Are Card Shops Profitable

How Do Card Shops Operate?

Before we tell you more about the profitability of card shops, let us tell you how they operate.

Card shops or (card stores) are locally-owned businesses that deal with a specific type of card (like sports cards or game cards) as well as card-related merchandise. You may have come across a card shop selling different types of sports or game cards, such as Pokemon, Yugioh, and Magic. 

Sure, with the advent of technology and the presence of a plethora of virtual games, one may argue that the popularity of these cards and the stores themselves are declining. However, they still hold value for the right customers- people who love acquiring ‘collectibles’ for profit or self-use.

In fact, a card store makes money (or at least a chunk of it) by selling individual vintage or rare cards that are highly valued among gaming enthusiasts. These cards can cost hundreds or even thousands of dollars, so buying them in bulk can cost you a lot of money.

But where do these shops get these cards? The answer to this is cards trading or collectors selling rare gaming cards. Shop owners then sell them at half the original value, which can still be a significant amount collectors are willing to pay.

Besides making money for the shops, trading cards allow collectors to sell many cards at one go to earn considerable profits despite the value being reduced.

How Much Do Card Shops Make?

Guessing the average income and profit margins of card shops is extremely challenging. But most card shops, in general, make about $40,000 per year, which is the national average income. 

Now, being the national average, it won’t be wrong for us to assume that it can help people to pay some or most of their bills. However, surviving on $40,000 can be difficult if you live in an expensive area. Besides, your business may see little to no profits for the first couple of years, and you may have to wait till the 3rd year to earn any significant profits.

Interestingly, many card shop owners are in the business for the love of the business and the gaming industry more than profit margins. Similarly, successful card shops that have been running for many years with a good reputation for keeping good vintage collections usually don’t earn more than $200,000 a year. 

Which Cards Earn How Much Money?

Whether you’re looking to run a ‘profitable’ card store or sell your cards to make some extra cash, let us help you by walking you through the basics of what cards can earn you money and how much.

How To Start A Retail Card Shop?

Just like for any other business, starting a retail or trading cards store requires capital and a proper business plan (whether the store will be online or offline and the location of the offline store, etc.). We have discussed these factors in detail below to help you understand them better.

A. Capital

One of the most important things to start a retail card shop is good capital. Remember that you may need thousands of dollars to buy the best vintage cards, plus you probably won’t make money for the first 2 to 3 years.

Now, if you are planning to sell the cards mentioned above, you will need anywhere between $15,000 and $20,000. However, adding accessories and merchandise to your inventory may extend the startup costs to up to $50,000 or more.

Another thing to consider here is the type of cards you want to stock up on in your store. We’d suggest starting with MTG cards, which may help you make money faster as well as establish a reputation for your shop. You can then add Yugioh and Pokemon cards depending on the market demand and budget expansion you can afford. 

Aside from stocking up, you’d need to procure a business operating license according to the regulations of your area and rent a store in case of a physical outlet. 

Similarly, starting an online card shop will require buying a domain (website) or subscribing to a third-party service or website that allows you to sell your products via them. In this case, you’d need to pay attention to integrating payment gateways. You can also include an online customer service chatbot to help customers during purchases.  

Further, there’s the cost of marketing campaigns, especially during the initial days, to boost the presence of your store name. 

B. Location

Given the considerations, becoming a card store owner may not seem like the best idea, especially if your area doesn’t have a lot of card enthusiasts who will make for a good customer base. But there are a few situations where opening a card store may well turn out to be profitable.

For example, opening a card store in a location where people are interested in purchasing gaming cards will be a better alternative. But you must do your research about any existing competition. In fact, opening a physical store in this scenario may be more profitable than having an online outlet, as people will have the chance to examine the items physically.

Moreover, cities and metropolitan areas with a considerable population will increase the chances of your store’s profitability. Likewise, the younger population of college cities and towns is likely to be more interested in card and sports games.

Final Words

So, are card shops really profitable?

Well, the answer to that will largely depend on what you perceive ‘profit’ to be. If you think being able to pay bills with the revenue from your card shop is adequate, then you may consider card trading to be a profitable business. But again, what is a sufficient pay will depend on the cost of living of your region or area.

Overall, we’d say that card trading can be a secondary source of income, especially if you’re passionate about the business. Besides, keeping card merchandise and other related accessories can increase the appeal of your shop as well as contribute to your revenue generation.

On that note, it’s time for us to wrap up today’s guide. We will see you next time with more such content, so keep an eye on this space. 

Till the next time, goodbye!