in getting into this business. Upper Deck will be producing some very special cards as a gift for Certified Diamond Dealers in attendance to thank them for their support. Here is a sneak peek at some of the cards in that set:
You may still be asking yourself, “Are there really customers out there that want a trading card store in my area?” Recently Upper Deck ran a promotion called National Hockey Card Day where collectors could visit participating Certified Diamond Dealers and get a free pack of Upper Deck NHL cards. Unfortunately not every collector had a shop in their area to visit to score this great giveaway. What does that mean? It means there are opportunities all over the United States and Canada to open a hobby shop and there are fans who would love to see that. Just listen to some of the comments from real collectors received on Upper Deck’s Facebook page for National Hockey Card Day:
“I wish there was a Certified Diamond Dealer hobby shop in my town so I could support a local business in my community that sells hockey cards. Hobby shops need all the support they can get in this economy and I would relish the opportunity to support one in my town.” Adam B.
”I wish there was a Certified Diamond Dealer in my town because, simply put, I’m tired of buying stuff at Walmart. There’s a Diamond Dealer in the next town, but it’s too far for me to go there with any regularity. The only things I get to break are retail blasters which, while fun, is nowhere near as satisfying as a real hobby box. I would also love it if the money I DO spend on cards went to a real person instead of a faceless corporation that doesn’t give a crap about me or my family.” Tyson M.
“Living in Quesnel BC it sucks that there are no card dealers in town anymore. There used to be but since the big box stores took over all of the small shops are closed. Unfortunately, it took the only card dealers away and being a big hockey town it is sad that these options are now gone.” Chad G.
“I wish there was a Certified Diamond Dealer hobby shop in my area because my entire life revolves around hockey cards. The only way for me to receive cards is by buying blaster boxes from Walmart or buying them online for more than they are worth.” Vincent G.
“I’m a northern transplant to Charlotte, NC. I miss seeing local hockey teams and want to introduce my kids to hockey. If there was a Certified Diamond Dealer nearby I could at least expose them to a little taste of what I had growing up.” Bill P.
Looking for more information on how to open up a trading card shop of your own? Check out the first two stories on how to open up a shop here:
How to Open a Trading Card Shop with Southern Hobby
How to Open a Trading Card Shop from a Shop Owner’s Perspective – Part 1
The information provided in this story is for assistance only and is not intended to be and must not be taken alone as the basis for an investment decision. Opening a trading card store, like any other business, presents certain risks for the business owner. Each reader of this information should make such investigations as it deems necessary to arrive at an independent evaluation of an investment.
Popularity: 1% [?]
How to Open a Trading Card Shop from a Shop Owner’s Perspective – Part 1
Posted by: | CommentsRecently we shared our first post on how to open up a trading card shop with some great tips from our friends at Southern Hobby Supply. I found some of the responses to the post interesting where fans shared they didn’t think opening a shop was a viable business opportunity. In the past it can be argued that it most certainly was not, but the industry has changed and manufacturers are doing more to not only support, but defend brick and mortar retailers.
I saw some responses from former shop owners who opened their shops only to close them down soon after. One reason this happened could be from a lack of education about what it takes to run a profitable trading card store. There is just not a lot of information out there about how to put together a business plan, get a loan, acquire inventory, hire staff, get insurance, etc. My hope is that by putting together a series of videos and stories about how to open a prosperous retail business in this industry, we can help provide the tools these business owners desperately need to have success.
So let’s hear from some of these trading card shop owners who have established themselves as leaders in the industry and hear what they have to say!
We pulled Brad Krysko aside from Cloutsnchara. We asked him about how he got into the business and how he went from managing a collector website to becoming a partner in a trading card shop and well-regarded online collector community.
Next we spent some time with Sean Bennett who owns Pittsburgh Sportscards and Steel City Collectibles. Sean has taken his love for the hobby as a child and made it a thriving business. Listen to how he was able to do that.
What is this “program” that Upper Deck put into place that some of the shops are talking about? Well, here is some more information on the Certified Diamond Dealer program. And let’s hear from Upper Deck’s Director of Sales, Mike Phillips on more about it and some other tips on opening up a shop.
