3 Pitfalls to Opening a Collectibles/Antique Store in 2021 and why it is Usually a Horrible Idea!

In this video, we talk about just THREE of the many pitfalls you will encounter if you decide to make the decision to open up a brick and mortar collectibles or antiques shop in the year 2021!
Email for Antique/Collectible Consulting: [e-mail]
Patreon: / reservedinvestments

[@czarnick123]

I learned the trade from my uncle. He would take me on trips and teach me flipping lessons. Once, he took me to about 5 awesome antique stores in a city. All beautiful, incredible and he introduced me to the owners. On the drive home he said the lesson today is that all those stores are owned by people with big fortunes. Those stores all lose money every month. Dont compare yourself to those types, we're in a different game. They want an outlet to show off, a hobby and their wealth allows them to run that store. We are flippers and we run a different game.

[@justineallen400]

Well said :)

[@FenrirFire18]

I'd rather be the rich guy, but I agree

[@niqa246]

Yeah, best thing you can do is open an online store. And turn part of your house into a storage

[@raredealgaming]

Little timmy is going to walk in with his pristine nintendo collection and sell it for pennies killed me :') haha

[@Steven-qy9lm]

My local video game shop would buy my 15-20 years old video games for literally £0.01 each.

[@xTHETRAINx]

This is what I'm about to do right now

[@ivanvargas2425]

I do the fleamarket once a month. Split the $29 rent for one day with my cousin. Usually profit a average of $550 each time I go.

[@collins7575]

I’ve been buying and selling collectibles for about 12 years now and have been debating opening up a shop. I decided to rent a vendor mall spot instead last year to start and sell stuff faster on top of online sales

[@rainbowmusic274]

I have owned a "brick & morter" store for 30 years, and I can tell you this....before the pandemic the customer had too many options with the advantages of cutting out the middle man by using the internet, and "showrooming" the storefronts. Now that alot of the brick & morters are not coming back post pandemic, internet sales tax for all, ever increasing shipping costs, and the questions of trust...what is retail going to be moving forward???

[@mattspowergarrison]

Great video! I enjoyed your interview the other day with Greg too!

[@ReservedInvestments]

Thank you!

[@JoshPitts530]

Most people never learn business before going into business, unfortunately. That’s why so many businesses fail. Undercapitalization and break even.

[@ReservedInvestments]

💯

[@heroicgoods]

This is a great primer on why not to do it - when people ask me advice on opening a store like mine, they hate the advice I give - "Quit your current job, get multiple part time customer facing retail jobs at the same time, so you're working at them fo 60-70 hours a week. Do that while saving money, and stop buying items for yourself to collect. Do that for a year, and see if you're still having fun. If you are, you're ready to start to plan your opening."

[@puntpassclick]

This was a great video. I see a lot of people wanting to open a B&M so that they can get product through distribution. While this makes them eligible, it doesn't mean they will actually get product. I have seen a lot of new stores open thinking they would be able to buy from distribution, only to find out they get little to no allocation, and are then forced to buy on the secondary market like everyone else to fill their shelves, basically crushing their entire profit thesis.

[@ReservedInvestments]

Correct!

[@danjones7]

How would a small new shop get to the point where they could reliably buy from distribution instead of from the secondary market like you say?

[@puntpassclick]

@@danjones7 have an outstanding in store experience (modern look and feel, knowledgable staff), and then spend 3-5 years "making it work" sourcing sealed and singles off secondary market. If you can get to $1M in sealed sales, you can get a conversation pretty easily. Even then, you only get an initial allocation - almost everybody still has to go to secondary market to meet the demand they have.

[@turtlebee1776]

Absolutely loved the video, it made me laugh and had me agreeing with you several times.. I watch these type of videos as I'm doing inventory and none really stand out or catch my attention usually....So you got a thumbs up from me. I opened up an antique mall about a year ago now, and I tell you what it is truly a struggle. But I love it and its doing well. I would just like to say for others thinking about something like this: I went through the numbers, I made what I thought was a solid business plan, (and it was to a point) and I spent a lot of prep work time, (like a year). Whatever you predict its going to cost you in time and money; DOUBLE IT. Then think about it again. I still work a normal fulltime job, my girlfriend runs our store, (unpaid because we dont make enough to pay her) and we probably break about even at this point (Thats only because I have four apartments, which basically pay for the monthly mortgage, and we rent out a large portion of our store to vendors). In my first year I have saw my sales get slowly better, But I now see the reason why so few businesses go out so soon. Plan for the worst, and base everything you do off that! Its possible, but definitely not easy. Good luck!

