Just how much profit do Friendly Local Game Stores (FLGS) make? According to a recent report most US citizens believe retailers make a 36% profit. Gary Ray, the owner of Black Diamond Games, runs a blog that gives readers a behind the scene look at running a FLGS and sets the record strait. You can check out the full article here but even if you don’t you should know that it’s not close to what many people may think it is.
The net profit margin for retailers in the game trade is in the 5-8% range. Retail in general is in the 1-9% range, with gas stations at the bottom and jewelry stores at the top.
To read the entire article, you can visit their web site here.
While you’re at it you should check out some of his older posts for great insight into what it’s like to run a game store.