I personally have found that those who are serious about opening up a trading card shop will make sure they attend the Las Vegas Industry Trade Show. There you will get some great tips and tactics on how to be successful in this business while meeting great connections in the form of other hobby shop owners, suppliers, manufacturers and leagues who can help you with your business. There is still time to sign up if you haven’t already so I encourage you to register now if you are really interested in getting into this business. Upper Deck will be producing some very special cards as a gift for Certified Diamond Dealers in attendance to thank them for their support. Here is a sneak peek at some of the cards in that set (we will show more this week in Part 2 of this segment):
You may still be asking yourself, “Are there really customers out there that want a trading card store in my area?” Recently Upper Deck ran a promotion called National Hockey Card Day where collectors could visit participating Certified Diamond Dealers and get a free pack of Upper Deck NHL cards. Unfortunately not every collector had a shop in their area to visit to score this great giveaway. What does that mean? It means there are opportunities all over the United States and Canada to open a hobby shop and there are fans who would love to see that. Just listen to some of the comments from real collectors received on Upper Deck’s Facebook page for National Hockey Card Day:
“I wish I had a hobby shop nearby. The closest one closed a few years ago after being in business for 23 years. It was a sad day and I never got the chance to say goodbye. We have no shops at all after the last one closed and the closest one now is many hours away. I wish there was a shop nearby and I would hope they were a Certified Diamond Dealer,” Matt G.
“I live in Daytona Beach, just moved back as a matter of fact. I would love a Certified Diamond Dealer hobby shop in my area so I could stop buying my cards online. With all the sports going on in nearby (NASCAR, Daytona, Cubs, Orlando Magic, Jacksonville Jaguars) it just makes sense. If I had the capital, I’d open it myself. Maybe I should get in touch with Vince Carter and Jeff Blake since their both from here.” Jay B.
“The card shop near my house is pretty bad, never really liked it. In a state where many people consider hockey to be an odd market and the team a “failure,” I think it would be important to have a Certified Diamond Dealer here in Arizona interested in running promotions in their store like National Hockey Card Day. It would give hockey some exposure in an area where it is much needed.” Joe S.
“I live in Dubois, PA, and we currently have no shops at all. I wish there was a Certified Diamond Dealer in my town because it would be a great way to introduce more kids to hockey. There is no way for folks in my area to take part in National Hockey Card Day. We got our nephews and our neice to love hockey by simply giving them packs of your hockey cards. Imagine how many kids you could influence if you could reach them. Thanks !” Matt C.
Look for more tips on how to open a trading card store right here on the Upper Deck Blog soon! And if you want to check out examples of trading card shops we work with, click here.
The information provided in this story is for assistance only and is not intended to be and must not be taken alone as the basis for an investment decision. Opening a trading card store, like any other business, presents certain risks for the business owner. Each reader of this information should make such investigations as it deems necessary to arrive at an independent evaluation of an investment.
Popularity: 2% [?]
How to Open a Trading Card Shop with Southern Hobby
Posted by: | CommentsUpper Deck changed the company’s direct sales program in March of 2011 in an effort to clean up distribution and offer more support to brick and mortar retailers with the Certified Diamond Dealer program. Certified Diamond Dealers have expressed an appreciation for how Upper Deck is supporting them by having an enforcement aspect to the program where the company can trace product back to its origin and eliminate retailers not honoring the agreement. What the policy has led to is a healthier marketplace and an influx of sports fans looking to get into the business of actually owning a trading card shop.
With the potential for growth there are opportunities for entrepreneurs to open a small business of their own. Over the next several weeks we will be sharing some tips from industry experts on what it takes to open a hobby shop and why it is a viable business. If owning a trading card store has always been a dream of yours, make sure to check out these posts as you will get some great tips.
First up, let’s hear from Southern Hobby Supply, an Authorized Distributor for Upper Deck here in the United States. Chris Austin and Brad Wagoner take a little time to share their history in the business and why now is a good time to get in it.
