Right to be Angry?

[Den82]

As mentioned, I rented out a space in a local antique store/mall/co-op whatever you wish to call it. I had a few bad months, but it's has really started to pick up this summer. I got business cards made up and everything, regular customers, etc.

However, there is something I am not too pleased with. When I first went into the space, I was the only person in there selling vintage and retro video games and for the most part, other vendors and the management just thought this stuff was "for kids". Well. The "kids" are coming in and spending a lot of money.

You know who else is coming in? People selling games. Sometimes, BIG boxes full of it because they see me and my friend's displays. But now that the management sees it's a hot item right now and the buyers are coming in, they are buying it up themselves and have even made their own video game display in a showcase. Other vendors too are selling the stuff. They do not know the hobby, which is a plus for me.

But I'm not happy that stuff is coming in because of ME and they are buying it when I am depriving myself of sleep on the weekends trying to find it. I'm sure some of it might have come in as a result of my internet promotions and wanted ads and cards.

The plus is, they give me and my friends very good deals on it, thus we can cherry pick it.

But I am still not happy when I see this stuff. My last few checks were excellent. This month, not so much and part of it is low stock. How do I pay rent and make money when I don't have the goods?

One rule of being a vendor there is that you cannot under any circumstances interfere when management is buying something. I am on good terms with them and I do not want to cause waves. But do I have the right to?

[enyawd72]

I would say so. They're deliberately moving in on your niche market and undermining your sales, and I'd tell them so.

Of course, you could always "help" them out by giving them a list of hot (not) games to be on the lookout for. Let them overpay for a few worthless "treasures" that they won't be able to flip and they'll probably back off.

[Den82]

They know what is good and what is not because they are handling our sales every day. They also research each and every game they buy on eBay and I noticed they do that instead of asking us for our opinions as far as prices. I believe there is also some undercutting going on which isn't cool either and they encourage undercutting among vendors.

[enyawd72]

They know what is good and what is not because they are handling our sales every day. They also research each and every game they buy on eBay and I noticed they do that instead of asking us for our opinions as far as prices. I believe there is also some undercutting going on which isn't cool either and they encourage undercutting among vendors.

Gee...sounds like a swell bunch of people. You should pull out. They can eff up your sales however they want but you're not to interfere with theirs? I don't think so.

[Aricosaur]

Doesn't sound like a very friendly environment, business or other wise. However, there's nothing you can do about everybody else selling similar stuff as you (unless you had an exclusivity agreement before hand.). That's how the marketplace works.

Your marketing brought in the customers in the first place so you know you can reach the market. I'd continue to position yourself as the expert in your product area and maybe diversify your stock somewhat so you can eat into the other vendors markets (as long as you are knowledgeable of the product and don't overextend yourself.).

[megocrazy]

Very tough call, but as owners of the business they have every right to buy what walks in, no matter the reason it came in. Have you considered opening your own consignment shop? That would put you in the decision making position. If your marketing can bring in customers for them, it will surely bring in customers for you. I have found that when buying from other vendors in my own place I don't re-sell it right away. Word travels fast when they see what they sold you selling for double or triple the amount they sold it for.

I had a similar issue when I started my booth and found myself buying out a lot of fly by night collectors/vendors that came out of the woodwork. Eventually the good stuff they have, runs out and usually they don't want to do the leg work to find it so it's short term. I always try and get them out as quickly as possible. Most are looking to make the quick buck and almost always deal if you buy everything they've got.

[Den82]

Somebody reminded me they are a business and thus there to make money. Hard to argue with that. There is also the reality that they are there every day. I cannot make it in the shop every day.

On the bright side, they give me very good deals on stuff and so that works good. As we can cherry pick the good stuff and leave the rest (a lot of the lots they buy, the games are in not the best cosmetic condition and I'd most likely pass on most of it anyway).

Having my own place would be beautiful. I am not sure I'll ever get enough stock to do so unless I decide to eventually sell off my own collection.

[madmarva]

It's not an ideal situation for you, but it is capitalism. If the marketplace were not there, you wouldn't have been able to make the sales you did make there. The fact that others are carrying similar product does mean you have to compete with their prices, but it's probably increasing the customer base for you as well and possibly bringing those customer's back more often. If you had a store in a mall, there's no way you could stop a competitor from moving in near by. It's just business.

Are there other marketplaces that don't canibalize their own vendors in your area or is that a commom practice?
I know there would be a cost and hassle to move, but if another venue offers a situation you would be more comfortable in, a move might be worth it in the long run.

[huedell]

Of course, you could always "help" them out by giving them a list of hot (not) games to be on the lookout for. Let them overpay for a few worthless "treasures" that they won't be able to flip and they'll probably back off.

