The Process of Opening a MTG Store...or any other retail Brick and Mortar ~PART 1~

Changing the Perception of MTG...1 Timmy at a time.
Lets Pretend we are opening "Timmy's Game Store" and walk everyone through the process...
/ alphainvestments

[@BNTmodels]

I had a store like that. People were free to play in my store. But then they ONLY came to play. They bought their cards from the internet. One dat I had a guy come in, walk into the play area and suddenly it became very quiet... So I peeked around the corner.... turns out that guy was taking orders from my customers... He was collecting money so he was going to buy cards in bulk from his parents bedroom, and then sell those cards at wholesale prices in my store in the game-room. Two weeks later my store went bankrupt. Customers then told me they were sorry my store went under, because now they no longer had a place to play.

[@andrewmarinkovich8657]

I looked into opening a comics and gaming store last year after I was laid off from my full-time corporate gig. I was under no illusions about the amount of capital it would take to open a nice store but I was really surprised to find out how hard it is to make a living from owning a store. In fact, what I found out -- from talking to about a half dozen comic shop owners -- is that many successful comic shops (whether they do gaming or not) are owned by people who already have money (a trust fund, a sizable inheritance, they struck it rich in their previous career, or are backed by a rich uncle) and/or alternate income streams (income-generating real estate investments, for example) and generally do not need to worry about their store generating enough money for them to make a reasonable income. The few exceptions I found are people who opened shops 20 or more years ago and have been able to buy up tons of inventory for cheap over the years and who have developed a long-time established customer base. But for newer stores, I think most owners are very likely just scraping by and probably making less than minimum wage (when you consider any income they are making divided by the amount of hours they work every week). That is, if they aren't already hemorrhaging money. While I was confident I had enough money to open a store I still needed to make a reasonable income and it became clear to me that probably wasn't going to happen. Of course I'm not saying this is the case for everybody. I expect there are some newer stores out there that do well enough that the owners can have a staff and still generate a reasonable livable income for themselves, but I expect that is pretty rare to find. As much as I dreamed of having my own store, the realities I discovered made it impossible for me to pursue that dream. I still hope it can happen some day, but I think I'd have to move to an area of the country that isn't already served by a good store (or to an area that is underserved) and where the cost of living is pretty low, and maybe it could work. One piece of advice I received, and I think it's a good one, is to try and buy an existing store rather than opening a new one from scratch. You might be surprised to find that some shop owners are very open to getting out of the business. The hard part is figuring out the valuation of the store. I was in talks to buy an existing comic shop but when I saw the books (the accounting kind, not the comic book kind) and saw how much money the business was losing every month, well, no deal. Plus the owner's valuation of the shop was way inflated (in my opinion), especially considering the business was losing money. Now I'm back working for the man (again) and trying to figure out how to make a comics/gaming store actually work. Can't let the dream die! :-)

[@adolphus28]

Thanks for sharing your personal insights and opinion here. From the 17 likes i'm assuming we all got good value from your generosity here.

[@jeremybds1901]

*takes chubaca mask off while doing taxes*

[@ChickenMcThiccken]

open half pot shop / half gaming store. you might not sell gaming all the time. but you damn well believe you will be getting all walks of life to buy the weed.. you can do this in colorado or nevada; or wherever its completely legal . i expect partnership for this idea.

[@WhenPokemon]

Thank you for sharing :)

[@tonobaker601]

@@ChickenMcThiccken you’re taking 6 figures right to 7 the second you even think about legal cannabis anything nobody would go to it, but a rec use lounge catered for mtg gamers would ruin multiple people’s lives and probably run the consumer 200 bucks for an 8th and a booster

[@jessew5152]

Small business owner (clothing). Your videos are spot on, and your unedited presentation is great. My startup costs were on the lower end because A) I live in a small city in a rural area and B) I bought out the inventory, counters, racks etc at liquidation prices from another business that was failing. In the last 10 years, in my shopping center (4 storefronts), I have seen 6 businesses start and fail. Only one of them knew when to call it quits, the rest ruined themselves financially because they were so invested they didn't see backing out as an option. Business is stressful, harsh and very rewarding, but I can't say I don't sit back sometimes and think " I work almost 60 hours a week and my take home profit is probably less than a McDonalds manager... what am I even doing?"

