Opening a record store
- Thread starter jameswei
- Start date
RastaFish
Where's My Mule?!
My solution to having way too many damn records was to get space in one of the Leesburg antique stores right up the block from my office. I keep three bins of records, maybe a total of 300 - 350 up there at any one time. Walk up there a couple of times a week to check on things, maybe once a week bring in a pile of records to restock the bins. Twice a month collect a check. The store takes 25% but I set the prices, and if you price them right they most certainly do sell quickly.
Wife is happy because not only are records leaving the house but are bringing in cash. I am happy because I have the perfect outlet to unload all the extra records I get from yard sales where I only want a couple but the guy says "the whole box or nothing". Everybody wins!
Wife is happy because not only are records leaving the house but are bringing in cash. I am happy because I have the perfect outlet to unload all the extra records I get from yard sales where I only want a couple but the guy says "the whole box or nothing". Everybody wins!
You know you don't have to own all the inventory, consignment pieces can add a lot of good inventory and not have any expense outlay, and when an item sells, sometimes the percentage of profit can be more than that which you own. But that does require you to be a trustworthy person, and one that strangers feel comfortable leaving belongings with. So personal appearance, social skills, and professionalism is a must.
Been watching this thread since the beginning and agree with most opinions James.
It does seem that you are determined to do this and I do have some reservations on the overall success of this endeavour.
In my home town there are a couple of individuals that are doing what you are considering. There are also more mature businesses around that have been selling used records and have expanded to include used turntables and some second hand shops that also sell used records. Probably about 6-8 operations in a 300K population
Of the two that are in the early stages, one is part of a co-op operation. The vendors in the co-op range from used furniture, clothing nic nacs and just kind of represent a sort of flea market environment. They are opened from 11-7pm daily and are all small operators.
The other chap has been around longer and rents a room in an antique shop and all he does is provide inventory. The owners of the store handle sales. He has between 2-3000 records and usually about 20-30 pieces of used audio with vintage and no so vintage stereo gear. I've got to know him a bit and we have had a few discussions about his operation as I see him at auctions, garage sales, etc.
His success in selling gear is mostly lower end stuff in the $75=150 range and says he just can't sell higher quality items because most of his clientele is younger people/students that are either entering the hobby or are buying records. He has tried higher end items but they just don't sell. They just don't have the money to spend. They come in for mostly albums that he sells in the $5-12 range and his best selling vinyl is newer recordings - alternative, metal. punk style, etc.
He has recently branched out a bit to include band T-shirts and concert T-shirts/sweat shirts. He says he can't get enough of them.
He has a 7 day return policy and has indicated he's been stung on that policy a few times as not 100% of anything adheres to common decency and respect.
Also, never leave the headshell/cartridge on a TT as they have been known to go MIA from time to time.
He is successful but mainly do to his 'known' fixed cost of rent and no employee overhead.
This in my opinion James is something you might want to consider as an initial foray into the business to give you a good idea of what your marketplace can provide and let you know if you should go to the next level of your own free standing location.
In my town you would not only increase your expense of rent, heat, lights, insurance, theft, labour but also business occupancy taxes and book keeping expenses especially if you have a sales tax (like we do) and getting these tax dollars to the applicable government departments.
What ever you decide to do - good luck James.
And oh yeah as a name - how about "Play It Again Vinyl and Vintage" or some kind of variation of that.
Once again, good luck
It does seem that you are determined to do this and I do have some reservations on the overall success of this endeavour.
In my home town there are a couple of individuals that are doing what you are considering. There are also more mature businesses around that have been selling used records and have expanded to include used turntables and some second hand shops that also sell used records. Probably about 6-8 operations in a 300K population
Of the two that are in the early stages, one is part of a co-op operation. The vendors in the co-op range from used furniture, clothing nic nacs and just kind of represent a sort of flea market environment. They are opened from 11-7pm daily and are all small operators.
The other chap has been around longer and rents a room in an antique shop and all he does is provide inventory. The owners of the store handle sales. He has between 2-3000 records and usually about 20-30 pieces of used audio with vintage and no so vintage stereo gear. I've got to know him a bit and we have had a few discussions about his operation as I see him at auctions, garage sales, etc.
His success in selling gear is mostly lower end stuff in the $75=150 range and says he just can't sell higher quality items because most of his clientele is younger people/students that are either entering the hobby or are buying records. He has tried higher end items but they just don't sell. They just don't have the money to spend. They come in for mostly albums that he sells in the $5-12 range and his best selling vinyl is newer recordings - alternative, metal. punk style, etc.
He has recently branched out a bit to include band T-shirts and concert T-shirts/sweat shirts. He says he can't get enough of them.
He has a 7 day return policy and has indicated he's been stung on that policy a few times as not 100% of anything adheres to common decency and respect.
Also, never leave the headshell/cartridge on a TT as they have been known to go MIA from time to time.
He is successful but mainly do to his 'known' fixed cost of rent and no employee overhead.
