Forums: Discussions for entrepreneurs and small business.

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!

it can work with the understanding that it will be a short lived venture. online streaming (netflix) is the future - but there are those who will scour up DVDs while they are still available.

It would seem that you have spent some time on only one side of your business model - the purchase and sell of DVDs.  But, is there demand in your area for used DVDs and the like?

Without customers - you have no business.  Instead of trying to push something on customers becuase you can purchase them cheap - ask them what they want.  If they want DVDs, then it is easy to get started, if they don't you are wasting your time.

It starts with customers - get out and talk to them to see what they want.

Thanks for the replies!

Webjunky, I agree that the window for selling DVDs will be relatively short lived (about 3-5 years) but our city is somewhat slower at adapting new technology (ex. Most businesses in the area down even have a personal website, people were still buying VHS many years after DVDs were released). My goal is to have 3-5 stores open in the surrounding areas within 3 years. I also am confident that within that time span I will be able to effectively pivot the stores to adapt to changes in technology.

BMT2010, there is one store in our area that is selling used DVDs, and they always have about 4-8 customers in the store at one time. I have seen DVD and CD stores come and go over the past 10-15 years in our area and they have always had people in stores browsing and buying. I am confident that there will be demand for cheap DVDs.

If anyone else has anything to add I would appreciate hearing from you!

I have a better idea...why not sell these used dvds from machines similar to RedBox?

Seeing DVD stores come and go can be both a good and a bad thing. Good that there is demand but bad that the stores just werent profitable enough so they had to close shop.

Do something like RedBox. Less overhead than a store and the future of movie buying for the next several years.

Red Box is your best route!

may be better to open an online store

Don't invest in a dying industry. If anything, I'd focus just on used blue ray dvd's. And music?, please lol. Who buys CD's these days, no wonder they're cheap. 

Old consoles have been dead for years. It's all about cutting edge graphics and online game play. 

Yes it may be profitable but it must that you have to have provide the online availability of your service that will give your business a touch that is according to current requirement of each and every type of business.

Just open up a pawn shop!  You will still get to sell all the things you mentioned above but you may have an actual chance to survive and make money.  Pawn shops are very scale friendly, there are franchises and they withstand economic dips pretty well.  Maybe something to look into and would not cost more then the investment you are thinking about here.