[@swiftbear]

Man you are spot on about the soul destroying, life sucking, lost the will to live, can't sleep at night cause you know you have to serve the next day feeling working for someone else. And that is what motivates people to risk the large percent failure rate in trying to start ANY business, and make little to no money cause it is better than being told what to do an being a slave to someone else. I am on that quest right now trying to break free but its difficult when you are so drained from the corporate grind...

[@ForceOfLight]

Rudy, honestly I admire you so much. You can just save this for yourself, and yet you are finding a way to tell people how to not mess up they're investments. This is pure awesomeness mate, massive respect.

[@mikecondo]

I think more important than the money necessary to open a shop is making sure there's actual interest or need for a game store. Any shmuck can open a store but if there's no one around in the area to patronize it, then you have a snowball's chance in hell of making money.

[@MrFreshlydoug]

truth

[@mikecondo]

Exactly, I just felt that Rudy skipped the first step or one of the first steps.

[@Krfification101]

That is one of the first problems I came up with when I decided I will eventually own a gaming store/lounge. Makibg sure I open in a place where people will actually come in and purchase my services.

[@jokuel111]

You forgot to budget air fresheners for the the smelly customers.

[@SaraCaseb]

jokuel111 right?! OMG!!! The worst BO!

[@WhimsicalGriffin]

Ive had a few of those come in. Horrible! OMG Not enough air freshener in the world for some of those people

[@pathkeepers]

Costs more than rent and labor to kill that stench

[@ThrillingMistDope]

I laughed so hard when i read this 🤣

[@ethan6322]

Yucky

[@Nathaniel1415]

Your job absorbing your creativity was spot on bro. That’s what up!

[@gradylawless]

Thanks Rudy, some good information. I've wanted to have a game store for a very long time, looking forward to the next few videos in the series.

[@adolphus28]

Very generous, honest, practical guide to open (or not open) a local 'game' store. Thanks for your time sharing this.

[@codmw3junkie]

Great video! The information you provided spans so many different types of businesses. I have lost count on the number of businesses that fail within the first 12 to 24 months just because they failed to account for the capital outlay they would have to make in their chosen business venture. Thanks Rudy, and keep em comin.

[@shauncorner4839]

Man I love these kinds of videos. This inside baseball stuff is really fantastic. I've been looking at doing this myself and this has been helpful in figuring out what is necessary to get started.

[@Skrimmr]

When I first saw that vid in recommended and saw the channel name I thought "Great, another dude that sells MTG singles that contributes to my favorite cards having irrational prices..." and so on. Thank God I was mistaken, I'm thinking about my own LGS and your tips ans suggestions are invaluable. Thank you! That was really educating unlike most vids on youtube.

[@ashleykitchin976]

Congrats on the 20k! :D Loving this series.

[@NextLevelAutoDetail]

Don’t like magic, don’t plan on opening a card store. Watched till the end. Your an intelligent guy Rudy.

[@brycegoodwin2081]

Great video! Totally agree about the Drain Life effect of working for The Man, and the difficulty of getting off the hamster wheel without tripping.

[@eyeseaweed]

Would you ever consider selling shirts for those of us that can't/don't do paetreon? I'd love a "don't be a Timmy" Tshirt or something fun like that.

[@codmw3junkie]

Hell yes!

[@blazenjestergames4025]

Great advice keep the videos coming man 20k subs congrats !

[@weeman2470]

I've been looking into opening a store and this kind of reaffirms what I was thinking. 15k to open, 20k for stocking product, and 10k-15k in a business account to cover the first 3 -6 months of overhead assuming you only operate at a 30-50% return on your monthly overhead.

[@AnnCatsanndra]

This is a really *really* useful video to listen to. I've been listening to a bunch of other short videos on starting up a retail and most of them don't even mention these extra costs.

[@mng604]

Thanks for this video Rudy, I was thinking about starting my own business but a tutorial school instead of a game shop. Your talk really helped me see and understand a lot of the costs involved in opening a business. I'll have to reconsider some points and really calculate the costs of everything to see if it's worth starting. I also wanted to say you really hit the nail on the head, this hamster wheel most of us run on really does drain us so much. At the end of the day all I want to do is flop down and veg out in front of the TV. Anyways, looking forward to the next video! Thanks again!