[@danjones7]

I’m thinking about starting a business similar to what you describe, how much would you say that the actual location of your storefront affects the overall business model? For example I imagine an antique collectibles store would do much better in a shopping plaza surrounded by wealthy suburbs compared to a poorer area in the inner city, thoughts?

[@turtlebee1776]

@@danjones7 Location is definitely Important. The town I operate in has a mix of wealth, with no real boundaries to it. The town itself is not large, maybe 30k people but a lot of oilfield and has good traffic due to the interstate. I'm right in the middle of town on mainstreet in between a lot of other businesses so the foot traffic is good. The most important thing in my opinion for a model like this is SPACE. The bigger the building the better your always going to want more space and theres always going to be vendors that want it too. Go big right away, espacially if there is a lack of consignment type stores in the area

[@danjones7]

@@turtlebee1776 What if you have trouble finding inventory to fill all that space though?

[@turtlebee1776]

@@danjones7 I worried about that at first but its been almost 2 years and we have had no lack of inventory. Theres always people bringing stuff in its pretty constant. I also have gone to auctions and local sales for years so I have a pretty good backlog of my own inventory anyways. But yeah I have not had that issue at all so far, even if I didn't have my own there has been plenty of people bringing things in consistently.

[@ReedStiles]

Rudy’s videos on card shop life are legendary. I hope they became required viewing for all card shop entrepreneurs. I think your video and Rudy’s can both be utilized for anyone opening any physical retail space. Unless you have an existing fan base (like the Cash Cards guy), I don’t see it working. The flipping game doesn’t work for the little guys long term unless they just get lucky. As you put it: “you can’t depend on lucky flips and desperate sellers”

[@dudesoncards]

Thanks for validating everything I’ve been thinking. So happy working from home. Why would u do that to yourself?

[@michaelblatherwick5324]

The people I know who have *MAINTAINED a successful brick and mortar store (whether gaming, collectibles, or even musical instruments) know the store is one leg of the table that is their business plan. If you are doing online only and paying for excessive indoor storage units, a retail store can be a way to allow walk-in traffic for your inventory. If your store has bread and butter wholesale products but you also work in a selection of high value assets, online listings and auctions help stabilize that (and for the love of god, don't keep your Black Lotus or Carded Jawa in the store under glass. Don't flex for potential robbers) If you have a full time job with benefits, don't open a store unless you have a heavy war chest to prop you up during the 12-24 months of losses. If you want to open a store, please reach out to Shawn and he will charge you the price of a plane ticket to come to your house and yell "NO!" in front of your family. I'm kidding on the last one. He will call you for $500 and leave a personalized message yelling "NO!"

[@unstoppableExodia]

LOL that would be 500 bucks well spent if it saves people tens maybe hundreds of thousands lost in a failing brick and mortar store that they don’t have the financial backing to weather the lean times

[@michaelblatherwick5324]

@@unstoppableExodia I think we found a new Patreon level for Reserved Investments.

[@WondyCoin]

B&M storefront? What is this, 1986??

[@KeyKiller74]

Back in the 90's when I used to collect comics I'd read wizards comic guide to know what is hot or not. Memorizing the key issues of the comic helped me out when I went out to my LCS or flea market.

[@forbeatssake1530]

A hybrid shop where you primarily run an online business but open to the public a few days/hours a week works for some dealers. Especially if you move enough product that you have hire employees. Having a work space instead of filling your home/garage with junk is definitely worth it imho.

[@edd3420]

Always great…. One suggestion: You need a giant marker to wave around and make your point…

[@Cookiedon15]

👍 I listen to these sometimes as a podcast at work btw

[@ReservedInvestments]

Thank you for the feedback!

[@223heimdall]

Shawn, could you make a video talking about artwork as investment, please? Thanks for all the great content on your channel.

[@ReservedInvestments]

Check my previous videos. I have done content on this market before…and yes, more are coming!

