Important Lessons from FAILED card stores
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- čas přidán 12. 09. 2024
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Rudy's Magic Store
10950-60 San Jose Blvd.
139
Jacksonville, FL 32223
Ruudy opened all 19 other card stores just to run this guy out of business
Guaranteed... rudy admits no threats to his dominance as cardboard emperor of the east coast
😂 if that’s what happened then I’m happy to get closed out by the goat himself!
@@fsmoura This was on the west coast though
When I opened my store in 2011, we had $20,000 total, meaning that needed to cover buying chairs, tables, inventory EVERYTHING. Today? If you are thinking of opening a store with less than $200k, you're playing with fire.
just take Pokémon alone (since that's my 'thing' these last few years). The current block sucks, bad. We don't know when it's going to get better, but who cares, you still need to hand over $40,000 every few months to your distro to stay on their good side. You can easily find yourself sitting on over $100k worth of product that you'll be lucky to break even on, IF you can even find a buyer.
The days of 20% profit margins, unlimited allocations and $15 an hour employees are way behind us.
Sorry this post is scramble-brained, I could easily leave a 25,000 word essay on why opening an LGS in today's environment is the most dangerous it has EVER been since the 1990s. And I mean that, 2008 was a better time to open a game store than today.
I think lesson #1 from FAILED card stores is DON'T open a card store. Rudy has already made multiple videos of the risk of opening one and people still think "it's not going to happen to us!" but the reality is shiny cardboard is not an essential. It's hype one day and dead the next. Unless you have a HUGE amount of capital than can keep your store afloat for months on end without making a profit, then don't do it!
its werid that there is a limit on allocation and sellers are still fire selling or losing money do you know why?
Pokémon is getting a dragon themed set, another eevee themed set, trainer Pokémon are coming back like from gym challenge, along with a new team rocket set coming. This first half of every Pokémon gen is usually slow while the second half is where a lot of the crazy sets are.
Business is hard, I feel like there are far more people in the collectibles space than other industries that think they can just start a business and it'll be easy (or just straightforward) and all will be fine. Don't think the collectible space is in a space any different from any other industry re starting your own business:
- Don't go into a partnership (Just don't)
- Have plenty of starting capital - far more than you think you need
- Don't over extend
- Be smart with your money
- Play by the rules of the game
- Look after your clients, employees and other related parties (suppliers etc.)
- Don't engage with sh*t people
- Honesty, integrity, consistency
In todays climate I don’t think it’s honestly worth it to open a card shop unless you’re selling some high margin item as well as cards. When we were open our pokemon orders alone were anywhere between 30-70k so you would need a big amount of capital for sure
This should be added to the "Legit Rudy video" playlist. This is a good case study with a touch of macro-economic nuance sprinkled on top for good measure.
Guy that sent the message here lol appreciate the video! Definitely lessons to learn when it comes to business in general! But glad that I could prove some insight
7 new competitors shows that 1) that market was saturated, and 2) you weren't the only ones that wanted to get rich quick on tcgs. You had an uphill climb from the get-go. Sorry it didn't work out for you.
@@j.l.robertPersonally I didn’t want it to be this get rich quick thing. I’ve been in the collectible space since I was 14 and I’m now 29 and I genuinely do love it and saw this as an opportunity to finally turn my life long hobby into a possible career. Unfortunately My now ex business partner did not share the same sentiment and ultimately it ended how it did but I learned a lot of life and business lessons at a young age ( we opened up when I was 25), still unemployed and looking at what to do but that’s life man
@@Oversolex1 I worked at a lgs when the owner tossed a deck of cards to me and told me to learn the rules. That deck of Alpha Magic got a lot of play. But I learned many, many years ago that I'm not one that would want to turn my hobbies into my career. At least you had a go at it.
