Game Room and comfort level...

[Harmast]

So, I took your assignment and bought "Why We Buy" and the last paragraph in chapter one seems to answer the "Have a game room or not?" question, although maybe not.

Finally, our studies prove that the longer a shopper remains in a store, the more he or she will buy. And the amount of time a shopper spends in a store depends on how comfortable and enjoyable the experience is.

Now, perhaps the "hang out" nature of game rooms negate the value of the time spent in them period. However, let's assume they don't.

Then isn't the question: "Do I have a game room?" but "How do I make a game room something that makes spending time in the store a positive experience people want to enjoy again?".

So, what can an owner do to make the gaming area something that brings people into the store and keeps first timers there?

[LBrownIII]

Yes, that is part of the reasoning for a game room. But be careful!

It's again a question of "what else could I do with my resources?", with the primary resource being money. What if, instead of paying an extra $12,000/year in rent, you spent that money to increase your inventory, offering new product lines that would continue to bring in new customers every year? Or bought cable TV advertising? You could do a lot with $12k.

Time is another resource. If, instead of spending time promoting games in your store, what if you spent it with the local high schools, starting and supporting game clubs in your area? What if you spent it building fixtures, cataloging singles, or any other sales-building or administrative duties? What if you just spent it at home with the wife & kids?

If, after considering ALL the angles, your decision on the game room is "yes", then consider what you can do to make people happy. Rules to keep out cheaters and thieves. Good decor, comfy chairs, plenty of walking room, a clean space with plenty of trash cans, events that people like, good lighting, etc.

[Harmast]

Or bought cable TV advertising? You could do a lot with $12k.

I was wondering it cable was a good idea...well targeted advertising.

Also, in terms of a gaming room does the presence of local gaming clubs lower it's potential value? Our local uni has a club open to the general public (see my sig) and I've figured given it provides rooms Friday, all day Saturday, and all day Sunday it would lower the value of gaming space in the store.

If, instead of spending time promoting games in your store, what if you spent it with the local high schools, starting and supporting game clubs in your area?

Actually, I'm working on that one already in order to build the gamer base locally. It wasn't started directly as part of the move to open a store, but now I consider it a vital part of my pre-opening work (as I see being on the management of the local con as well).

What if you just spent it at home with the wife & kids?

I doubt if I had a wife and kids I'd be doing it. In an odd way I see the chance to open and run a damn good game store as my consolation prize for not having a family. Although I guess a supportive spouse can make it easier to do that.

[LBrownIII]

Cable TV, like many things, CAN be worthwhile. You have to have a good ad, use your time wisely, and buy spots on the channels your customers are watching. You also have to do it for a long time. You can just blitz a bunch of commercials for a week and wait for the lines to form at the door.

Gaming clubs are a mixed blessing. They do encourage play, but when people form clubs, they immediately think of "discount." Also, depending on their character, they might be exclusionary toward new players. I know it seems backward, but some people are like that. Regardless of my ability to comprehend it, it still costs you customers who feel left out when they go to your store.

[Harmast]

Gaming clubs are a mixed blessing. They do encourage play, but when people form clubs, they immediately think of "discount." Also, depending on their character, they might be exclusionary toward new players. I know it seems backward, but some people are like that. Regardless of my ability to comprehend it, it still costs you customers who feel left out when they go to your store.

I wasn't 100% clear...I was working with a pre-existing local club (which I'm a very active member of) to start clubs in the two local high schools.

What affect do pre-existing clubs have? Right now A&M has a club with a 20+ year history, but neither comic store gives a discount (one sidelines in WH/WH40K and the other magic and some RPGs and board games).

[LBrownIII]

Having a club that *isn't* looking for a discount can be nice. They form a good corps of game-checkers-outers, it's easy to communicate with the whole club, and they tend to help you out with things like pre-orders, giving you a feel for the "buzz" about a game, and otherwise making themselves useful. They can bring some traffic to your online forums, which makes your store look busy, at least. They can also help prop up tournaments or other events that might otherwise be non-viable for lack of support. They also tend to spread that word-of-mouth advertising that's always welcome.