They have no reason to back off and every reason to (as Den noted) run themselves like an actual business.

Plus, if Den initiated a sabotage plan, he would be putting a kink in salvaging all this.

Den... you can either choose to give up and leave the spot OR, go to THEM with your concerns instead of starting a thread here where there's no one that could actually help you. If you go to them, they may actually be able to work with you to reach a compromise so you don't have to vacate their place just as things atre starting to click. You mentioned you were on good terms with them... why not pitch them on a "partnership" with an idea that in theory will work positively for both of you... you'd of course, have to figure out what that partnership/compromise would be.

[MIB41]

If the core of your sales is coming from items that are also hot on online, leave the Flea market confinement and sell full time on Ebay or Amazon and save yourself the costs of renting space. Why compete with people at one location who are willing to undercut your business when you can go online and have those same people buy directly from you? Play the game.

[huedell]

If the core of your sales is coming from items that are also hot on online, leave the Flea market confinement and sell full time on Ebay or Amazon and save yourself the costs of renting space. Why compete with people at one location who are willing to undercut your business when you can go online and have those same people buy directly from you? Play the game.

I'd think that he considered that option already? Sounds like there's something appealing to Den about experimenting within the brick n' mortar approach.

[megocrazy]

You'd be surprised how easy it is to fill a store. I'm not saying it will be all top quality stuff, right off the bat, but you can make a store look real full with common stuff. I started my first retail shop right after I got out of high school. Like my toy collecting, I tend to flip bigger things like stores and real estate occasionally. I've owned 4 stores. 3 of them I sold out right and the fourth I gave to my partner at the time. Every time my professional life advanced I sold my current retail location and banked the profit. When my pro life slowed down I opened another retail spot.

I will say that the collectibles field is one that does not necessarily follow the location, location, location prospect of retail in my experience. Collectors will seek you out if they know your there. I hand out about 3-4,000 business cards a year. Every show and every yard sale or whatever I see a potential customer at. Once you build the customer base your solid.

This business is no different than any other I've worked in, It's all networking and contacts. About half of the video games I have in my stock have come from people I deal toys with. People I've known for years, but have no interest in games. Now as they search for stuff they want, if they see something I may be interested in they grab it. I pay them an extra percentage and everyone's happy. I don't buy storage lockers anymore because TV has caused what used to be a 15 person battle into a 50 person battle for a locker. I still go, and anyone that wins a locker gets a card and an introduction. Now several that travel all over going to auctions call me regularly. It's just the same as going to trade shows in my last job, except you tend to rub elbows with guys that don't dress quite as well as the ones I dealt with in my former employment.

The people that fail at it are the ones that believe it's just sit back and rake in the money. I did fine when I did it part time and built the majority of my collections on profit from buying and selling, and still pocketed extra cash from time to time, but not enough to survive on. I spend 60-70 hours in any given week hunting for stuff. It's a cash heavy business too. You don't ever want a $5000 collection to be missed because you didn't have $1000 ready to spend on it. It's not impossible, but it's not a cake walk. I worked full time jobs, for most of my retail ownership days. Lots of hours and missed a bunch of my boys early years. Probably my biggest regret, but at the time the extra money was needed and we do what we have to, to get by. I made more than I would have working a second job, I was my own boss, and I was fortunate to bank a tidy profit, when I sold what I'd built.

[Den82]

Having my own shop would be nice.

Another vendor who came in after me is leaving due to the nonsense. Our sales this month have been awful. Maybe due in part to us being undercut by the management...who btw went out and got a brand spanking new display case just for games and put it right next to my friend, who has the best sales of anyone in the shop solely with video games.

[Access]

October is a pitiful month anyways (unless you sell costumes and candy). All the major stock market crashes happened in October, so don't be too discouraged that your numbers are "off". They suck for me too (I own a Pro Music store). As far as those who think Ebay is the answer, You still have to 'house' your inventory somewhere, so you have a fixed cost for storage plus the expense of selling online. Retail, you also don't have to deal with returns if you don't want to, and you give people an 'outlet' to immediately get cash for the stuff they want to sell.

I started a little toy buying business in May as a distraction to my everyday work, I put a couple ads out, etc....I now have about 1500 square feet of warehouse filled solid with inventory! I'd open a retail store if I could find someone responsible enough to run it (not an easy task) So I'm stuck online.

I feel your pain, (if you are located in a non megatropolis city) if you feel you can do 15K+ in gross sales a month at about a 40% margin, I'd say look for a place, otherwise you are kinda stuck over a barrel.

[Access]

Oh, I just saw you are in Long Island! Yikes! You better quadruple that sales estimate!