@@j.l.robertyeah I enjoyed it and still do honestly. Building a community and seeing all the locals go to the shop was my favorite part but yeah definitely had my moments were it was too much lol
For those of you who think they understand what Rudy is saying but have never owned a store, here's a practical example of why having a lot of cash is important. Imagine you are selling only MTG boxes and singles. You have say 10-12 different medium to large items you must order in a year. So 12 per month. And each month you have to spend $40-50k to get enough product to get your allocation. In the first month you luck out and have a good set that sells well. You sell 70% of what you purchased and have a 10% profit already on that order. You keep the 30% extra in inventory and go onto the next month. The next month sucks though and the set only sells 20% of what you purchased at a reasonable price. So now you need money for next month's order because you didn't anticipate it being so bad. And to do so you lower the price in a sale and start to sell some more product. But after a day or two you realize everyone else is lowering their prices too and you cannot sell enough to be profitable on this set. In Rudy's case he's already anticipated this as a potential scenario so he holds on his price or bundles the product to help with cash flow. But the smaller store cannot. They either have to lower their prices more or figure out another way to get the money. Because if they cannot get the next set they'll lose allocation and go to the back of the line. And those in the back of the line get the worst allocations. This is why you'll see some sets go down in price quickly after release because the store owners are afraid of tying up their cash and not being able to profit on future hit sets in the best case scenario. In the worst case scenario they cannot make payroll or rent. Cash is important. Order sizes are critical. But most important is understanding the game itself and making a plan for the eventual disaster that comes. Especially if you're selling acrosss multiple CCG or other collectibles.
I do understand. He did a video in 2023 or 2022 where he broke down what it cost to open an lgs and the problems when you don't start with a lot of capital
@@hieinh Good for you. This was written to those that don't understand.
@@KK-pm7ud Yeah. For ppl like me. LOL. Thx.
If your business partner can unilaterally close the business, then you are not their business partner, you are their employee
Facts
you could be a minority equity holder?
Im here for the Fancy Artwork Wolverine Era of Rudy
CALLING IT!! This is going to be a *TOP TEN* educational Rudy Video
Not saying much
Can't top that time when he taught how to clean a rifle and barricade a basement with boxes
It's gonna be a top 1 Rudy bs sway your opinion video... aka damage control
Any time Rudy says idk.. he knows
Can I slp you rdy?
So... my store opens soon 😂 I figured there wasn't money in the cards to make it work so my store also has a bar, kitchen and stage
@@crazygameruk3939 strip club LGS? I’m in!
That’s awesome! Card stores need to be larger and include other things. Maybe even video games or an area to stream etc.
Hopefully you are somewhere where that liquor license didn't cost you an arm and a leg.
@blackswanmtg well... funny you should mention that, it did cost a fortune... and they refused it on the basis I'm autistic and therefore "not responsible enough to manage a premise" so I've appealed the decision with the courts.. if I loose I have to pay the council's legal costs possibly, depends if the judge decides I should or not. I have to wait until the 20th September for the court date 🤞
@@crazygameruk3939 Liquor licenses usually require bribing a local politician.
It’s a serious issue in my area too. We just have multiple game stores opening every year it seems. We are up to 28 game stores within 45 minutes!
Most important lesson: 10:33 "If it doesn't work it doesn't work". Truly mindblowing.
Ok so I have a little experience in the LGS world, I've worked at multiple and I did my business internship on them but never actually owned one, something I've never really understood is owners seem to take big swings with product and when one of those big swings fails it all fails. And I keep hearing about how you have to buy a lot of the bad products to get access to a lot of the good product, but to me that just sounds like you're spending more money than not on bad products. As I said I've heard lgs get their allocations cut if you buy less, but my question is how bad is selling out of a product and waiting for more/just being done, compared to just sitting on 50k in unsellable product? To me it seems like both aren't great obviously, but it's the system we've got, but I'll say one side hasn't had to spend 50k on a bad product. Like I said I haven't had to handle the talking to distribution side of the lgs so maybe there's a very good reason but I can't for the life of me think of one?
Whenever I hear Taylor Swifts Cruel Summer I picture Rudy doing an interpretive ballet to the song in his box basement, homage to 2022.
Rudy has some "healthy" paintings back there.
He's a man of culture.
my family is always like why don't you open a mtg store? lol. I'm like you have no idea. its really just a retirement job when all your houses and cars are paid off and you have like 500k - 1m stashed in reasonable retirement investments. opening lgs is dumb if you want to distribute inventory, open a medical parts distro
As a lgs owner, not really card focused. I really enjoy the industry videos.
Universes beyond CZcams. With every magic CZcamsr
Aren't WE all failed card stores? spiritually atleast
Some deep wisdom he spoke in this video . Great to hear this side of The buissnes. Thanks for the information
I know so many stores that died even before COVID. Building a shop around one company’s products is a dangerous game, because people just slowly lost interest in magic and they couldn’t get feet through the door. Didn’t have enough product variety.