This in my opinion James is something you might want to consider as an initial foray into the business to give you a good idea of what your marketplace can provide and let you know if you should go to the next level of your own free standing location.
In my town you would not only increase your expense of rent, heat, lights, insurance, theft, labour but also business occupancy taxes and book keeping expenses especially if you have a sales tax (like we do) and getting these tax dollars to the applicable government departments.
What ever you decide to do - good luck James.
And oh yeah as a name - how about "Play It Again Vinyl and Vintage" or some kind of variation of that.
Once again, good luck
jameswei
Super Member
Thanks for the nice tips everyone. I am in talk with a landlord that has a small space in Falls Church, VA its off route 7 and very close to Arlington and Alexandria. The rent is the cheapest I can find so far. Its about 650 square feet and is $2200.00 a month and everything is included (Heat, A/C, electric, and water) no CAM fee or realestate tax. He is willing to let me sign a one year lease, but there are a few competitor for the same space and he is still wondering about my concept. I told him its a record store, but he doesn't know what record is. I will have to send him a few links to records and vintage equipment. I think he is either Indian or Pakistan.
I think "Play it again" sounds cool as well. This is another name I will consider.
I think "Play it again" sounds cool as well. This is another name I will consider.
Just an FYI - there is already competition in Falls Church (20 yrs!) ...
They sell LPs, CDs and DVDs ...
http://www.cdcellarva.com/
709-B West Broad Street
Falls Church, VA 22046
Phone: (703) 534-6318
Hours: Mon-Sat 10am-8pm
Sun. 12pm-6pm
Got CDs, LPs, or DVDs to sell or trade? We buy and price titles based on their condition and their popularity. Generally we pay up to $5, and we also offer an amazing 30 percent more in store-credit value. Whether it's two or 200 titles, bring 'em in—any combination of cash and trade is fine with us!
They sell LPs, CDs and DVDs ...
http://www.cdcellarva.com/
709-B West Broad Street
Falls Church, VA 22046
Phone: (703) 534-6318
Hours: Mon-Sat 10am-8pm
Sun. 12pm-6pm
Got CDs, LPs, or DVDs to sell or trade? We buy and price titles based on their condition and their popularity. Generally we pay up to $5, and we also offer an amazing 30 percent more in store-credit value. Whether it's two or 200 titles, bring 'em in—any combination of cash and trade is fine with us!
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NJguy
Super Member
So thats $26400 a year in rent. Think about how much gear and lps you are going to have to sell just to pay the rent. And dont forget taxes on top of that.
I hope it works out for you , i really do.
My reccomendation. Do it on ebay and sell to the world , not just a small local area.
I hope it works out for you , i really do.
My reccomendation. Do it on ebay and sell to the world , not just a small local area.
jancumps
iRock
I'm posting because the OP is planning to spend significant money:
Go ask advice from a service that's specialised in mentoring business start-ups.
Asking Audiokarma if it's a good idea to start a record store will give a skewed result.
The majority down here on AK are record and gear fans. That will not be representive for the population in the area where you reside.
I don't know if such services exist where you live. We have them here organised by the community, and also some from organisations. They'll work with you to assess the viability of what you're attempting.
Go ask advice from a service that's specialised in mentoring business start-ups.
Asking Audiokarma if it's a good idea to start a record store will give a skewed result.
The majority down here on AK are record and gear fans. That will not be representive for the population in the area where you reside.
I don't know if such services exist where you live. We have them here organised by the community, and also some from organisations. They'll work with you to assess the viability of what you're attempting.
El Pee
Super Member
Have a look around at the local shops to get a sense of prices. A new record at one of the 'hip' vinyl shops on 18th St in DC can cost a few bucks more than the same record at a shop in the 'burbs. The Record Exchange in Silver Spring and in Frederick has been a real success story lately; they used to focus primarily on CDs and video games, then they got into vinyl and changed their name (they used to be the CD and Game exchange, I think) and things really took off for them. Also check out 'Joes Record Paradise' in Silver Spring. They're one of the oldest record shops in the area. The first thing you'll notice is how massive the store is and how many records they have. (that said, I find their selection to be mediocre and expensive) I think they get by on name recognition more than anything these days.
Go to Goodwill and Salvation Army stores. If you have records in your inventory that have been on the shelf in a Goodwill for more than a week or two, get rid of 'em of put them in the bargain bin. Remember, with used equipment and vinyl, you're not just competing with other stores, you're competing with charity shops and yard sales.
If you do end up on Rt 7 in Falls Church, you're not far from NOVA Community College; advertise there, a steady supply of young bargain-conscious customers.
Best of luck James! Let us know how it goes and when we can come shopping!
Go to Goodwill and Salvation Army stores. If you have records in your inventory that have been on the shelf in a Goodwill for more than a week or two, get rid of 'em of put them in the bargain bin. Remember, with used equipment and vinyl, you're not just competing with other stores, you're competing with charity shops and yard sales.
