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Retail Shop in 2008?
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Endless Morbidity



Joined: 17 Oct 2007
Posts: 2108
Location: New York

PostPosted: Fri Jul 04, 2008 5:46 am    Post subject: Retail Shop in 2008? Reply with quote

So I've finally got a long term goal in my life and some direction. It's been a pretty long 'dream' of mine to open up a record store. However, in this dying economy and regular businesses closing up left and right, opening a store specializing in Metal seems pretty risky. But I really don't care too much. Of course, it's going to take a long time, maybe years before it happens, but as a social misfits who doesn't work or play nice with regular society, working for myself doing something I enjoy is the only way I can survive.

Does anyone think such a shop could last today? There are not many record shops anymore on Long Island, but I don't think there is a whole lot of record buying, real head bangers either. NYC is too hip for Metal so it seems these days, but that would be the best likely place to open.

I just want some opinions on the pros and cons.
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wargoat



Joined: 22 Apr 2008
Posts: 66

PostPosted: Fri Jul 04, 2008 5:51 am    Post subject: Reply with quote

Deathgasm Records tried it and failed.
Regimental Records tried it and failed.

If you can find a prime location with low rent, and are financially self-sifficient to support yourself for the first year or two, you might be able to make it work.
I tihnk you'll need to combine the retail store with an online shop as well - there are a few who seem to do this.
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peterott



Joined: 07 Aug 2007
Posts: 4710
Location: Germany

PostPosted: Fri Jul 04, 2008 5:53 am    Post subject: Reply with quote

I think the Clandestine Blaze guy has opened a record shop in Finland recently. Buest guess is move to Europe and open it here in a bigger city. Wink
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Endless Morbidity



Joined: 17 Oct 2007
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Location: New York

PostPosted: Fri Jul 04, 2008 5:56 am    Post subject: Reply with quote

Mikko's new shop is is partially responsible for inspiring me to do this. But then again, I'm pretty sure Finland's not in the state we are in now. My ex-girlfriend is Finnish and when she last visited, she was having a blast with the weak exchange rate.
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Detest Records



Joined: 22 Apr 2008
Posts: 3041
Location: Brussels dead city

PostPosted: Fri Jul 04, 2008 5:57 am    Post subject: Reply with quote

a used cd's/lp's shops opened here in Brussels some years ago and works pretty good ...

Running the shop + an online distro is IMO a nice choice ...
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Endless Morbidity



Joined: 17 Oct 2007
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PostPosted: Fri Jul 04, 2008 6:01 am    Post subject: Reply with quote

I saw Regimental Records shop and it's not really a wonder why they went out.

It's nice if you'd be able to keep a shop going with strictly underground Metal releases, but the reality is that you need to stock some "rent payers". In that case, I'd stock minimal amounts of punk, industrial, goth and stuff of more personal interest like Death In June. As well as a lot of mainstream Metal crap I can't stand. If it allows me to be able to sell what I WANT to sell, then it's serving a purpose.

I'd also want to sell horror books and dvd's, porn, occult literature, Satanic paraphernalia, etc.
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Detest Records



Joined: 22 Apr 2008
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PostPosted: Fri Jul 04, 2008 6:03 am    Post subject: Reply with quote

As far as I'm concerned I'd like to run a large scale distro on the internet ... selling Marilyn Manson cd's would be hell ...
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peterott



Joined: 07 Aug 2007
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Location: Germany

PostPosted: Fri Jul 04, 2008 6:57 am    Post subject: Reply with quote

Another good record shop for comparison would be Repulsive Records in Stockholm. They are only selling Metal stuff. Don't know if they struggle or if they go well. Nice 2nd hand section, fair prices on the raries, lots of unknown Demo CDrs from bands to discover, good shirt and DVD-section ...
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Endless Morbidity



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PostPosted: Fri Jul 04, 2008 7:05 am    Post subject: Reply with quote

Yeah, a trip to Repulsive Records is on my to-do-list before I die.
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iron tyrant



Joined: 17 Jul 2007
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PostPosted: Fri Jul 04, 2008 7:14 am    Post subject: Reply with quote

Repulsive is great. Never been there, but a shop that tries to break the monopoly of Sound Pollution in Stockholm is respectable. Plus I'm pretty sure they are driven by an underground mentality.
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peterott



Joined: 07 Aug 2007
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PostPosted: Fri Jul 04, 2008 7:23 am    Post subject: Reply with quote

iron tyrant wrote:
Repulsive is great. Never been there, but a shop that tries to break the monopoly of Sound Pollution in Stockholm is respectable. Plus I'm pretty sure they are driven by an underground mentality.