[@iamnobody2]

i think the only big exception you missed are the giant mega used media stores. i think if you have a fuckton of money and you are smart, something like half-priced books, bookmans, mckays... but we're talking multimillions of dollars to start up. huge places that buy and sell tons of books, movies, music, video games, toys can do quite well in ideal locations, we have Mckay's where i am, its quite a neat store, always busy as hell.

[@slotspirit8811]

Hey Shawn. I'd love to hear your thoughts on whisky investment (scotch, japanese whisky, bourbon) as it has been another very hot investment market in the last few years. I'm very interested to see your view on the nature of whisky, the principle of the whisky market and auction prices to whether make rare/collectible whisky a value investment or just another highly speculative hype like video games. Many thanks!

[@ReservedInvestments]

I know you want to see a video on whiskey, but it is going to be awhile before I have that video ready. It is however, in the works. Just want to set the proper expectation here. Thank you kindly for your interest...

[@toysandgames1275]

I agree. I recommend keeping your daytime job and sell them online like ebay.

[@ricardoblikman2676]

People do not understand how much 20% fees + vat + profit tax is! they all think they buy something for 10 bux and it will be worth 1 million and that 40% costs/taxes is ok because they just earned a million. They do not realize most stuff drops value fast or is not sellable and only is worth cash in a spreadsheet. They do not understand the risks, the liquidity, the risk of thefts and how much stuff cost to buy

[@Zoliqa]

Yeah and this is true not just in the US

[@unstoppableExodia]

I can kinda understand why someone might be tempted to open a card shop but with how robust selling online is today I can’t understand why anyone would take on the risks and the overheads of a bricks and mortar shop for things like vintage video games. Where I live there’s a pawn shop that is notorious for ridiculously inflated prices. None of what they had was particularly rare and never the “rarest” item they had was available at cheaper on eBay. the competition for selling preowned games is fierce, buyers have many options and there’s just no way a bricks and mortar location can compete with eBay on a sustainable basis. Why anyone would think it’s possible in today’s world is beyond me.

[@Steven-qy9lm]

Even if they were cheaper than ebay and other shops, majority of normal people only want 10 PS1 and PS2 games. The average person just wants several games to play and they don't want to have a massive collection. Who will be your buyers?

[@unstoppableExodia]

@@Steven-qy9lm yeah the rare ultra niche games that go for huge sums aren’t usually ones that the average Joe strolling by isn’t going to be tempted to buy.

[@TOSStarTrek]

Had a comic shop for years. Death, Disease, Divorce were the only reason you would see a person sell bronze age or older comics, and they needed the money yesterday. You can do good then. People will want cash up front.

[@paulpierce21]

Thanks.

[@tubernery]

A little off topic, but I remember an episode of G.I.Joe called Phantom Brigade where a centurion ghost couldn't enter the afterlife because of his lost antique coin... it must have had deep sentimenal and collectible appeal!🇺🇸

[@tomneijnens4048]

Thanks

[@TheMysteryDriver]

So just run an online store?

[@ReservedInvestments]

Yup!

[@ricardoblikman2676]

In my 43 years i have seen many smart businesspeople succeed only to loose half their wealth 1 or more times to women. I dont understand it they know contracts and all they need to do is write you marry under conditions but for some reason they forget all that and marry in full wealth.

[@venomouscomics1625]

I know this vid is about pitfalls.. are there no positives at all for a B+M compared to online sales? serious question.

[@ReservedInvestments]

In the current environment we are in, there are virtually none and I don’t expect this to change any time soon…

[@venomouscomics1625]

@@ReservedInvestments WOW 🤯 I appreciate you taking the time to answer. Sounds like only the service industry gets B+M stores these days. Sad times

[@retrocade2607]

so first im really sorry this is long but need help. Hi Shawn, my name is Sean Kelly. I'm sorry if this is long. I was thinking about opening a Video Game Lounge here in Reno Nevada, which would consist of consoles like PS5, xbox, and classic video games like snes, genesis and so on. The model is customers would pay $5 for an hour on one of the game stations. I would also do tournaments, sell snacks and sell video game related merchandise. The reason I'm writing is I watched your video on the 3 pitfalls of B&M opening with collectible video games and I think you saved me from a financial mistake. it would have been in a strip mall across the street from a high school. The demographics were good and a good location as well. Oh sorry a little about me, I'm 53, single (i know a deadly combination) and this would have been my second business. Had a business in California in 1995 selling collectable action figures and sci-fi merchandise. I have a business degree and have written 3 business plans including the Video game lounge i wanted to do. Have sold and been in the video game industry for over 20 years but now in 2022 its way different. There is no way I could do the same business model I did in the 90's. Anyway I loved your video and this should be required viewing to ANYONE that wants to start a business. But i know what's the point i'm trying to make??? Was the Video Game Lounge a good idea or am I trying to live in the past??? I have capital but it would only be myself investing. So again Thanks for listening and any advice you can send my way would be GREATLY APPRECIATED!!! Thanks again Shawn.

