December is typically the busiest (and most profitable) month in any game store’s calendar. Now that the wave has broken and January is here, Gary Ray of Black Diamond Games has some welcome advice on how to make the best use of all that cash. Gary’s biggest take-away: DON’T spend all the money on backfilling your inventory.
The game trade is “front list” driven, meaning most sales come from new items. New items for 2015 don’t exist yet. Why spend your money on slow things? If you want to expand an area, it would be better to expand with new product rather than back fill.
Other areas Gary notes many inexperienced store owners neglect: marketing, education, fixtures and especially TAXES.
Have you been profitable before? If you’re new at this, you might get sticker shock at your tax bill. The most dangerous expense in my business right now is my income tax bill. Wait and see what you owe before you spend all your money.
Take a look at Gary’s full list here.