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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. |
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#3
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Used Bookstore Business - questions please
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 |
#4
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Used Bookstore Business - questions please
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 |
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Used Bookstore Business - questions please
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Used Bookstore Business - questions please
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