[@MidnighterKnight]

Best video to date! This together with Deriums Q&A series is like a primer for each and everyone who is thinking about getting into any kind of retail business. It would be great if you could tall about examples from your own experiences, not with hard nubers concerning your startups and onging business, but more around things that have come up, snags and bumps along the way - and how you solved them. Keep up the awesome work.

[@MichaelDuranSrKnight]

Very informative. I have forethought on some of the topics you brought up, but there was equally as much I did know think of. I have only started and currently operate a home based cell phone/computer repair and retail (phone cases, accessories, computer parts, etc). But I want to get a store front soon and the topics as you said are broadly accepted no matter what you're opening as a business. Again, great video. This was my first but not my last to see of yours AlphaInvestments!

[@ColMcWillis]

Great Video and Props to you and all the other awesome shop owners incurring the risk for our fun!

[@BreinGames]

good stuff man. keep this series going. looking forward to inventory.

[@helpmeImbeing]

You speak absolute sense. Enjoying all your videos! Thanks!

[@celsotavora]

Another nice, level-headed video. Keep the series coming!

[@McEG13]

I can confirm for the "Indoor Mall" thing. My rent for my shop inside a shopping complex is ridiculously cheap, but I am not able to be sanctioned in the location, because i do not have an external entrance. Rudy knows what he is talking about.

[@seanrose1720]

Great video, Rudy. This answers about everything I'd asked last week. I'm fortunate to live in an area with no commercial rent tax. The new mayor has recently helped pass an ordinance stating that all local business signs must be made out of wood (I know, weird.) and that ironically fits the decor already present at my location in mind. All the things that are supposed to dissuade me are drawing me into attempting to open a store even more. Thanks for the new information though. You covered a lot of facts and statistics that many sources don't even mention in passing.

[@TheFumanchewie]

Great video. Informative and entertaining. Keep up the good work.

[@obt2142]

I absolutely love this channel, never stop please:D

[@Savagolem]

Bought one fat pack last month. Am i now an investor ?? Kappa

[@monkeyjesus3470]

I bought 3 conspiracy packs, i believe I'm an investor now.

[@immortanjoe9339]

i bought khans of tarkir, its all about the fetch

[@turbochrist]

I bought 900 boxes of Dragon's Maze

[@artofdan1840]

I bought a booster box of Conspiracy 2 - 1 Show and tell. Net loss = $65. For now...unless the prices spike.

[@monkeyjesus3470]

Wilburious good investment

[@CoreysCards]

I love this video, man. Keep these coming!

[@Fragmonkei]

0:10 "So, I wanna talk about opening a game store." 10:52 "..Philosophy of life, meaning, and purpose; ya know, I've thought about that stuff."

[@currentheadtrader6772]

great video, this info is relevant for most entrepreneurs looking to open any business. been enjoying the videos keep it up

[@brotect]

Great vid, great insight, keep em coming

[@joshfreeman7999]

Holy shit... a lan line. You the real deal Big R.

[@Oakenbull]

Great video rudy, big fan, always learn a ton from your videos

[@Starfury117]

Great video. Very informative. I think in this day and age, its easier to manage an online store instead of an actual game store. For one, you dont need to pay rent to a storefront. You'll need to pay rent for storage but thats alot cheaper. Then you can go to kijji or craigslist for rare product to flip (if you choose to do that). Hang out on facebook mtg groups to build a community (or even youtube). Probably alot easier to start than a real store. And 90% there. Afterall, dealing with customers is a huge pain in the butt. Im sure everyone will tell you this. Running a game store sounds amazing but that financial investment is insane. Online presence seems to be the way to go this in this era. Hope this gives some insight into those people who wants to start a business. Cheers

[@oompax88]

Awesome to see his dedication to the Suikoden game series one of my favorite.

[@matthewmoran8092]

I really enjoyed this video and I am not even interested in opening a store. I really appreciate my store a lot more that they are three years old and managed to survive against some HUGE competition in our area. Keep making the great content.

[@BetterYouNow]

I work 9 hours a day talking on the phone. Imagine Wolf of Wall Street boiler room. After work I'm exhausted, so you're absolutely right. But these video's are easy to watch after a long day. How do we escape the corporate beat down?

[@louielorenzana112]

Great advice Rudy! I am also a business owner and my company is currently standing as one of the top 3 largest in the country within our industry(Industrial Machine). So I can vouch that what you advised here applies to other industries as well. P.S. Haters are going to hate! Don't listen to the other jealous "KZbinrs" trying to steal your thunder. They are just jealous that you have done so much more within the short time that you have been here than they have in the last 10 YEARS!

