#1
curiosity. does anybody know how a guitar shop works in business?

do they:
1. buy all the guitars with their own cash and then sell it
2. the guitars are like on loan from the manufacturers. they sell off the guitar, keep the profit, and pay the manufacturer part of the sum?

or is there some other way?
Last edited by evolutionised at Aug 12, 2006,
#2
They most likely get a loan from the bank to buy their center and guitars from dealers. Then, they pay off their loans, and buy new guitars.
- FJ

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#3
Infact I know how they work, it is all off the list price

The guitar store:
1. Buys the guitar from the manufactures for arouund 25-40% of the list price
2. They put the guitar up for sale somewhere around 70-80% of list price ( I think but I'm too lazy to check, you get the idea though..)
3. They sell guitar and keep profit
#4
Quote by shorter_rocker
Infact I know how they work, it is all off the list price

The guitar store:
1. Buys the guitar from the manufactures for arouund 25-40% of the list price
2. They put the guitar up for sale somewhere around 70-80% of list price ( I think but I'm too lazy to check, you get the idea though..)
3. They sell guitar and keep profit


1. they more likely buy it from a distrubutor who would deal straight with the guitar company.
#5
When it comes to big brand names like Fender, Gibson, Ibanez etc., the stores (especially chain stores like Guitar Center) serve as authorized dealers and deal directly with the manufacturers. The cheaper import guitars from Asia are usually delivered by distributors, who act as middlemen for the Korean and Chinese OEM manufacturers.

It's very difficult for a small guitar shop to compete with the chain stores, but new e-business models, such as the one used by Kurt of rondomusic.net, have a lot of potential.

American Stratocaster + Blues Junior

#6
Quote by azn_guitarist25
1. they more likely buy it from a distrubutor who would deal straight with the guitar company.


Depends on the guitar store size or what brand they are buying from... Stores try to avoid that because it can cost them more money on more expensive guitars
#8
Quote by Armored Artist
When it comes to big brand names like Fender, Gibson, Ibanez etc., the stores (especially chain stores like Guitar Center) serve as authorized dealers and deal directly with the manufacturers. The cheaper import guitars from Asia are usually delivered by distributors, who act as middlemen for the Korean and Chinese OEM manufacturers.

It's very difficult for a small guitar shop to compete with the chain stores, but new e-business models, such as the one used by Kurt of rondomusic.net, have a lot of potential.



this guy knows....I worked in a shop, and yes they buy for a small portion of the margin and charge the manufacturer's price plus the markup to make profit
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