Considering only 99% of you would only harm yourselves and the profession if you got your clammy mitts on a storefront, I hope this proves to be a highly discouraging read. To that 1% who would bring love and guts to the endeavor, I salute you, and I hope my own lessons learned help you avoid many of my costly mistakes. There really isn’t a definitive “how-to” guide out there that I know of, and the following essay doesn’t presume to claim that mantle, but I think these are fundamentally helpful tips all the same. I think many people, myself included, plunge into this business without knowing all the key particulars. Most of the points will be written as answers to basic questions, many based on actual queries I’ve received over email.
NOTE: This essay was originally written after I’d been in the business two years. While I still stand by its content, as of this updated writing (2007), I’ve now been in the business eight years; hence, not only do many of my original points demand further elaboration, but I have additional insights to contribute as well.
Q: Why is the comicbook business a “brutal, merciless, unforgiving struggle for survival?”
A: To answer that question, let’s begin with a broad perspective. Society wouldn’t function if everyone had a clear field to pursue any old cockeyed dream or goal that struck their fancy. Frankly, we need people to fill every tediously boring, spirit-killing job out there if we’re to enjoy our vaunted, albeit slowly receding, standard of living (not to mention the fact that Uncle Sam has a voracious appetite for tax money), so every manner of roadblock has been thrown in the path of the so-called “dream job.” Why own your own business when you can push pencils in a white collar cubicle under the supervision of an incompetent middle manager who takes the credit for all of your hard work? You may go to bed at night unfulfilled by your daily routine, but at least you can pay the mortgage, take care of your kids, treat yourself to a vacation once in a blue moon, and keep the terrifying, existential demons at bay by indulging in the Wed. comic book consumption ritual. Be it the fear of failure, the terribly real risk of financial insecurity, the unwillingness to sacrifice certain material indulgences, or the labyrinth of local, state, and federal red tape one must navigate to the point of spiritual exhaustion, our society has created forces, both internal and external, that discourage the bold initiative one must display in order to pursue a career as an entrepreneur (did I mention the legalized gangsterism that is credit card and medical insurance companies?). In other words, propaganda regarding the “American Dream” aside, it ain’t easy starting and operating a small business in the good ‘ol U.S.A. Sure, it can be done, but just remember that, for the most part, you’re on your own, and there are far more individuals and institutions out there ready to hinder your progress rather than facilitate it. That said, if you’re still willing to take the plunge into the wacky world of comicbook retail, than let’s narrow our perspective, and take a look at the particular challenges of said beast. Firstly, and forgive my profanity, but sometimes only a cuss word can tell it like it is, the comicbook industry is fucked. It’s fucked on multiple levels, and no level is more fucked than the retailer’s. Allow me to utilize a recent sales statistic to clarify my point. Recent issues of Marvel’s bestselling mini-series “Civil War” sold upwards of 300,000 copies, which is amazing for this day and age (to provide some perspective: in the pre-TV and pre-computer Golden Age, Capt. Marvel and Superman sold in the millions). That means comic shops ordered approximately 300,000 copies of specific issues of “Civil War.” Now, if even every single one of those 300,000 copies were purchased by consumers, that means approximately 3% of the population, at best, cared to read an issue of a heavily advertised series. Hence, all the comic shops in the country must compete for a piece of that 3%, which is inevitably less when you winnow out the casual, irregular reader. Think of it this way: hundreds of people with furious sweet tooths are each vying for a slice of a very small pie. Starting to get the picture? In a culture that does not value reading (as a high school teacher, I experience this sad fact on a daily basis), and invests far more heavily in visual, lazier forms of entertainment, the comic shop retailer must fight a perpetual battle for survival. The bulk of my regular customers (my bread and butter) are men in their 30s and up; kids are the exception rather than the rule when it comes to my customer base. Cast the net wider and check out any of the major comic book conventions; once you separate the multimedia attendees, the bulk of those buying comic books have more years behind them than ahead. This, of course, begs the question: will there even be a comic book industry a generation from now? As long as our popular culture thrives, it stands to reason that the icons (Batman, Superman, Spider-Man, Wonder Woman) will persist in some form, but will there still be a market for their monthly adventures? Perhaps trade paperbacks and graphic novels will continue their ascendancy, or we may see a shift towards the growing web comic movement. Conjecture aside, the fact remains that anyone seriously considering establishing a comic shop must ponder these questions, and ponder them hard. Especially when it comes to grappling with one of the great challenges of the business: knowing what to order, and in what quantities (more on that later).
Q: What motivated you to open up your own shop?
