Starting a Used DVD Retail Store... Is it profitable?

[Skaught27]

I am in the process of looking into starting a used DVD store that would sell:

Used DVDs
Used CDs
Old Video Game systems and games (N64, Super Nintendo, NES, etc)
Used iPods
Other Misc Items

My reasons for wanting to start this is:

1. Buying used DVDs in bulk has never been cheaper and we can sell these DVDs for around the same price as a rental.
2. DVDs are still being bought and will be for at least the next 2-4 years. Bluray has come to the market, but it hasn't really taken over and DVDs are still backwards compatible. The DVD market isn't in danger of dying like the VHS market is.
3. Internet companies are cracking down on bandwidth usage, which will affect the ability of users to illegally download movies/music, which will lead to an increase in physical media sales again.

I am wondering if anyone here has any experience in the business or has any insight into whether there is profit to be made from the business. We have one competitor with a similar business in the city, and 3 or so video game stores, but none that sell old games. No one in the area sells used iPods or other electronics. I see there still being a ton of room for competitors with a well run business.

Any insight would be greatly appreciated!

[Skaught27]

I am also looking into hosting local video game tournaments. There is no one in the area that does this. I could use these video game tourneys as both marketing and an additional source of income.

The tournaments would be every Saturday. We would have 4 Tournaments: Call Of Duty, Halo, Madden, and NCAA. There would be a point system for each participant and the person with the most points at the end of the month would win a prize. Then we would have a grand prize at the end of the year and send one winner off to participate in a national tournament.

[NVISIONtradesho]

The margins will be very low and the cost of storing the inventory and using a store will cause you a lot of overhead. If you do an online store you will have to account for the ecommerce store and make sure you make enough to have a return. I'd say it's risky, but best of luck.

[Ryan424]

Well the premise that companies are cracking down on broadband usage is flawed out of the box. I watch Movies online for FREE daily and this won't changing now or in the future. However I like your business idea. I would suggest offering something else that gets people in the door and then once in the door, they'll see the used items available. Maybe if you opened your shop near a school, next to a Toys R US or even nearby by a store that sells only NEW movies and games. Maybe try selling coffee, hosting game tournaments and even having an arcade room.. Just a few ideas..

I wish you the best of Chance!!!