Starting my showroom again

@nashvillehifi 

I am active in the business right now (in hi fi and in pro via high end recording gear) .  The business has completely changed from when you were running a store.  One of the issues is that most of the lower end brands (90%+ made in China) will make deal with a customer (a store) who can buy more-making small operations vulnerable to your competitor buying the same thing for much less than you.  It is not uncommon that quantity discounts kill small retailers all the time in almost every business.  Finding something unique to sell is the game.  

Small town means you have to "pull from Nashville" because that's where the people with money are.  With the recent Nashville aversion to bad traffic, why would someone invest 60 minutes x 2 to come see you?  You need to answer the question first. 

Becoming a distributor does not work either as you need relationships that are long and deep all over the country to survive against behemoths fueled by almost unlimited money that own major brands most people don't even know are really Chinese companies now.  Due to their unique conditions, they can almost sell at manufacturing cost just to keep a factory operating.  

Recording gear is just a specialized as high end hi fi, plus there are 3 or 4 long term participants in Nashville ; Vintage King has a strong presence there as does GC Pro.  Sweetwater is one day to ship in and talk about buying in quantity- you cannot compete head to head with them.  So I don't believe you can make that work either due to the intense competition.

My suggestion is go to work for one of those other stores or manufacturers seeking a sales rep and learn where the industry is at.  Learn what is and isn't working before you spend your own money.

Brad 

@nashvillehifi, I live in a metro area of 200K+ with a solid economic base and two universities.   It supports a quality symphony orchestra plus an annual international piano competition, so there is interest in music.  Yet there is only one stereo store carrying respected brands.

Opening a new store anyplace these days would requirer very careful business planning and analysis.  I consider it doubtful.

@lonemountain wrote: "Finding something unique to sell is the game."

I agree.

I started out twenty-five years ago as a dealer for SoundLab speakers and Atma-Sphere amps & preamps. In the five years I was a dealer in New Orleans I only made ONE local sale of SoundLab speakers, but I made many sales to customers who flew in for an audition. I paid for their stay in a bed & breakfast, and re-imbursed their airfare if they made a SoundLab purchase. There were other lines I picked up over the years but those two have remained my core. When I added my own line of speakers about eighteen years ago (after my brick-and-mortar burned down before opening), compatibility with Atma-Sphere’s OTL amps was a priority.

I still had to diversify when the economy tanked in 2008-2009 because people largely stopped buying "expensive toys". So I started making bass guitar cabs, figuring they were a "tool of the trade" and would fall into a different category. Again I was lucky, as enough bass players liked what I was doing that they were willing to pay the "boutique" prices I have to charge.

I’ve also done a few custom studio monitors, in collaboration with a professional acoustician.

My point being, offering sufficiently unique products has worked for me. Not that I’m making the big bucks, but I have been able to do something I love and still pay the bills. 

Seems like it would be extremely difficult to compete with online sales.  Free shipping, free returns, often overnight delivery.  Relax in your home and voila' the units arrive at your doorstep the next day.

Somehow you would have to offer more.

+ Used equipment sales and trades?

+ Is there a local audio club you can host in your showroom for demos and tests?

+ Could you host other kinds of meetings? Technical presentations related to audio?

+ Live music events?

_Something_ has to be on offer that the online sellers cannot... 

@nashvillehifi back to the "uniqueness" question. Offering and selling unique dealer-only items people can’t easily buy anywhere online. My local guy might fully retire out. Along the same lines last year I offered to take over his place when I semi-retire. He’s not ready, still having way too much fun there now, lol. He loves showing/selling all the unique exotic stuff he’s come up with over decades.

Several great replies here. I see and listen to unique items at this local audio dealer every time I go in there. Someone here mentioned Zengali speakers, my local has these too, along with Soundlab and more for speakers too. Great trade-ins too.

IF you are inclined to stock and offer unique items, I bet folks here could help to come up with a unique list if you are ready to bankroll it and roll the dice. I do think its a gamble for sure, but could be fun if you figure it out and step up to the plate. Easier said than done, right. Following along on your rediscovery journey. Enjoy.