Used Bookstore Business - questions please

Hi everyone. I'm considering opening a used book store and would like
some insight/questions.

I live in a city with 3 million people. Within a 20 mile range of me
there are 3 used bookstores. I know the owner of one very well. He is
retired and opened the store just to give him something to do. He is in
a strip mall anchored by a WalMart (very high traffic) in a 1200 square
foot suite. Nothing fancy not even decorations. He also sells on
Amazon. He is very religious and honest and even showed me his Amazon
account. He is currently grossing $7,000/month in the store and
$10,000/month on Amazon. He does no advertising and relies on walk-by
customers. He only buys books in perfect shape. The romance novels and
Steven King novels he says are valueless because you can get them
online for 1 cent, but cook books and unique books, audio books are big
sellers. In fact he is only 1 block away from a Borders and Barnes &
Noble but tells me the people shopping in used bookstores are a
different breed. He just signed another 5 year lease. In fact he's so
busy they hired extra help.

Based on his experience, I thought opening a used book store with my
wife in my area of town would be a good idea (heavily traveled strip
mall). We own another business that takes up little time and nets
around $300k/yr. But I go online and do some research and 99% of
everything I read is that used bookstores are going the way of the
typewriter. They are closing up, being put out of business, have high
failure rate, etc. So I'm a bit confused. Can anyone give me some
insight on the used book store business and just how risky it is? Is it
worth it or like travel agencies will it be wiped out by the internet
soon? I don't understand how this bookstore can do so well but
everything I read is so negative.

johnmolinda DeleteThis @yahoo.com wrote:
> We own another business that takes up little time and nets
> around $300k/yr.

How much of that are you willing to lose per year working 70-80 hour
weeks running a used bookstore?

> But I go online and do some research and 99% of
> everything I read is that used bookstores are going the way of the
> typewriter.

Exactly. But you'll notice that they still make and sell typewriters,
just fewer and fewer every year...

> They are closing up, being put out of business, have high
> failure rate, etc. So I'm a bit confused. Can anyone give me some
> insight on the used book store business and just how risky it is?

It's no riskier than putting all your money into Internet stocks in
2000 was...

> Is it worth it or like travel agencies will it be wiped out by the internet
> soon?

Not quite as bad, but you're in the ballpark.

> I don't understand how this bookstore can do so well but
> everything I read is so negative.

Depends on his rent, his stock, whether he sleeps in the store, how
much ramen he's willing to eat, and a hundred other variables.

But one good question to guage your suitability for running a use
bookstore: How many books do you personally own in your own home? If
the answer is less than 1,000, then no, you shouldn't own your own
bookstore. Over 10,000, and your probably love books enough to make a
go at it, assuming you're willing to tolerate several years of losses.

If you're looking for a money-making opportunity, you'd be far better
off putting money into bonds, the stock market, or buying a chain
restaurant franchise. Because it's a labor of love, not profit.

The best way to make a small fortune in the used bookstore business is
to start with a large fortune...

Lawrence Person
Lame Excuse Books
http://home.austin.rr.com/lperson/lame.html