Software business idea

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Socoder -> Off Topic -> Software business idea
Tue, 25 Sep 2007, 08:54
mindstorm8191	Hi guys, I was wondering if I could stir up some discussion about an idea of mine I had. I can definitely use as much input on this as you guys can provide. Okay so here's the plan. The problem I see with selling software in stores is, the only preview of the game you get is a few screenshots and a description. If you buy the game, install it on your computer, and end up not liking the game one bit, you're pretty much stuck, as the stores won't take it back. This is pretty understandable, though, as people could just as easily buy a game, copy it to their computer or another CD, and return the original to get their money back. So my plan is this: Set up a store in which there are a lot of computers around that customers can use. On these computers, there will be a whole set of different games and other programs, and let the customers try out whatever programs they might be interested in. So now, instead of taking a chance on buying a game that's no fun at all, you know exactly what you're buying, and know much more about the game than what a cover box can tell you. My plan is to include a lot of other software packages, not just games, so that if someone wanted to find a decent photo editing program or something, they could try it out here. So what do you think? Would you shop at a store like that? I'd like some opinions on this. -=-=- Vesuvius web game
Tue, 25 Sep 2007, 08:57
Jayenkai	We used to have stores like that, but you don't see them very much anymore. The main problem nowadays is that within a week of opening EA will pay you thousands of pounds to put their games on 85% (or more) of your systems. It sucks.... But that's what'd happen. -=-=- ''Load, Next List!''
Tue, 25 Sep 2007, 09:13
Nolan	You're thinking from the customer's point of view, mindstorm. The business couldn't care less if you buy a bad game, because they're making money. -=-=- nolandc.com
Tue, 25 Sep 2007, 09:17
mindstorm8191	Well, I could easily put EA games on all the computers. But I also plan on having alot of other programs on each of the computers as well, giving anyone the chance to try out whatever is available. So the customers would have ample opportunity to try out EA's games, but could also try out any games from other companies. I think it would certainly open up competition for games and applications. I could even try to advertise games made by Blitz users. But... I'll have to have something going first. -=-=- Vesuvius web game
Tue, 25 Sep 2007, 09:23
mindstorm8191	Nolan, that may be true. But how many customers out there consider buying games and such, but don't because they know hardly anything about it? I could offer a whole slew of games, but if only a couple titles are sold on a regular basis, as a company I'm still happy. And so is the customer, because they don't waste money on bad games. And I hope that customer satisfaction will bring customers back, to try new things. -=-=- Vesuvius web game
Tue, 25 Sep 2007, 09:29
Jayenkai	... You're talking as though you're planning this/already are in the midst of doing it. Is this really something you're doing!? -=-=- ''Load, Next List!''
Tue, 25 Sep 2007, 10:38
Forklift_Fred	but if only a couple titles are sold on a regular basis, as a company I'm still happy This, along with the whole concept, sounds like 'ideal world' thinking. The problem is that a company needs money to survive. You'd need multiple sales daily just to stay open. Maybe I'm looking too narrowly at what you have said but I'm sure you'd need to be running as a 'normal' store with just one or two computers before the dream can become a reality. Unless you're already loaded with dosh! The next issue would be along the lines of Jay's comment about EA. I'm sure there are companies who would refuse to sell you their games without stupid amounts of control and just having a game installed on 85% of the computers wouldn't be enough, they'd have to be running them 85% of the time as well. (where does this 85 come from anyway?!) I love the idea but I can't see it working on the scale required. You'd have just as much luck gathering together demo versions of everything and distributing that some how... maybe grouping similar types of games and giving them away but again you'd get companies not wanting to be on the same disc as their competition. Sorry to be so negative but it's the way the real world works. -=-=- Come rain or shine...
