Behind the Counter
"In your last RPGnet column, you asked what we wanted to know next about the retailer business. My question is regarding demographics. In the 20 years you operated a game store, did you notice any change about the clientele? Are most of your clients teenagers, young adults, old adults, male, female? Was it the same 20 years ago? If it changed, why? "
Thanks, FXR, let me break this down and discuss it as best I can, realizing that my 20 years of retail experience in the Game Industry include 4 stores, one in Alaska, 3 in Michigan, of which 1 was a full line hobby store.
So, I am discussing just game customers here, to be clear.
Changes to Clientele
Over the first 10 years or so, until about 1996, the Clientele I serviced, in three stores, was pretty much standard fare. LOTS of teenagers, many young adults in their early 20's, and a few older RPGers in their 30's, and older "grognards" of gaming in their 40's and older. They shared a love of games, and the hobby in general. Most spent fairly freely in their hobby, occasionally I would hear someone say something like "Well, the rent will be late, but I just gotta have (fill in the blank)".
Starting in the late 90's the Internet, WalMart and other factors changed the retail landscape forever. Paying full price became a "chumps game" (quoting more than one customer), and people felt that paying full price was wrong. This initially started with Magic and Warhammer players that most--and with younger gamers, mostly. Teenagers, early 20's customers. Slowly at first, but with increasing speed around 2002, the Grognards and older adult gamers became price resistant too.
Today, my game customers are primarily low to middle-class wage earners, who do not have the patience, or perhaps the know how, to buy things cheaper online.
Of Note: We have done many things to combat this trend, from huge amounts of in store gaming for a couple years, to starting our own discount site (3FREEgames.com) and have also gone to an eBay sales model for blowing out stock that does not turn for 90 days.
Today
Most of my game customers are video game buyers. I sell about 400% more in raw revenue in used video games than I do in new RPGs. My video game customers run the gamut from teenagers (and pre-teens) to doctors, and lawyers. Single Moms, families, immigrant farm workers, and everyone else buys video games from me. We sometimes sell $900 worth of video games a day, in a day we sell no RPGS at all (in the store).
Most of my RPG customers are very select. Many of them buy elsewhere predominantly (there is a shop in town that discounts every game 20% off of retail) whether online, or in town. A very few are primarily my customers (and they shop me for selection, mostly - as I have nearly 1000 titles in stock). These customers are mostly middle to lower class earners, male, many are military folks at the local post (very small post), and some are highschool kids (though not many!).
Most of my board game customers are single, younger adults. But, I also sell to some families, and older professionals (again, doctors, lawyers, bankers). My board games selection is about 600 games, and we sell about the same in gross dollars as we do RPGs - which is to say not that much. Again, most of my board game customers are not using us as their primary source--they shop online, they shop at cons, and at the discount place here--but come to us for selection, and service. Some believe that having it today is better than waiting a week. Though, frankly, not enough.
I will note that since the death of Pokemon (in sales terms, if not in terms of game production) and the deluge of YuGiOh into every convenience store and gas station we have gone from 40% of our customer base being under 15, to 40% of our customer base being 40+.
Fad products effect retailers a lot. A hot products, and the frenzy to have it now can help retailers with big sales - and the death of such a product can undermine retailers who came to rely to heavily on that products sales strength. It also changes demographics, dramatically, and instantly. In 1997 (wasn't it?, or was it 98?) when Pokemon took off, our clientele from the hobby shop went from 80% over 40, to 90% under 15 in the matter of a month. This caused us to empty floor space and put in tables and chairs. I remember seating 200+ kids playing Pokemon each Saturday. But, when Pokemon died (December 1999/January 2000) it took with it a majority of my customer base. And, suddenly, we were back to $15,000 months in sales, and not the $100K months we had had previously.
Overall: My customer/clientele base has changed over the years to about 10 years older as the average customer age. So, my customer base is graying--getting older, and newbies are not replacing those who leave the hobby at a steady rate, so my customer base is also shrinking.
Thus, the reason we sell Video Games, DVDs and other merchandise in my store.
The Change in customer ages has been primarily due to the fact that games are entertainment. And, today there are a lot more entertainment options than 20 years ago.
20 Years ago there was no online gaming, no Internet to affect sales, and big boxed retailers (Walmart, Toys R Us, Barnes & Noble, etc., etc.) did not dabble in games. Additionally, there were fewer movie screens in town, VHS rentals were kind of new, and not really abundant yet. Now you can buy a DVD or rent one, anywhere.
Games are not worse, they're better--better than ever, in fact. But, they are competing with Video Games, online gaming, pc gaming, MTV, HBO, DVDs, more movies, and more entertainment options for everyone. Entertainment dollars are being gobbled up each Christmas by IPods, eBay, the newest Video Game system, TiVo, and a host of other entertainment options. And, lastly publishers did not sell direct to consumers 20 years ago. Now, most publishers have websites selling direct to consumers, cutting out the retailer (it is their right to do so, by the way, I ain't bitching about it, I'm simply pointing out another thing that effects retailers)--and many will sign the book or game to you personally, so why wouldn't you want to buy it direct?
Lately a couple people I really respect, have been attempting to convince me that the "Game Retail Store" is obsolete. I used to say "No, way!", but not anymore. Now, I find their arguments more and more convincing.
Ah, well. Life is tough all over, no? Adapt or die, maybe that will be the Titan Games new motto.
See you at Origins Game Convention in 2007.
Anyone have more things they'd like to have me expound on, please let me know. Titangamesinc@aol.com is my direct email.
Please visit the online shops at: http://www.titangames.com or http://www.3FREEgames.com
And, shop often. My cat needs to be declawed.
Marcus King
owner - Titan Games
owner - 3FREEgames
Vice President of the Game Manufacturers Association