A: My motivation was a love of comic books and a desire to be my own boss. Be warned, being your own boss doesn’t simply entail kicking back and counting the till each night. A good boss is responsible and vigilant every day, and should be working harder than any employee. After all, it’s your store, and you have the most to lose, and to gain. A good boss also requires sound people skills; if you’re going to bury your face behind a comic every day and grunt at customers, do the rest of us a favor and skedaddle back to the snug safety of fantasy roleplaying. There’s a reasons the comic store guy from the Simpsons exists; don’t be that guy. It’s tough enough making a living in this business without having to make up for all the cutthroats, freaks, and scoundrels who pass for shop owners these days. Also, if you don’t have the common sense and basic decency necessary to treat good employees well, you’re not only colossally stupid, but all-around scum. The infestation of rotten bosses in this country is bad enough already. I can say with unabashed pride that I consider myself one of the world’s greatest bosses, and that has paid off in employee loyalty and performance (and it creates a more fun atmosphere when employees actually want to come to work). Hiring reliable, trustworthy help is another major challenge of running a small business. I’ve been very lucky in that regard thus far. Try to hire someone you know, or someone who has been recommended you by a reliable source.
Q: How much money did it take to open the doors?
A: We opened our first shop with about $20,000, which wasn’t enough. If the flood hadn’t obliterated the first WildPig, we probably would’ve gone out of business. WildPig II was opened on a government disaster loan of about $30,000, which was barely enough. Today, I can’t imagine opening a store unless a minimum of $50,000 is on hand. Unless you have virtually unlimited capital, holding a second job is essential. You’re not going to make enough to pay yourself in the beginning, and the overhead involved in a running a storefront is quite large (more on that later). Having another job takes some of the inevitable pressure off, and allows you to address your personal expenses without having to constantly dip in the till. Hence, you can apply more of your sales gross to business bills and reinvesting in inventory, equipment, advertising, etc. Having another job also allows you to avoid having to purchase small business medical insurance, which is quite expensive. That said, try to keep a reserve in savings to be applied during the inevitable slow periods; such a buffer can really go a long way in keeping the pressure off. Make sure you’re set up to take credit and debit cards. The U.S. economy is a house of cards built on consumer debt; at least 2/3 of my weekly transactions are credit or debit cards. I wouldn’t accept checks unless it’s a repeat customer you know well. Don’t be afraid to grant a reasonable discount if you sense it will gain you a repeat customer. Most people appreciate a retailer who goes out of their way for them, even if it’s just a little gesture. Building customer loyalty (without slitting your own throat) is essential. Again, remember the simple analogy of the small pie with too many slices; hence, always be conscious of the fact that other stores are eager to swoop up a dissatisfied customer.
Q: How important is a good location?
A: A good location is EVERYTHING. If the storefront isn’t located in a thriving downtown shopping district, or along a busy street with heavy traffic (both car and foot ideally), with good visibility and adequate parking, you’ll be out of business within a year. A parking lot is often a luxury, so hopefully there will at least be ample parking on the street and/or easy to find public lots nearby. Your storefront should also be easy to find. For example, WildPig II is located minutes from both Rt. 22 and the Garden State Parkway, but I still enjoy a traditional downtown setting. I couldn’t ask for a better location. Some stores do well along highways, but it has to be a busy stretch with good visibility and parking; rent will probably be very high. Keep in mind that if you open along a highway, you’ll be denied foot traffic. Some stores also try malls, but they’re usually forced to carry a great variety of inventory in order to attract shoppers; this demands a tremendous investment. Rent in malls is brutally high.
Q: What are some of your recurring expenses?
A: The biggies are rent, the weekly new comic shipments (every Wed.), back issues, energy, gas, phone, insurance, security, credit card machine and transaction fees, internet connection, advertising (webpage, etc.), sales tax, loans, and other incidentals that inevitably pop up. Again, try to always have a buffer in your account ready to go when you hit a slow period.
Q: Who do you order the new comics from, and what is the average mark-up?
A: The discounts on comics depends on how many you order from Diamond Comic Distributors (they have a monopoly on distribution in the U.S.). The most you can get on a single comic is about 55%. All other related items range anywhere from 35 to 50%. Cold Cut Distribution out of California is another option, but only for back issues and trades of the more prominent indie titles. T-shirts, most action figures, dvds, and certain statues offer very poor discounts to retailers. Hence, you really have to be picky when it comes to what you order. Hoarding up on cool t-shirts or toys may create an eye-catching display, but aesthetics won’t help you pay the bills if they don’t sell. I recently eliminated all action figures from my inventory, and I won’t carry any in the future save for special orders. They cost too much to order, and they take up too much space.
Q: What other merchandise do you carry?
