IS IT PROFITABLE TO OPEN A NEW BOOKSTORE?
I would love to open a bookstore but I don't know if it has an exciting return on investment. Can an independent store selling new and used books compete with the chains?
Additional Information:
Thank you guys for your answers. I have put the idea of opening an independent bookstore out of my mind.
Answers
676 points
RobSmith answered one year ago …
You'd have to really differentiate yourself - i.e. sell specialty, hard to find books. Or make it all about books for children and then hold special events like story telling hour. But if you're thinking about opening a regular book store then it's not the chains you have to worry about, but ALL of the online book retailers.
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951 points
Grudun answered one year ago …
There are a lot of independent book stores that are going out of bussiness because it is impossible for an independent to compete on price with the online stores and the big chains. If you wanted to make it the only stores that I have seen succeed(not dissapear) are the ones who provide added value. If you are doing used books then you should make the customers come to you to sell you their books. You will build loyalty with people and they will think of you first when they look at all the old books they have just collecting dust. Also consider using the amazon as a way to increase your sales. You can list your books on amazon and be able to generate additional sales that way(also keep busy doing fulfillment during the slow parts of the day).
Also look at RobSmith's ideas possibly in conjunction with your local library.
150 points
tlune answered one year ago …
I think the others have given you good advice, however, I'd like to point out a few other things. The situation for brick-and-mortar booksellers is so bad that Borders itself will probably have to be sold. The competition from online retailers and discount chains like Costco and WalMart is killing them. Only Barnes and Noble is in pretty good shape among companies that primarily sell books. Borders is a big chain with lots of capital and buying power. Its stores also sell music, greeting cards, coffee and food items, typically at higher margins than books. They can't compete in the current environment. I'd like to be more supportive, but I'd have to say that only if you are compelled to do this as your life's passion should you open a bookstore. The business conditions just aren't right for the little guy.
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4085 points
EthanR answered one year ago …
Tell you what the problem with book stores will be. A lot of younger people no longer want to read a book! They enjoy reading things on the Internet only. In a way it's understandable, because you can do specific searches for only the information you want. For example, if you want to know how to buy ETF's, you don't have to read a 400 book that explains everything in the world about ETF's, you can just browse 3 or 4 articles on it to get the jist of it. So I'm not sure that book stores will be the way they are now in years to come. Already we see book stores expanding into coffee shops, internet cafe's, magazines, newspapers, etc.
I agree with the advice above. If you are determined to open a book store, find a store with inexpensive overhead and buy/sell/trade used books. Then put your books on amazon.com as well, and /or open an ebay store. Find out what sells the best and always keep those kind of books in stock. Good luck.
699 points
7million7years answered one year ago …
Even if your name is John Borders, probably not. MAYBE ... just maybe ... it's OK if your name is Peter Amazon. Other than that, if you want a very small, difficult business, move into used/specialy book retailing as suggested by tlune and EthanR.
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