On the other hand, some store owners I’m good friends with shifted almost 100% away from Magic and have been doing great since 2020. They still run Commander once a week but that’s it.
Sold nearly my entire collection may/june 2021. The writing was all over the wall. Easiest rip cord pull ever.
Same. Sold my entire legacy collection in 2021.
The killing of the PT/GPs, covid, shitty economy, reprints, and online gaming.
The magic we once knew is done.
I've been watching your channel since 2015 and you said 10K back then.
I think it's time to break out the pink visor and take it to the white board.
Love those paintings in the BG who painted? im a Artist for a living, Great paintings.
Are you going to unban patrons who stopped subscribing? I’m sure the ere are many of us (myself included) who’d happily resubscribe now we know you have a “if you leave the door to come back will be closed” policy.
@@Serialized_Scry no you had your chance
I can for sure relate to parts of that message. In 2021 I worked for a store that offered building materials.
Now normally we would sell items making 5, 7, 10% of the value. If we could sell anything above 10% that'd be a very special product that we loved to trade it.
Then 2020 and 2021 come. There would be items that we would sell at 50 or even more % income. Sounds very predatory and great for us, but it really wasn't.
Even with so much safety net there was no guarantee we would be able to afford the next batch, because prices increased weekly if not daily.
The customers would be unhappy, go to competition, only to find that the competition also increased their prices, the market was unable to supply enough goods to satisfy demand
15k views 13 hours ago. Booby Trap from Tempest never failed a store
Still saying the 1/100 One Ring poster card is in the case of Holiday Special that Rudy kicked. Would love to see it opened if you still have it!
I don't think people realize that a million dollars is basically nothing to start a store front. You'd need access to a couple million just to get up and going and have a cushion just in case theirs a down turn in the product or what not. A million doesn't get you far anymore.
Those full-art Illustration rares in the back...
0:00 FOLKS~! ❤🙏
How were they online before going brick and mortar? Doesn't Magic REQUIRE a real storefront to start???
Great videos I've been in retail 35 years. Family own retail bakery here in lil village Neighborhood in chicago . Great advice 🎉
This one cuts deep.
I really like the frames on them pictures
Im of the mindset, if you want to open a card store and you have no online sales or anything of that nature that is forcing you to open one you might as well buy a boat instead.
I agree with all of this. I’ve had an idea of opening a LGS for years but never will because of things like Rudy mentioned. I don’t want to ruin my hobby and financial future. Rudy is wise!
I opened a nerd store two years ago with maybe $20,000. We started small and just kept reinvesting everything back into the store. It can be done with lower capital if one person has a 9 to 5 to pay the bills. Just spend smartly.
Rudy can you do a video one day where you just show all your paintings from all your locations. Show the art for a minute each talk about it, maybe who did them how much they cost why you chose them etc. I want to see all those pretty paintings.
Excellent sober take on running a business. Playing cards with friends is cool, but business is business, doesn't matter what kind. It's not friendly, it's not charity. Personally I've always disliked people who run business using family as cheap of even free labor. If your business plan requires charity, you're not a business.
I would love to purchase from you but you banned me for joining and leaving in the same month....
Triple Leverage the Nasdaq not the S&P Rudy! More upside!!
Great video. Found your channel a few days ago. I don't invest in tcg but I love wisdom
I mean it when I ask Rudy if you read this;
Will you sell those boxes of LOTR special edition that you threw at the wall? If so would you give some type of discount for having had thrown them?
I’m being genuine here if you want to email we can get more into particulars.
Discount!? That's a collector item! Rudy memorabilia.
A friend of mine wanted to open a store with me since he saw how well i've been doing and for the last 3 years i've told him id never open a store
Reserved List mtg is still in a bear market.
“If you’re betting the farm, and a slip up happens, and you literally get nuked so hard you can’t fight another day. That’s a problem.” Rudy never fails to explain things for the layman.
Quick question for you my friend been watching you for a lil bit now, would love to support you just had a question on shipping to canada do you do that and are there any fees with getting product across the border ?
Opening an LGS is easy. Just have a pub/cafe/liquor/coffee shop/drive thru addon that is a second, profitable business to prop up the LGS. . . . .
Ahh so to set up a business just set up another one to support it.
And what if that other one doesn’t get enough sales?
So you're saying there's a chance?
If you bought Sports Cards instead of MTG you would be so Rich. You just invested in the Wrong thing. You made a mistake and you are human.
