QUESTION: I’d like to open a used bookstore. I live in the Atlanta area, and there are no used book stores within 15 miles of me. There is a Barnes & Noble and a Borders a couple of miles away, but no place to buy, sell and trade. I’ve been selling online for two years, and wonder if I should open a store for used books, CDs and DVDs.
Should I go for a highly visible storefront by a highway, or somewhere a little less traveled and cheaper so I could afford to advertise?
ANSWER: There are so many disadvantages to having a brick-and-mortar store. The rent, insurance, employees, shoplifters, government red tape — it goes on and on. The one big plus with a real store is the walk-in trade, where people bring you merchandise. But that’ s only if the public discovers your store.
Honestly I don’t now much about promoting a physical store, but I’ve read that you’ve got to have visibility from a busy highway or foot traffic to have a prayer of success these days.
And I hate to be so negative, but I think there are reasons why we see so few used bookshops around these days. To give a personal anecdote: A couple of years ago, I decided to visit every used bookshop (and all the thrift shops that advertised books) in my local area in Northern Virginia. I had about 25 shops on my list from researching the Yellow Pages. What a huge disappointment it was — two-thirds of the time, when I got to the store, there was nothing there. The store was vacant or another business had replaced it. All those bookshops had gone bust; they didn’t move to a larger building because business was gangbusters.
Maybe one of the reasons all those stores went out of business was because they didn’t have an online component. Perhaps the stores that are still surviving are doing well because they have the walk-in trade plus online buyers. I’ve heard several booksellers with a store remark that their online revenue “pays the bills” and if it wasn’t for that, they’d be bankrupt.
I remember a few years ago on the Amazon Sellers discussion board, someone asked for advice about opening a brick-and-mortar store. Several people who operate stores chimed in, and almost all their comments were extremely negative about the challenges of making a profit with a walk-in store.
Another more thing: Prices for used CDs and DVDs are just terrible these days, except for the collectible items. On the other hand, if you could source those items cheaply online and sell them to your walk-in traffic, I suppose it’s possible to build a business that way.
Sorry to be so negative about your plans. It is a cool idea to have a thriving walk-in business, and I guess a lot of us wish we could have a real store.
Comments, anyone? Is it still possible to run a brick-and-mortar bookstore without being part of a mega-chain?
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13 Comments
Most used bookstores have to sell online to make it. The cd buisness besides collectibles is just about over.
Dvds are in most pawn shops now for $3 each .
Don’t.
The small used book stores are closing down faster than you can say “used books” all over the country. The used CD and DVD market has basicallycollapsed.
Your only bet would be in an extremly highly frequented pedestrian area, but I doubt that you could ever sell enough to afford the rental price in such an area. Not with used books and CDS anyway.
To give you an example: Even downtown Swarthmore where I live does not have a bookstore, although it is conveniently located between the railway station and the College Campus, so talk about walk-in traffic!
I always hate to seem to be negative but think twice about this. It’s a long term committment. You have a fair amount of investment and your time is never your own again. In the middle of the night you’re wondering what you’re going to do and how.
Being in a large city would help. I’m in a town of 9000+ and with the gas prices jumping all over, my business is down over 30% and no way to make it come back. Advertising in small towns is almost a waste of money. And back to the library…it’s a killer!!
If it wasn’t for my online sales, which are not that big but do help, my bottom line would be even worse.
If you do decide to go for it…make darn sure EVERY book you take in trade is one you think you can sell. I took so many books when I opened 13 years ago that I eventually threw away…yes threw them away..did not recycle. There are tooo many mass market books floating around.
So…think long and hard about it and if you decide yes…go for the location on the busy street….that way you won’t need advertising!!! You might also check into grants that you can apply for BEFORE you open…afterwards they are, for the most part, not available.
Good luck
I had a brick and mortar store and it was horrible. I had to be there everyday because I wasn’t making enough to pay for help. The overhead was so much I was out of business in 9 months. I did every kind of marketing possible and just couldn’t make it. I have made much more online and the overhead is much lower. For one thing there are no monthly bills except for my pro merchant account and stamps.com fees. I don’t have to be here everyday either. If I want to go have coffee with a friend I can do it. If you are serious about opening a store I would recommend taking a NX level entreprenuer class or other business classes first so you know what you are in for. SCORE will help you also.
I ALMOST opened a store-front a few years ago. Several years of great sales on ebay prompted by confidence. I am SO glad I did not do so!
Instead, we sold our home, and moved to a very rural part of Washington State. Sales have been down so much these last months, that I believe I would have been out of business by now.
