# Economics of owning a Comic Book Store **URL:** \ **Category:** In My Humble Opinion\ **Created:** [November 28, 2004, 10:47pm UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044 "2004-11-28T22:47:10Z")\ **Posts on this page:** 20\ **Page:** 2
**Author:** ![don\_t\_ask](https://avatars.discourse-cdn.com/v4/letter/d/e68b1a/32.png) [@don\_t\_ask](https://boards.straightdope.com/u/don_t_ask)\ **Post date:** [November 30, 2004, 12:49pm UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/21 "2004-11-30T12:49:46Z")
One of the guys I work with goes to the comic store near work fairly regularly. If we are out for lunch together I go with him although I’m not really interested in comics. What I find interesting is that the same guy has been running it for at least 18 years and the business has moved to progressively cheaper premises but the customers seem to go with it. It started in a prime position with lots of passing trade but is now in a backstreet but is always full of people. ---
**Author:** ![Cliffy](https://avatars.discourse-cdn.com/v4/letter/c/59ef9b/32.png) [@Cliffy](https://boards.straightdope.com/u/Cliffy)\ **Post date:** [November 30, 2004, 3:04pm UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/22 "2004-11-30T15:04:17Z")
> [@Big Bad Voodoo Lou](#): > > It seems like Sime does everything right that a comic store owner could possibly do–he makes the store a hip, cool place (as opposed to a scary, evil, and dingy dungeon), brings in comic pros for meet-and-greet events with fans, and pushes GOOD comics (not necessarily the most popular ones). He also sells booze, which can’t hurt! –Cliffy ---
**Author:** ![Gary\_Robson](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/gary_robson/32/3448_2.png) [@Gary\_Robson](https://boards.straightdope.com/u/Gary_Robson)\ **Post date:** [November 30, 2004, 4:57pm UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/23 "2004-11-30T16:57:37Z")
> [@Lochdale](#): > > With full disclosure, the store in question is (or will be) in Chicago and I have been asked to invest in it. Red flag! With most small stores like that, they survive because the owner has a passion for the business and does most (if not all) of the work. Stores like this can make a good living for one person, but can rarely support a group of investors. If you’re coming in as an outside investor, there needs to be a plan for you to get your money back, and then hopefully make a profit on top of that. Ask some questions: [ul] [li]Would you have to put personal guarantees on anything (e.g., the lease, accounts with vendors, loans…)? If so, realize it will affect your personal credit, and you could lose everything you invest **and** everything you guarantee![/li][li]Are you expected to work there? Will you get paid anything?[/li][li]How (and when) will you get money from it?[/li][li]Is there a predator like Wal-Mart in the area? What happens to your store if they start selling the same product at lower prices to stamp you out?[/li][li]Are you in the trade yourself? Do you expect any say in the inventory and store policies?[/li][li]Ask yourself what you’d do if your partner(s) came to you in a couple of years and said, “We’re in trouble, but we’re sure we can recover. We just need you to put in another $10,000. If you don’t, we lose it all.” If $10,000 doesn’t hit your threshold of pain, fill in a number that does. Would you risk more money to save what you invested?[/li][li]On the flip side, say you own 50% of the business. The other guy comes to you in a few years and says, “The business needs more money. I’m putting in another $25,000. That’ll raise my ownership stake to 75% and drop you to 25%. Unless you want to match me, of course…” (again, adjust these numbers to fit your situation).[/li][li]Do you get any benefits from ownership (e.g., product at cost)? Do the other investors all get those same benefits? Will that affect profitability?[/li][li]Do you have an exit plan? What if you want out after a few years and the store has no money to buy you out? Are you stuck forever?[/li][li]If the store starts to fail, will it be allowed to go bankrupt (meaning everyone probably loses everything), or will it be closed down in an orderly fashion?[/li][li]If it’s closed down, how will the assets be divided up?[/li][/ul] ---
**Author:** ![brujahghoul](https://avatars.discourse-cdn.com/v4/letter/b/cdc98d/32.png) [@brujahghoul](https://boards.straightdope.com/u/brujahghoul)\ **Post date:** [January 20, 2013, 12:30am UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/24 "2013-01-20T00:30:13Z")
I am a half owner on a small comic shop. If I can say anything about the comic business its about volume of sales. You need to have good customer relationships and get your name out there. We are kind of specialized business so you really have to get out there to get your target market. The next thing you need to understand is cash flow. It will never fail, if you have a big invoice to cover that will be the week something breaks. ---
**Author:** ![boytyperanma](https://avatars.discourse-cdn.com/v4/letter/b/4491bb/32.png) [@boytyperanma](https://boards.straightdope.com/u/boytyperanma)\ **Post date:** [January 20, 2013, 1:30am UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/25 "2013-01-20T01:30:06Z")
Based on the number of people I know that have invested in comic stores I’d say it’s got to be one of the worst investments ever. Running a store is a job of passion. If your investing in someone elses store your just funding their hobby. Getting what you put in back out is like hitting the lottery, but hey you can say you’re part owner forever and feel cool amongst the customers. Diamond is evil. There is no money in comics. Any successful store is diversified in more than comics. That other stuff they diversify in is what makes money, they keep the comics around for nostalgia. ---
