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Bain Capital and GuitarCenter - is the end coming soon?


IRG

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Having worked for a am & pa I can tell you they had a lot of margin (profit). I would regularly stock up on strings from a major company. When I would order $2000 in strings I would get 70+20+5% off. So a set of retail $7.99 strings cost $1.83. And to top it off every ten sets of like strings got an 11th free on that order. So we would sell two sets for $8 or $2 off one set. Never less than 50% margin.

New guitar were always marked to make 35% and we never sold new less than 22% cash deal (yes 22). Used gear always started at a margin of 55% and we would not mark down any less than 35%. On a 1400 sq ft shop I pulled in $6000 gross sales every weekend and the profit averaged $2500.

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Now that was the weekend alone. Like all other businesses our sales tripled from Thanksgiving to new year. During the week we would bring in $2000-$3000. Respectable business for how small the store was. And are new to used ratio was 1:3 not including consignment. Whenever a consigned piece sold the check was written immediately and sent out so the sellers income was never figured into our income.

We were store 3 in town. The first having been downtown since 1970s. The second opening just before we did and carried all the "cool" brands (JB Player, Robin, Crate, Ibanez, BC Rich). But we had the musicians working that people knew from gigs around town. By the time I left the store, we had just scoped out and signed an agreement for a 4,500 sq ft building with two lesson rooms a warehouse, two offices, and a loft with floor space identical to the sale floor. At this point only the "head manager" (partner) and store owner saw the books. My paycheck had increased to $750 a week.

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A owns B&C.....b owns d e f & g, c owns h,I & j

J is bank that loans money to d to buy e,  f supplies i & g,  k is owned by h and is financed by j who owns the property that e. f, & I lease their properties from.

 

This is so legal it should be a crime.

 

If I have the right people paid and don't step on the wrong persons toe, it's business.

If I fail to not pay the right people or step on the wrong toes my business can be deemed criminal conspiracy, hence becomes crime not business.

What this has to do with the. Price of guitar strings or three chords and the truth beats hellout of me.

 

 

 

 

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That's the music bizz at store level.......

 

I worked in a resturant collective. Our regular coffee supplier provided good cook not greasey spoon brown bad water coffee, but their decafe espress would not go through our pull handle espresso machine with out blowing up like IED. 

So before our regular monthly meeting business gab-fest I went out and bought a group pound of the best espresso in the bay area decafe. We all drank espresso all the time.

1 no new it was decafe everyone loved the taste but everyone said it would be to expensive.

 Then Itold them every coffee drink served was decafe

1 lbs cost  $11.00 I measured out one one in single shot increments and got 30 shots from 1 lbs.

The lowest priced. Drink using espresso was $1.75....x 30 - $11.00= $41.50 with minimum labor.

No more. Exploding decafe espresso, coffee was so cheap we could have given away  with your meal and still come out ahead. Now that I think about.... don't open a music store open a coffee bar.

 

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bubdude wrote:

A owns B&C.....b owns d e f & g, c owns h,I & j

J is bank that loans money to d to buy e,  f supplies i & g,  k is owned by h and is financed by j who owns the property that e. f, & I lease their properties from.

 

This is so legal it should be a crime.

 

If I have the right people paid and don't step on the wrong persons toe, it's business.

If I fail to not pay the right people or step on the wrong toes my business can be deemed criminal conspiracy, hence becomes crime not business.

What this has to do with the. Price of guitar strings or three chords and the truth beats hellout of me.

 

 

 

 

Well I can tell you it's UP TO three chords; lately more like one or two  ... and c'mon with this truth crap already. :D 

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