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ebinary New user 53 Posts |
I am a lurker who is considering opening Magic Shop in the small tourist town where I live. I'm virtually certain we are about 200 miles from any other shop.
I have no illusions of getting rich... I've done pretty well for 25 years as a software engineer and think of this business more of a public service: I want kids to have the same wondrous place I had when I was growing up (I'm mid 40's now). I have seed money to start the business, but I'll still need to earn some kind of a living (so I can't be a complete purist). I will need to have impulse items that I can sell easily to tourists and browsers. But I'd like to create a great shop for the 100K-ish residents of the metro area. I would love to hear what members would consider the ideal magic store. I'd also like to hear exactly what additional products really turn people off, when offered in a magic store (and why). For example, I recall hating it when joke items started crowding out magic items (even back in the 70s)... but as a businessman, I can understand that selling consumable products is an important model. Thanks in advance for any comments. Eric |
ebinary New user 53 Posts |
Bump
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ebinary New user 53 Posts |
Quote:
On 2009-12-07 17:32, ebinary wrote: Hmmm.... no comments from the Café... that is not boding well for a concept that is now on life-support. Developing this business plan has been depressing to say the least. Having read hundreds of posts here about many magician's dislike for Brick & Mortar stores that markup their product in order to survive, I can't understand how someone can start this business. With $10K in rent and $20K for one minimum wage employee, a shop already has to sell over $60K in merchandise to make $0 in profit. That's like $30-$40 an hour every single hour the shop is open. If you want to earn a decent living, its more like $100/hour every hour. Once you saturate your target customers, there is no more recurring stream. And everyone expects exceptional service and a free show, or they'll take their biz to the internet. Not to mention, any kid can get the secret to a trick on YouTube while he's standing in your store. Ouch! I have the capital, the ability to go without income for a year or two, and a strong desire to open an old-time shop, but I can't find the viable model here. Completing the frustration is the fact that only one wholesalers returned my call or email. Can't imagine why, in this economy, a salesman wouldn't be wanting a $10K sales lead. I will say I am glad the Café is here to give me so many data points. Eric |
jonnyboy Inner circle San Diego 1021 Posts |
I am not a brick and mortar owner or an online retailer, but know one fairly well. From what I've been told, it is a very, very difficult business in which to make money. It sounds more like labors of love for those owning brick and mortar stores, who find it hard to compete with online outlets for the very same reasons you say. There is a reason that so many have gone out of business. It is like the joke that some MLB baseball team owner (and probably many others in other businesses make) when asked many years ago how to make a million dollars owning a baseball team. He replied "Start with ten million." And this is too bad, but if the consumers don't want to patronize the stores, and support them by paying the higher prices than they could get online, then this is the way of the world.
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ebinary New user 53 Posts |
Thanks for your comments Jonny. I haven't quite given up yet.
Does anyone know of a higher margin business that combines well with a magic shop? Ii have no qualms about not being a purist, but I can't think of a nice, repeatable revenue business that meshes well. Eric |
AnthonyJD Veteran user Long Island , N.Y. 340 Posts |
Hi Just curious. Where about would you want this shop. I have noticed you don't mention any area. Also I would guess like any business start up is the killer especially with so much on line competition. Good luck
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Frank Russell Regular user Atlanta Georgia 128 Posts |
Hi Eric. I am just seeing your post for the first time. I am probably not the authority on this but I have looked into this in the past and it was not something I could see in my future.
