Maybe I'm Nuts, But Thinking of Starting a Shop

[jkampis]

The Cliffs Notes: I collected heartily in the 90s, stopped around the end of that decade as I was graduating college, bought the stock of a shop that operated 87-93 in a nearby town to liquidate online and then caught the bug again. I've been buying new stuff this year to rip and sell.

I dreamed 20 years ago of operating my own card store, a dream that seemed silly for many years, but with the market as it is now maybe it's not so crazy.

Some details and questions you might be able to help with: I have the opportunity to rent a decent place in the heart of my town in north Alabama dirt cheap ($350 a month). My main job is writing for a nonprofit advocacy organization in Washington, D.C., as well as some other freelance work. I now have a home office and if I started the shop I'd just work from there when there were not customers in store.

It would seem an advantage to operating a brick-and-mortar store is possible access to cases from manufacturers near MSRP, but I am admittedly hazy on this. Do any of you operate a store or have knowledge on how easy or hard it is to get access to product from Panini, Topps or Upper Deck these days with a retail location? I know you have to operate one to apply to buy product, but I also assumed with the market booming as it is that access might be tightening up.

[Frankp2311]

Good luck getting in with a distributor right now.

[jkampis]

Good luck getting in with a distributor right now.


What can you tell me about the process?

[Frankp2311]

What can you tell me about the process?

The process is straight forward and can be read on any of the main distributor websites. The problem is that everyone wants to buy direct or through distribution right to try and get deals so many are not taking new applications at this time.

[warrenwolk]

I see access to cards at true wholesale prices your biggest restraint. Do not expect the card companies to give you direct accounts, and do not expect distributors to distribute product. That leaves the secondary market, (which is groovy for the few that actually get the cards), which is too high to pay for resale. I don't think it is possible to start a brick & mortar cardshop in the current environment. The days of a cardshop on every corner sadly, are over.

[hxcmilkshake]

$350 a month for commercial real estate? Nice. I don't think I can rent a room here for that.

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[coltsfan23]

You should speak with a hobby shop owner first before taking the plunge (you can reach out to ones on here or cold call - most people in this hobby are more than happy to help). I would say this is more of a financial and effort question than anything else. Even if rent is cheap, you'll still have plenty of other expenses in shop setup (signage, shelving, tables/showcases, etc.), inventory stocking, insurance, and plenty other areas. To make this worth your effort, you'll need to operate at a certain scale - which means both having enough traffic walking into your shop buying/selling and you purchasing enough product that you can sell at markup.

A lot of people are opening up shops right now because the economics of the card market have gotten a lot more appealing. But this is still a business first if you're going to that level and you need to make sure it's adding incremental value vs. what you're doing today for all the additional costs, risk, and effort you'll endure.

[jkampis]

I’ve figured out it’s impossible to get direct connections to manufacturers these days, but it sounds like a new store can get limited access to new product. A new customer may not get those cases of Prizm, but maybe they’re allotted some Donruss instead. In the current market anything is pretty good.

[Frankp2311]

I’ve figured out it’s impossible to get direct connections to manufacturers these days, but it sounds like a new store can get limited access to new product. A new customer may not get those cases of Prizm, but maybe they’re allotted some Donruss instead. In the current market anything is pretty good.

True, but you have to think about the sustainability. The current feast of sports cards wont last forever at this level.

[jkampis]

True, but you have to think about the sustainability. The current feast of sports cards wont last forever at this level.


Absolutely. In theory, a new shop could work its way up the food chain over time where it wouldn’t just be getting the scraps.

[jkampis]

You should speak with a hobby shop owner first before taking the plunge (you can reach out to ones on here or cold call - most people in this hobby are more than happy to help). I would say this is more of a financial and effort question than anything else. Even if rent is cheap, you'll still have plenty of other expenses in shop setup (signage, shelving, tables/showcases, etc.), inventory stocking, insurance, and plenty other areas. To make this worth your effort, you'll need to operate at a certain scale - which means both having enough traffic walking into your shop buying/selling and you purchasing enough product that you can sell at markup.

A lot of people are opening up shops right now because the economics of the card market have gotten a lot more appealing. But this is still a business first if you're going to that level and you need to make sure it's adding incremental value vs. what you're doing today for all the additional costs, risk, and effort you'll endure.


Good advice. Thank you. I’ve considered all of those factors. Your last point is something my wife and I have debated amongst ourselves and we feel that even if I scale up my current card selling operations just incrementally right now, we still believe we will come out ahead just by me moving my office. Some of my writing income is based on production and we feel I’d be more focused and productive if my office was away from home with fewer distractions. And if I’m distracted at that shop, that means I’m selling cards to customers. Not a bad result.

So here’s what’s happening: we agreed to buy a small commercial building and will finance over 15 years. Mortgage payment is going to be around $550 a month so I don’t have to sell local like gangbusters for this to work out. The guy who had the last card shop in town is going to introduce me to his contacts at GTS so hopefully that will get my foot in the door.

