Franchise Review - Play N Trade
By James Phillip on Mar 11, 2008 in Franchise
The video game market is bigger then ever and when one of my good friends says he would rather play Xbox with his kid then read him a book, then you know its a big market!
Simple fact is kids love video games (just as many adults to) and I do not see this market going backwards. Play N Trade looks to have a sweet store build out and a pretty good franchise system to support their stores. I will admit I have stopped at a like store on the way home before and picked up a game I wanted and I don’t even consider myself part of that core market. And if you ever come across one of these stores in the mall you cannot even get a step inside they are so packed.
Lets take a look at the basics
Liability - Low
Startup Cost - $160-400k (rough numbers but considering you need a retail store \ nice build it out it will cost a bit)
Risk - Low to Moderate (unknown question is length of time to build an inventory of used games but I am sure corporate assists with that)
I do not really have anything bad to say about this business. I like the gaming market and I certainly like the margin on the products. In any economy you will find people wanting to offload their old stuff so they can buy some new stuff and in a market like today you can bet more and more people are selling their used items without question.
I wonder if mall locations are part of their plan? Even in a normal retail space you have a decent chance of doing well with this business.
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