Unfortunately, most magic shops rely on other things to make their numbers...especially in tourist areas. Usually they resort to a lot of the novelties that we all love to hate. Also, another popular division...which usually turns out to be the money maker...Costumes. Having an area for paid shows or rental space for local magicians to hold their birthday parties and such would be a good idea too. I would also do online sales of the inventory you have in your shop. I noticed you said $10K in rent...that might be too rich for a trial and error shop. Listen, what you are wanting to do is exactly what Magic Masters did and they just aren't very strong anymore. Most magic shops...especially new ones don't sell $1K or more in magic in a day unless it is on Saturday. A magic shop in Atlanta that I considered buying a few years ago was only grossing about $6K per month. They are no longer in business as you can imagine...plus he had/has legal problems chasing after him for one very bad business idea that was too rich for his wallet. I am glad I walked away from that! Just out of curiosity, where are you considering this? That might explain the high lease value. You can PM me if you wish just in case you want to keep some information private for now. Frank |
ebinary New user 53 Posts |
Quote:
On 2009-12-22 21:53, Frank Russell wrote: Thanks for the comments Frank. The shop idea is over now. The location was a resort town in central Oregon (hence the rent, which was actually at about $15K/year). Lots of foot traffic. Lots of tourists (3M/year). And again, my main reason for wanting a shop is to give kids the experience I had as a kid (not to make a ton of dough). I did a little tour of magic shops in the northwest, though, and I definately feel there is much room for improvement. I spent 2 hours in a magic shop over Christmas with money allocated simply to donate to any reasonable trick. I explained this to the shopkeepers. Although they were both qualified, they demoed only one trick (a puzzle really) in the time I was there. I would have happily dropped $300 on the right stuff (I still spent well over $100 on the wrong stuff). I had a great converstation with the guys behind the counter, but I simply couldn't even find any of the kinds of stuff I wanted to buy (though it was probably there somewhere). I should mention I hadn't been in a real shop for 8 years, on account of my location. It was also a bit of a bummer, because my kids (around 6 and 8 years old) were in and out of the store in 5 minutes, not choosing anything (though I offered to buy). My wife got some high quality fake vomit An 11 year old with us bought some pranks. All of them were off to lunch in no time flat, thankfully leaving me to browse. Eric |
AnthonyJD Veteran user Long Island , N.Y. 340 Posts |
Eric ,its a shame your idea fell through. To me a well stocked brick and mortar shop can not be beat. One where you learn, meet people etc. Reminds me of Tannen's when I was younger (a teenager) and my dad would drive me to New York city . But sadly I guess times have changed ,I also enjoyed small movie theaters but,you get the idea.Regards
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rklew64 Inner circle 1265 Posts |
Sorry to hear that but you can always open that dream shop somewhere else.
I'm going to say this in all my ignorance but perhaps it is the area that is the liability. Open one in a metropolitan area and there might be a better chance. Is there one in Portland? Good Luck and hope you do get that chance where kids can come in a slowly get hooked and learn with you as their mentor, sponsor lectures and simply make the hip place to hang out where patrons live, breathe and eat magic. |
epoptika Elite user Florida 477 Posts |
Well I've just come upon this post and it is probably a bit stale by now but I'll add my two cents anyhow.
I've always thought I'd like to open the magic shop of my dreams too - but only if I won the Powerball lottery because I cannot imagine making a living at it in todays world. Kids today live in an online culture and they learn, buy, and share magic online for the most part. They prefer video instruction and don't like to read for the most part. The now defunct Magic Masters shops were pretty close to what I envision as the ideal magic shop. No plastic doggy-doo or fake vomit or whoopie cushions anywhere in sight. The look of a Victorian library with wood paneling, oriental carpets and LOTS of books. Photos & framed posters of past magic masters on the walls. Gimmicks would be out of view in cupboards and drawers and not prominently displayed in glass cases for all the world to see as is the case in so many magic shops. Sales people would actually know how to demo the items and would BE FRIENDLY to anyone entering the shop. A sitting area with chairs and a table for visiting magicians to sit and gossip or swap tricks and a pot of coffee is a nice touch. |
epoptika Elite user Florida 477 Posts |
Oh, and I forgot. It would always have on hand all of the little secret items that a magician needs to replenish from time to time like the tiny rubber bands for your coin-in-bottle gimmick, flash powder and paper, replacement elastic for your pulls, magicians rope, and etc. It's amazing how many shops do not have this stuff in stock when you need it.
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