[@cristianmc1978]

thx Rudy for all the info like always and I've gonna be waiting for Ur next business video👍👍

[@2Redner]

Dude you took business classes. I’m into the videos it’s really market specific talk. Mtg is so good for a business model because of how many different things and how specialized this market is. Good to hear the words of a fellow buzzy grad.

[@pakosaurusrex7223]

keep up the great content. cant wait for part 2 lol.

[@spikehellsing1127]

Loving this series. I know you mentioned about having dealings with restaurants as well, do you think you could touch a bit on those types of businesses as well? Essentially just the differences in opening a place that deals in food product as opposed to non perishable items like cards. thanks and keep up the good work!

[@ericcahoon4454]

thanx for sharing this info. Next time I'm at the shop and someone brings up opening their own store, I'm going to point them this video

[@asarishepard8171]

i like how realistic you are about payments and money. its like listening to my grandpa talk about his old business :P

[@Baxtersrealm]

I am in the process of opening a game store as we speak. I will give everyone all my numbers and how much I end up spending. I plan on opening the first month of November and one thing I'm trying different is launching a Kickstarter September 16th. I made a custom deck of playing cards as a reward that I think people will be excited about! Thank you for all you do and I will keep everyone updated!

[@MichaelSultai]

Good luck!!!!!

[@kimbach1824]

So, are you still open?

[@xkillrocknroll1]

Yea updates?

[@tehdoctagaming3435]

Interested on how it went

[@RunielNalovir597]

Same.

[@prestosbolt]

He speaks the truth. Retail stores are a great write-off, or a good combo-business with something else. It's much easier as a family business without employees, and there has to be someone with a good job to get the store through cash flow crunches. There are way too many product releases that just don't sell.

[@Serjohn]

those instant attack on the camera hilarius

[@Varmint111]

Considering I've been thinking about this for the last 3 years.... I am PLANTED in this seat for this vid.

[@mattjordan1585]

can you do a video about how distributes work and how to deal with them

[@kingshit7362]

Have capital and don't miss orders if ur inconsistent when it comes to buying from them then you will probably get dropped as a customer.

[@bobbyhurley4869]

@@kingshit7362 where we get the product

[@kingshit7362]

@@bobbyhurley4869 research card distributors online they all have websites.

[@YearOfTheSwagon]

Happy 20k subs man.

[@leodalkey651]

I have been frequenting a local LGS and last week there was an mtg event and there was some guy in with a boxes of expensive cards. I wanted to offer to buy some of them but I did not because I didn't want to risk my relationship with the operators. But i did tell them which cards they MIGHT buy.😉

[@animatedbreak]

I learned two things in this video: 1.) Opening a LGS is difficult, proceed with caution 2.) Never call Rudy because my ass will get hung up on 15:57

[@JamesOxford98]

The biggest card and comic shop in my home town when magic came out was right on a if not THE major bus line in the city also one of the main 4 lane roads thru the city end to end about 15 miles , maybe 25 miles. It was also right next to THE premiere video arcade in town, with a single screen movie theater ( old school with balcony). A mile from a 2200 student high school and 800 student middle school on the same campus. Across from a major grocery store, laundromat, hardware store, tire shop, and shopping mall with many things in it including a major fitness center. It was a place a kid could go on their own or get dumped by a parent with $10 while they did errands, yoga, etc.

[@givemeyourfish]

I feel what you are laying down at 10:00. I am there right now.

[@GabesGames]

Crazy man. Thanks for the info :)

[@adamchoy4978]

I don't play Magic, I don't collect cards but MAN you are entertaining. No pledging a dollar? I'm not really interested in investing in Magic but I'd love to contribute a dollar just to support what you do!

[@Al3xFN]

5:54 got me crying 😂😂

[@PhilShary]

10:30 - very wise words - that's exactly what happens and that's exactly what the society WANTS to happen to you.

[@Strike237]

OMG you're so right about the job thing and not be able to find the energy and creativity to start by yourself! Experienced exactly the same. I'm starting my own business now for 1 year after being fired, which was a blessing in disguise. It's hard work and I have little money to spare, but it is more satisfying then slaving around some fucking company that don't give a shit about you >.

