Tuesday, June 12, 2007

Best laid plans....We had a our best month in comic sales since the mid-90's bubble.

Twice, over the years, I've been caught with too high a percentage of my sales in one product, only to have it collapse and almost take the store down with it. Both times, it wasn't so much that I dropped product lines as that sales became too powerful and overwhelmed everything else. Sports cards grew exponentially for a few years; then comics followed with their own boom.

Nevertheless, I've tried mightily over the years to add diversity to my product line. I'd prefer to have no one product be more than 50% of sales. I thought I'd succeeded last year.

But last month, comics pushed their way to 65% of sales again.

Comic monthlies, which had been doing about 60% of the category, with 40% being graphic novels, pushed their way to 70%.

What ya gonna do? Turn down sales?

I'm surprised by the resurgence of monthies, vs graphic novels. Even back-issues seem to be doing better. In some ways, it's a good sign, because the mass market can and does do books, but I think will always have problems with the verities of monthlies.

Three areas of concern. I have a new customer that spent a lot of the increase in comics last month. I love that he is younger, around 18, and that he's enthusiastic and knowledgeable. I worry that he might burn out quicker, by spending too much.

Secondly, I'm uncomfortable with how much of the increase is tied to huge Marvel crossovers and tie-ins. I've mentioned before that I think it's asking your base customers to spend more and more to keep up, instead of creating new customers.

Third, gimmicks and variant covers. These are purely collectible, which I've de-emphasized over the years in favor of actually reading and enjoying. But again, What ya gonna do? Turn down the sales?

I'm going along with it. I've already upped my orders on monthlies, and am more willing than ever to reorder quick sell outs. I'm even thinking of revamping my back issues, which have been neglected for years now. I have a huge back inventory of comics which are basically in storage. When I was on the coast, I saw a new system of boxes that would more or less double the number of back-issues I could display.

So, I'll just enjoy the comic sales for awhile, but be certain I don't neglect my other product lines.

6 comments:

Anonymous said...

I've been contemplating this post for a long time.
Independently owned high-end businesses rarely succeed in Bend.


Great post, your the only blogger in the group who understands small business.

I agreed with your proposition that most businesses that do survive in Bend, its because of the owner, and not the front door. I simply amazed that you survive. Most business fails, especially small business, in my humble opinion after being a small business owner for thirty or more years is that its all about survival. This is because MOST don't survive the first three years.

I have only really seen one method and that is to emulate success, by that I mean look around and see who is making money, and do what they do. Too often someone opens up another bead shop, ... or such in Bend out of passion, but not based on cash-flow.

One thing I would like you to discuss, and I think it will be a trend is that the places I eat now are Pepes, Rigobertos, and Super-Burrito. I no longer go to long-board, You can get a great meal for $4 at these places, even though I can afford $50/plate at Merenda, the food is inconsistent.

LongBoardLouie recently killed has breakfast, because he couldn't get people, this is too bad, because our latino places other than Rigoberto's don't do early. The latino places can say they hire family and be exempt from most law, yet the white owned long-board, will eventually destroy themselves, I know for a fact that most small food biz's make most of their money from breakfast, this is because you get the best profit on egg's and potatoes.

I really see a slow transistion from white owned to latino owned. I'm not suggesting this is a bad thing, as this is a simple transistion, as change will always occur, and our latino is simply filling a niche, that has been created by the young whites refusal to do hard work for low pay.

While I don't care for comics, your blog is definitely the best small-business theory blog in Bend.

Duncan McGeary said...

I always joke that Super Burrito is the only profitable business on the street.

I only say that because I see customers constantly going in and out.

Really, I don't understand the cost/risk ratio on restaurants, except that it looks as though some are busy and some aren't.

I am not a high end business. I cater to real, every day people. I have my little niche, and I do it as well as I can. And I have a great location and experience. I might actually start making money soon.

Do I change the title of my blog to The Best Minimum Wage Job a Middle Aged Guy Ever Had -- Sorta?

Anonymous said...

I might actually start making money soon.

**

After 27 years?

Duncan McGeary said...

Yep. Spent much of that time deep in debt, actually. Paid my bills.

There's profit in the store inventory, but it ain't liquid.

Profit after paying myself a small wage?

Not yet. But any day now.

Duncan McGeary said...

The title of my blog is actually pretty close to right on.

Duncan McGeary said...

Maybe I should rephrase that. I've turned a profit every year except 2 years, when we sold a store and lived off credit. But never much more than minimum wage, at that. Net worth, usually in the negative.

The POTENTIAL has always been glimmering just beyond the horizon, just like right now. This next 3 to 6 months will tell the tale.

And I still don't think I would've traded it for a better paying job working for someone else.

Only in the last 3 years has that all turned around. Finished paying off credit cards, bought a house the last possible month we could've swung it (March, 04), have Pegasus firmly in positive cashflow, and the BookMark completely paid for in the first six months, and also firmly in positive cashflow. Right now, I wouldn't change my situation with anyone.

It's the bubbles, in fact, of sports cards, comics, magic and so on that put us in the hole, and the bubbles of beanie babies, pogs, and pokemon which kept us alive.