Monday, March 23, 2009

500 sq. ft. of Gaming Store Success

In 2003, I used to work at TATE'S Gaming Satellite, a local gaming store that was a split off of TATE'S Comics. Now I have worked in all kind of gaming and comic stores over my 25+ years of collecting comics and game, BUT what made TATE'S Gaming Satellite the most intersting was the it was onlt 500 sq. ft. in size. The store was 25 feet by 20 feet, with 45 feet high walls. Think of a grain silo and you have the right idea. I worked at TATE'S Gaming Satellite for roughly 18 months. I helped open the store up and get it running as the assistant manager. The first year in business, TATE'S Gaming Satellite made $80,000 (or $221.48 a day) for the year and broke even. The second year in business the store made $120,000 (or 332.22 a day) and made a profit. By 2005, Tate (the owner) moved the store from the 500 sq. ft. store to a 2,000 sq. ft. store and the store has continued to make MORE and MORE money with it. The store was clean, bright and sunny.

When I was in the store (500 sq. ft) only half of the storee was dedicated to products and gaming material, the other half was dedicated to open gaming (250 sq. ft.). Also remember out of the remaining 250 feet of actual selling floor about 30% of it wen to a bathroom and register area, so there was really only 175 sq. ft. to sell in. So using the numbers above in the 80K year, each sq. ft. of TATE'S Gaming Satellite was generating $457.14 a year (or $1.26 a day), while in the 120K year each sq. ft. was generating $685.71 a year (or $1.89 a day). As you can see, "Sell, sell, sell!" was the mantra of the little store that could.

Another gaming store in my local has done the opposite to TATE'S Gaming Satellite. They havebeen around for over 20 years, and just int he time I have been going there (9 years) they have moved from a 2,000 sq. ft store to a 1,000 sq. ft store to a 500 sq. ft store. They have gone from healthy store to going on life support. Why? For me in comes down to one simple concept: TATE'S Gaming Satellite is a gaming store, other location is a gaming hangout. The worst par of it all as the store got smaller, the service got worse. The store is messy and unorganized. The store is in HEAVY debt and I don't think the store can last the rest of the year.

So if you are ever in South Florida come check out TATE'S Gaming Satellite and TATE'S Comics. They will show you what a gaming store and a comic store could be and should be.