A: I only deal in comic book related merchandise. I don’t deal in gaming, so I can’t give you any tips there. Think of ordering and carrying inventory as fighting a war; if you stretch your resources too thin, you are bound to lose. Trying to jump on every fleeting fad guarantees bankruptcy, whereas consistently building up certain product areas will let customers know you are the end all be all when it comes to say, back issues. Hence, I focus all my finances and creativity in 5 areas, and that’s it: new comics, tradepaperbacks, back issues (most stores in my region have jettisoned them, or impose a swindler’s markup, so I emphasize them heavily,) t-shirts (in limited numbers), and statues. Trades and back issues are the big money makers for me. T-shirts look pretty, but they are expensive to buy and sell, and they take up space, so I only carry a limited amount. Statues also look quite pretty, and I’ve built up a solid cadre of customers who pre-order them, but they are also expensive to buy and sell. Some companies that sell statues offer better discounts (DC Direct is usually just shy of 50%) than others (Bowen is often a wretched 35%, but, of course, they produce some of the best stuff). Also, statues rarely meet their projected shipping dates, so be prepared for the companies to dump a backlog of items on the market all at once, which will jack up your weekly bill considerably. Bowen and Gentle Giant (they make outstanding Star Wars statues) are especially notorious for perpetuating this practice. Hence, you have to be conservative (especially in the beginning) when it comes to placing orders for such big ticket items, as you have to pay your Diamond bill within about a week. Furthermore, demand deposits from anybody who orders big ticket items, especially if you don’t know them. Remember, you’re on your own, and the distributor isn’t interested in hearing about how certain deadbeat customers stiffed you when it came time to pick up $200 statues.
Q: How do you know what to order each month, and how do you avoid overstock?
A: The monthly merchandise order should be based on how many regular customers you have. If you are doing well, it will inevitably increase (but don’t let it get out of hand! Remember, you only have about a week to pay each bill!). DON’T OVERORDER IN THE BEGINNING! Of course, you want your shop to look impressive on opening day, but don’t slit your own throat at the same time. Building up a lucrative customer base requires time, patience, and the willingness to go the extra mile (as always, a little luck never hurts either). After the flood, I continued to order and home deliver comics to all the customers I could; those people will be with me for life. Any comic book store worth its salt has a reservation system replete with discounts; this facilitates the ordering process (don’t go overboard with the discounts though, as you need to make a profit). If you have 10 people ordering GREEN LANTERN, you only need to a few more copies for the shelf (unless you have tremendous walk-in traffic). If you sell out of a particular title, take the time to inform searching customers that you will do your best to reorder the item in question. I give each reservist a free copy of Diamond’s Previews catalog, which reveals every book and related item shipping in two months time. I encourage my customers to use the catalog to place orders, which makes my life easier when I have to prepare the monthly order.
Q: What are your common problems?
A: UPS will lose, ship to the wrong destination, or damage some of your merchandise every now and then. Try to build up a friendly rapport with your driver, or, if you’re close enough, the person in charge at the depot (I pick my books up at the nearby UPS depot, as this eliminates having to wait for the truck, and it also allows me to deal with any problems at the source). As noted earlier, Diamond has an excellent sales rep staff; they are usually efficient and helpful. Building a nice rapport with your sales rep is key, especially when the packaging department forgets to include some of your merchandise (which will occur on occasion; most items can be replaced within a week or so; this is also the case if UPS damages anything). DC Comics will also set you up with a sales rep, which I’ve found to be an invaluable service. Their staff does a superb job acquiring any DC product currently listed and available. The dreaded deadbeat customer is another problem you’ll have to contend with from time to time. While the overwhelming majority of my reservists are superb, I’ve suffered a few deadbeats in my time. Bozos who will vanish after not picking up their books for weeks, if not months, at a time. DO NOT tolerate them, as they make your life harder when it comes time to pay the bills. The moment you sense a reservist is leaving you in the lurch, make a good faith effort to get in touch. If that does not get them in the shop within a reasonable period of time, than cancel their subscription immediately. Books sitting in reserve boxes will be that much harder to sell if they are left off the shelves for an extended period of time.
Q: What is the size of your shop?
A: My shop is 1450 square feet. Whatever the size of your shop, making it look clean, organized, and clutter free is essential. Having everything doesn’t matter if customers can’t find anything. Granted, some fanboys may find the stereotype of the classic shop, its interior spattered in a shit storm of random inventory and debris, its employees foul smelling, mutated trolls, charming and nostalgic, but I actually want our hobby to survive and be receptive to parents and children.
Q: Where do you get fixtures, racks, etc.?
A: Fixtures, racks, shelves, slat walls, etc. can be found at a variety of places. Diamond will have some items (such as the spinner racks for trades, which I highly recommend if space is an issue), but not everything that’s vital (such as customer service desk, slat walls, etc.). Your best bet is going out of business sales at other storefronts, be they comic, video, clothes, etc. ABCTarget is a company that specializes in virtually everything you’ll need, but you’ll obviously have to cough up more cash (abctarget.com). Remember, save as much money as you can without hurting the success of your endeavor; you’ll need every dime.
