The Local Shop is dying out, and this should not serve as a surprise to anyone. With the rise of the internet, cards are not the only industry where the mom and pop shops are having trouble. The reason has as much to do with pricing and overhead as it does with ease and convenience, something that Barnes and Noble and Blockbuster found out the hard way. Basically, even at the exact same pricing available on a website, people like to be able to shop without spending opportunity cost in going outside their home. We have become a culture of home bodies who only venture out for food and work, and this is something that will only get WORSE not better. So, when you see that Panini is trying to get everyone help by putting a price floor on things, delaying product releases for online retailers, and revamping distribution, all they are doing is rearranging the puzzle pieces so that the picture of the problem looks a little different. In reality, the problem is not ALL ABOUT the pricing, it’s a combination of the sales venue, knowledge of current business trends, willingness to adapt towards new business trends, and business acumen. If you don’t run your business correctly, its not going to work regardless of how the pricing structure is set up.

Before we get into this, I want to reiterate my stance on Panini’s new “YEAR OF THE HOBBY STORE.” Its complete crap. It makes no sense to neuter sales of online cards in any way, and it makes even less sense to award people power who have shown that they don’t know how to use it correctly. There may be shops out there that are thriving, but its because they run the business the way it should be run. They have integrated their marketing and advertising with social media, they use message boards to generate business, and they know how internet collectors function. Because so much money can be made through marketing correctly, they do well. Then, you factor in that they sell boxes at a 10-20% markup instead of 30-50% because they do other things to generate income. Singles are the least of their concern, especially in selling them at a meaningless book value price. They don’t take on thousands of worthless collections with no resale power, and they don’t have a museum of old boxes priced high, sitting on their shelf taking up space and holding money hostage. They just do it right.

So, therefore, how can a shop make it in today’s world? That is where the summit should step in, that is what should be discussed at these conventions. Make it worthwhile for people to attend. Invite people who know how to do business in an internet based world. Upper Deck tried to shift back to the hobby store with a MAPP pricing situation a year or two ago and it lasted all of 3 months because of how many problems it caused. The internet is the driving force behind the hobby these days, not shops, regardless of what is going on with bringing new people into the hobby. Funny enough, even in that case a google search is usually more fruitful than any phone book and drive to the shop, and that is the way the internet has become the primary ambassador to new collectors. Lucky enough for them there are hundreds if not thousands of resources online, most of which have amazing amounts of information available in a very accessible fashion.

If I ran a shop, here is what I would do to turn around the issues that plague any Brick and Mortar retailer. These are all practices proven successful by a number of places I have frequented over the years, and from what I can tell, they are the ones who don’t need this new Panini crap:

1. Social Media is my BFF

I would get on Twitter, I would get on Facebook, I would get on every single site that would have me. If I was a person that didn’t understand how to effectively use these sites, I would search on google and go to my favorite for-profit library – Borders, and start reading. Once I get started up, I would make sure to update frequently from my cell phone while running the shop. Tweet new arrivals on Twitter and facebook, post pics of customers holding their big hits, everything. Not only would I start up these accounts, but I would submit friend requests to all the major manufacturers, browse their lists to see who they follow, and friend them too. I would become VERY engrossed in managing my shop’s “brand” on these sites. If failing shops are behaving the way I expect them to be behaving, there is a lot of time to kill when no one is coming through the door.

2. Contribute on the Message boards

Every night, after the shop closes, I would spend at least an hour combing the boards. I would make sure to post very helpful and positive things about the topics I am commenting on, because its obvious that people with dissenting opinions don’t make many friends. Because places like Blowout Card’s Message Boards and Freedom Card Board’s Message boards user bases are in all 50 states, as are Sports Card Forum and all the others, there is potential to show potential customers just how amazing the store has the potential to be. This isnt a solution that will come quickly, and I WOULD NOT SPAM YOUR STORE, but it will get you out there EVENTUALLY as a valued contributor.

3. Create a GREAT store website

I will tell anyone out there that the easiest website to create is a blog. If I was anything like many of the stores I have seen, web design isnt a strong suit. So, I would do a google search for “Sports Card Blog” and offer some money to someone who would be more in the know to create one for me. Basically, you want any potential customers who search on google for “Sports Cards near YOURZIPCODE HERE” to have a nice splash page for your store. If I was in the phone book, I would probably already be on google. I could then go onto google’s database and claim ownership of the listing, which includes which webpage is listed. They call your office phone, and all you have to do is answer the phone. Its really easy.

NOTE: I have done this personally for a couple stores around the country, and I think it has worked out well. Sites are important these days, and that one you built back when the internet was still something that Al Gore was running out of his basement wont cut it anymore.

Here are the pages I would set up – About us/History, Hours, Customer feedback/testimonials, Inventory, and Big Pulls. In the history, I would talk about how long the store has been open and what I do on a daily basis. I would talk about what I am looking for and put directions and phone numbers for the store. Hours are self explanatory. In the customer tab, I would ask people to submit feedback about the store and post the ones that I feel are appropriate. In the inventory, I would list the boxes and singles I have for sale – something that may take a while, I think that is worth it to have updated inventory. For big pulls, I would have pictures of people that have ALREADY BEEN SENT OUT via twitter and facebook.

The front page of the store’s site would be in blog format, and I would put this site address on EVERYTHING. I would post about something EVERY day, and make sure my customers knew to check it frequently. I would also start an email list serv and send out a monthly store email.

