My Life With Comic Books: Part # 147

The current cast of characters:
Paul Howley: age 45
Mal Howley: my wife
Adam Howley: my son, age 20
Cassy Howley: my daughter, age 15
Ken Carson: manager of our stores

MY LIFE WITH COMIC BOOKS: THE HISTORY OF A COMIC SHOP-Part 147
“Conclusion of the article about our stores in Inc. Magazine.” The entire content of the original article from Inc.Magazine is copyrighted by Inc.Magazine.

Inc.Magazine writer, Anne Marie Borrego, wrote:

Last year a regular customer brought in a giant stage prop of a cat’s head from a concert by the 1970s glam-rock phenomenon “Kiss.” The seller offered it to the store for $250, but Carson wasn’t confident it would sell for the 60% markup needed to justify the purchase. After some bargaining, he and the seller made a deal: That’s Entertainment would auction the prop through its eBay account and take a 40% commission.

There appeared to be little interest when the auction first went up on eBay, but as the week progressed, Kiss fans emerged in droves. And in the last ten seconds, the bidders were in a frenzy, sending the price from $800 to $1500. That’s Entertainment made $600 from the sale, at least $450 more than it would have made if it had sold the cat’s head in the Worcester store.

In 1999, Howley’s first full year of selling on eBay, That’s Entertainment averaged $4000 in on-line revenues a week. The company is now an official eBay “PowerSeller,” with more than 1000 transactions to its credit. The company’s sales have now hit a new record.

There are, of course, the obvious growing pains that come with a new revenue model. Take inventory, for one. With new auctions going on-line daily, That’s Entertainment has to stock more merchandise, much of one-of-a-kind items of all different sizes. That’s being handled now with an inelegant mish-mash of adjustable shelves in the back of the Worcester store. At first, a running list was used to keep track of everything. Now the store has a searchable database, but Carson says he finds it confusing and a bit cumbersome.

And then there’s the matter of shipping. It took a big bite from the $600 profit on that giant Kiss cat’s head to custom-pack the thing and ship it halfway across the country. Carson, for one, says he’ll think twice before putting another large, delicate item up for auction. He wasn’t looking forward to going through the same process last winter with a new arrival, a life-size figure of Anakin Skywalker. You don’t move a heavy thing like that by trusting the Force. So when Skywalker came in, Carson decided to put it out in the store to see if he could sell it to a walk-in customer—and in March he did.

But there’s an even darker side to That’s Entertainment’s success on eBay. Despite all the benefits of Web auctions, Howley and Carson worry that they could be selling the business’s soul to an on-line devil. Every item sold on eBay is removed from the hands of the customers they see every week, the ones who count on them to find great new stuff. “Our business is not a business that’s based on people’s just buying things for their own enjoyment,” Howley explains. “This is almost an obsession for some.”

The tenor of his collectibles stores is different from that of, say, your average retail-clothing store. “People don’t come in to buy comic books or toys and just leave. They talk about it with each other. It reinforces that they’re interested in an exciting hobby,” Howley says.

That’s also a huge part of the joy of working in the collectibles industry—the opportunity to hang out with customers who also love baseball cards, Green Lantern comic books, or vintage Atari video games. It’s those excited hobbyists that Carson worries he could alienate should the business go all the way on eBay.

Earlier this year Carson stumbled upon a box of Sunday funny papers from the 1930s and 1940s, including some old Flash Gordon comic strips. He eventually listed one of them on eBay, and it sold for $20 to a collector in Ohio. “But afterwards I realized that a customer here probably would have really liked to have had the chance to buy them,” Carson said. “So now I’ll run them by that customer first.” Carson plans to price the comics from $9 to $15 in the store—less than they could fetch on-line. “But we might get more value selling them to our store customers than we would by putting them on eBay,” he says.

That’s Entertainment has spent 20 years nurturing what is arguably its most valuable collection—its loyal customers, many of whom are friends who return week after week. Every Wednesday, when the new comics are released, a handful of employees unpack the boxes of comics and distribute reserved copies to the individual mailboxes of some 600 subscribers, customers who signed up for the free service. That’s presold merchandise. And while other comic book collectors may come in occasionally, most of those loyal readers show up every week to pick up their subscriptions, chat with fellow collectors, and take a gander at the rest of the merchandise. For Carson, those customers are the heart and soul of the business—not the anonymous bidders at the other end of a broadband connection.