I am very happy, as I sit by my window, gazing out at a mountain range. The downside is that my stock is harder to come by here, but not impossible. I’ve had to expand what I sell a bit. Our next project is to frame in an office for me in our shop by the road. I’m going to hang out a shingle, and see what happens. I think I will be surprised by the amount of business I can get from these farmers and ranchers, many of whom are avid readers.
My belief is that your best business venture would be online, because of the low overhead. HOWEVER, I know of one very successful, used paperback store where I used to live. They didn’t take everything, but almost. They gave 20% of the cover price in credit (no cash, ever). They had a big store which was nicely laid out, and lots of inventory. They had a good clientele who’d been shopping there for ten years or more. As an avid “highbrow” reader, I was always able to find some good books, but I have to admit there were SO many mass-market paperbacks on the shelves. I saw their dumpster regularly filled with paperbacks.
I am also sorry to be so gloomy, but 7 out of 10 new businesses go OUT of business within the first three years. Write out an honest and brutal business plan, and see how much you have to sell every day to make ends meet.
All of those negatives that were previous mentioned are very possible outcomes. But I was one of the lucky ones.
I had 4 BM stores for 20 years with a separate part-time on-line business for the last 5 years of that. All stores sold new and used books. Stock was about 10% new and 90% used. Sales were about 50% new and 50% used. Inventory was about 85% leisure reading. All stores had 2-3 employees and there were a couple of floaters between all the stores for emergencies.
Each store took 18 months before I began pulling an income out of it which started at $250 a month. All stores broke even the first month (some were barely). I ran each store for the first year 95% of the time. It grew to where all stores were contributing $1500 -$4000 a month with the best store contributing $7000 during the 4 peak months of the year.
It was more work and paperwork and headaches than I ever dreamed. But I absolutely loved it. Over a four year period we successfully sold each store and moved 500 miles taking our internet operation with us and turning it into a full-time operation.
I have been out of the BM environment for over 2 years. I can not believe it has changed that much.
Key to success is the always remember even though you pay the bills and endure all the headaches the store it not yours….it is your customers. You are just taking care of it for them.
I disagree with a lot of what was posted in regards to location, advertising, inventory…will be glad to talk with you in detail if you desire. Leave contact info on this board and I will get in touch with you.
I sell books (only those I can’t sell online) locally in a booth in an “antiques and collectibles mall.”
Only approximately 10 to 20 percent of my culls sell there, the rest go to a thrift store or a recycle center.
It’s a good set-up for me, because I pay a small amount for booth rent and keep it stocked and straightened, and the mall operator does everything else and gives me a check at the end of the month.
The income is negligible, as I rarely price higher than $1 for hardbacks and 50 cents for paperbacks.
Mostly I do it because it’s fun and it’s a way to find homes for a few books I couldn’t sell or even give away otherwise. My online minimum is $5, and I get a substantial number of nice books I can’t list.
Also, it’s only a half-mile from my house, so it’s easy to stop in a few times a week and keep it filled. If I had to drive any distance to get there, the cost of gas would eat up my profits.
Like online selling, there’s a learning curve and I have to know my market. Lots of beautiful books in Near Fine condition would sit on the shelves forever and never sell, but there are also lots of books not worth listing online that will sell quickly in my book stall.
And also like online selling, there is no easy road to success. If I don’t restock the booth frequently enough, my profits fall off dramatically. And sometimes even when I do everything right, I have a slow month when the customers just aren’t buying.
But as I said, it’s fun, because having worked in brick and mortar stores for other people, I’ve seen firsthand how difficult it is to succeed.
How about a change in ideas for an open shop? Rent space in an antiques mall that has full time help. Stock it with a range of prices. Use book shelves which you probably already have, and a locked show case for higher price items. Put up a sign in your booth that you will be in at least one day a week. Name the day and stick to that day. This will help you get people in to sell to you. Put a note book in the booth with a sign so people can sign in and leave their wants along with a contact address (e-mail or PO Box or a telephone number. This will give you exposure and sales with out having to do extensive advertising and will free up your days. Good luck in whatever way you go.
Don’t DO it! This would be my advise. I own a brick and mortar, and if it wasn’t for the appoximately $15,000 a year I get online (I am quite small, but I spend 20 hours a week listing online alone), I couldn’t pay my bills at the B&M.; I love my store. But I get customers that take up my valuable time (for listing, but also for cleaning (and you have to clean a lot more when you have a B&M;!). Often they are people with problems forming friendships, and guess what?!, you are a ‘captive audience.’
