General Discussion General discussion about all things car audio, from pioneer, orion, alpine and eclipse.

Need some Info

Old 09-09-2004, 11:24 AM
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I just don't think I have enough in my fingers to type all of this. My first store turned a profit in the first year and every year since. This is due to the end of life as I knew it. I was now tied to the store 6 days a week.

Opening orders were on the average of $10000.00. Displays had to be purchased. Location is hella important. If nobody knows the new store name and can put your face to it, they are not going to go looing for it. If once you are established for 4 years or so and have built a name for yourself, that is when you should consider moving. Access to the business is important, nobody likes a crowded parking lot or having to make illegal turns to get into it. Dealer work for us accounts for less than 2% of our business (the dealers here are a scared and behind the times bunch). Video as well is not even a significant portion of our business. Our population is a fraction of what your is however.

In retrospect when I had the opportunity I should have set up camp in Kelowna where I came from, I would have been way further ahead. Population is a must if you are going to survive. While you may consider that he has no good lines, these lines that he has are a must these days. Consider that most of the cd player market is below $300.00. With that mix of lines you have quite a selection to offer. Throw Eclipse into the mix and well, they just don't sell at that price, but they do make a logical bump up for most customers.

How long a shop can operate with no new equipment coming in is simple. Don't act as a warehouse for the suppliers (it saves them money and costs you money). Order what you have to when you need it. SWAT as much as you can to clear old inventory. Inventory that sits is costing you money. You will definitely need to carry some inventory, stock the best sellers.

This is not an easy task to do Dereck and I'll caution you right now about it. If you have a family, you need to think about the family first. A Family needs stability which is what you have right now. If your family can live with the constant struggle in the first year or two and you are prepared to take a major hit in income, then reapproach the idea. If you have an investor that is backing you, is the investor prepared in the event of failure? I know how dedicated and hard working you are, but inorder to survive as an indipendent you need to kick it up another couple of notches. At your age now, look at your income, if it is fine and you are ahead of the game that's great.

One thing that I never considered was that once I started my own store, I was tied to it. I had to rely on me and no-one else. There was little time off or holidays or going out with the boys. There is even fewer times to work on ones own car. The issues that most of us face at work when we work for someone else is following their rules and regulations. While it is great to be your own boss and dress as you see fit, open and close when you want, your employer has the upper hand. If he wants to lay the smack down on you, he can in the blink of an eye. If you are prepared to do this, make sure that you leave on a good note, for if you do not make it, will you be wanting to go back to them and if so are they going to have room for you there or would you have to move somewhere else.

I have had my own store for 8 years now and a second one for 1.5 years. For me it is time for a change, I am and have actively been seeking employment with the RCMP, why, because we want to start a family and need the stability that a job like that can offer. While I may have good months here, the bad months are there as well. I do not want to consider starting a family while the Canadian car audio market is at the point that it is right now. Weigh all of your options very carefully dude, if you need some more info don't hesitate to ask.
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Old 09-09-2004, 10:24 PM
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Dereck, we need to talk
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Old 09-11-2004, 08:41 PM
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I happen to know a brand that does offer exclusive
contracts, but we have spoke of this already

good luck better late then never.
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Old 09-12-2004, 08:59 AM
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I think it is always a good idea to get an "exclusive" brand in the store you can make profit on. No matter what lines you choose, make sure that the firm you are purchasing them from is your "partner" in profit. It does not matter how good a product is, if the company you buy it from "s" it out as soon as you get it established, or refuses to back you up when you need help with a blown sub, or "arm bends" you into purchasing more than you can afford.

With your skill and reputation you will do well in anything you choose to do -- starting a store is still a dream of mine (watching the mistakes others make is painful).
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