Damn this video is great,thanks so much Rudy,learning everyday with you is fricking amazing
This is not your average basement
Most people that start these stores just don't get that its a full time and often even life consuming JOB. Unless you get lucky in a big city or a college town you are buying a JOB, you are not having some fanciful career or entrepreneurship. All those dirty card store people that you did not want to even talk to before, are now your client base and you have to be nice and listen to their ridiculous nonsensical stories every day. Then you eventually just burn the building to the ground with yourself in it.
Where did you get those art prints in the back ? They look great
If you don’t sell heavily online the LGS won’t succeed
Exceptional advice. Thanks!
Floridonionian decor is so strange
Lots of knowledge in this video. Pay attention folks.
Tbh i also keep my paintings wrapped up and facing front side against the wall. No joke 😅
Feel like he's told this story before in a previous video. Sounds familiar.
When u speaking in Tampa. I may come
Rudy! You’re not reading this comment but…Rudy! What do you think about the state of Lego investing in 2024?
This is the largest collection of ladies laying around in paintings the world has ever seen. Why do you have so many paintings of ladies layin around doing nothing Rudy?! Put them to work sorting singles!
If harris wins get ready to pay unrealized gains tax on your cardboard! Better stop showing off that art work that will also be a unrealized gain tax property/asset.
Dont open a store, start a business like a society no profit where to organize community events, ask for help at town hall for abondened Buildings to use with low rents and then organize mtg / d&d / board game events and work with people to make it works, eventually at a certain point you will grow the business. Also you dont need to spend 40/50k as people say, i spend average 4k in allocation per season and i sell stuff at 50% gross gain , and i always go sold out. Make gifts (promos) free drinks (water) included in events , and cudfle your customers. Try be a niche not a discount. People with money can spend aim for that niche. But everyone is welcome. Organize cheap and premium events , community is well diversified.
Rudy do you use brick economy for lego
Rudy, what did Disney Lorcana do to hurt you?
Right? Guess he’s still not getting the prices he wanted. Game is going extremely well Pixar coming….
Ravenburger.
Game Pieces...
He dont get good price so he dont like, first chapter box is 250 dollar
@@gabrielesparza4 right right the same company that's put on a bunch of amazing sold out 2,000 person tournaments over the past few months with final finisher prizing going in the $50,000 range, provided amazing prizing to every local gaming store for local championships, given those same gaming stores a 2 week head start before big box retail, and secured pixar. You're right. They're a menace.
Rudy are you an art collector? I see so much of it lately?
Important Lessons from FAILED Taco stores
I must feed the algorithm 🌮
Rudy expensing his art as advertising 😂 … then, turning his house into a museum and not paying federal income tax 😮😅
Where’s the visor! This was a visor episode!
😂😂😂
Yes
So you have all of this art and don't own a Frank Frazzetta piece yet? What's stopping you? Clearly you value Fine art and fantasy stuff? Seems like a Home Run to me.
EVERYTHING'S FALLING APART!!!! buy all the metazoo and Weiss left!
😂😂😂
How much for the dented Legos?
I just come here for the, “Folks!”
not rly brick n mortar unless you have the secret Lego attachment
How many rooms do you have?
Did you make a video on those paintings?
Lol 😂 0:29
Enjoy your video, nice content
Rudy dont like lorcana, first chapter box is 250 dollar
Better start with online business than opening a store^^
You must have millions invested in art work. So many paintings just sitting around on the floor.
Can we talk about the paintings of Rudy's ex in the background. Jeez.
commenting to come back
You have to be famous enough to rent your private jet to hipsters when you aren’t using it, and it becomes another profit engine. Almost there, Rudy!
Nice artwork
Get the jet. Lol
Open an LGS, I need the following; 500k and 100k loan, I’ll bring the MTG cards.
Otherwise absolutely nah fam!
Yeah nailed it
Yall going about it all wrong but im not here to educate yall on how to make it and dont need the competition
Taco jet
is your hair/facial hair dyed black?
Can I buy a shirt 👕
Sounds like they hired too many people and the guy running the card shop didn’t want to run things in house more.
Tried my best to operate solo as far as I could. Trust me hiring someone was the last resort but had no choice at the time. With 100s of online orders plus handling/operating a physical shop, I ended up spreading myself too thin
we need more lego videos
But I dont have a Store 😊
You kinda look like Wolverine
He used to look just like a Dick Tracy character
Do you ever hang up at?