{"href":"http://player.captivate.fm/services/oembed?url=http%3A%2F%2Fplayer.captivate.fm%2Fepisode%2Ff970a752-1789-4d7a-a854-ce4e650b2a2e","version":"1.0","provider_name":"Captivate.FM","provider_url":"https://www.captivate.fm","width":600,"height":200,"type":"rich","html":"","title":"MVP052: Optimizing Your Product Mix","description":"
\n
\n
\n
\n
\nIn today's episode of the Manaverse Podcast Wayne hosts John and I at Dueling Grounds in Toronto and we discuss the variety of ways a game store owner can build their shop's inventory. We go over the product mix matrix suggested by a listener of the show which is quoted down below for your convenience.
\nQuote:
\nTom,
\nI think a business plan is important but having positive cash flow is the key to any success. I think talking about is about product mix; in restaurants we call this menu mix.\u00a0 Here are the terms:
\n\u00a0
\n
\n
\n* Stars: are extremely popular and have a high contribution margin (high, high)
\n* Plough horses: are high in popularity but low in contribution margin (high, low)
\n* Dogs: are low in popularity and low in contribution margin (low, low)
\n* Puzzles: are generally low in popularity and higher contributions (low, high)
\n
\nSo in a game store - what are the Stars - magic singles?\u00a0 Ploughs - Warhammer figures?\u00a0 Dogs - \"got to have board games that can be bought on Amazon\" cheaper then you can sell in the store?\u00a0 Puzzles - deck sleeves/dice?
\n
\n\u00a0
\nI think that any new game store business plan has to take into account that people will buy products from Amazon after seeing them in your store - Best Buy faces that challenge everyday.\u00a0 The store has to be more focused on people environment then product selling.\u00a0 ESPN realized its future lies in live broadcast of events because you can not get that anywhere else. \u00a0
\n\u00a0
\nI also think that there are good profit margins on Magic sealed products - Kevin over at Derium's CGG has posted videos listing his MTG buy cost and folks are making $1.75 per single pack bought at $2.17 and reselling at $3.99.\u00a0 He has made his \"crate service\" the Plough of his business. \u00a0 But he does enough of those crates to cover operating costs for everything else. \u00a0 I would love to a business analysis of a game store to see what items lie in what categories because I really do not think owners look at their data analytics enough because they are just trying to get buy and using their own judgement and bias selection as the default answers to what they should be doing.
\n\u00a0
\n
\n
\n
\n
\n
\n
\n
\n
\n
\nIf you liked this episode of the Manaverse Podcast, help out the show\u00a0by leaving a five star review on iTunes! Reviews help new listeners discover the show and help us grow!
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
","thumbnail_width":300,"thumbnail_height":300,"thumbnail_url":"https://artwork.captivate.fm/0dbd759e-3e14-4ff3-a372-a7552e5e4e41/sSodOabw-WW0w-wRuaMAD4hK.png"}