And when you check out the numbers, he’s right. Unlike the band of repeat customers in the stores, on-line buyers rarely return to buy That’s Entertainment’s offerings. In fact, more than 90% of the company’s eBay customers are onetime buyers. “People search for the item, not the auctioneer,” Carson says.

The irony is that something about doing business on eBay, the celebrated paragon of on-line community building, violates the spirit of the community of collectors who gather in the brick, beam, and cement-floor store in Worcester. And it’s in face-to-face encounters that Howley and Carson find so much satisfaction. “Our store is like a party,” Howley says. “One of our favorite customers got married to somebody he met at the store, and they’ve been married for seven years.”

That’s just one of the reasons that Carson can’t figure out just what to do with eBay. At the end of 1999 the store’s original eBay full-timer left. That has given Carson time to reflect on just what this bold new on-line world will mean for the company’s future. What he knows for sure is that he wants to maintain the vitality and viability of the That’s Entertainment stores. “We’re trying to remain a destination,” he says, “a place where people still say things like ‘I came in today because I knew you’d be here.’”

Howley and Carson can honestly say they’ve faced the power of eBay, harnessed it, and survived—for now. That’s Entertainment will be around for its customers, both real world and virtual, for the next few years at least. Yet so much has changed, and it’s happened so quickly. Who knows how easy it will be to keep having fun in such a fast-changing world? That’s a question even Spider-Man can’t answer.


Well…that’s the end of our big-time national article in Inc. Magazine. We certainly appreciated that our friend Michael included us in this magazine! Things have changed quite a bit since this article was originally written. Although our involvement with eBay has decreased, our in-store business has increased, mostly due to the hard work and long-range planning of our quality employees.

We initially thought that most collectors would begin to sell their collectibles directly on eBay instead of selling them to us, but the collectors now realize that selling on eBay is not as easy as they thought it would be and there are significant costs associated with selling on-line. Serious collectors continue to enjoy the simplicity of selling their collections to us because we are eager and able to buy their entire collection and pay a respectable price for it!

Picture: Ken Carson as seen in the INC Magazine article.

My Life With Comic Books: Part # 146

The current cast of characters:
Paul Howley: age 44
Mal Howley: my wife
Adam Howley: my son, age 20
Cassy Howley: my daughter, age 15

MY LIFE WITH COMIC BOOKS: THE HISTORY OF A COMIC SHOP-Part 146

I received a phone call from Michael Warshaw, one of my old friends, and he was asking if I’d be willing to be interviewed for an article that was going to be published in the national magazine “Inc.The Magazine For Growing Companies.” Michael was a senior editor of this slickly produced magazine and a staff writer was writing an article about the difficulty that small businesses were encountering with the ever-changing Internet world. The writer wanted a short quote from me to include in her article. I was happy to be a part of a national publication because it would be good exposure for my two comic book and collectible stores.

Anne Marie Borrego (the writer from Inc. Magazine) called me to get the quote she wanted for her article. As we talked, she seemed inclined to include my business as a major part of her story. After our half-hour conversation she decided to make us the central business profiled in this story! She arranged to meet at our Worcester location with Ken Carson, the manager of my stores, and myself. She brought a very professional photographer who took what seemed like two hundred photos of the store and Ken and I. While I enjoyed the interview process, Ken seemed nervous. Although I’m pretty good at “hyping” my business, Ken did a better job of conveying our business philosophy. Here is the article that was published in the May, 2000 issue of Inc. Magazine (the entire content of this article is copyrighted by Inc. Magazine):

“How I Learned To Stop Worrying and (almost) Love eBay.”

It’s not just you. Everyone has a hard time adjusting to change--even a superhero. Consider Peter Parker. Other than being an orphan, he lived a pretty typical life for a New York teenager. Raised by his aunt and uncle, he attended Midtown High School and was your above-average tech geek. But one afternoon at a science exhibit, an irradiated spider bit him. Well, life changed faster than you could say “click-through.” Suddenly he possessed extraordinary powers. Parker immediately saw the opportunity in all this. He figured he would make millions as a television star. So he donned a colorful costume and called himself Spider-Man. But that very night, a guard called to Spider-Man to help catch a burglar fleeing past the stage. Parker didn’t see why he should have to do the guard’s job and let the man run free.

Days later, Parker’s beloved uncle was murdered by that very same burglar. Parker was racked with grief and guilt. Faced with the trauma of change, he had blown it. He vowed to fight crime and never again lose sight of what was really important.