- DIAMOND IS YOUR MASTER! As the sole distributor for the four major comic book companies, Diamond calls the shots. While I’ve found their sales and credit staff to usually be efficient and helpful, the bottom line is that I have to make a payment to them every week. That’s right: when you pick up your merchandise on Wed., it’s COD. Unless you’re paying by money order (which, understandably, is required for new accounts anyway), you are cutting them a check on the spot, and you can count on that check to be cashed in little more than a week. Remember how I said the comic book business is fucked? Whereas most industries usually allow 30 days for payment, we have 7-10 days at the most (actually, Diamond does provide better payment terms, but they are not granted easily, which is why it's vital to prove yourself by staying current with your distribution payments). Now, in a perfect world, if every reservist came in like clockwork every week, than covering your weekly bill would be no problem. Of course, in the real world, that doesn’t happen. Hence, you have to move as much of your weekly merchandise as possible in order to cover that bill. That’s why it’s vital to be careful and conservative when it comes to your orders (and, again, to have that buffer of money in your account). Believe you me, the last experience you want is sweating delinquent checks written to Diamond. They’re not ogres, and they want you to prosper, but they’re a business, and they expect to be paid in a timely fashion. If you find yourself falling behind on your Diamond payments frequently, than chances are your shop isn’t going to make it, as it becomes extremely difficult to catch up while simultaneously covering your other regular expenses.
- Store interior: Do everything you can to give your store a distinct personality, so that customers feel the passion behind the project. Repeat customers are impressed and reassured when an owner demonstrates an excitement for creating and running a business. Furthermore, repeat customers inevitably praise your store to others (word of mouth is still one of the best forms of advertising). In terms of set-up, one wants a robust, impressive display of merchandise, but an overstocked store is an almost certain recipe for disaster. Way back before the flood, I made the mistake of over ordering because I wanted to create a competitive, eye catching interior; those mistakes probably would’ve put us out of business even if the flood hadn’t occurred. Unfortunately, finding the right balance when it comes to ordering product involves a great deal of trial and error, and while errors often lead to lessons learned in business, such lessons always cost money. One always has to be prepared to deal with pressure and weather storms when it comes to owning a small business.
- Loans/credit cards: If you make business purchases via a loan or credit cards, make sure, at all costs, that you don’t fall behind on your payments, as that will wreck your credit rating for a long time to come. Only now is my credit well on the road to recovery due to bad credit card decisions from several years ago. If you’re financing the bulk of your business operations with credit cards, then you’re courting disaster, and should consider closing up shop.
- Advertising: This is another area where trial and error really comes into play. Again, word of mouth is huge, although it takes time to have a significant effect on your bottom line. Hence, it’s important to always maintain the appearance of the store, the quality of the merchandise, and good customer relations. A few well placed negative barbs from a dissatisfied customer to a potential new one can be very hurtful to a business. Now, that doesn’t mean one should roll over before some rude, condescending “customer knows best” fuckwit. I’ve thrown out a few people in my time. Remember, this is your store, you’re the boss, and no one has the right to tell you what to do, how to act, or to berate you. If someone’s going to get that bent out of shape about comics while people are being butchered in the Middle East, than you’re probably better off without them. That kind of predicament always results in a judgement call by the owner. Usually, a problem customer is the kind of freak whose opinion is going to be taken with a grain of salt on the outside. Besides word of mouth, sales, promotions, and setting up at local comic shows (which gets the word out about your brick and mortar location) can all go a long way in drumming up business. Of course, it all takes time. A striking website that is easy to navigate is essential, especially in any field dealing with collectibles. Not only can it be used to reach out to potential mail order customers (which can be quite lucrative, and help pick up the slack when in-store business is slow), but it can enhance the personality of your business by creating a site where customers can check in for the latest info, events, etc. Along those lines, try to assemble an email list of customers, so you can alert them when sales, specials, etc. are coming up. Diamond sponsors the Comic Shop Locater Service (CSLS), which is widely used by fans; you should create a profile for your shop right from the get go. Newspaper advertising can be tricky, especially when it comes to niche businesses. People tend not to pay attention to the ads in general newspapers, so I would really do research before committing to something like that. The best bet are specific outlets that deal exclusively with the merchandise you sell, such as Comic Buyers Guide (monthly magazine), CBR (comic news website), and ComicGeekSpeak (a superb podcast that we advertise on regularly, and the results have been consistently spectacular). Finally, when your store is completely stocked and ready, you may want to consider a full blown, well advertised grand opening event
I hope these tips and suggestions help the right people, and discourage the wrong ones. I absolutely love what I do, and I’m fulfilled by it, despite how hard it can be. Indeed, this field can offer much satisfaction and even some profit (don’t expect to retire a wealthy man), but it requires a tremendous amount of time, work, sacrifice, patience, and perseverance. If you’re looking for the quick buck or goof off time with your friends, this is the wrong profession for you.