Dustin Laugherty, Southern Hobby’s director of Sports Marketing, also helped us with some question we have received in:
Question: Once I’ve opened a shop, what are some tips to help grow my business?
Dustin at Southern Hobby: “Your biggest advantage as a card store owner is that fact you get the opportunity for face-to-face interaction with almost all of your customers. You can share stories, compare box openings, trade and enjoy a fellowship unlike any online store. By building a sense of community inside your store you are inviting your customers to invite their friends and family. Have case parties, trade nights or other events that prompt your customers to talk about their hobby with each other. The more excited your customers are about their hobby, the more they will want to share with other people. The most powerful form of advertising is word-of-mouth and that’s what you will want to focus on by providing a great in-store experience.”
Shops that create a sense of community in their store with events that embrace every level of collector, young and old, tend to have the best chance for success.
Question: Where and how should I advertise my business?
Dustin at Southern Hobby: “Several stores I work with have reported great success using cable to advertise. Cable television offers surprisingly affordable rates, and you can easily tailor your spots to hit a particular demographic. You also need to embrace social media. Facebook, Twitter, Google+, YouTube and blogs are amazing tools to help grow your brand and your business. There is a misconception that they are free. It is true they are free to use, but stores that really have success spend to do some targeted advertising on Facebook in particular. They can realize a great return on their investment by finding collectors in their town and engaging them. By using social media you are easily able to keep your store top of mind with collectors.”
Southern Hobby Supply is a full-service Authorized Distributor for the Upper Deck Company and can help a new shop owner get the product they need to supply their customers.
Recently Upper Deck ran a promotion called National Hockey Card Day where collectors could visit participating Certified Diamond Dealers and get a free pack of Upper Deck NHL cards. Unfortunately not every collector had a shop in their area to visit to score this great giveaway. What does that mean? It means there are opportunities all over the United States and Canada to open a hobby shop and there are fans who would love to see that. Just listen to some of the comments from real collectors received on Upper Deck’s Facebook page for National Hockey Card Day:
“I live in Turner Valley, Alberta, Canada. I wish there was a card store nearby because I know quite a few people who have asked where they can buy hockey cards.” Jeremy O.
“It would be nice to have a Certified Diamond Dealer in my town so that I could enjoy the drop in ability that I used to have. I miss the chance to go to the hobby shop, buy a box, and open it amongst other collectors. [And I miss] vicariously enjoying the box breaks of fellow collectors and exchanging hobby stories.” Rick G.
“We need a CDD in Orlando Florida. We have NHL hockey in Tampa Bay and Miami so the interest would be high. Also the Orlando area is full of transplants from the Northeast so I feel business would be good if promoted properly. A preseason NHL Tampa Bay game played in Orlando drew a big crowd and was a success. I’m originally from Philadelphia so Flyers hockey is in my blood and I continue to follow the NHL even in sunny Orlando. There are not enough card dealers in Orlando.” Karen P.
“With the return of the Jets, hockey and hockey cards have become HUGE in the province of Manitoba. The population of Certified Diamond Dealers in Winnipeg is fine, but outside of the city where I live, we are lacking hobby shops. I am hoping that as time goes on, and the Jets reach the playoffs, that a CDD will pop up in rural Manitoba to serve NHL hockey card to fans outside of Winnipeg!” Shane K.
“I live in Granite City, IL and I wish we had a Certified Diamond Dealer here that carried lots and lots of hockey cards especially for the St. Louis Blues. We are 15 minutes from St. Louis which is the best hockey town. We love Upper Deck and we need a store that carries Upper Deck gear and packs please!” Don L.
Look for more tips on how to open a trading card store right here on the Upper Deck Blog soon! And if you want to check out examples of trading card shops we work with, click here.
The information provided in this story is for assistance only and is not intended to be and must not be taken alone as the basis for an investment decision. Opening a trading card store, like any other business, presents certain risks for the business owner. Each reader of this information should make such investigations as it deems necessary to arrive at an independent evaluation of an investment.
Popularity: 2% [?]
