« Retail in Union sees success, failure | Main | Local pet store keeps up with corporate chain »

Used-Gaming Finds Niche

While corporations are bringing in profits from new videogame systems on the market such as Playstation 3, X-Box 360 and the Wii, some gamers are looking to locally owned businesses that carry older games and systems that cannot be found elsewhere.

Two locally owned stores in downtown Lawrence provide their customers with used videogames, equipment and good deals. One used videogame store, Game Nut Entertainment, is in the process of creating a gaming loft where players can come to participate in a variety of gaming activities.

“What I do is 99 percent pre-owned sales,” said Gene Nutt, owner of Game Nut Entertainment. “We buy and sell games, systems, CDs, and movies in VHS and DVD.”

It may appear that older game systems such as Nintendo, Playstation, Sega, are going out of style, but sales continue improving.

“This past Christmas has been my best ever,” said Brian Harris owner of Game Guy Video Games.

“The transformation year from when new consoles come out is always rough. It takes a while for the newer stuff to come in, but after that I have more new consoles then I want, sooner then I want.”

The used-gaming niche has found its way into the community.

“Every time I walk past I come in. It’s convenient because it is in downtown and I can drop in whenever,” said Lawrence resident Blake Davis, Game Nut Entertainment customer. “Since it’s locally owned instead of a franchise it has a local feel and fits in well with downtown.”

The two stores, only a block away from one another are competitors between themselves and also with other carries of games and entertainment items.

“My primary competitors are the big-box boys and Game Nut,” Harris said.

Harris has had numerous chains compete over the nine years he has be operating his store. Game Nut Entertainment, open for a year and half, has a slightly different philosophy competition.

“I don’t really have a lot of competition in the corporate area. They are the source of the newer products, so we need them in order to have our products here.” Nutt said.

Used gaming stores are one of a kind in the community and are known as such for business around the area.

“We went to CD Trade Post and they told us to come here because they didn’t have what we were looking for,” said Mary Beth Brown, Lenexa senior who purchased a Sega Genesis from Game-Guy. “They had 100 percent of everything we wanted. My friends and I will be back in about a month or two for more games.”

In search of new ideas and ways in which gaming can be expanded, Game Nut Entertainment is launching a gamers’ loft on second floor of the store. The loft will include several big-screens TV’s, comfy chairs, a soda-snack bar and will charge customers per day or per hour to play video games or watch movies.

“It’s going to be like bowling alleys where teams can have leagues, and tournaments,” Nutt said. “I found one is St. Louis. They are popping up on the east and west coasts since the decline of video arcades.”

In addition to games, Game Nut Entertainment also profits greatly from movie sales.

“I come here to find old movies I have not seen in a while, they are cheap and the selection is non-traditional, they have things that you would not find at Wal-Mart,” said Carlos Mata, Overland Park sophomore and Game Nut Entertainment customer said.

Regulars, who know the quality and trust the service, provide a lot of the business in both stores.

“It’s the old rule, 80 percent of revenue from 20 percent of your customers,” Harris said.

The idea of locally owned business with a unique product to offer is what attracts a lot of consumers.

“We have been to quite a few places, but we tend to comeback here a lot, we want to support our community rather then go corporate,” Debbie McClelland, Game Guy customer and Lawrence resident said.

In order to draw a winder target customer, both stores provide other entertainment items of interest.

“Movies and music make up for a lot of the profit, but games are still the bread and butter,” Nutt said.

The results at the end of the day are what keep Harris happy with his business.

“For me success is the ability to measure in units of time. Freedom to do the things I want when I am not at the store. Money is less of a concern.”

Both gaming stores are doing well, but each owner measures their success differently.

“I think a business that is profitable is successful,” Nutt said. “You have to find a target customer and do the things they want. So many small businesses focus on what they want to do, but you have to mold with your market to be successful.”

TrackBack

TrackBack URL for this entry:
http://ehub.journalism.ku.edu/admin/mt-tb.cgi/2430

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)


About

This page contains a single entry from the blog posted on February 16, 2007 4:22 PM.

The previous post in this blog was Retail in Union sees success, failure.

The next post in this blog is Local pet store keeps up with corporate chain.

Many more can be found on the main index page or by looking through the archives.

Powered by
Movable Type 3.35