Going to open a small music store...

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Permalink Reply by Swamp Dawg Primal Music on April 6, 2012 at 2:46am

Your margin's gonna be too low if you don't build em yourself. It's tough enough for builders to make money.

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Permalink Reply by ChickenboneJohn on April 6, 2012 at 3:09am

I'd have to be brutal and ask what's your business plan?  You need to know your overheads, price of stock, predicted turnover or target turnover, where your sales are going to come from, what's your target market, what's the range of stuff you are going to stock.  I've been making and selling guitars now for about 5 years and NO WAY would I dream about opening a 'bricks and mortar' store. My business is on-line and personal contact, I take my store out on the road to guitar shows all over the country as often as I can and sell direct to the public that way. I have a good product and can demonstrate them pretty well, I have a decent profit margin on it -  my stuff sells and I've got a pretty busy order book. 

Buying stuff in from other people means there's very little scope for mark-up - I occasionally do that to bulk-out my own stock, but I can only add 25% mark-up at the most before their stuff becomes unrealistically priced...there's not much room of the middleman in this game. Music stores will commonly mark up 50-100% on their wholesale price...but remember that mark-up isn't profit..out of that has to come rental, services charges, office overheads, wages, a whole host of other stuff....and taxes - what's left a the end is profit...or loss.

If you have no experience of the business, then I'd say this is a good way to loose money UNLESS you have a really well-thought out business plan. Cigar box guitars are a niche market, and you need to be able to access the market as directly as possible...people won't walk in off the street and buy.  You'd probably need to supplement what you are selling with other lines, which means sourcing stuff at wholesale prices or getting trade accounts with importers and distributers....but when you get down to the level of selling stuff purely on price, then it's a hard, hard game.

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Permalink Reply by Rick Stepina on April 6, 2012 at 5:52pm

I'm just learning to build.  Going to sell them at an antique market near where I live.  I also plan on selling some older acoustic regular guitars and maybe some harmonicas.  It's an inside spot that rents for 115.00 per month.  Plan on playing myself, and adding you tube videos of others playing as well.  I'll have CBG and blues playing through the day.  Plan on a target market of oddities collectors and folks interested in learning a simpler version of guitar (newbies)... I want to have a 49.00 small 2 string "chugger acoustic" as an entry level with 3 string electrics from 79.00 to 119.00.  I'll sell the antique guitars I'm currently buying for 25 - 30 bucks ea. for 50 to 90ea. more if they have a unique look...  Not looking for red dog quality yet, just entry level stuff to use as wall hangers and back yard playing.  Diddley bows on a 2x4 or with a box from 39.00 to 59.00 (elec.)  I need to get some inventory up as I learn to build my own basic 3 stringers.  The market is only open sat and sun from 8 to 4.  Thanks for the suggestions!

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Permalink Reply by Swamp Dawg Primal Music on April 8, 2012 at 11:27am

That's more like a realistic plan. You could also get gin touch with Keni Lee and others for music and instructional CDs. A  home grown blues shop could do well. Good luck and plan well! 

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Permalink Reply by Bob Harrison on June 23, 2012 at 1:22am

John has got it pegged. I would like to also add, If I were a millionair. I would build pickups and guitars untill I ran out of money. The overhead is greater than the profits most of the time it appears.  But I really build these items because it is my heart. My thought is start selling the items at shows and swapmeets where over head is low and don't quit your daytime job.

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Permalink Reply by Slowpaw Steve T on April 6, 2012 at 3:18am

Watch a few episodes of "The Apprentice" before starting out, some good advice on "how to and how not to"  go into business..! (-;

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Permalink Reply by Lonman on April 6, 2012 at 7:59pm

wow, good luck to you. I hope it work for you. Perhaps you and 'the King' can be partners. LOL

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Permalink Reply by BeetleJuice! on April 7, 2012 at 9:01am

I say listen to others less...and go with gut feeling, other peoples advice will almost always hold you back.....just try it, and expect BIG margins, you never know, it might work for you!

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Permalink Reply by Ron "Oily" Sprague on April 7, 2012 at 9:12am

Take everything everyone else has said, positive or negative, including what I'm about to say, with a grain of salt:

 

Don't quit yer day job. >:-E

 

That said, could you market yourself as Die Alter Amish Handler, or some such? 

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Permalink Reply by ED (Bad Finger) on April 7, 2012 at 1:03pm

I heard all the same stuff when I opened my business 6 years ago....

Nothing is impossible with the correct proportion of passion, hard work and determination. Oh, and a lot of fiscal discipline.

Good luck and much success to you.

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Permalink Reply by Shane on April 8, 2012 at 11:51am

I'll be your first consigner, Rick!  Morningstar Marketplace?

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Permalink Reply by Rick Stepina on April 8, 2012 at 8:00pm

Hell yeah!  Rumor has it you're sitting on several dozen really nifty cbg's, and I need to find a weekend afternoon that you're free to get together.  Yes, Morning Star... If I keep prices below 125.00 I think we can move product.  Also planning on blues and blue grass festivals, biker events, and the like.  Call me.

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