I know there has been some consternation around MTG recently, events we offer, and prizing, and I wanted to try to address the players and let you know how it fits into our business plan (such as it is).
First, Small Town Games has always been more about the atmosphere of the store…providing a fun, attractive, social and friendly place to play games, whether MTG or others. Our allocations and our cost of product have always prevented us from having the most product at launch, being able to offer ridiculous prices on boxes, or being able to offer the same prize structure as other more established stores. I wish it were otherwise.
That said, I have always tried to provide good value for events, especially smaller ones. I tried to run Friday Night Magic as basically a way for players to spend $10 for a couple hours of entertainment and walk out with (on average with 8 players in the pool) about $11.80 in product (2 set boosters and 2 promo packs for the pod). Our total take would be $28 for an 8 player pod (about $3.60 per player) .
I tried to run Commander as a win-a-box, where at 8 players generates $120 in revenue for the store, and the store gives out a box (our regular price $144.99) and again another 2 promo packs (around $15). Total profit for the store is less than $19 (our price on a set box is $101.45). Again, players get to hang out and (hopefully) find a good value for their entertainment dollar. I’d gladly run draft pods of 8 all day every day for the a similar price per box if a player wanted to take the lead in organizing them.
Now, a couple of notes…running a 2 hour event where the profit to the store isn’t enough to pay the employee running it for those 2 hours makes it very difficult to keep the lights on. Sure, I recognize that most times the employee is also doing other things (unless they’re playing)…but my goal has always been, if Magic grows (or any other product line), then we’d have an employee full time dedicated to each event. However, we’ve never brought in enough revenue for the average event to make that happen.
Second note, yes, having folks in the store hopefully leads to secondary sales of food and drink and other products. For some people, that is a bit of revenue for the store, but not as much as one might think. Average concession for the store(for folks that have some) runs about $9, of which we usually make about $4. So for a pod of 8 over 2 hours, the store would make a maximum of maybe $60 (and hopefully more in card sales, sleeves, etc). Of course, most times we can’t get a pod of 8 to fire, but as an example I hope its helpful to see where we’re trying to get to.
To put that into perspective, all in, the store needs to make about $40/hour profit to to keep the lights on. Now, that does not include paying Jeff or I for any hours (Jeff is currently on the payroll of our other business, and I haven’t ever taken a dollar out of the store, and my hours working on behalf of the store since 2020 are about 5000 (not a joke).) So I hope folks see that any of our differences about Magic and prizing is not about penny-pinching, or not wanting to offer a good value to people, but its about how on earth do we all work together to keep the lights on (assuming people want to keep the lights on). If the store actually paid out all the hours folks have worked on its behalf, we would already have closed because we’d be nearly $100,000 in the hole.
Please note, this is not to make anyone feel bad…businesses come and go, especially in Lewisburg, and we knew going in that 80% of all game stores close within the first 2 years…most of them because they don’t come to grips with the above realities. The fact that we’ve been open over 2 years is awesome, and I’m glad to have been a part of it no matter what happens in the end. I still think it’s possible the store survives, but to do that, we all need to come to some kind of understanding about what it would take to actually have a profitable store.
Now, some of you absolutely do understand, and have supported the store 110%. All the players that have bought a box of cards from us at $145 when we all know they are available for $110 at release online is making the choice that having a table to play cards at is worth something, and we are grateful for you. Any DM that buys a book for their game at $50 when Amazon sells them regularly at $30 is saying, ‘hey, this place is worth it.‘.
When I can’t offer $500 worth of product for an event that brings in $400, I hope you’ll understand that its not because I don’t WANT to. If we were firing 12 player events twice a week like clockwork, I would regularly be adding cool things to the prize pool. I always want to fire up the popcorn machine and give it away; I always want to toss in extra promos or packs or coins. Because if we were regularly firing 12 player events there would be room in the budget to do that.
However, at this moment I can’t, because I’m trying to keep Caleb and Robin employed. I’m trying to keep a store open that is safe for kids, and nerds, and outcasts to have something better to do on a Friday night than get high. I have to budget for our air conditioning going out again this summer, and for 2 air fryers that we just replaced. In order for this all to work, every event needs to be self-sufficient in and of itself, and we can’t just hope that ancillary sales makes it all worth it. (because so far, they’re not)
My door has always been open, and so have my books. If anyone wants to talk the economics of running a business generally, or a game store specifically, I will gladly sit down and do that with you. No one is over here secretly acting like Scrooge McDuck as we shower ourselves with gold coins. We’re all intently trying to figure out how to keep our little slice of heaven open, because at this point we’re not making it.