Well define “low cost”. I have too much free time and a little money, I’m contemplating opening a small bookstore.
Found a space that rents for $600 a month, $600 for shelving, $350 for a POS system, domain and email registration, LLC filing for $100, initial inventory of $5,000. Social media advertising.
Online sales can be brutal, just a warning. Amazon and the like have set a precedent that no local, independent seller can fulfill. Everyone wants free freight, and they expect their product in a day or two. They don’t understand that not only does Amazon have its own national distribution network with centers everywhere, but Amazon doesn’t make money on physical products that they sell. Selling shit online is a loss leader for Amazon. Small businesses can’t eat the cost of that.
My company got an online order from someone 3000+ miles away on a Monday, to ship FedEx ground. She called us on Tuesday angry that she hasn’t gotten it yet.
Our location is in the name of our company. It should be very clear that it will take more than a day to go that distance. You would think so, at least. She ended up canceling the order and we had to put everything away. Wasted easily an hour of company time for absolutely nothing.
I have a couple of ideas for online sales, first, you can sell books through Door Dash and Instacart. Yes, shipping costs, but also more or less instant gratification locally. 😉
I’ve also been hearing good things about a platform called Whop.
I started my game shop with about that much. I was open for 7 1/2 years. I did not make much money, but that was because I was in a town of <10,000 people. Being in Portland you should do a lot better. And that rent is amazing. My last building was $1,250/month.
How many books would you need to sell to make your money back? How many books would you need to sell to cover your recurring coats and make a decent profit?
It’s less about “how many books?” and more about “how much per day?”
There’s a minimum amount “to keep the lights on” and then how much to turn a profit.
Generally speaking new books carry a profit margin of 30-40%.
So $600 a month for rent.
Utilities (electricity, internet, insurance, security system) probably another $150.
Figure a 30 day month that means doing $25 a day just to keep the lights on.
I have to replace the stock sold with more stock. So 60-70% goes back into maintaining the supply.
So $25@30% means sales of x@100%, solve for X. 25*100 = 2500 / 30 = $83.33 a day just to keep the lights on. $25@40% = $62.50 a day.
If an average transaction is $20, that’s 4 or 5 sales a day just to keep the lights on, with a little bit extra, figure 1 to 2 books per transaction?
Now, that being said… To recoup the total costs, $600 for fixtures, $350 for a Point of Sale, a certain percentage of each transaction to handle credit card processing (generally 2.5% + a transaction fee that can be as high as $0.10). That’s $950 + $0.60 per transaction I have to make back before there’s any money left over.
Let’s say I do 5 transactions a day, $100 a day.
$100@30%
83.33 - Keep the lights on.
$16.67
$0.60*5 - $3 a day transaction fees.
$13.67
I have startup costs of $950, not counting domain registration, creating the LLC, etc. I’m ball parking this to keep it simple. 😉
$950 / $13.67 = 69.5 days before I make back the money on the fixtures and machinery needed to run the business.
$100@40%
62.50 - Keep the lights on.
$37.50
$3 a day transaction fees.
$34.50
27.5 days to make up the money on the fixtures and machinery.
Now, I haven’t paid ME yet, and I have a mortgage, health insurance, and I need to eat too…
So let’s say to personally survive I need $5,000 a month.
$166.66 a day. @30% that means an extra $555.55 a day. 27 transactions a day pays ME. So figure on $671.55 a day pays me, the transaction fees, and keeps the lights on. 34 transactions a day.
$166.66 @40% that means $415 a day. 21 transactions a day pays ME. $527.60 a day pays me, the transaction fees, and keeps the lights on. 27 transactions a day.
Doesn’t count advertising, taxes, the domain and email costs, the business license and such, one time costs that I’ll likely just eat. But you get the idea.
If I hit 35 transactions a day at $20 per, I’m golden.
Space can be open 8 AM to 8 PM, 3 sales an hour? Every day? Seems feasible. Would be working myself to death, but that’s life in startup!
Well define “low cost”. I have too much free time and a little money, I’m contemplating opening a small bookstore.
Found a space that rents for $600 a month, $600 for shelving, $350 for a POS system, domain and email registration, LLC filing for $100, initial inventory of $5,000. Social media advertising.
Thinking I can do this…
If you do this, and you’re near me, I’ll come buy a book from you.
