Since the late 90's and the birth of the online magic shop, local magic shops have been dropping off left and right.  A big part of this has to do with the efficiencies that come with running an internet business versus a brick and mortar shop.  Running a physical magic shop has never been easy.  Shop owners have for the most part been dependent on what the current fashion is in magic, the kind of product available and the fickle tastes of magic enthusiasts.  Online stores can undercut pricing, have larger inventory (or sometimes pretend to by lying to you about product availability), not pay for retail space and save on hiring actual magicians to demonstrate product.  The Internet bought the ultimate test of customer loyalty with shop owners repeatedly having the experience of demonstrating a product to a potential customer only to be told they're going to go buy it online for a couple bucks less.

There is no moral to be learned from this.  It's simply the transition from the old to the new.  When the Sears catalog launched in 1888 it changed retail in a disruptive way with clear pricing and a different distribution model.  Department stores and "big box" stores were all disruptive stops towards the Internet retail apocalypse.  And even the online magic shops that boomed in the early 2000's are facing their own problems as they fight for customers, product exclusives, search engine placement while trying to undercut competition and still make a profit.

Amidst this all this is an opportunity for some retail magic shops to survive (besides the touristy ones that sell hovering cards and D'Lites).  This involves embracing what makes them special and appealing to basic human needs.  Think social and think viral.  What social purposes can your shop serve?  How can your customers spread your message?

At the end of the day magic shops need to make money.  Any kind of interaction with customers needs to directly or indirectly encourage that.  Turning a section of your shop into a hang out or a reading lounge usually has the habit of encouraging the same kind of clientele public libraries get during the day: bums.  A better approach is to think about different purposeful ways you can use your space and your customers for mutual benefit.

Here are some ideas on how to serve the needs of the shop and your customers:

1.  Screen magic television specials

We've all seen them, but have we seen them with a roomful of magicians?  Setting up a screening of old (or new) magic specials creates a fun communal opportunity for magicians and gets them in your store. If you happen to have some of the tricks featured on the special available for purchase, all the better.  Charge a fee and serve food.

2.  Stay open later

Pick one day of the week to stay open until midnight.  Have later hours in general.  Most of the shops I've dealt with have weird hours and forget that many magicians are more likely to have night owl hours than banker's hours.

3.  Sell snacks and beverages

I'm surprised by how many shops fail to do this.  There's a reason there's a Starbucks in the middle of every Barnes & Noble.  They realized you can make money off of loiterers.

4.  Sponsor local magicians

Have a team of local magicians you keep stocked with decks of cards and things like flash paper in exchange for handing out flyers and promotional material for your shop.  Give them retail points for every person they send into your shop.  Help them and let them promote you.

5.  Have shows for the public

I always get asked by people where they can see local magic.  I think every shop should do showcases on a regular basis.  This can be close-up, parlor or anything in between.  Don't just think kid's shows.  Do shows in the evening.  Do the show on the counter, it doesn't matter.  Cross-promote with your local theatre groups.  Put fliers in places where people who go see live theatre like to go.

6.  Do house calls

It works for Tupperware and adult toys.  Why not take to shop to the suburbs?  Lots of magicians have friends who might like magic but wouldn't actually go to a magic shop.  Think about a magic demo that works in a living room and you give the host a share of the take.  This is especially useful if there are cities nearby that don't have a magic shop.  Bring the magic shop to them.

7. Provide promotional services for magicians

Can you help magicians get online with a website?  Get photography and promotional materials?  All of these services are things you can provide for a referral fee.

8.  Rent sound, light equipment and illusions

A big part of how music stores make money is by renting equipment.  Magic shops can do the same.  Most magicians aren't prepared for venues where they have to bring in their own sound equipment.  The same goes for illusions.  The best part about this for a shop is that you don't actually have to own any of this stuff.  Find out who has what kind of gear and work out a deal with them where you handle the rental for a cut of the profit. 

9.  Rent out your shop

If your shop has a stage, why not rent it out to other magicians?  They can use it as a showcase, for private parties or just for their own vanity.  I got my first cruise ship job from a tape I filmed on a magic shop stage.  You can even rent out your stage (even a small one) as a rehearsal space.  Set up a video camera and create a spot for magicians to practice their stuff in ideal conditions.

10.  Rent your customers

If you think of your shop as a referral service you can provide people looking for shows a place to find entertainers, you also have a venue to showcase magicians for event planners and other people looking to hire acts.  State laws vary, but being a one-stop shop for magical entertainment is way to utilize your customer base and keep them employed to buy more magic.