You might be surprised by some of the hidden costs of running your own gaming and hobby store, even before social distancing happened.
Hobby-wise, we’ve been sitting in a rough patch over the past few years with supply chain issues and, obviously, the pandemic. However, game stores have notably been hit even harder. So while we wait for our favorite gaming spots to get back to pre-pandemic levels, here are some things to think about the actual costs of running a hobby store.
Hidden Costs of Running Your Own Gaming & Hobby Store
We’re going to start by talking about your standard 4×6 gaming table. But to do so, we have to add in all space that the players use to walk around and set their gaming cases, bags, etc., on as well.
If you’ve played Warhammer longer than thirty minutes, you’ll know that there are a ton of players that go to LGSs with boxes on top of boxes of models. That takes up space.
Once the players finally set up their game, they have to walk around and use the area around the table.
For argument’s sake, let’s make the total space used, including the table, the luggage, and the walking space 10×10 feet. Using simple math, that comes out to be 100/sq ft. On average, game store owners can expect to pay about $13/sq ft in rent yearly on their store’s space (maybe even more now with all the recent price increases on rental space).
And yes, these numbers fluctuate based on location and foot traffic (like a Mall store, etc.)
At 100 sq feet, the monthly cost totals are just over $100 a month. How’d we get there? Well, $13/sq ft x 100 for the game table space equals $1300, then Divided by 12 months, and you get $108.
Now here’s the kicker. How many LGSs do you know of that only have one gaming table? If a store has four tables, that may be at least $400/month on wargaming table space alone.
Wargamers vs. Cardgamers
On average, you can fit about four to six people at a 3×6 gaming table.
Looking at this example, you can see that a 3×6 card table takes up literally half the square footage of a tabletop gaming table, requiring no effort to build and maintain terrain, etc. Plus, it accommodates at least twice as many players as our first example and thus can generate at least twice as much revenue.
Based on our math above, the “rent” on a game table like this is just over $50 a month. Imagine putting eight card gamers at a table that size; it’s the same rent as the game tables above for twice the players.
Step 3… Profit?
Looking at it from a business standpoint, four, or even six-card gamers are more likely to buy more drinks and card packs (which have good margins and are sold in quantity) more frequently than a pot of paint or even a new model for their army.
Sure, stores sell pots of paint on the regular. There is no doubt that. Plus, hot models like The Lion (although there weren’t many) and Gallowfall (again heavily allocated) sold like hotcakes in stores when they first came out.
However, it’s been clear that GW can’t write rules that can stand on their own for what seems to be more than two weeks, which means post FAQ, sales on these new kits drop fast regardless of edition.
With the overall price of GW’s products recently increasing, the profit margin on kits and paints has remained constant while prices have increased. Meaning players may just not be buying as much these days.
Now compare them to something more “consumable.”
- Gaming Card packs (for the consumer): $5.00(ish)
- Cost of the box (for the retailer): $95(ish)
- Cost per pack (for the retailer): $2.63(ish)
- Profit: Full box per pack at full retail is around $185
- Soda MSRP (for the consumer) $1.00
- Cost of soda from wholesalers: around $.33
- profit: $.67 per soda
We can all probably agree, for the most part, that everyone who plays card games doesn’t mind shelling out $5 for the chance of opening a $5-$20 card and making their money back. You’ve also got sodas, other drinks, and snacks that stores sell all day.
Everyone who spends their afternoon playing card games or even a tabletop game like Warhammer will get thirsty. Sodas are a goldmine for hobby stores. You can buy a 24-pack of sodas for just a couple of bucks if you grab them on sale somewhere, then charge $1 for each can.
That’s $20+ made off of $4-ish dollars.
What Does It All Mean?
After breaking down those numbers above, another strong argument could exist for paying where you play in this harsh economic climate.
Customers that make most of their purchases online, recast issues aside, yet play in stores could be a part of the problem when it comes to hobby stores being forced to choose to continue carrying your favorite games or just sticking to high-profit margin games.
We’ve all heard someone say, “Oh well, I always buy a pot of paint or a pack of cards when I go,” right? However, you may be shocked to learn that based on the numbers above, a store would have to sell about 50+ pots of paint to break even on the monthly rent for ONE game table.
While it’s a noble effort to come in and buy a pack of cards, paint, soda, etc., in this day and age, it may not be nearly enough, and honestly, somewhat insulting to owner-operators, even to say such a thing.
For most healthy well-stocked games stores in larger markets, everything balances out between the multiple small purchases (paints and card packs) and large purchases (tabletop minis, entire boxes of trading cards, and box sets of models).
A Time To Pivot?
In the 2020s, savvy game stores charge subscriptions that give back store credit or other benefits like reserving tables and reduced event fees. These stores are pivoting from retailer to lifestyle stores, that so many big box retailers are desperate to do.
Hopefully, you’ve noticed more of the hidden costs of running a store by now. It’s not getting any easier for them either, with companies like Wizards of the Coast directly selling to customers via Amazon and crippling new release allocations from Games Workshop.
Especially now that the global crisis has forced hardships on owners for years.
Sure, some people “do their part” and buy a paint pot or a pack of cards when they play, but will it be enough to keep stores in business in a post-crisis world?
With all of this covered, how is your LGS doing? What do you think of these hidden costs of running a gaming and hobby store?
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About the Author: Rob Baer
Rob Baer
Job Title: Managing Editor
Founded Spikey Bits in 2009
Socials: Rob Baer on Facebook and @catdaddymbg on X
About Rob Baer: Founder, Publisher, & Managing Editor of Spikey Bits, the leading tabletop gaming news website focused on the hobby side of wargaming and miniatures.
Rob also co-founded and currently hosts the Long War Podcast, which has over 350 episodes and focuses on tabletop miniatures gaming, specializing in Warhammer 40k. and spent six years writing for Bell of Lost Souls.
Every year, along with his co-hosts, he helps host the Long War 40k Doubles Tournament at Adepticon and the Long War 40k Doubles at Las Vegas Open, which attracts over 350 players from around the world.
Rob has won many Warhammer 40k Tournaments over the years, including multiple first-place finishes in Warhammer 40k Grand Tournaments over the years and even winning 1st place at the Adepticon 40k Team Tournament.
With over 30 years of experience in retail and distribution, Rob knows all the products and exactly which ones are the best. As a member of GAMA (Game Manufacturers Association), he advocates for gaming stores and manufacturers in these difficult times, always looking for the next big thing to feature for the miniatures hobby, helping everyone to provide the value consumers want.
While he’s played every edition of Warhammer 40k and Warhammer Fantasy (since 5th Edition) and has been hobbying on miniatures since the 1980s, Titans of all sizes will always be his favorite! It’s even rumored that his hobby vault rivals the Solemnance Galleries, containing rulebooks filled with lore from editions long past, ancient packs of black-bordered Magic Cards, and models made of both pewter and resin.
