Opening Record Store


Looking for advice from my fellow audiogoners...I have the potential to move into a store front that is already being operated as a record store (lps only) and become the new shop proprieter/owner. The owner has offered me the space (rediculously cheap rent) in a good area of town. He has had his store for about 5 years now and has a steady customer base. He will be taking all of his inventory and record storage bins that were in the store.He has a web site set up already and signs out front indicating the name of the shop...I plan on rebranding the shop with name change and interior upgrades. It is not a large space maybe 800-1000 square feet. I have a rather large inventory of my own so my up front investment of vinyl would be minimal. The owner wants me to buy him out..basically give cash in return for his customer base and the potential to get my hands on pretty good collections. I am trying to come up with a fair valuation of something like this and I am looking for advice..What do you think something like this is worth? Thank you in advance.
fromunda

Showing 1 response by tonykay

We lived in the SF Bay Area for more than thirty years, and only recently moved. I have never owned a record store but I have been in enough to know that, unless you just loved the movie "High Fidelity" and envy the lifestyle of its employees, a record store is a money pit. I recall two record stores in the Hayward area that moved three times each before finally quitting the business.

Like many on this forum, I have fantasized about owning a high-end stereo store. But, after talking with former store owners and employees about the business, I realize that it’s long hours, demanding customers and diminishing cash flow. I believe a record store would be similar, just more dimes and slower dollars. I did like the "Analogue Room" in San Jose, which is a great store for audiophile records.