Should we close for buisiness or pivot?
Hey guys, this is Matt getting serious here. So about a 9 months ago I moved my game store Trade-N-Save into my Pawn Store Pawn Plus in Pensacola. Well let me backup. We opened my first game store in 2003. It survived and thrived all the way up until today past my other stores which opened then closed in less than half that time. Well, our sales went from 15,000 a month(900sq ft) to $5,000 a month and even with internet sales it was not enough to cover costs...
So fast forward to now where even my Pawn Store is not generating enough profit to stay in business so now we must make a decision. Convert to a quasi secondhand buyer/online seller of anything of value or just wholesale all of our inventory, fixtures, tools, video game console parts and start over?
For the last 3 months I have been working for my brother in a field I never would have tried if I had the choice, construction! Yes the computer nerd that has been fixing Xbox 360's and buying, selling, trading games for 15 years is swinging a hammer making fences and decks!
I have been behind the retail counter almost my whole adult life...I really am tired of it. Hence the fence and deck building. I don't have a college degree or any specific marketable skills besides everything that goes into running a business...but who would want to hire a guy like me?
If i were you i would shut down the games and sell all of it, because internet gaming is here now, time have change you have to get with it or get ran over. I was looking into the pawn business because that could be a great revenue generator, since u are doing construction you should know how the tools work and how to fix it, tools rental and pawn business is a winner. Im a plumber/hvac guy you should read my story about it, anyway if you buy plumbing or hvac tools for rent you could make big buck. I would buy 75% plumbing tools and 25% hvac tools. I bet you dont see that kind of business in florida.
Do you know why your revenue cratered? Will it be stable online or keep declining? The way things are going, games may be all digital distribution in a few years (Steam/Origin/Blizzard model).
yeah, digital was a huge factor. hence the pawn business. expanding our reselling reach beyond gaming has potential.
@gamerguy51, regardless of whether you close shop or pivot, make sure that you eventually find something that brings you fulfillment.
It might mean that you have to do something that you don't like for the time being, but make some goals about what 3-5 years will look like and start moving in the direction.
Good luck!
Best of luck to you. I think you will be surprised how much you can pick up just by being confident and a no bullshit person to work with.
right? thats me in a nutshell. lol
I think the buy and sell business can continue to do well so scaling down and selling "select" items makes alot more sense. I would personally sell all inventory, scale down, and "specialize" with the horse trading...and continue to learn the construction skills alongside your brother to cover living expenses. There are going to be alot of people looking to liquidate things to raise cash into the future. The best way to buy silver for instance isn't by buying from dealers selling physical bars. Buy coin collections from people who need cash, sterling silver, things like that. Silver is just one item of course. Just work with things you know there is a demand for, bicycles, furniture, cars, musical instruments, lots of things really.
great tip, thanks!
No problem. Hopefully you can keep your store front if it is in a good area. You are in Pensacola?
yeah, if you call warrington a good area....at least the rent is cheap. ;)
Looks like you and your bro do nice carpentry work anyhoo. :-) Did you put in the pavers and the pagoda?