What I'd Like To See

[Old Geezer]

... is information about what is specific to a game store, what is generic to ANY small business, and what will require research for another type of specialty store.

For instance, I'd rather stuff a live weasel down my pants than open a game store, but I'm hoping to mine your column for things to think about when opening a model railroad store.

[LBrownIII]

... is information about what is specific to a game store, what is generic to ANY small business, and what will require research for another type of specialty store.

I plan to do that.

My next three columns (according to my current plan) will provide information helpful to you, and at least two of the four after that will be applicable, too.

I can't recommend the weasel thing. I have no experience with it, but my research indicates it's a bad idea.

[Old Geezer]

I can't recommend the weasel thing. I have no experience with it, but my research indicates it's a bad idea.


It's an obscure variation on the classic "poison pill" defense. ;)

[Harmast]

I'd like to see columns on staffing issues. How many and how often is the first thing to come to mind.

Also, pay. Is commission (given modern POS can track sales) a good idea? If so, how would you structure the system? What are the considerations for total cost of employment and what are some rules of thumb when including payroll in starting capital.

What is a good resource for company policies (even if you only have one employee you need them). How do you handle problem employees? How common is the "but it's a game store, not a real job" issue?

[LBrownIII]

I'm well-trained when it comes to human resources, but the various approaches I've seen are varied. I'll have to work that particular article very carefully.

I can throw a couple of figures out for a quick reference. Conventional wisdom says that a clerk can handle about $100 an hour of retail sales. If you track your sales by hour and you have multiple consecutive hours in which you are beating that pace, then you likely need a second person. Or, you might not be beating it, but you're coming close, in which case you're probably losing sales because of an inability to meet a customer's need.

Start with a low pay rate; don't be afraid to offer minimum wage. Add in perks like free LAN time, employee discounts, free convention passes, some discretionary free loot out of the stuff manufacturers send you, and you'll find that people are motivated to work for "just" minimum wage. Your local market might vary, of course, and the Census Bureau has some interesting statistics on that topic.

Personally, I wouldn't likely offer a commission, but you could. Technology does support it these days, and a good salesman can be an invaluable tool if you motivate him right. I'd recommend different percents based on the average profit margins. New board games might earn 2%, while Magic singles earn 4%, or something like that. I'd set the range from 1% to probably no more than 4 or 5% for selected categories, with a goal average of 3%. Don't be afraid to use halves or quarters in your calculation.

When estimating payroll needs in your financials, estimate how many hours you'll be able to devote to counter duty (as opposed to office/back end duty) and fill in the rest with one or more paid employees, as your estimated sales dictate. For every dollar you spend on salary, I personally estimate 13% additional taxes. After 5 employees (including yourself), you have to include worker's comp, so the figure becomes 21%. So if you have 5 people earning $1,000 a week, your labor cost is $1,210. I *think* that inlcuded my payroll company's fees, so if you handle your payroll yourself or have your accountant do it, your costs might be less.