Plan is to also offer online sales so you don’t have to be local. 😉
Online sales can be brutal, just a warning. Amazon and the like have set a precedent that no local, independent seller can fulfill. Everyone wants free freight, and they expect their product in a day or two. They don’t understand that not only does Amazon have its own national distribution network with centers everywhere, but Amazon doesn’t make money on physical products that they sell. Selling shit online is a loss leader for Amazon. Small businesses can’t eat the cost of that.
My company got an online order from someone 3000+ miles away on a Monday, to ship FedEx ground. She called us on Tuesday angry that she hasn’t gotten it yet.
Our location is in the name of our company. It should be very clear that it will take more than a day to go that distance. You would think so, at least. She ended up canceling the order and we had to put everything away. Wasted easily an hour of company time for absolutely nothing.
I have a couple of ideas for online sales, first, you can sell books through Door Dash and Instacart. Yes, shipping costs, but also more or less instant gratification locally. 😉
I’ve also been hearing good things about a platform called Whop.
https://fortune.com/2026/06/14/gen-z-founder-steven-schwartz-whop-platform-minted-650-millionaires-wants-work-be-fun-money-worries-obsolete/
But you’re right, making shipping times 100% clear is a must!
I started my game shop with about that much. I was open for 7 1/2 years. I did not make much money, but that was because I was in a town of <10,000 people. Being in Portland you should do a lot better. And that rent is amazing. My last building was $1,250/month.
OP didn’t say Portland though
I mod the Portland community so it’s a fair guess. 😉
This is the greatest mystery of that comment
But the person I replied to is in/around Portland.
Theyre going to have a rough time competing against Powell’s and chain stuff like B&N.
The suburb I’m in has very little in the way of bookstores and zero chains.
How many books would you need to sell to make your money back? How many books would you need to sell to cover your recurring coats and make a decent profit?
It’s less about “how many books?” and more about “how much per day?”
There’s a minimum amount “to keep the lights on” and then how much to turn a profit.
Generally speaking new books carry a profit margin of 30-40%.
So $600 a month for rent. Utilities (electricity, internet, insurance, security system) probably another $150.
Figure a 30 day month that means doing $25 a day just to keep the lights on.
I have to replace the stock sold with more stock. So 60-70% goes back into maintaining the supply.
So $25@30% means sales of x@100%, solve for X. 25*100 = 2500 / 30 = $83.33 a day just to keep the lights on. $25@40% = $62.50 a day.
If an average transaction is $20, that’s 4 or 5 sales a day just to keep the lights on, with a little bit extra, figure 1 to 2 books per transaction?
Now, that being said… To recoup the total costs, $600 for fixtures, $350 for a Point of Sale, a certain percentage of each transaction to handle credit card processing (generally 2.5% + a transaction fee that can be as high as $0.10). That’s $950 + $0.60 per transaction I have to make back before there’s any money left over.
Let’s say I do 5 transactions a day, $100 a day.
$100@30%
83.33 - Keep the lights on.
$16.67
$0.60*5 - $3 a day transaction fees.
$13.67
I have startup costs of $950, not counting domain registration, creating the LLC, etc. I’m ball parking this to keep it simple. 😉
$950 / $13.67 = 69.5 days before I make back the money on the fixtures and machinery needed to run the business.
$100@40%
62.50 - Keep the lights on.
$37.50
$3 a day transaction fees.
$34.50
27.5 days to make up the money on the fixtures and machinery.
Now, I haven’t paid ME yet, and I have a mortgage, health insurance, and I need to eat too…
So let’s say to personally survive I need $5,000 a month.
$166.66 a day. @30% that means an extra $555.55 a day. 27 transactions a day pays ME. So figure on $671.55 a day pays me, the transaction fees, and keeps the lights on. 34 transactions a day.
$166.66 @40% that means $415 a day. 21 transactions a day pays ME. $527.60 a day pays me, the transaction fees, and keeps the lights on. 27 transactions a day.
Doesn’t count advertising, taxes, the domain and email costs, the business license and such, one time costs that I’ll likely just eat. But you get the idea.
If I hit 35 transactions a day at $20 per, I’m golden.
Space can be open 8 AM to 8 PM, 3 sales an hour? Every day? Seems feasible. Would be working myself to death, but that’s life in startup!
Maybe throw in a coffee shop and some evening events. Not much reason to go to any retail establishment these days.
The space I’m looking at is part of an international market hall.
Think Mall Food Court only without the mall. My shop would be between a Cuban bakery and a jewelry store.