Audiooracle, I hope you succeed. Your business model suggests it is driven more by passion for audio rather then profit and loss. Finding, and keeping, sales people who are motivated like your self may never be possible. Carrying a million dollars worth of display inventory plus stock inventory, unless self financed, suggests doom. I did floor financing for many brick and mortar audio stores many years ago and for most of the owners it did not lead to any profit, given the discounts the market required. I made money, they did not. Think about it, in a real sense your display inventory cost to carry is at least $100K per year unless you do a 100% inventory turn every 30 days and can finance all inventory through manufacturers terms. Remember, Amazon's profit in many cases comes from the payable float of not paying vendors for three months after an item sells. I do wish you success as I love to visit stores like yours, especially to hear speakers, and 'kick the tires', but not buy which I do on line or direct from the distributor.
Electronic Retailer's, Going By?
good article in the wsj today on subejct. http://online.wsj.com/article/SB10000872396390444772804577621581739401906.html?KEYWORDS=electronic+retailers
Much of the journal applies to the brick and mortar audio retailer specialist. If the big guys are having trouble, small shops are under dead threat from the online crowd.
What do you think?
Much of the journal applies to the brick and mortar audio retailer specialist. If the big guys are having trouble, small shops are under dead threat from the online crowd.
What do you think?
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- 10 posts total
- 10 posts total