Tue, 25 Sep 2007, 13:34
JL235	The problem isn't just about the large businesses but with the consumer as well. In all honesty consumers are idiots. It has been proven that there is no correlation between review scores and game sales whilst the games magazine industry is falling. C&VG along with many others have already fallen. In contrast it is proven that there is a correlation between advertising and sales, and the majority of consumers will buy a game based on name and box design alone rather then any real experience. Then there are the added overheads because you cannot sell all those games piled up for people to try. Then there is the extra staff needed to switch games on the machines whilst the other people are working. It adds overheads whilst as Jay pointed out you could simply be paid to stick a bunch of EA games on before opening. That is what has obviously happened to my local GameStation. They have a massive basement which used to be their miscellaneous and retro section with glass cabinets full of Mega CD's, Neo Geo's and some old arcades to play on. It was great just looking around. Now it is a Microsoft themed all painted in XBox white and green. They sell all their 'Games for Windows' and 360 stuff down there some nice big green settees for playing on XBox 360's hooked up to massive HD screens. It's a real shame because I loved looking round the retro section/museum. However it is still a very nice basement that is really open (as it's MS only). Looking at it from a business point of view it is a very good idea. They are being paid to put a lot of attention on big name games that would sell anyway. In contrast not even I used to buy anything from the retro section. Just walk round with friends pointing out great games I had no intention of paying for, whilst everyone else never went down there. Maybe for a small independent store your idea could work.
Tue, 25 Sep 2007, 14:08
mindstorm8191	Jay: Yeah I am planning this still. I live in a small town, and I know of this one empty shop on town square that I can rent for $500/month. But of course I have to make lots of sales for things to fly. I don't have a lot of money (I'm working at McDonalds) and I'm really just looking for ways to make extra money. But if I can start this thing small, and not have to spend alot of money on it all, I could concentrate on turning a profit. If it does well I can grow. If not maybe I can sell out and close shop before loosing too much. Yes, I know its a huge gamble. Fred, I understand there's a lot of expenses involved, and it'll be hard to turn a profit. I'm still gathering information about this... and I was hoping I could get info from friends here, and opinions on what you guys think. I appreciate your input so far, and hope you can provide more. -=-=- Vesuvius web game
Tue, 25 Sep 2007, 14:55
Jayenkai	Well, it'd cost a fair bit to get going, I'd think. I mean, 1, you gotta buy the systems for display. That's, what, a dozen or so PC's, a few of each Console, and a bunch of screens for them all. 2, You have your initial game stock to get. I've always wondered exactly how that works, but I can't imagine it's cheap however it happens. 3, You need some kind of security/peeps you trust can keep things calm.. Not just for keeping out the idiots, but also to ward away the "Regulars" who keep coming only to play and never to buy.. And then there's the whole Schoolkids Wagging It/Dinner Hour issue, too. Take the time to think it over well, and make sure you do plenty of planning ahead for all possible contingencies. (And maybe time to start asking friends/family for thoughts/help.) -=-=- ''Load, Next List!''
Tue, 25 Sep 2007, 16:08
JL235	There are shipping companies who sell game stock in bulk. They often get free bees early too, like someone I knew worked at one of those places and they had a PSP in their office about 3 months early. As a genuine question, have you ever worked in a shop? There is a lot to do to manage and keep it running. But hey, if you really wanna do it give it a shot. Your idea could help build customer loyalty which will give you your returns. I always shop at Virgin Megastores out of loyalty, however I might switch to the bigger HMV opposite because Virgin's railings keep on electrocuting me. Every time too.
Tue, 25 Sep 2007, 17:35
svrman	Aren't most computer stores doing this already? I mean PCworld do it, apple stores do it, GAME does it... Am I missing something here? Usually though, like Jay says, you'll attract the wrong crowd. Scores of kids and the unemployed will idle in your store with no intention of buying. Even worse, is that you say you plan to open in a small town. If it's anything like Wakefield, you'll die pretty quick. Things I've come to realise when opening a business - take into account the bills. Council tax still doesn't make sense to me but it's like £300+ every month. Gas, Electricity, Insurance, Security, ventilation, stock, media (like posters, flyers) etc. oh yeh and Food, wage, PAYE, VAT, parking tickets! Good god, hope you don't forget to hire an accountant! Refurbishment is a given. That'll cost you like about £10k (if you know who to ask! Plus don't forget to +VAT). Then when you finally open, what do you plan to do about advertising? And then repeat advertising? And days of completely no business? And when all these freaking bills keep coming at you? I don't believe you can just pull out without losing too much so think long and hard about it if you really want to invest. Make sure you can afford to pay much much more than £500 a month and continue doing so for at least 3 months. Worst that can happen? Bankruptcy. Best that can happen? You make enough to keep going for another week. So the gist of it, is this: If you don't have that kind of cash or income, It'll be a mistake to start as you are. But then again, it is your mistake to make. (Ps. Please don't take offense at my negativity but this is from my own true-to-life experience!) -=-=- BlitzRSS script back online!
