Used Bookstore Business - questions please

Hi everyone. I'm considering opening a used book store and would like
some insight/questions.

I live in a city with 3 million people. Within a 20 mile range of me
there are 3 used bookstores. I know the owner of one very well. He is
retired and opened the store just to give him something to do. He is in
a strip mall anchored by a WalMart (very high traffic) in a 1200 square
foot suite. Nothing fancy not even decorations. He also sells on
Amazon. He is very religious and honest and even showed me his Amazon
account. He is currently grossing $7,000/month in the store and
$10,000/month on Amazon. He does no advertising and relies on walk-by
customers. He only buys books in perfect shape. The romance novels and
Steven King novels he says are valueless because you can get them
online for 1 cent, but cook books and unique books, audio books are big
sellers. In fact he is only 1 block away from a Borders and Barnes &
Noble but tells me the people shopping in used bookstores are a
different breed. He just signed another 5 year lease. In fact he's so
busy they hired extra help.

Based on his experience, I thought opening a used book store with my
wife in my area of town would be a good idea (heavily traveled strip
mall). We own another business that takes up little time and nets
around $300k/yr. But I go online and do some research and 99% of
everything I read is that used bookstores are going the way of the
typewriter. They are closing up, being put out of business, have high
failure rate, etc. So I'm a bit confused. Can anyone give me some
insight on the used book store business and just how risky it is? Is it
worth it or like travel agencies will it be wiped out by the internet
soon? I don't understand how this bookstore can do so well but
everything I read is so negative.

wrote:
We own another business that takes up little time and nets
around $300k/yr.

How much of that are you willing to lose per year working 70-80 hour
weeks running a used bookstore?

But I go online and do some research and 99% of
everything I read is that used bookstores are going the way of the
typewriter.

Exactly. But you'll notice that they still make and sell typewriters,
just fewer and fewer every year...

They are closing up, being put out of business, have high
failure rate, etc. So I'm a bit confused. Can anyone give me some
insight on the used book store business and just how risky it is?

It's no riskier than putting all your money into Internet stocks in
2000 was...

Is it worth it or like travel agencies will it be wiped out by the internet
soon?

Not quite as bad, but you're in the ballpark.

I don't understand how this bookstore can do so well but
everything I read is so negative.

Depends on his rent, his stock, whether he sleeps in the store, how
much ramen he's willing to eat, and a hundred other variables.

But one good question to guage your suitability for running a use
booksto How many books do you personally own in your own home? If
the answer is less than 1,000, then no, you shouldn't own your own
bookstore. Over 10,000, and your probably love books enough to make a
go at it, assuming you're willing to tolerate several years of losses.

If you're looking for a money-making opportunity, you'd be far better
off putting money into bonds, the stock market, or buying a chain
restaurant franchise. Because it's a labor of love, not profit.

The best way to make a small fortune in the used bookstore business is
to start with a large fortune...

Lawrence Person
Lame Excuse Books
http://home.austin.rr.com/lperson/lame.html

wrote:

wrote:


We own another business that takes up little time and nets
around $300k/yr.



How much of that are you willing to lose per year working 70-80 hour
weeks running a used bookstore?



But I go online and do some research and 99% of
everything I read is that used bookstores are going the way of the
typewriter.



Exactly. But you'll notice that they still make and sell typewriters,
just fewer and fewer every year...



They are closing up, being put out of business, have high
failure rate, etc. So I'm a bit confused. Can anyone give me some
insight on the used book store business and just how risky it is?



It's no riskier than putting all your money into Internet stocks in
2000 was...



Is it worth it or like travel agencies will it be wiped out by the internet
soon?



Not quite as bad, but you're in the ballpark.



I don't understand how this bookstore can do so well but
everything I read is so negative.



Depends on his rent, his stock, whether he sleeps in the store, how
much ramen he's willing to eat, and a hundred other variables.

But one good question to guage your suitability for running a use
booksto How many books do you personally own in your own home? If
the answer is less than 1,000, then no, you shouldn't own your own
bookstore. Over 10,000, and your probably love books enough to make a
go at it, assuming you're willing to tolerate several years of losses.