**Author:** ![Bosda\_Di\_Chi\_of\_Tricor](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bosda_di_chi_of_tricor/32/16845_2.png) [@Bosda\_Di\_Chi\_of\_Tricor](https://boards.straightdope.com/u/Bosda_Di_Chi_of_Tricor)\ **Post date:** [January 20, 2013, 1:44am UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/26 "2013-01-20T01:44:23Z")
Pick a spot near a University. Built-in clientele. Remember–comic shops are actually social clubs. Leave a table for gaming, & a lounge area where food is permitted (but unpurchased comics are not). ---
**Author:** ![Colibri](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/colibri/32/1841_2.png) [@Colibri](https://boards.straightdope.com/u/Colibri)\ **Post date:** [January 20, 2013, 2:08am UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/27 "2013-01-20T02:08:01Z")
Moved to Cafe Society. Colibri General Questions Moderator ---
**Author:** ![foolsguinea](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/foolsguinea/32/14751_2.png) [@foolsguinea](https://boards.straightdope.com/u/foolsguinea)\ **Post date:** [January 20, 2013, 2:13am UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/28 "2013-01-20T02:13:23Z")
> [@RealityChuck](#): > > Ron Perlman is scum. **Ronald Perelman.** Two _e_’s. Ron Perlman is the actor who played Hellboy. ---
**Author:** ![RandMcnally](https://avatars.discourse-cdn.com/v4/letter/r/b782af/32.png) [@RandMcnally](https://boards.straightdope.com/u/RandMcnally)\ **Post date:** [January 20, 2013, 2:13am UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/29 "2013-01-20T02:13:51Z")
For any not paying attention, this thread is over eight years old. ---
**Author:** ![Yorikke](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/yorikke/32/4335_2.png) [@Yorikke](https://boards.straightdope.com/u/Yorikke)\ **Post date:** [January 20, 2013, 2:14am UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/30 "2013-01-20T02:14:17Z")
I can’t imagine that the market is any better now than it was 8 years ago… Edit : :shakesfist: Bah! ---
**Author:** ![Zjestika](https://avatars.discourse-cdn.com/v4/letter/z/8edcca/32.png) [@Zjestika](https://boards.straightdope.com/u/Zjestika)\ **Post date:** [January 20, 2013, 2:16am UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/31 "2013-01-20T02:16:20Z")
Zombie comic books are pretty popular nowadays. I wonder if the OP ever did invest and how that turned out. ---
**Author:** ![TriPolar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tripolar/32/3008_2.png) [@TriPolar](https://boards.straightdope.com/u/TriPolar)\ **Post date:** [January 20, 2013, 2:47am UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/32 "2013-01-20T02:47:46Z")
I’ve seen a couple of documentaries about the subject. One was actually about the lives of physicists and engineers, the other about small town life. In both cases it was obvious that the owners of comic book stores are total losers. ---
**Author:** ![astro](https://avatars.discourse-cdn.com/v4/letter/a/9dc877/32.png) [@astro](https://boards.straightdope.com/u/astro)\ **Post date:** [January 20, 2013, 3:08am UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/33 "2013-01-20T03:08:18Z")
I stopped buying comics at retail several years ago, but when I did go in in the evening it seems the entire crowd was focused on playing various role playing card games at the tables toward the rear of the store. There was almost no one browsing the comics. ---
**Author:** ![PlainJain](https://avatars.discourse-cdn.com/v4/letter/p/5daacb/32.png) [@PlainJain](https://boards.straightdope.com/u/PlainJain)\ **Post date:** [January 20, 2013, 5:08am UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/34 "2013-01-20T05:08:33Z")
> [@RandMcnally](#): > > For any not paying attention, this thread is over eight years old. You sir are a paragon of good taste. I cannot thank you enough for not making a braaaiiins! joke. This is how it’s done. ---
**Author:** ![Equipoise](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/equipoise/32/151_2.png) [@Equipoise](https://boards.straightdope.com/u/Equipoise)\ **Post date:** [January 20, 2013, 5:45am UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/35 "2013-01-20T05:45:53Z")
[QUOTE=foolsguinea] **Ronald Perelman.** Two _e_’s. Ron Perlman is the actor who played Hellboy. [/QUOTE] Thanks for this correction. [Ronald Perelman’s Wikipedia page.](http://en.wikipedia.org/wiki/Ronald_Perelman) [Ron Perlman’s Wikidedia page.](http://en.wikipedia.org/wiki/Ron_Perlman) I don’t know why I read this thread since I have no interest in comic books, and reading that Ron Perlman was scum just made me depressed. I like him as an actor. I’m met him and he’s a nice guy. Just goes to show, huh? 8 years later, I find out it’s not even the same guy! Goddamit! I just wish someone had stepped in the first time around to correct that bit of libel. Shame on you **RealityChuck** and **Krokodil** , for not getting your facts straight, or if you knew it wasn’t the actor, for not clarifying such. ---