I'd try to offer them *something* for their support. Just not a discount. Maybe buy their next batch of t-shirts or offer a couple of local con entries (to be distributed as they see fit) or something. Spending maybe $50 or $100/year toward the club could pay for itself over and over.

[Harmast]

I'd try to offer them *something* for their support. Just not a discount. Maybe buy their next batch of t-shirts or offer a couple of local con entries (to be distributed as they see fit) or something. Spending maybe $50 or $100/year toward the club could pay for itself over and over.

That is the big thing they ask for: con support in terms of advertising and prize support.

In exchange the two local stores always get the early rate on dealer's room tables even if the don't pay until the day of the con and this year we're giving a list of board games being run to the store that does board games so she can pre-order if she thinks sales of those specific games will bump at the con.

[LBrownIII]

That sounds like a good deal. If they do host a convention, work the heck out of it. My goal for a small con became $1,000 in sales after a while. That's worth spending a few bucks to get.

[privateer]

...Gaming clubs are a mixed blessing. They do encourage play, but when people form clubs, they immediately think of "discount." ...

I know this has been awhile since discussion but are reasonable discounts for clubs that bad for the B&M store?

I would think they might in some instances net a store sales they might not otherwise get from people who can get their stuff at deep discount on-line and then still come to your store to play any way.

One local store does 10% discount for pre-paid special orders and allows 10% for a $25 annual member fee (they stack to 20%). Another store does loyalty points that have you spending $500 to get $10 in store credit. Another store has a punch card that he will punch for every $25 worth of stuff you buy (thing I dislike about this is you don't get credit for buying anything less than $25 or any remainder over until you hit next $25 increment).

[LBrownIII]

The problem with most discount programs is that they're not leveraged properly. The idea behind a discount is to attract more customers or to increase the spending of your existing customers.

Most stores fail to advertise their discounts and discount more heavily than they need to. If you advertise a D&D PH for $32.99, you're offering less than $2 off (less than 6%), but it will bring in some customers.

If you don't advertise the program, then all you're doing is handing back cash to people who were already in your store and ready to give you full price. That epitomizes the concept of "leaving money on the table." People come in, pick up a game, set it on the counter and whip out their money. You charge them less, and they pocket the difference. Are they happy? Sure. Does it change their buying practices? Not generally, and that's the problem.

Many retailers think that people will spend more if there's a discount. Some do. Most don't. And you can't base your business decision on what happens only in the best-case scenario. You have to base it on the average response. If some customers increase spending by 30%, some increase it by 10%, and 75% of them don't change their buying habits at all, catering to the minority crowd while losing money on the majority is a bad idea.

If you really want to discount, do it wisely. Advertise your sales in advance. Make them for a limited time only. Keep them as low as possible. Make them for specific items. Ideally, you'd make a flyer, probably a single page, and offer next week's discounts--think about the circulars you see for the big-box retailers. You might offer the PH for $32.99, a free paint jar with any minis starter box, and magic theme decks for $1 off. Bag-stuff this special for a week, run it for a week, and then measure your response.

Notice the combination of different offers. One is a set price, one is a bundle deal, and one is a specific dollar reduction. People look at prices differently, and each of these discounts targets a different method of price shopping. Rotate them to discover how your customers buy and make that type of offer more prominent in your future advertising.

Also note the items on sale: core items. Rely on your staff's upselling skills to offer sleeves, sprue cutters, dice and other accessories to build that sale up. If your average add-on is $7, then the $1 or $2 you gave up to get that customer in the door *worked*. You gave up $2 cash to earn about $4. That's a good deal.

[LBrownIII]

On punch cards: I have seen stores that claim that they work. I have not seen sales records supporting it. I think it's a cost that stores pay to retain customers. I think a *better* cost spent to retain customers is to make your store awesome. Make it clean, well-stocked, well-staffed, and keep it busy.

Flat discounts for clubs are pretty much a bad idea for the reasons stated: they cost money, and they don't generate as much money. That's really all it boils down to.