Good test!! It also is a good indicator of what the person has learned
about the collectibility of books.


Francis A Miniter

If you're looking for a money-making opportunity, you'd be far better
off putting money into bonds, the stock market, or buying a chain
restaurant franchise. Because it's a labor of love, not profit.

The best way to make a small fortune in the used bookstore business is
to start with a large fortune...

Lawrence Person
Lame Excuse Books
http://home.austin.rr.com/lperson/lame.html

On Oct 26, 8:33 pm, wrote:
wrote:
We own another business that takes up little time and nets
around $300k/yr.How much of that are you willing to lose per year working 70-80 hour
weeks running a used bookstore?

But I go online and do some research and 99% of
everything I read is that used bookstores are going the way of the
typewriter.Exactly. But you'll notice that they still make and sell typewriters,
just fewer and fewer every year...

They are closing up, being put out of business, have high
failure rate, etc. So I'm a bit confused. Can anyone give me some
insight on the used book store business and just how risky it is?It's no riskier than putting all your money into Internet stocks in
2000 was...

Is it worth it or like travel agencies will it be wiped out by the internet
soon?Not quite as bad, but you're in the ballpark.

I don't understand how this bookstore can do so well but
everything I read is so negative.Depends on his rent, his stock, whether he sleeps in the store, how
much ramen he's willing to eat, and a hundred other variables.

But one good question to guage your suitability for running a use
booksto How many books do you personally own in your own home? If
the answer is less than 1,000, then no, you shouldn't own your own
bookstore. Over 10,000, and your probably love books enough to make a
go at it, assuming you're willing to tolerate several years of losses.

When it comes to buying, dealers must be
selective. One relatively successful used book
dealer I am aware will tell you that he buys
one out of ten books, at most, that walk-ins
bring his way nowadays.

If you're looking for a money-making opportunity, you'd be far better
off putting money into bonds, the stock market, or buying a chain
restaurant franchise. Because it's a labor of love, not profit.

The best way to make a small fortune in the used bookstore business is
to start with a large fortune...

From my own observation, the most common reason for
used bookstores going out of business these days is that
rather working with the net, the owners prefer to act like
the net does not exist. As a result, they pay far too low
for books that many customers can see are selling for
much higher prices on the net; or conversely, they buy
books they should not be buying at all because a quick
survey of copies listed on Amazon would show the
dealers that a large number of copies of the book in
question are being listed for $2 or far less. In other
cases, they price their books far too high with respect
to what customers can find for sale on the net. Face it,
used bookstore owners wannabe: you will either
make intelligent use of the net or you will soon be
out of business.

The good old days when walk-in sellers
would bring in all sorts of valuable books and
sell them for peanuts because the walk-ins
had no way to ascertain the value of their
books are pretty much over, I suspect.
Get over it and start paying those walk-ins
a sum that reflects the value of their books,
Mr. Dealer, or you will deservedly will be
left with mostly a stock of self-help tomes,
inspirational books, text books and
popular fiction.

[Memo from the upstairs office.]

Lawrence Person
Lame Excuse Bookshttp://home.austin.rr.com/lperson/lame.html

wrote:
or you will deservedly will be
left with mostly a stock of self-help tomes,
inspirational books, text books and
popular fiction.

Speaking from experience, eh palmy?

wrote:
Hi everyone. I'm considering opening a used book store and would like
some insight/questions.

He does no advertising and relies on walk-by
customers. He only buys books in perfect shape.

If all the books look new, then in the mind of a buyer, they often say,
"Wow, this book looks new but it has a used price on it !" I'll buy it.
But you have to know your area well and the book demographics of what
people want to have in their home or give as gifts.

The romance novels and
Steven King novels he says are valueless because you can get them
online for 1 cent

Well, there is a 2.49 shipping cost. So if you can buy a Stephen King
paperback for 15 cents from the public and sell it back to them for 1.75
cents, then you are still undercutting amazon.com The question is can
you keep the inflow and outflow at constant rates to count on.

Jonathan