Tuesday, September 18, 2007

We are just back from a four day trip to the Tri-Cities area of Washington.

We've really taken to liking these 3 and 4 day trips to areas we've never been before, and have no real reason to visit now. They've turned into bookman holiday's, really, because we visit every bookstore, new or used, and every comic shop we see, and we seek out others. We buy from almost every store, and get ideas -- both what to do and what not to do -- at almost every place we see.

I also like to try to get a sense of the towns, and especially the old downtown cores.

And the other thing we do, is pull off the highway to actually go into all these small towns, instead of whipping bypass them. And whenever possible, we take the 'scenic' route, which usually seems to add about 1/2 an hour to any 2 & 1/2 hour trip, which seems like a small price to pay to see terrain and towns we'd never see otherwise.

One observation I'd like to make right off the top: Old Oregon and Washington are still there in the rural and small towns. Every road you go down, there are people out there. It doesn't look anything like the life you see in the Movies and T.V. So you find out things like, that the hills above Sutherlin and Sublimity, (the Silver Falls area), are packed with tree farms, hillside after hillside.

Or you see that the Yakima Reservation terrain looks alot like the Warm Springs terrain.

Or you drive between Oregon City and Malalla and see farmlands as far as the eye can see. (Which I shudder to think might be subdivisions without the Oregon Land Use laws.)

And if Bend thinks it's unique in it's outdoor life, it's anything but. There are recreational areas everywhere in eastern Washington and Oregon, and all over rural western Oregon and Washington.

Maybe this is obvious to everyone else. But I think I've spent most of my adult life speeding down highways and interstates, in a hurry to get somewhere, when it's the little towns and hamlets in between, or the hills and dales and hollows behind, that are most interesting.

On the way up, we went up Highway 97, through Goldendale and the Yakima Reservation, stopped at Toppenish, and then took the back road to get to the Tri-Cities.

The Tri-Cities; about 163,000 population combined, or about twice the size of the Bend urban area. Kennewick around 65k; Richland and West Richland about 55k; and Pasco about 45k. Very flat and spread out, and the big boxes seem bigger and less clustered. Interstates connect all three cities so that, for instance, when Linda wanted to got to a church on Sunday in Richland, we left our motel in Kennewick an hour early, just in case. Instead, we got there in maybe 5 minutes, or less time than it takes for me to get from Williamson Park to downtown Bend.

We stayed in Kennewick, but visited Richland first. Richland's downtown is very spread-out, with lots of older, but large government buildings, health facilities, etc. Very little commercial that I could see. There were a couple of old, rundown strip-malls where you would normally have found a downtown core. Maybe I never found it, but I drove all over while Linda was in church, so either they never really had a commercial downtown core like most towns, or it got replaced.

They had a very nice used bookstore, The Bookworm, which also had a branch in Kennewick. Neat, orderly, nice selection of new and used. All the things that we usually don't find in used bookstores. Not really very big stores, but nice.

In one of the old strip malls, we found a gigantic used bookstore/comic store called Adventures Underground, which has been open since June of this year. The owner was a 26 year old and his wife, who had apparently been selling books online for some time. They had 5500 sq. ft. in ground floor space, (by contrast, my wife's store has about 2200), and another 2500 behind a wall and yet another 8000 sq. ft. of storage above! (which wasn't part of the rent.) He had about 60k books, about 5k new. He had a decent selection of graphic novels, with an actual emphasis on independents (which is unusual). He was discounting almost all the new material, and he told me that he was doing so well with the used books that he could afford to discount.

This sounded so much like me when I started, I winced. I was bringing in so much cash on sports cards that I thought I could afford to hold prices below what I could actually get. What I didn't see back then, and which hard experience taught me, was that the time would come when I would need to make every cent I could just to survive. There is no reason not to make the money you can when you can, and every reason not to set a 'discounting' precedent that you can't drop later.

"How many Harry Potter's did you sell?" I asked.

"About 60," he said.

"How much did you make on each book?"

"Almost nothing," he grimaced. "Maybe 2.00."

"So you made 120.00 on a 1000.00 investment. I sold 10 Harry Potter's at full price, so I made 175.00 on a 175.00 investment.

"Thing is, Harry Potter was a seller. Take the same discount on a book you get stuck with, and you will lose money."

Couldn't convince him. He was certain he needed to discount to make it.

He had a glorious amount of space.

Unbelievable. I was so envious. His rent was only 30 cents a foot, vs. mine of 2.10 a foot, but it was a balloon rate, which was going to double up in six months. He'd sunk an unbelievable amount of money into opening his business. (Ten times what I invested 24 years ago in mine.) His bookshelves were the expensive type, and he had lots of them. He also carried boardgames and card games and a smattering of role-playing. No toys, no statues, no t-shirts etc.

It was obvious his focus was on books. He'd all but given up on new comics, and had a small batch on the wall, though he had a fairly large amount of back-issues in beautiful but expensive racks. It was a little strange that he had so few new comics when all it would take to build it up was a few hundred dollars, when he was spending tens of thousands on other parts of the store.

The thing that really killed me was that only about half to two/thirds the display space was being used. As the owner of a store that has to fight for every inch, it just about made me want to go around rearranging everything. He has all this space to display stuff cover out and he's just letting it sit empty. I don't know, a huge window space that had almost nothing in it. A behind the counter that was relatively empty. That kind of thing.

On the other hand, he had a very sophisticated point-of-sale computer system.

Basically, he had the Powell's bookstore model, and the space to possibly pull it off. If the expenses don't kill him off first. His overhead (I'm estimated what he must be paying in loans, as well as his rent) was horrifying humongous.