[bigdog2003]

I was thinking about opening a shop up in town. Even went as far as looking at a property on Main Street that was under $1,000 a month utilities included. Even got the property owner to agree to 6 months free. I just couldn't pull the trigger not having the connection to a distributor. Trying to work through that process now to maybe make another attempt.

[Dielon]

I think it can be done with the right marketing and with a strong online presence. Also, many card shops make their money selling other merch/memorabilia.

[jkampis]

I think it can be done with the right marketing and with a strong online presence. Also, many card shops make their money selling other merch/memorabilia.


That’s my plan. I’m in north Alabama so I’ll have a major focus on Alabama and Auburn football (cards, memorabilia, Knick-knacks) and Braves baseball. In addition to continuing my Facebook Marketplace sales, in which I’ll market my B&M, I plan to send out weekly emails to customers through Mailchimp.

[jkampis]

I was thinking about opening a shop up in town. Even went as far as looking at a property on Main Street that was under $1,000 a month utilities included. Even got the property owner to agree to 6 months free. I just couldn't pull the trigger not having the connection to a distributor. Trying to work through that process now to maybe make another attempt.


I wish you luck. It took a few factors in my favor to pull the trigger: this also being a real estate investment, me potentially being more productive by moving my office, my continued FB Marketplace presence being a backup. Otherwise it would have been hard for me to justify it.

[valleynuckfan]

I would think the operation, running and managing of a start up card store with all the efforts that are necessary to success would be a 24-7 deal.
I know a few card store owners and believe me these guys work their a**es off around the clock and only get time off because they can afford the trusted staff to run the show in their absence.
Margins are very slim with purchasing new product for resale.
They have survived and become successful by creating a huge supply network and contacts throughout the industry. As noted most distributors aren't taking new clients on these days and even the most valued customers are getting their orders cut down.
Customers will only come if you have a wide variety of stock and product and they feel that you offer more than what they can get themselves online.
You say this location will also serve as your office so you can work your other job with less distraction than your current sich at home.
IMO the only way to success with a card store is through devoted customer service which means you are interactive all day every day.
I say all the best to you in this endeavour.

[HoodaBest2k20]

I was thinking about opening a shop up in town. Even went as far as looking at a property on Main Street that was under $1,000 a month utilities included. Even got the property owner to agree to 6 months free. I just couldn't pull the trigger not having the connection to a distributor. Trying to work through that process now to maybe make another attempt.

We need another shop in SC!

[Retired hobbist]

The Cliffs Notes: I collected heartily in the 90s, stopped around the end of that decade as I was graduating college, bought the stock of a shop that operated 87-93 in a nearby town to liquidate online and then caught the bug again. I've been buying new stuff this year to rip and sell.

I dreamed 20 years ago of operating my own card store, a dream that seemed silly for many years, but with the market as it is now maybe it's not so crazy.

Some details and questions you might be able to help with: I have the opportunity to rent a decent place in the heart of my town in north Alabama dirt cheap ($350 a month). My main job is writing for a nonprofit advocacy organization in Washington, D.C., as well as some other freelance work. I now have a home office and if I started the shop I'd just work from there when there were not customers in store.

It would seem an advantage to operating a brick-and-mortar store is possible access to cases from manufacturers near MSRP, but I am admittedly hazy on this. Do any of you operate a store or have knowledge on how easy or hard it is to get access to product from Panini, Topps or Upper Deck these days with a retail location? I know you have to operate one to apply to buy product, but I also assumed with the market booming as it is that access might be tightening up.
If you want to get your feet wet in the industry try small shows and work your way up from there.

You can make contacts with fellow dealers and a few bricks and mortar dealers and learn as you go in the business and not lose an arm and a leg if you feel the business isn't for you.

I know in the last boom my city of 2.2 million people went from about 2 card stores to 30 or so in the greater city and busted down 2 or 3 before this recent boom. But my city has high rent that has killed any business that isn't high volume with decent mark up.

[jkampis]

If you want to get your feet wet in the industry try small shows and work your way up from there.

You can make contacts with fellow dealers and a few bricks and mortar dealers and learn as you go in the business and not lose an arm and a leg if you feel the business isn't for you.

I know in the last boom my city of 2.2 million people went from about 2 card stores to 30 or so in the greater city and busted down 2 or 3 before this recent boom. But my city has high rent that has killed any business that isn't high volume with decent mark up.


I ended up buying a building and I opened the store last week. Had sales like gangbusters. Hopefully I can keep that momentum going.

[Retired hobbist]

Yeah it's different where you live and work the economics of the city I live in would force a slower approach unless you were loaded.

Best of luck!

[whynotme012]

I ended up buying a building and I opened the store last week. Had sales like gangbusters. Hopefully I can keep that momentum going.


[emoji3060]

What’s name of your store.


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[jkampis]

[emoji3060]

What’s name of your store.


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Cullman Sportscards & Fun Shop

[katho]

I wish you luck,But,when this boom is over,a lot of people are going to be losing their proverbial arses