Opening a music store but one thing holding me back . . .

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Eric LeClair

New member
Hey Guys,

I've been thinking about starting a real business and the idea of having my own music store just seems to have taken over me.

I have two other guys (Partners) who don't mind investing and have a similar passion for music. One of them is a business owner already so he suggested to take care of the setup and running of the shop, managing employees and their schedule and things of that nature (Invoicing and billing, etc).

While us two can take care of the actual supply. I did some research which was good but after going on Youtube, it's like everyone is just making rap music lol

Like all the music is made on computers now.

So is this a good idea or not? I love music but I don't want to fail at it. Especially with a few investors behind us.

Love to hear some insights.

The last music equipment I personally bought was headphones, drum set and a daw. That's it! The only thing I invest in is plugins, etc.

Thx!

UPDATE: Location is in Vancouver, BC - We sort of have a rising music industry here. Even metal is pretty apparent, just a little underground.
 
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You're in a pretty big city...what kind of music stores are already there, and what are their typical customers?

IMO...the best kind of music store to open would be a specialty shop....assuming there are customers that will appreciate it.
A place that sells better quality guitars and amps would be a good bet. Stuff that leans into the boutique/vintage side...since those kind of customers will often want to come try out rather than just buy online. Pro-ish recording audio gear too...but again, you need the right customers in the area.
It's more focused on higher quality and higher prices...but you don't need to move as much gear to see profits.

If there is a good high-quality music scene then the musicians are there who will come in to buy gig gear.

Another angle would be providing lessons in the basic stuff...guitar, piano, drums, etc.
If the schools in the area have roust music programs, that means kids/teens are going to be involved and looking for lessons and equipment too...so then you can get away with more budget conscious gear...but that only works if there is a unlimited supply of new, young musicians, and many will quit as soon as they begin.
At least with more pro/veteran musicians, they've already committed for the long-term, and usually want the better gear.

If you plan to just sell the same basic/middlin' stuff that's all over the internet that can be gotten real cheap with free shipping...no one is going to take the time to go to a music store for that.
 
There are a couple of small shops that are hanging in there in my immediate vicinity. Neither has a prosperous look about it. I talk to the owner of one of them, which looks to be doing the better. He told me school band gear is a staple. The kids in high schools and junior highs buy, or rent their trumpets and buys their reeds or whatever. He carries a good selection of guitars and amps. How well that stuff moves I don't know.

I'm sure there are exceptions, but brick and mortar retail doesn't seem like a place to invest for the long haul, let alone selling music gear. There's a huge problem that is killing the music makers and retailers, in addition to the changing taste and demographic. Its the massive backlog of used gear on the market. Sellers are having to compete with their own used products. I can pay close to $2000 for Fender's USA made Strat or Jazz Bass. I can have a used late model copy of either one for $650. I don't see it getting better. Even more used gear is going the flood the market as old boomers downsize and retire from the planet, coughing up a treasure trove.
 
Thanks for the replies guys - Yes we definitely have an "angle" as [MENTION=94267]miroslav[/MENTION] suggested.

Along with some vintage gear (Stuff from the 90s mostly, etc). I myself buy stuff from Amazon all the time but yeah we wanted to create that feeling of actually walking into a store and be surrounded by music . . . Like I felt when I was growing up, etc. Remember walking into those CD / record stores?

Sort of a boutique nostalgic music dealer. Anyways, thanks for the insights guys. Definitely appreciate it. Yeah not looking to get rich but at least do something we can enjoy while make a decent living doing it.

Will definitely keep you guys posted.

Cheers!
 
I've got maybe 4 music stores within 5 miles of my home and I don't know how they can all stay afloat. The one biggie
is Guitar Center. The next biggest is about three-quarters the size of GC and only has two stores in the county. The
remaining are smaller family owned stores which have little or no electronics or electric guitars/amps, etc - mostly
orchestra and band equipment with a few acoustic guitars, mandolins, etc.

Ya know, every city is different. You can never tell what's going to take off. You could be the start of the next big wave.
 
In my immediate area...we don't have the Guitar Center/Sam Ash chain music stores.
There is one pretty big music store (Alto Music) that's been here for well over 20 years now...they actually moved from a smaller location into a building that was 3-4 times bigger about 15 years ago, and seem to be doing OK all these years. They have a large inventory, also cater to the local gig/band needs, and they also have the repair shops and give lessons...plus, they also sell online, via their website and also on eBay.