I may be paying 2.10 a foot, but its only 1000 sq. ft., every inch of which is packed with material. My overhead, at a guess, is less than a third of his.

He told me a daily total that was actually higher than mine for this time of year, so maybe he can pull it off.

He didn't seem all that interested in what I had to say, (don't discount, get more comics, be generous in trade terms, fill out your store by displaying more merchandise, etc.), I think I was just some blowhard off the street to him. But that O.K. I tried.

And I learned quite a bit from him.

More bookstore visits, tomorrow....

7 comments:

IHateToBurstYourBubble said...

Unbelievable. I was so envious. His rent was only 30 cents a foot, vs. mine of 2.10 a foot, but it was a balloon rate, which was going to double up in six months

Wow, 30 cents a foot. OH NO, it's going to 60 cents! That's STILL less than 1/3rd what Bend costs, and I'll bet the guy has more than 1/3rd the traffic. Bend rent rates are about 75% hot air.

ADV said...

What makes you think I wasn't listening? Our new comics are basically just in-between right now, as I mentioned. Our shipment of new comics today was twice as much as last week, and next week will be bigger still. I just made the mistake of listening to Diamond and ordering multiples of everything the first go round - getting stuck with a lot of stuff. Then I made the mistake of going cutting way back on titles rather than quantity.

As for window displays; it gets about 100 degrees in those windows. Ever seen a book melt? We have. As for empty space, we're filling it pretty fast. If you had seen it when we opened in June - you might have cried if empty space bothers you.

As for the discounting? Heh. Did you expect me to immediately walk around and raise prices? I make enough online and on used books that I can afford to experiment. Discounting wasn't really about making it or selling more books - I just saw it as a potential for inexpensive word-of-mouth advertising; getting the word out there was a new store in town that had good prices. The new books I've received in the last week I've put out for cover price. I'll see how it goes. I'll probably end up using a mishmash of small discounts and retail price...enough to give the illusion of competitive pricing. We'll see.

Duncan McGeary said...

You were listening! You found the blog.

Yeah, experiment with full price on stuff. I think you might be surprised how little difference it makes.

I do offer 10% off subscription shelves comics, if they come in within the first two weeks. I'm not sure I would start with a discount, but I've never been able to fully get rid of it. Like I said, it's very hard to change once you've set the precedent.

I'm glad you're giving comics another chance. Try a mile wide and an inch deep for awhile.

Sun or no sun, don't you think you're wasting display space by not using it? Can you sacrifice some material?

My store is so crowded there isn't an inch unused. So maybe I'm just envious.

By the way, what was the name of the Spokane blog you go to?

Thanks for answering. I hope the info I put down was correct, and didn't reveal too much.

Dunc

ADV said...

Pretty close...we are 9800 sf in the main area rather than 5500...still with about 2500 in the back. So yes...a lot of room. Though our 'internet office' does take up three or four hundred square feet probably. Not too bad though, since we need every inch of that to process online sales and whatnot.

The thing about the window space is; nobody walks here. If you count every (sober) person that walks down the sidewalk in front of this store in a day, you'd have a couple digits to spare (assuming you need to use your fingers to count). People basically drive everywhere here. I've watched people that wanted to use the bathroom across the street drive over there.

So not really worth killing inventory over. We display some signs and cheap comics and pirates card stuff, a few toys, etc. This winter it will be more busy as the sun goes away.

By the way...we do have about fifty t-shirts now, but haven't figured out a way to display them yet. We're just starting on the toys and statues too, but just taking it slow to get a feel. My own personal bias is that I myself never buy the knick-knack stuff, so it isn't as interesting to me as the books and issues and board games and all that. How does that stuff do for you? Each catalog usually has a half dozen statues that I'd like - but kind of an expensive gamble and no great way to display them right now.

The Comic Shop is the name of the place in Spokane; his blog is:

http://www.thecomicbookshop.net/archives.html

Interesting to read. He is quite successful up there.

Duncan McGeary said...

We never got to really talk about toys. I'd be very careful. I don't sell very many, and usually I sell McFarlane fantasy toys, an occasional big license from McFarlane, and I can sell Star Wars toys. But I don't do a standard price.

Don't do all that well with DC Direct or Marvel Direct.

I stay away from mainstream superhero or things like Transformers. You usually get them late, and at too high a wholesale to be competitive.

I actually do O.K. with the odd toys, those I'm finding the designer toys really aren't moving.

The one-up box sets are a good way to dip your toe in.

I DO NOT sell statues well AT ALL. I got into them because I had a competitor move in a block away who was heavy into them. I look for deals, and I had a customer who was will to trade his comics for Statues, so I got better than wholesale.

I find that I sell the stuff I'm interested in more than the stuff I'm not, unless there is a demand.

I still think you could afford to fill the windows, but I won't harp.

Thanks for the info.

By the way, you can take one of those gray cardboard pieces that they line the bottom of the comic boxes, and fold the t-shirts around them, and put them in 'treasury sized' pp bags. That makes them stackable, or even displayable on shelves...

Duncan McGeary said...

That answer was really rushed, sorry. We were at my wife's store all evening making bookshelves, and moving them around. You know how that is....

ADV said...

That was kind of my impression on the toys. Why else would every comic store have hundreds and hundreds of toys you can no longer find anywhere else...

Plus, like you said - they seemed to be offered at a net bulk price which works out to what seems like should be a reasonable retail price for said so-so action figure.

That and nobody has even mentioned them except for a couple people mentioning that they were looking for a certain McFarlane dragon. But we have had t-shirt requests...so I'll pour more money in that direction.

I was thinking that just a standard clothing rack is probably the most space efficient, but was kind of worried how fast things might get worn around the edges.