Tue, 25 Sep 2007, 20:02
mindstorm8191	svrman: Are those stores you're mentioning trying to sell games and applications on their systems? I know that Best Buy has PCs set up and some of them you can use in-store. There's a shop in town called Computers Plus that has lots of laptops set up. But they don't have any extra software running on it, so that people can preview things before they buy. I actually talked to the manager at Computers Plus about the idea, but they don't sell much software there. I just think there's a big market in software, if only people can get more than a set of screenshots and features list on a box. For those of you who are mentioning VAT and pounds for money, I'm in the US, so some of those things don't apply here. But yeah, I do need to know what kind of laws and fees exist around here for businesses. svrman: I know not to take that negative, you just want me to think realistically. But have you actually attempted to start up your own business once before? I will be interested in any information you can help me with. -=-=- Vesuvius web game
Wed, 26 Sep 2007, 04:30
svrman	Hmm ok I kinda see what you mean. Not sure how that would work tbh but I wish you luck all the same. Ah ok, I'm in the UK. I've realised I've misread your post as it says $500/month. Silly me Well, my intention was that when we started our business, the bills were really a shock. I think that if someone told us to watch out for them, we'd have been better prepared. Currently I'm running a restaurant over here but the basics (like what I'm saying about bills) are more or less the same. But like you say, the U.S probably tax differently and I guess someone whose actually started a business in the US will be able to give you better advice. -=-=- BlitzRSS script back online!
Wed, 26 Sep 2007, 05:55
Jayenkai	You're running a restaurant!?
Wed, 26 Sep 2007, 06:52
JL235	He goes into the chat room when he has no customers, so it's worrying that I used to see him there so often. I didn't realise this was to help preview software as well as games. Sounds more like a showroom idea where you can not only show people the pc but them try software too, which Evesham Technology (before their one bankrupcy) kinda used to do for their customers. Let me point out again that they went bankrupt (for one day so they could legally fire all their staff).
Wed, 26 Sep 2007, 07:52
svrman	Off-topic (sorry Mindstorm!): You're running a restaurant!? Yup, recently opened. If you're ever in middlesbrough, come by some time We sell rice topped with raw fish! He goes into the chat room when he has no customers, so it's worrying that I used to see him there so often. Hehe, business has been picking up! Usually we break for lunch so if I'm not busy, I enjoy browsing socoder. -=-=- BlitzRSS script back online!
Wed, 26 Sep 2007, 10:11
JL235	If I came in and mentioned that I'm from SoCoder, can I eat for free?
Wed, 26 Sep 2007, 14:06
svrman	Sure you can, columbo not really though -=-=- BlitzRSS script back online!
Wed, 26 Sep 2007, 18:32
mindstorm8191	Diablos: Yeah I was also planning on having hardware sales for different things as well. But I plan on starting to sell hardware later on, not right when I open. Svr: Yeah I realize there will be a whole slew of expenses that I have to consider. I work at McDonalds right now, doing truck ordering. I don't usually know how much the things I order cost, but I've seen papers showing the price of different things. I'd say the average price for a case is like $50 to $100, so its no pocket change to bring that stuff in. I think a single fish sandwich costs 38 cents in food, and we sell it for like $2.00. But you have to consider everything else, like labor costs, electricity, property taxes, advertising, etc. etc. So if they can't keep the customers coming in, the business will fail really fast. As a general question, do you think there's a big market in selling professional applications for various businesses? -=-=- Vesuvius web game
Wed, 26 Sep 2007, 19:36
JL235	Yes, a very big market that is already heavily tapped.