That said, even though they are like 15 minutes from me, and I drive past them a couple of times a week when I go into town...I only stop in there maybe once every few months.
For me, there's not a heck of lot left that I need to go try out or that I simply need. I have no desire to just go in there and fuck around with the amps and guitars, without actually planning to buy. So I'll only go in there when I need something 5 minutes ago or just to maybe check out something in person they have that I might want, that I should check out before buying...which isn't often.
Not to mention, I have accounts with MF and Sweetwater..etc...so there has to be a good reason to get in my car and drive there when I can shop online and shipped for free.
I've bought some bigger items in there, and lots of small stuff...so I give them some business occasionally. They seem to be relatively busy...and they are the only big music store in a 40-50 mile radius. I would have to drive down to northern NJ or into NYC to find bigger.
 
You gotta be able to find a niche. Provide something that others don't offer. One real drawback to a brick and mortar store is people coming in to "test drive" what you have only to order it online. (for less money)

Also, prepare to have a HUGE online presence. Many stores that in the past could survive on walk in traffic, couldn't keep their doors open today without online sales. Even in a place like LA.

One key is to educate youself and whoever works there on the gear you're selling. Too many stores with morons working in them. A knowledgeable sales staff will do wonders.

Social media social media, social media. Hit that hard.

Lessons are good. They build current and future customers.


Stocking used gear is good too. A lot of people don't like craigslist either as buyers or sellers.
So you can get inventory from people burned out from putting something on cl and it not moving. Youll also get people who are wary of Cl. Buying from a shop is so much less scary than going to some dudes house you don't know. You just have to stay on top of the legalities. Most places you have to file paperwork and theres a 30 day hold to make sure it's not hot. You need a second hand permit as well.
But for all the drawbacks, second hand gear is an excellent addition to new gear.

Just a few points i thought I'd mention.

Oh, have some money to float you for at least a year. It's gonna take some time before you see a profit.

One more thing....don't get a long lease. Last thing you want is to go to out of business and be stuck with a ten year lease. Get a one year lease with a three year option if you can. A three year lease is pretty standard, but starting out, I'd try to get less commitment. A lot of places fail in the first year.

Be prepared to work your ass off!!!
:D
 
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Interesting book I just finished: The Age Curve: How to Profit from the Coming Demographic Storm: Kenneth Gronbach: 9780814417942: Amazon.com: Books

Not sure how it plays in Canada, but the idea is still worth looking into. Based on this book, in the US, the Gen Y generation is coming of age: Generations X,Y, Z and the Others – WJSchroer

Your target would primarily be Gen X and Y. My understanding is, Gen X rivals the numbers of Baby Boomers (Boomers I and II according to the reference link ~80M). With that said, some research around that group would be your best bet. 14-24 age group I would guess.

From what little I know of that group, it might be a good time to introduce them to making music. But with a focus on how they think. Electronica, making beats, and work them into instruments, Keyboards, maybe bass, Live DAWs like Ableton, loopers, whatever you can think of that will gain that groups attention. Have mixing sessions, listening parties, help them get out of their rooms. :)

I think done right, there are enough of them to sustain a music store, but it can't be filled with just guitars. While I still think guitars will sell, just not n the numbers they use to. Scratch Gen Y's itch, you will have a money maker.
 
I just did google for music stores in Vancouver:
music store vancouver bc - Google Search
Besides Long and McQuade (the big dog in Canada), there are a lot of stores. I suggest you visit each one and see what they offer - and if they look successful or 'just getting by'. You need a large inventory to make a music store successful. You won't stay in business just by selling strings and picks to the local players.
 
As someone previously suggested.........a music store centered.......at first.......around basic lessons for instruments and other production gear might be the way to get started. You can build sales stock from there based on demand and local preferences. Advertising to parents and local schools is also a
way to begin. It may take a while but you would be able to keep your exposure to investment loss to a minimum while getting an accurate take on where the profitable sales areas might be.
 
If you want a store, buy a small store with a large warehouse at the rear. Set up a good website and online ordering. Try to stock good gear and don't compete with the discount music stores, offer better choices.