[@redcomet0078]

Phone rings.../sigh :) Walks over...Done with that! Neat video.

[@jastat]

totally agree 100% on the points re working at/dealing with big corporations

[@seanwbruno]

This is applicable to *any* business. I agree with Rudy that its completely bizarre that nobody ever teaches this kind of thing at any level of primary/secondary education.

[@active_ate9183]

Very interesting, even for those not planning to open a store. :)

[@amatafa2859]

thanks dude your videos are really helpful

[@Leoisurdictator]

Can you do a 25 minute video of you talking to patrons like that. As if you’re really looking at everyone and taking crap to them. That’d be hilarious king

[@lovetap6957]

need a part 2 on how to fine good items venders stock. also kick ass video.

[@nevoarad8276]

here comes the timmys

[@bobchan5329]

I like what your doing keep it up.

[@MrLeeFergusson]

Damn it Rudy could have used this 3 months ago :D Respect to anyone who opens a store, it's been a lot of hard work and stress to get to that point. And that is only the start.

[@raventhorX]

man, all I want is to have my current level of living, which isn't much at all, but be able to do something I can truly put my heart and soul into. guess at this point though I would need to win the lottery to afford it. I could try to diversify what the store offers, but honestly if that diversification is what brings in the bucks I would be better just dealing with what I use to diversify instead, unless I can configure it so it basically runs itself so I can focus primarily on the game store.

[@KelvinTrading]

I’m more investing in Pokémon but these alpha video’s makes me want to do get in to Magic and understand what the market Looks like and understand more about what Rudy tells about the game

[@pepperonization]

Great info!

[@ExposedBen]

This helped me , thank you.

[@tackywacky99]

great video!

[@Tangeloz]

Who needs business school when you have Alpha Investments.

[@chillinglikeavillful]

Rudy I havent even watched the video but fuck thank you thats what I want to do thank you for making this kind of content you fucking rock, str8 up best MTG youtuber

[@Monkeyshaman]

I'll totally have you stream on an avant garde video wall in my dehydrated gelled espresso shot card store if I can live in and infinity draft in your Magic restaurant once I fail.

[@mouth9001]

you should do a ted talk

[@MadolcheGabbana]

He really should. *RUDY* do a TED talk. Do the math of who would show up; patrons, subs, do a poll even. Think you'd be surprised.

[@n00bJesus]

Great video, chief! I'm curious what next month's patreon booster box set will be. I needs to gets me some of that Alpha #Inventory

[@MrFreshlydoug]

Haha, my bet was right! I noticed the book said Flagler on it and I figured you probably lived in St. Augustine. I work on real estate investments right now in the Jax Beach/Ponte Vedra area.

[@spiterwebs]

cant wait part 2

[@ssvaiyn3187]

Hey Rudy, Not sure if you'll see this, but would you possibly consider doing an updated version of this little "Series"? I would be curious to know your thoughts now as opposed to 6 years ago haha.

[@shanjudo4510]

online only baby :) dont waste time on overheads ($20/hour for a timmy behind the counter, electricity, rent ergh too much)...store it in your garage, spare bedroom etc. ebay has packing deals with Australia post too.

[@vonworms0]

Great videos

[@BrandonFerrentino]

gimmie more man , getting out the army soon and i wanna open an esports gaming/tcg shop any insight would be awesome!

[@douglastalkington]

Great advice

[@TizTaylor]

killed me with the little tie bit

[@evilgary747]

I have the shiniest top hat and tiniest tie. And the Landlord doesn't care.

[@juggerboy7182]

I always just imagine that those small stores are money laundering fronts because for some I cant believe they make a profit

[@VLikaru]

you holding? o.e

[@johnlouisnagy2375]

I've been to a few comic shops that weren't selling books. They were cooking them.

[@connermyers4555]

this guy for president

[@Spartacus547]

Yea we get it ! You need 18 months of reint 46k to 50k, then inventory of product 50k to 75k, employee cost 23k 1 at 40h or 2 20h insurance 2k to 5k business and Licensing fees 2k to 3k bringing us to a grand total of 156k to get off the ground

[@glenpapenburg289]

Right on, add some advertising to that initial figure too

[@Tolkatore]

I have crazy Rudy on in my shop playing all the time!

[@TylerPlurden88]

Id love to see your video game collection 😁

[@tonobaker601]

Kind of talking down, but one of the few people with info