I get very little coming in that is worth it, but you don’t want to offend a potential customer (as B&Ms; have word of mouth as their best advertising), so you buy some items you would never buy otherwise. I almost NEVER get great stuff because sellers are savy now (or think they are!), and aren’t willing to sell them to you for what is a erasonable price (mostly a dollar or two). They KNOW you are going to be asking $5.00-$20.00 and want a portion of that. They don’t understand you don’t sell every item, even when you tell them this. So, the old days of just getting great stuff at your door are probably over with the internet out there to comparison price.
I’d get a house with a barn or big garage, and maybe hang a shingle, as the previous poster said. Except remember, there are costs of doing business even on your own property if you become a business! Insurance, and lots of it in case they (pretend to) fall. And of course, in your own house you are NEVER closed!!! Keep that in mind, too.
I bought my brick and mortar and now can’t sell the building in my local economy. So I’m still here paddling as fast as I can (bring in $25-27K or so, but pay out around $22!).
Debbie K.
I had a BM store for 15 years, sold it 2 years ago for health reasons but it is still going strong, across the street from a Borders (2 new-book stores within a mile closed when Borders opened in 2000). It was 4,000 SF selling space with 800 SF back room, grossed $600K/year at 65% GPM. We did only used and remaindered books, everything at half cover price or less. It was hard work, 10 employees, open 7 days for 11 hours a day, but it was good money and I didn’t work nights or weekends after the first few years. My tips:
-Whatever you save in rent by picking an out of the way spot you will have to spend in extra ads, so I went for visibility. Lots of close parking is essential, people will be carrying books in and out and won’t walk far.
-Use remainders to fill in categories where you can’t get used books. Our fiction was almost all used, but some non-fiction sections, like crafts, would have been empty without remainders. Mix them right in with the used books. There are several remainder wholesalers near Atlanta, and a great show there every spring.
-Pay cash for used books, you get many more books and much better quality (I tried it both ways). We offered more if they took credit, but they could always have cash. I looked at the Half Price Books chain as a model, they continue to expand nationwide and have some stores grossing over $1 million.
-Get good software that will track used book credits and allow you to upload inventory to on-line venues. We started on-line with Amazon and Half.com in 2000 and did almost 10% of our sales there.
-Run your store like you were selling new books: clean, bright, nice fixtures, well organized and clearly marked sections, all stock in very good condition or better.
-Make sure there are some successful new-book stores in the area; if people aren’t buying new books, they don’t have any used ones to sell or trade! They aren’t competitors, they are suppliers.
-Do a serious business plan and get lots of sound business advice. The planning is a pain but pays off.
It was a fun business for me. People like books and like bargains, so lots of happy customers.
I am being successful with my brick-n-mortar and now also the internet. It is a whole lot of work and very time time involved (always books to clean-up and shelve). It is great to get the inventory from trade-ins, but there is little time to go out shopping for the other treasures out there. It is not for everyone, but neither is on-line selling. If you enjoy people and have the opportunity to set-up shop in a location with lots of walk-in traffic and resonable to low rent (face it $2.00 a book means you have to sell a LOT of books to pay rent) go for it.
It’s nice to see comments both Pro and Con. Take a sheet of paper, divide it into thirds. First column list all the topics: rent, visibility, hours, sources, etc. Second column list your Pros next to the topic. Third column list the Cons. Do this before spending time on a business plan. It may give you the answer to your own individual situation without wasting a lot of time. Speaking of Cons, read Lawrence Blocks Bernie Rodenbarr The Burglar Who series. He’s a bookstore owner forced to turn to crime to support his bookstore. Tee Hee. Okay, Bernie gets a kick out of crime. It will make you laugh and maybe see some parallels in your own life. Another idea is to specialize in a specific genre.
Then add activities exclusive to that genre. For example, a Sci-Fi bookstore. Stock other sci-fi items, host sci fi events, sci fi writers meetings, advertise in sci-fi mags & other stores in the area remotely related to sci-fi – comic book stores, costume shops, etc. You return the advertising favor for them. People will travel to visit a niche shop. Other specialties could be mystery, romance, military history (get ahold of re-enactor groups)It’s still costly and a lot of work, but you could have a lot of fun with it too. – Bunny
Hi, somebody said to leave contact information for hints on starting a b/m store — geneseeriverbooks@hotmail.com wants to hear from you.
We’ve been kicking around the idea of opening a store in a downtown location with lots of foot traffic. Sell used books and get others with credit/cash trade. We also want to suppliment our stock with new/remainder books (not sure how to get these supplies, but there has to be a way).
We were also thinking it would be interesting to offer some of the radical/leftwing AK Press type books to make our store different from a casual reading environment.
Any help?!? This is a great discussion, thanks!
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