The guitarist in my band owns a music shop specialising in old vintage guitars and amps plus a separate attached store for acoustic instruments and good quality starting out gear, however he recently leased the building at the rear as 3/4 of the sales now are on line and he needs to store stock for the on line orders.

Free plug Link

Alan.
 
Many factors to consider....location location....rent therein...the e-commerce induced decline and fall of the brick n mortar retail outlets.

For sure there are more going out of business than popping up here in Los Angeles...The ones that are hanging on generally offer music lessons and specialize either in guitars or pianos..my observation. I have been around the music store business since I was a teen, a good friend I grew up with parents owned a Hammond organ store here in Covina and a music store in Pasadena..My friend spent about 30 of his last 40 working years in music retail...we just had this discussion a few weeks ago...It is a VERY tough road to hoe these days and he is a consummate salesman...oversaw national sales for Peavey for a good run making some good change...He is now a home inspector and has zero interest in ever going back to music retail...

That all said if you're into pain and the challenge never say never...you might be able to figure out a way to make it work and enjoy a nice career...I am into sales and marketing and though I am not in the music industry I really enjoy and study it regularly by staying on top of whats going on, seeking out, meeting and talking with owners of certain music manufacturing companies. I go to Namm here in Anaheim and subscribe to Music Retailer magazine to keep a pulse...for sure in 2018 if you do own a Brick and mortar store you need to have a strong web / social media presence and as Alan said perhaps sell online as many shops now do...The owners of this site audiofanzine do a damn good job of electronic sales and marketing though I believe they make their money via ads rather than selling actual product.


like anything be sure to do your due diligence before pulling the trigger...This last piece of advice is from my grandfather with regards to partnerships...I've definitely seen far more partnerships ruin friendships and cause a lot of pain and suffering than the later...Though I know of a few amazingly successful ones too ..so it's not black and white but here's the saying Gramps had about em.... A partnership is a poor ship to sail on.... Good luck!
 
I'm reminded of the old joke: How do you end up with a million dollars after a year in the music business? Start with two million.
 
In the past few weeks facebook is awash with a music store con. An advert that comes up over and over again in their targeted advertising to me. 90% of behringher X32s, Gibson Les Pauls, Fender Strats, and tons of recording gear. The websites are generally less than a week old, appear to be centred in the non-usual parts of china, and all the contact details are disposable hotmail and gmail addresses. Paypal payment for goods that will never come, and they have dozens of identical sites with branding. The fact that the gullible are sharing these posts own facebook and undoubtedly taking a chance with their money, hoping PayPal will back them up when nothing arrives worries me. Internet sales sites are 100% price controlled. They advertise a Behringer X32 at $210 and people buy them. A few days later, facebook remove the advert and by then another 20 are live. Internet is uncontrolled. Premises and stock are real. How do you get any internet sales unless you can compete on price, and your buying power is tiny. In europe, Thomann in Germany wiped out many music stores in the UK - quick delivery, 3 yr warranty on everything and totally 100% English speakers on the phone. real workshops and set-up people. However - just a huge warehouse and the post makes the business. UK stores pay large local taxes (business rates) so you can now pick up a vacant shop in a town for maybe 6K a year, but the local authority require sometimes more than this as tax! The business is stacked away from shops - UNLESS - you find a niche. We have a small loc al shop who specialises in limited edition new guitars and collectors guitars. He doesn't make money from sheet music, ukuleles, beginners guitars, and that kind of stuff, but he also does a limited range of amps and cabs and effects. He isn ;t interested in anything people c an buy mass market, on line, because he cannot make a margin. Buying a 1960s Jazz bass, giving it a clean up and proper set up means he can make serious money. He goes to the American shows, makes contacts with the smaller, niche brands, and imports selected models nobody else has. He sells them direct and via social media to people who know what they are. The other more traditional music shop locally closed a while back.
 
I had a computer store in the 1980's and one niche I had was that I sold synthesizers and computer interfaces (way back when MIDI was new). One thing to consider is taking in inventory on consignment along with having some boutique new stuff. You take a percentage if it sells. You let a customer either get cash or store credit.
That way you can take in vintage gear without paying for it. Like eBay you just facilitate bringing buyers together. Buyers can touch and feel/try out stuff, which is one thing ebay buyers cant do.
Also find things they wont find easily or would want to try before buying.
Good luck!
 
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