It seems only fitting that Spider-Man’s image hangs above the door of Paul Howley’s flagship store, in Worcester, Mass. Howley has collected comic books and trading cards since he was a kid. When he was eighteen, he made it his living, selling his treasures at trade shows and conventions. Now, at age 45, he runs a company called That’s Entertainment, employing twelve people in two stores. (His second store is in Fitchburg, Mass.) He has enjoyed such success that he doesn’t even go to work most days.

In 1997, Howley started hearing about a new Web site called eBay. At first he dismissed the virtual auction house as a passing fad for “quirky collectors.” But he couldn’t resist checking it out. On a lark he searched for a THRUSH rifle, a mid 1960s toy version of the weapon of choice for the villains in the television series “The Man From Uncle.” That particular gun was Howley’s personal “Holy Grail” of collectibles, and he found it on-screen in an on-line auction-- in the original box! Despite his twenty years in the collectibles business, Howley had never seen one of those guns in its box.

He bid a solid $2000 for the toy rifle. With eleven minutes to go, it looked as if it were his! But then, tragically, he was outbid at the very last moment--“sniped,” as eBay regulars call it. Out of the blue, some anonymous bidder had scooped up the gun for $2700.

Howley was crushed. There, within his grasp, was a prize he had searched for his whole adult life. He had never even spied one in its original box at any of the hundreds of shows and stores he had passed through. But just two minutes on this electronic flea market and there it was-where anyone, anywhere could find it. It was at that moment that Howley became very, very afraid. How could his little specialty stores compete with a giant, wonderfully stocked rival like that--one that was everywhere a laptop could be, virtually in the air around him?

Of course, Howley’s business had suffered setbacks before, such as the slump that followed the 1992 publication of the comic book series “The Death Of Superman.” That was the year That’s Entertainment pulled in record-sales. But the entire comics industry was poised to take a dive. In 1993, Howley’s revenues plunged more than 25%. They fell another 10% in 1994. Howley eventually bounced back, thanks largely to a decision to diversify his inventory.

Now his unassuming store on Worcester’s Park Avenue has the usual floor-to-ceiling shelves with a huge variety of comic books: X-Men, Pokemon, Batman, Jay and Silent Bob. But there’s also a sprawling section offering sports memorabilia, a hugely important addition to the store’s product mix. You name it, Howley’s got it, and chances are it’s signed by Ted Williams.

In the mid 1990s, Howley began propping up his business with a profitable selection of photographs, game balls, jerseys, trading cards, bats, and hockey sticks—many of which are autographed by idols like Drew Bledsoe, Nolan Ryan, and Scottie Pippen. Still, despite the success of that effort, That’s Entertainment just couldn’t get back to the kind of numbers it had had when Superman died.

So that’s where Howley was when he first encountered the power of eBay. When he was fighting for that THRUSH gun, he was up against collectors from everywhere—Asia, South America, and just down the street in Boston. The same was true for any item he could think of, from out-of-print laser disc movies to old Archie comic books. Why would collectors bother with a store when they could find anything they wanted on the Net?

It wasn’t that he couldn’t keep selling stuff. The question was, Where would he get it? “I didn’t see eBay as a threat sales-wise,” Howley remembers. “But it is so easy to use, why would somebody sell their collectibles to a dealer that would pay roughly 50% of the value when they could get 100% on-line?” Howley had always depended on his ability to buy entire collections, like the 30,000 comics That’s Entertainment recently bought from one fan to bolster its selection of vintage funny books. Suddenly, any customer could instead sell his or her treasures on eBay, and probably for a better price. Howley’s stores and all others like them were becoming obsolete.

But Howley, like Spider-Man, experienced an epiphany after that initial shock.

Just as Peter Parker discovered that his new superpowers could be harnessed to prevent tragedies like the murder of his uncle, Paul Howley realized he could use the newfound power of eBay for good. He saw an opportunity wrapped inside the on-line threat, one that he could exploit. As an option, it sure beat closing up shop on the spot.

So Howley set up a new computer on a landing in the back of his Worcester store. He even dedicated one employee to the full-time job of eBay auctioneer.

The eBay connection turned out to be a gold mine for That’s Entertainment, a whole new source of revenues. Even better, the explosive growth of eBay did little to erode the stores’ traditional base. The majority of Howley’s suppliers continued to come in to sell and trade their wares, so the revenue boost from eBay represented real growth.