NOTE 2: If you want help building a starter site for your store, shoot me an email and Ill see if I can help direct you in the right direction.

4. Growing the Existing customer base

First thing I would do would be to keep the store in immaculate shape. If its gross and disorganized, I would clean myself or hire someone to do it. It drives people away otherwise. I would try to find some cheap furniture on craigslist if possible and set up an area for people to chill if there was room. If not, I would just make sure the store is inviting both inside and out.

Secondly, I would advertise a trading night with giveaways. Set up a weekly card (sport and non-sport) trading night where people can come in and trade. Obviously the point is to get them to spend money, not trade, so I would offer special things for them like free pizza or drinks or SOMETHING I could afford. You gotta spend money to make money, this is one of those things.

I would have no problem starting up a group break at least once per month. Most stores have at least someone that buys wax, so find them and get them going. I would research what makes a good group break work and I would advertise anywhere I can. On my site, on facebook, twitter, whereever. I wouldn’t order the stuff until it was filled, and I would host everyone at the store to bust it and get pizza and stuff for them too. This can make some serious money, and I have seen stores turn over inventory faster than one can say boo.

Lastly, I want to get as many people in the door at one time so they can all break and have fun, all while spending money in the store. Therefore, I would get a pack war scheduled for a few weeks out and put that on everything. Have a minimum buy in and give away a prize. Again, this can be A HUGE money maker or a dud. It all depends on me, the shop owner.

5. Video Tape In Store Box Breaks

If I didn’t have a video camera, I would buy one because I could write it off on my taxes. Anytime someone comes in and busts at least box of something, I would ask if I could tape it for the store. I would maybe even offer a small discount for the people who did so. After its done, I would post it on youtube and blast It out via all the ways I have established.

6. Take Care of My Best Customers Like Royalty

Even if I am a failing shop, I may already be doing this. Bottom line is that reeling in fish is one thing, but keeping them on the line the whole time is another. Learning from Casinos, I would offer whatever perks I needed to in order to keep them coming back. Even if that means hand delivering their purchases to their house so they don’t have to come, I would do it.

7. Liquidate my old inventory

Old products rarely sell at any respectable price. The older the product, the worse it usually sells, with few exceptions. So, I would advertise a big sale and start dropping prices until it sells. There is no reason to keep a box of 2002 anything around tying up my capital. At least I could invest the money somewhere important, and not have to deal with customer complaints when the redemptions are exipred.

8. Create a Bid Board

If you cant beat eBay, join em. What a bid board consists of is minimal forms of item consignment with a spot for people to get deals. You put any number of singles up on the wall, and people bid on them throughout the week. At the end of the week, whomever has the highest bid, wins that card. I would start with cards I don’t mind losing some money on just to get things started, and then expect customers to fill in the gaps. Not only does it give a better outlet for buying low priced singles, but my store would take 10-15% off the top, charge for item placement, and it will give people an outlet for all those inconsequential hits that they will inevitably pull and just throw in the box to never be seen again.

That’s a start, and it is definitely not the end. Its actually shocking how little VISIBLE work some of the owners put into their stores in some cases. Its like they just expect the customers to walk right in the door and buy everything without any effort. Guess what? It takes a shit load of effort to drum up business, and that isnt even counting the long hours of working at the actual store. In most cases shops are conveniently open during hours that only fit into their life’s schedule, which may be fine if you are rolling in dough. Otherwise, OPEN EARLIER and CLOSE LATER. Work sundays. Do whatever you need to do. If you are already in the shit, you are going to have to sacrifice a lot to get out. One of those things may be your life outside of work. You cant expect me to try to make it in before you close at 5 or after you open at noon. Give me a break? You are closed on the weekends? Right. Good one there.

Frankly, I don’t know how some places have stayed open as long as they have. In fact, I don’t know many people that could open a store and do well with it. Chris Gilmore of FCB fame recently bought into one, but the guy knows everything about everything and he will stay FAAAAR ahead of any trends to the point where he may create a few of his own. If you cant or refuse to put in the work, I have no problem saying you should not be open. This isnt 1995 anymore where no one is on the net and everyone wants to invest in something other than stock. Shops will always have to compete with eBay and other internet retailers, so the shops have to offer community instead of convenience. If you cant offer anything, why should I go to your store? If you think your high book value singles whet my appetite for buying, you are sadly mistaken. I will go to the one place where I don’t have to pay for your overhead, and there nothing any card company can do to prevent that.

I get that people go to this Summit to have their nuts stroked a little, but I really don’t see any reason to even have a get together like this if there is nothing of value that will be offered for the retailers. Steve Judd, an industry veteran, posted this explanation of what SHOULD have happened at the summit, and I think education combined with his approach would be very beneficial for the attendees. On top of all of that, you are basically gathering people for the sole purpose of telling them EXACTLY what they want to hear, without actually having to follow through, so I think its fucking stupid to pat yourself on the back when all goes well.

Overall, this should never have been the year of the hobby shop, it should have been the year of AMAZING CONTENT! There is zero reason to focus on the sellers of your products. It needs to be the end users. If the end user is unhappy, which in a growing amount of examples is the case, don’t give more power to the people that sell the products, give better products to the people that buy them.

God, I feel the frustration of the customer emanating from the pores of this policy, and it doesn’t smell good. All the haters out there can say I don’t know what I am talking about, but clearly, neither do all the shops that close their doors daily.

NOTE 3: Thanks to whatever store posted that pic on google images. Consider it a form of flattery.