GameStop to Permanently Close Over 300 Stores

"I can tell you though making 20% less is a lot to overcome."
It is, and I'm not a pro business man but if shop A is making $5,600 @50% margin in sales and shop B is doing $14,000 @30% in the same 56HR week seems like shop B might be at an advantage even with the bigger work load assuming both shops have minimum 2 employees working at the same wages. Like I said I'm no business pro, but I do stand by my statement there is Always options.
 
Jayham said:
"I can tell you though making 20% less is a lot to overcome."
It is, and I'm not a pro business man but if shop A is making $5,600 @50% margin in sales and shop B is doing $14,000 @30% in the same 56HR week seems like shop B might be at an advantage even with the bigger work load assuming both shops have minimum 2 employees working at the same wages. Like I said I'm no business pro, but I do stand by my statement there is Always options.
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That's $2300 vs $4200. So, you'd get less than double. The part you're missing is: is there a market to even sell 2.5x more product to? So you've cut your margins in order to attempt to sell more, will cutting your margins actually allow you to be able to reach that break even?
If you applied for a small business loan and they asked to see your projections and you said: I want to sell 2.5x as many games as GameStop.... They wouldn't even let you continue to get to the next part: at a "20% less cost" and making "slightly less than double" money.
This is what I mean when I say that 20% is a lot to overcome.

Look, you're right about one thing: you can choose to position your self at different places in the market. But not all of those positions are viable. This is why small businesses fail at such a high rate because what most people think they can do isn't really feasible.
This is the reason why Kitchen Nightmare's is such a great and educational show. I can watch that show and ignore all the drama that Gordon Ramsey does and look at the bottom lines: you need a great product, there has to be good/excellent service, the food has to have good margin, it has to have a pricing structure that makes sense for the customer (from casual to fine dining), and although it's the least important out of these things: having a nice looking restaurant/good location helps. Despite how "simple" it is to get a restaurant is to that level there are tons of restaurants that fail at doing those basic things.
For more on that, I highly recommend watching "Million Pound Menu" on Netflix. In that show the prospective restaurateurs get grilled about their break evens, how many they think they can sell, how often they think they can "turn a table", and the profit margins of individual dishes in order to seek and hopefully win investment. If you fudge your numbers, you're going to get called out, and it's obvious the people that have good business acumen and those that don't.

For any company selling a product, profit margin and break even have to be the order of the day. And setting realistic projections is a big part of that. Understanding the business you're in matters a lot. This is why GameStop is the last one standing in the B&M game market. And they'd be able to go on if not for the internet. I dislike most of what GameStop does. I dislike how they treat their employees. I dislike how they open new games. I dislike how they seem to have zero quality control or testing on used items. But despite all that they at least know their basics in terms of how to buy and sell things.
 
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Pretty sure the last thing I bought at Gamestop wad a VGA adapter for a Sega Dreamcast.

Probably bought a few games from them in the distant past as well. Pretty sure I bought Pirates! Gold from Gamestop.

The thing that really made me not like them besides their silly prices for used games is the fact that they take the discs out of boxes and put them in a case behind the counter. I tried to buy a new game there once and they couldn't even find the disc for it.

And even if you buy a game NEW from them, you may end up with a used / dirty / scratched up disc because the company has super scammy policies to begin with... such as selling used games as NEW.

They brought this on themselves.
 
UnknownSouljer said:
That's $2300 vs $4200. So, you'd get less than double. The part you're missing is: is there a market to even sell 2.5x more product to? So you've cut your margins in order to attempt to sell more, will cutting your margins actually allow you to be able to reach that break even?
If you applied for a small business loan and they asked to see your projections and you said: I want to sell 2.5x as many games as GameStop.... They wouldn't even let you continue to get to the next part: at a "20% less cost" and making "slightly less than double" money.
This is what I mean when I say that 20% is a lot to overcome.
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Sorry, but at this point all I hear is blah blah blah in a blurred distance. The fact that GS is closing many stores and eventually all or most of them, tells the world and anyone remotely interested there's something very wrong about how they're conducting business.
 
Jayham said:
Sorry, but at this point all I hear is blah blah blah in a blurred distance. The fact that GS is closing many stores and eventually all or most of them, tells the world and anyone remotely interested there's something very wrong about how they're conducting business.
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They are the last one standing. Tell me of the alternative, nation wide, B&M game selling store. And there is your answer.
You don't like brass tacks. You're operating not even on business theory, but by what you "think" is possible. I gave you the tools for a break even analysis but you're not even willing to go through the mental exercise to understand that GameStop selling 2.5x more product isn't even remotely viable.
 
Eventually I'll be able to say good riddance Gamestop! On the other hand if they stay open with a few shops or close them all down it's a flea off a dogs' nuts to me!
 
Personally I'd like to see them stay even if I'm not a big customer. Always nice to have local game stores that specialize in games but yes, they are becoming irrelevant. And their buy back prices are crazy, ebay is better. But it is simple and straight forward which is why people still do it. Never bothered with Craigslist or other similar crap, but I imagine that is more effort than it is worth and you won't find many buyers for a game. For a car or furniture? Sure. Game? Forums or ebay.
 
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