For starters, That’s Entertainment could move items that didn’t have any particular regional appeal. It’s easy to sell Ted Williams stuff in the shadow of Boston. Moving a Stan Musial bat is another story. In Red Sox country, fans of the old-time St. Louis Cardinals great are rare. For months a bat autographed by Stan The Man sat in the Worcester store, its $150 price tag attracting no buyers. So in February, Howley’s staff decided to auction it off on eBay. A fan in San Diego outbid all rivals and got it for $175. “There was some pretty intense bidding,” recalls Ken Carson, manager of That’s Entertainment’s Worcester store. “And the great thing is, we would have never had that connection with that guy.” Not to mention the 16% boost in price, thanks to the auction process.

The beauty of eBay is its power as an outlet for some of the more obscure items that walk in the door. Last year a regular customer brought in a giant stage prop of a cat’s head from a concert by the 1970s glam-rock phenomenon “Kiss.” The seller offered it to the store for $250, but Carson wasn’t confident it would sell for the 60% markup needed to justify the purchase. After some bargaining, he and the seller made a deal: That’s Entertainment would auction the prop through its eBay account and take a 40% commission.

Next chapter: The conclusion of the Inc. Magazine article.
Picture: Paul Howley, owner of That's Entertainment (from INC. Magazine article)

My Life With Comic Books: Part # 108

The current cast of characters:
Paul Howley: age 41
Mal Howley: my wife
Adam Howley: my son, age 17
Cassy Howley: my daughter, age 12

MY LIFE WITH COMIC BOOKS: THE HISTORY OF A COMIC SHOP-Part 108

One day in late 1996, when I happened to be in my Worcester store, one of my favorite people, Zvi Szafran, came in to pick up the huge lot of new comic books that we reserve for him each month. As usual, we spent quite a lot of time trading bad jokes and talking philosophy. As I’ve mentioned before Zvi is the most intelligent man I know so I’m pretty sure I learned more from him than he learned from me. During our time together that day, Zvi mentioned an exciting new website he had discovered. He tried to explain to me the concept of this interesting new way to buy and sell collectibles through the Internet, but I didn’t understand how this whole “cyber-space” thing worked. We went up to the office area of the store and he typed in the website address of eBay, showed me the basic workings of this auction-based site and related a few of his buying experiences on eBay. I told him that I didn’t really have time to play with this right now so he “bookmarked” this website so I could easily get to the site sometime in the future.

Even though I didn’t yet grasp the importance of the Internet, I had just recently allowed my son, Adam, to establish a connection to the Internet at our home. Adam knew how to navigate his way around the Internet but I didn’t even know how to connect to it! After a while, Adam taught me some basic things and one day I remembered what Zvi had told me about eBay. I connected to the eBay site and somehow I figured out how to do a basic search for a collectible item I had been actively looking for over the past ten years. I typed in “The Man From Uncle Thrush Gun” and I was shocked to see that someone actually had one of these ultra-rare toy guns available in perfect, mint condition, still in its original box! The current bid price was only five hundred dollars. This was “The Holy Grail” of “Man From Uncle” collectible toys from the 1960’s. After many years of searching, I was beginning to think that these guns were originally sold without a box because none had ever been seen at any of the toy conventions or in any of the printed toy publications.

I asked my wife if she’d mind if I spent a bunch of money on this gun set and she encouraged me to go after it. I bid one thousand dollars for it and I was still the high bidder as of the final day of the seven-day auction. I made sure that I was sitting by my computer when there was only fifteen minutes left for this auction and I was excited that I was still the high bidder. If I got this “Thrush Gun” it would be the most rare “Man From Uncle” toy in my massive collection. I waited as the minutes went slowly by. With only five minutes to go I was quite secure that I was going to be the high bidder at the end of this auction. Certainly no one would think that this toy gun set was worth more than one thousand dollars!

I decided to spend a moment or two searching on eBay for another item I was looking for. By the time I went back to check on the “Thrush Gun” I found that I had been outbid and there was only one minute left before the auction ended. I quickly placed another bid of $1,100 but four other collectors outbid me within the final ten seconds and this rare toy ended up selling for $2,700! The “collectors world” has gone crazy! Within a year eBay would become an important part of our business.

Next chapter: Chris, our company manager, gets Ty Law of the New England Patriots to be a guest at our Fitchburg store.