[@ReservedInvestments]

I offer consulting at $50 an hour for questions like this. Email is in the video description. There is no way I can personally answer every question I get.

[@ReservedInvestments]

Just off the cuff, this would not be a good business venture to get into. Just on what you told me here.

[@MiamiHighCo]

TRUTH!

[@peelygang9438]

Thoughts on longterm Fortnite cards?

[@ReservedInvestments]

Not a fan...

[@peelygang9438]

Not even from a nostalgic point of view? There cards are bringing high prices already there could be a potential for a lot of growth in the long term/maybe even short term when more people begin collecting them

[@ReservedInvestments]

@@peelygang9438 Once again...no...

[@peelygang9438]

Fair enough. Thanks for the response great channel :)

[@ReservedInvestments]

Thank you. It is way too early to assess the market for Fortnite cards. Just keeping it real.

[@nexiamania]

3rd!

[@Collectible_Andy]

I’d estimate 75% of the retro gaming stores have closed in the Houston market in the past 24 months. These were all well established businesses with good locations and as we know retro game prices have never been higher, but yet they still closed. I think your points about less high value product walking through the doors and more online competition are spot on and the cause for these businesses to close.

[@DanielRivera-on5qh]

I live in Houston and have no clue what you're talking about. I know of like two places that closed and only one I know for sure was because of the virua. Games plus was closed before the virus I think. The other store that closed I bet you couldn't even name. What stores in Houston closed?

[@Fr331995]

Great video. I wouldnt recomend opening a store to anyone

[@andrewvanness1473]

First! SNES collector here :)

[@DanielRivera-on5qh]

What's your collection look like

[@Steven-qy9lm]

@@DanielRivera-on5qh What's a SNES? Just joking. I know what it is but the majority of people I know don't know what a SNES is.

[@andrewvanness1473]

I should probably make a YouTUBE with my collection sometime

[@Steven-qy9lm]

@@andrewvanness1473 Yes, that's a good idea. You can teach all the 11-30 year olds what a NES, SNES, N64 and GameCube are.

[@DanielRivera-on5qh]

@@andrewvanness1473 do you have a complete set? John Hancock and others have already made that video

[@Steven-qy9lm]

The biggest video game dealer in my area thought I was stupid for saying that Crash Bandicoot wasn't a rare game because millions of copies were sold. I also said to him that all video games will become 100% digital one day and he through I was stupid. Are video game dealers this clueless about how the market works?

[@hieinh]

It's so much cheaper and easier to sell collectibles from the comfort of your own home.

[@solemnyugioh]

I cant wait to mortgage my car, house and child to buy all of the modern pokémon boxes and open my very own LGS. I'm sure Target and Walmart won't stand a chance once the Solemn Empire opens up right next door!

[@ReservedInvestments]

😂

[@RareManga]

Can I sign up as an investor thanks

[@Steven-qy9lm]

@@RareManga I can give you my entire collection of pop culture collectables, mass produced collectables and other vintage items for free to help you out, which includes: Beanie Babies 80s & 90s Disney black label VHS 90s & 00s pop music CDs 90s & 00s mobile phones Cabbage Patch Kids Western TV show toys Hummel figurines Royal Dulton plates Royal Albert tea sets Pre-Nintendo video games 80s & 90s baseball cards 80s & 90s Ice Hockey cards 80s & 90s American Football cards 80s & 90s Basketball cards 90s Marvel comic books 90s DC comic books UK 1951-1981 crown coins US circulated Lincoln cents Fidget Spinners Pogs Slazenger trainers Umbro jackets Karrimor hiking boots FIFA, PES and NHL games Window Vista computers

[@Shishkebarbarian]

@@Steven-qy9lm i get the joke but a few of those actually have legs o.O

[@Steven-qy9lm]

@@Shishkebarbarian Which items?