If you do end up on Rt 7 in Falls Church, you're not far from NOVA Community College; advertise there, a steady supply of young bargain-conscious customers.
Best of luck James! Let us know how it goes and when we can come shopping!
jancumps
iRock
KOWHeigel
High Gear of Your Soul
This is the part that would scare the crap out of me. Plus taxes, which can be realy high for self-employment.
I would definitely consult a tax guy (or gal) as there are certain ways to organize a business that will result in the lowest tax exposure.
Notwithstanding that, I have friends who started up their own private law practice and from what they tell me they have to put away 1/3 of all money's received for tax purposes.
I do certainly wish you the best of luck in this endeavour.
Check your local area, or google, for www.SCORE.org. It's a government nonprofit class (10 weeks) that teaches, mentors and helps people start their own business. All the instructors are former/current business owners (my first instructor was the co-founder of MCI). From day 1 they'll tell you that their main job is to talk you out of starting a small business. The reason is the high percentage of failure, loss of money, and suffering. If you choose to go through with it, they'll help you with business plans, sales techniques, funding options, and will even make themself available for on-call or visit your business to help with strategy.
In addition to rent; don't forget taxes, credit card system(s), insurance, licenses (to sell), and more! These things add up quick.
In addition to rent; don't forget taxes, credit card system(s), insurance, licenses (to sell), and more! These things add up quick.
James, let me chime in with a few thoughts. In a previous life, what I did for a living was operate small businesses, and then consult to other business owners on the profitable operation of their businesses. I did this for almost 20 years.
You need to understand that I have nothing but best wishes for you. To start your own business selling music and gear is totally cool. I would support you all the way.
Howver, you cannot survive in a space with a $26,400 annual rent. Cannot.
If you never pay more than half of your selling price, so you double your money on every sale, you would need to sell $52,800 of records and "stuff" every year to make nothing. To break even. Zero money to live on.
If we assume typical federal, state, self-employment tax (you have to pay your own SS taxes), etc., at a 20% total rate, in order to net $1,000/mo or $12,000/yr, in after tax profit, you need $15,000 in gross profit. If you're doubling your money, you need $30,000 in sales above the break even point to generate $15,000 in gross margin in order to leave you with $12,000 in after tax profit to live on.
We need $52,800 in gross sales to cover the rent, and then another $30,000 above that break even point to give you $1,000/mo to live on.
You need to sell $82,800 of records and stuff every year, almost $7,000/mo., in order to leave $1,000/mo to live on. The chance of this happening is essentially zero.
Sell on eBay and CL. Really. :yes:
NJguy
Super Member
NJguy
Super Member
Heres another thing James. You said you would run the store alone. If you do that when will you be able to drive around to find deals on records and gear? You wont be able to go to garage sales, estate sales , craiglist ads. You will have to be at the store. If you hire someone, well now you have another expense.
jameswei
Super Member
In my observation, there's a void in new stereo that no one is paying attention to, the mi-fi segment. If you go to BestBuy and check their stuff out, its either the low end black plastic crap or stuff that sells for a lot of money but don't sound good. I believe there's a market for vintage mi-fi out there, the only problem is that people need them serviced or buy one that is in good working condition. That's where the opportunity comes. I know that there's a place in Springfield, VA that do repairs, but they charge $80.00 per hour and that turn a lot of people off. So if I can do a reasonable rate on repairs and also accept trade in on equipment, there's a lot of money to be made. If you back your products up with a 3 month guarantee, people will come. The records is just one of the tool to get people in the door. Once they are in and hear what a real stereo sounds like, the wallets and purses will open up. This is what I am mostly interested in. Even if I can make $5 per record sale, I would have to sell 440 records just to cover rent, but it might only take me ten stereo sales to cover my rent. Like I said, I am projecting 1/3 revenue from records, 1/3 from repair and 1/3 from sales of equipment.
I am having problem with the landlord in Falls church, as he doesn't know what a record store is and he is worrying about the amount of noise that his other tenanents can handle. Also his space is really too small at 600 square feet. I have another place in mind and its in Manassas, the rent is about the same but bigger square footage, 1650 square feet. However, I am worry about the demographic and not being inside the beltway. I guess I will have to take my chances.
I am having problem with the landlord in Falls church, as he doesn't know what a record store is and he is worrying about the amount of noise that his other tenanents can handle. Also his space is really too small at 600 square feet. I have another place in mind and its in Manassas, the rent is about the same but bigger square footage, 1650 square feet. However, I am worry about the demographic and not being inside the beltway. I guess I will have to take my chances.
Do what a lot of antique dealers do, get a large building divide it up into a number of spots, and get other people to pay rent on the spots, a record mall! And you take the best spot, where you have your stuff for sell, and let other people make the rent payment for you by a combination of income from the other small areas in the building. And it doesn't all have to be records, maybe one spot a cigar booth, another candles, you know mix it up, you control what booths are allowed.