When I was at Sound Pollution, they were heavily overpriced and sold mostly new CDs. Few old stuff released 2-3 years ago, and nothing 2nd hand. Though they had some nice vinyl-boxes and some killer 7"-boxes (found there a Watain 7" for 49 SEK some years ago). Repulsive is by far better here, especially with the good 2nd hand offerings. And the guys behind the desk were by far more Metal than the HC-guys behind the Sound Pollution desk Wink
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carnal sadist



Joined: 24 Jun 2008
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Location: Florida

PostPosted: Fri Jul 04, 2008 7:34 am    Post subject: Reply with quote

The economy is my guess for Aces Records and Splattergod Records going out of business in Tampa. I know the landlord had a big part in the latter, but I don't think there are enough metalheads that actually buy to maintain owning an actual shop. I'd test the waters with a distro first.

I wonder if Hogwild Records in San Antonio is still open. I used to get killer shit from them a while ago.
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IXTAB
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Joined: 15 May 2008
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PostPosted: Fri Jul 04, 2008 7:51 am    Post subject: Reply with quote

I hate to be a real bummer, but I think success is unlikely. Here's why:

I am a volunteer at our local punk/metal (more punk than metal) record store here in Minneapolis. Keep in mind that this is an all-VOLUNTEER run and owned (no profit) record store that has been around for over 10 years. In other words, all revenue earned goes to pay the rent, bills, and buy more records and CDs. There is only one paid employee, the accountant, and she works VERY part-time.

Every year sales drop more and more and it is becoming increasingly possible that the store will have to close someday. The reality is that music downloads are killing business more and more. Vinyl is almost unprofitable when you factor in high manufacturing costs, which lead to high wholesale and retail prices. We mark up 50% from wholesale costs, so a $10 wholesale record sells for $15. $5 of revenue on a record, then subtract shipping costs, that record's share of the rent and bills, any employee wages, the share of that money that needs to go to buying more music (to expand inventory, etc.), and you have about 0 profit to feed yourself.

CDs are much more profitable because manufacturing costs are so much lower and retail prices are not much lower than vinyl, BUT fewer and fewer people are buying CDs. The newspaper said yesterday that half of ALL teenagers did not buy a single CD in 2007.

That said, if you give it a shot, I wish you all the best. The world could use more good METAL record stores.
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Mz412



Joined: 07 May 2007
Posts: 2735

PostPosted: Fri Jul 04, 2008 9:26 am    Post subject: Reply with quote

I think its very Hard to make a record shop.

You must have same prices like the Internet Shops. In a time
with Mp3, Myspace and so on, the willing to pay for a Record is
mostly Zero. When The Customer can buy a CD in a Mailorder
fo $5, nobody wanna pay $15, euqal if you need the Money
for Bills or not.
And all real Shops i know so far have Label/Internet Mailorder
and a real Sho, but all 3 together, Not only a Shop. Mostly they
sell anyway over Internet, not really in the Shop.
If you limit your Sales on only Pure Underground Metal or such,
i see not really a future. You must sell all kind of Trendy fucking
stuff to get Money in for getting new (and of course better)
Records...

Crying or Very sad
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Heirophant.326.AV



Joined: 05 Nov 2007
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PostPosted: Fri Jul 04, 2008 9:31 am    Post subject: Reply with quote

I dont know....I'm friends with the guys who run one of the UG record shops here in Melbourne. They make most of their money off Vinyl collectors, wether it be Metal fans or Power Electronics fans, or Indie fans. So I walk in there with Some $$$ in my pocket, and I can always find something to buy, even if its just a second hand CD...but that builds loylaty- on payday I go past there and have a look. Luck out sometimes and score something good.

I've thought about buying out one of the "More established" stores here, as the guy who ownes it seems to want to get rid of it and seems to be pretty forward about bailing out. But it has the bad reputation built up across 10 years of trading, and realistically I thought about all the shit involved in dealing with the public, and went MEH.

Its hard in that our currency is way overvalued, so nobody will buy from an actual storefront. I know I wont - ATM the $AUD buys 97 us cents, so anyone with any brains will be buying from the US - even with the postage its cheaper than buying domestically, considering the tax and shit you have to pay to keep the business going.

A real shame, cos I'd like to run a shop...beats doing tech support for crappy net hosting which is what I do now.
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