**Author:** ![Little\_Nemo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/little_nemo/32/3120_2.png) [@Little\_Nemo](https://boards.straightdope.com/u/Little_Nemo)\ **Post date:** [January 20, 2013, 9:06am UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/36 "2013-01-20T09:06:21Z")
> [@Krokodil](#): > > At the time of the Heroes’ World fiasco, Ron Perlman owned a controlling interest in Marvel and did things to make a short term buck that ran the company into the ground. Marvel even filed for bankruptcy, even though its sales and market position were the best in the industry. > > Carl Icahn fought him for control of the company. I’m not sure who owns it now. It was Isaac Perlmutter. When Perelman was running Marvel he signed a front-loaded contract with Perlmutter’s company ToyBiz. ToyBiz paid Marvel a large sum of money up front, which Perelman spent, but ToyBiz got the rights to all toy licenses for Marvel products in perpetuity with no royalties. ToyBiz paid a lot in the short term but it looked like a great long-term investment for them. Marvel, meanwhile, had lost a huge source of future revenue. But when Marvel went bankrupt there was talk that ToyBiz’s contract might be voided and the licenses would be returned to Marvel. ToyBiz by this point was dependent on its Marvel products so it couldn’t risk losing the licenses. It got into a bidding war to buy Marvel so it would still own the licenses even if they reverted back to Marvel - ToyBiz was buying Marvel to secure rights Marvel had already sold to ToyBiz. Perlmutter was successful in his bid but he paid so much that both Marvel and ToyBiz ended up deeply in debt and were unable to market their products. Sales for both companies declined. Marvel and ToyBiz (merged into one company Marvel Entertprises) were eventually bought by Disney in 2009. Perlmutter still runs Marvel Entertprises as a Disney subsidiary. ---
**Author:** ![Left\_Hand\_of\_Dorkness](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/left_hand_of_dorkness/32/7156_2.png) [@Left\_Hand\_of\_Dorkness](https://boards.straightdope.com/u/Left_Hand_of_Dorkness)\ **Post date:** [January 20, 2013, 4:38pm UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/37 "2013-01-20T16:38:35Z")
Acknowledging the advice is a bit out of date… A friend of mine owns the awesome store [Chapel Hill Comics](http://www.chapelhillcomics.com/content/). He worked at the store’s ancestor, Second Foundation, all through high school, and after college he bought the stock, changed the name, moved the location, and has made it rock. Some insights from conversations with him: -A lot of comic book store owners are elitists who like having an out-of-the-way location that only nerdy cognoscenti can even find. Nuts to that. He advertises, he moved to a better location, he got a great window display. He actively solicits drop-in customers who know nothing about comics. -He warns of the purple Camaro problem. Lots of small-business owners see lots of cash going through their hands, think “I’m rich!”, buy a purple Camaro (or whatever), and go out of business. That money, he warns, is not yours. It’s the business’s. If you make that mistake, your business will fail. -Perhaps most importantly, he’s decided it’s easier to teach a good employee about comics than it is to teach a comics nerd to be a good employee. He hires people based on their friendliness and work ethic and then assigns them projects to learn about their stock. As a result, when you walk in the store, you’re likely to be welcomed by a smiling employee within thirty seconds and asked if there’s anything particular you want; if you say no, they leave you alone but are readily available. It’s a totally different experience from most comic shops I’ve been to, where there’s a 50-year-old bearded dude in a dirty shirt glaring suspiciously at you from the corner, and you’re not sure whether it’s the owner or a customer worried about competition. And I hear from my wife that the difference is even more dramatic for women going into the store. ---
**Author:** ![jayjay](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jayjay/32/6765_2.png) [@jayjay](https://boards.straightdope.com/u/jayjay)\ **Post date:** [January 20, 2013, 6:39pm UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/38 "2013-01-20T18:39:41Z")
> [@Left\_Hand\_of\_Dorkness](#): > > Acknowledging the advice is a bit out of date… 'Sokay…so’s the thread! ---
**Author:** ![drastic\_quench](https://avatars.discourse-cdn.com/v4/letter/d/e36b37/32.png) [@drastic\_quench](https://boards.straightdope.com/u/drastic_quench)\ **Post date:** [January 20, 2013, 8:08pm UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/39 "2013-01-20T20:08:54Z")
In case anyone in 2013 is reading this for actual business advice, it is a phenomenally poor time to open a comic shop now in the last days of physical media. One can pirate every week’s comics with a few clicks and an hour wait. Tablets enable readers to carry dozens of longboxes of comics with them everywhere. And as soon as DC and Marvel stop trying to have proprietary e-comic formats and embrace CBR format, and open a online store that is basically i-tunes the final nail will be in the coffin for the stores. Owning physical comics has been worthless for a ling time anyhow. The runs are too large for any value to accumulate. ---
**Author:** ![Beastly\_Rotter](https://avatars.discourse-cdn.com/v4/letter/b/45deac/32.png) [@Beastly\_Rotter](https://boards.straightdope.com/u/Beastly_Rotter)\ **Post date:** [January 20, 2013, 8:34pm UTC](https://boards.straightdope.com/t/economics-of-owning-a-comic-book-store/277044/40 "2013-01-20T20:34:21Z")
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