Starting Your Own Video and Game Rentals/Sales/Exchange Shop
Are you planning to take advantage of the flourishing game and video industry? You might be looking at establishing your very own video and game shop.
We'd like to help you know important facts on starting this profitable business through this short but concise guide.
Selecting Your Business Location
Where is the best location for your shop? With the proliferation of shops and online stores in big cities these days, the best place would be in rural locations. The state in which you operate your business is where you will apply for a business permit, sales tax ID, reseller license, etc. Visit your state tax department to register your business and pay related fees. Sales tax, however, doesn’t apply in some states like Delaware, Montana, Alaska and Hawaii. Make sure your suppliers are within reach to save on transportation costs.
Deciding What to Offer
Keep up with the trends to make a good catch in the market. Video games come in several platforms (Game Boy Advance, Nintendo Wii/Game Cube/DS, PlayStation 1-3/Portable, etc.). Each year, new videos, movies and game software are released. Be sure to update your inventory. For videos and games not found in your inventory, offer to swap a client's item for one of yours or be a middleman for clients who'd agree to swap. Older copies are available at dirt-cheap prices from pawnshops and discount stores. Brand new titles are priced at over $10 each. To avoid breaching copyrights, inform clients that rented items are "strictly for home-use only". You may also carry game accessories and players as another source of income. Branded accessories and players can be cheaply acquired at half their prices from liquidators. A mark-up of $10 to $20 on these items is apt. You may also offer player buyers free film rentals to gain their patronage. Discounts and freebies may also be afforded for big purchasers. Manage your inventory well. Keep track of the shelf-life of your items and the number of times they have been rented out. New copies (1-6 months old) are normally rented for a maximum of 24 hours. Older copies (6-9 months old) are rented for a maximum of three days. Copies older than 9 months are sold save for one or two copies to be rented for a maximum of five days.
Furnishing Your Shop
You’d need at least $5,000 to purchase and install a point-of-sale and accounting software, computer, printer (report and/or receipt), credit terminal, calculator, cash box, barcode scanner, desk, display racks/shelves, signage, shrink wrap, television, video/game players, DVD boxes/cases, air-conditioner, telephone/fax, lighting/fixtures, etc. If you wish to initially hold 500 titles (250 older copies, 250 brand new), you'd need around $5,000. At least $10,000 is required for start-up cost, excluding initial salaries, utilities and space rent. You could, however, remodel an extra space/room at home and convert it into a shop.