As of late, Ive been really interested in pro audio sales. Like, being a dealer for companies. Anyone have any insight or advice or what its like, how much you make, etc etc? It would be much appreciated!
Pro Audio Sales
- Thread starter JP Huff
- Start date
RYAN LOUDMUSIC JENKINS
Sophomore
Re: Pro Audio Sales
The profit Margins suck, some companies have high buy-ins and large annual minimums. Calculating and filling out monthly sales tax forms is a pain in the butt. You have to have a nice shop or warehouse without a big box store in your area. You'll get every jack trying to get you to beat Internet pricing even though those Internet prices can often be fake items like you can read about around here in another thread.
Other than that, go for it. Do you have 1/2 million dollars to spend on inventory to get started.
The profit Margins suck, some companies have high buy-ins and large annual minimums. Calculating and filling out monthly sales tax forms is a pain in the butt. You have to have a nice shop or warehouse without a big box store in your area. You'll get every jack trying to get you to beat Internet pricing even though those Internet prices can often be fake items like you can read about around here in another thread.
Other than that, go for it. Do you have 1/2 million dollars to spend on inventory to get started.
Re: Pro Audio Sales
What Ryan said, margins are at an all time low in pro audio (MI is even worse). Unless you can move a lot of product, or make enough money doing installs, you're probably best to invest your money elsewhere.
Disclaimer: I work for a store that does MI and Pro Audio sales. We also offer music lessons, instrument and electronic repair, PA install and service, concert production, A/V production, etc, etc. Basically we do it all, and that is one of the few reasons we haven't succumbed to the market. All the local stores that didn't "do it all" are either closed or bought-out by larger chains.
What Ryan said, margins are at an all time low in pro audio (MI is even worse). Unless you can move a lot of product, or make enough money doing installs, you're probably best to invest your money elsewhere.
Disclaimer: I work for a store that does MI and Pro Audio sales. We also offer music lessons, instrument and electronic repair, PA install and service, concert production, A/V production, etc, etc. Basically we do it all, and that is one of the few reasons we haven't succumbed to the market. All the local stores that didn't "do it all" are either closed or bought-out by larger chains.
Re: Pro Audio Sales
So you have to buy all the stock first and then sell it? A guy can't come over and be like "I need a midas pro 6" and I call midas and say "I need a 6" and then I make x amount off of it for being the middle guy?
So you have to buy all the stock first and then sell it? A guy can't come over and be like "I need a midas pro 6" and I call midas and say "I need a 6" and then I make x amount off of it for being the middle guy?
RYAN LOUDMUSIC JENKINS
Sophomore
Re: Pro Audio Sales
You can do that, but you need to be able to commit to selling multiple Midas desks per year, every year. What value would you add for people to want to buy from you vs others?
You can do that, but you need to be able to commit to selling multiple Midas desks per year, every year. What value would you add for people to want to buy from you vs others?
Silas Pradetto
Graduate Student
Re: Pro Audio Sales
I became a dealer initially to get competitive pricing on all the production inventory that we use in the ordinary course of business. Of course there are minimums, lots of tax implications, inventory, etc. In order to maintain good business with my main vendors, I turn over inventory every year or two.
What started as mostly a 'for us' type of dealership has expanded significantly into supplying our installs and many, many forum guys with good gear at the best prices we can afford to offer. We figure if we get the benefit of being dealers, and you guys on the forum are helping us make our minimums and keep the reps and such happy, we will pass on the savings to you.
So far, it's working. Of the 30+ vendors we are manufacturer-direct with, only one has ever dropped us, and they are universally considered a PITA to deal with anyway, so I don't care.
If you intend to make any money off selling product, good luck, it isn't going to happen.
I became a dealer initially to get competitive pricing on all the production inventory that we use in the ordinary course of business. Of course there are minimums, lots of tax implications, inventory, etc. In order to maintain good business with my main vendors, I turn over inventory every year or two.
What started as mostly a 'for us' type of dealership has expanded significantly into supplying our installs and many, many forum guys with good gear at the best prices we can afford to offer. We figure if we get the benefit of being dealers, and you guys on the forum are helping us make our minimums and keep the reps and such happy, we will pass on the savings to you.
So far, it's working. Of the 30+ vendors we are manufacturer-direct with, only one has ever dropped us, and they are universally considered a PITA to deal with anyway, so I don't care.
If you intend to make any money off selling product, good luck, it isn't going to happen.
Re: Pro Audio Sales
This may vary by region, but my experience has been the following:
-You typically need to maintain some level of stock, that isn't to say you have to stock every piece of gear but they want to know that customers are able to actually see/demo the product.
-Sometimes you will have to spend a certain amount to open up a line, then to keep that line you have to commit to a yearly amount of sales. This is more common with "franchise" lines.
-Some distributors are more liberal than others on all of this, some will be glad to take your money for a one off deal, others will be calling you every week to see how things are going. Some guys will want you to send pictures of your storefront/copy of your business license prior to selling to you in order to prove that you are a legitimate operation.
It's a fun business at times, other times I like to just hide in the back and work on repairs and production projects. I actually prefer the distributors that are more involved, I like to know that I can call a guy on the cell phone when a customer's product takes a dive and get solution. I also like when a rep shows up with a car full of new gear to show us.
I've been doing retail for about 4 years, much less experience than many of the other guys on this board. I don't know if this post is going to persuade or dissuade you, it's more just my collection of random likes and dislikes about working in the industry.
This may vary by region, but my experience has been the following:
-You typically need to maintain some level of stock, that isn't to say you have to stock every piece of gear but they want to know that customers are able to actually see/demo the product.
-Sometimes you will have to spend a certain amount to open up a line, then to keep that line you have to commit to a yearly amount of sales. This is more common with "franchise" lines.
-Some distributors are more liberal than others on all of this, some will be glad to take your money for a one off deal, others will be calling you every week to see how things are going. Some guys will want you to send pictures of your storefront/copy of your business license prior to selling to you in order to prove that you are a legitimate operation.
It's a fun business at times, other times I like to just hide in the back and work on repairs and production projects. I actually prefer the distributors that are more involved, I like to know that I can call a guy on the cell phone when a customer's product takes a dive and get solution. I also like when a rep shows up with a car full of new gear to show us.
I've been doing retail for about 4 years, much less experience than many of the other guys on this board. I don't know if this post is going to persuade or dissuade you, it's more just my collection of random likes and dislikes about working in the industry.
Re: Pro Audio Sales
Being able to take the gear to them to demo, and almost like a close to home tech support/training facility type thing.
Being able to take the gear to them to demo, and almost like a close to home tech support/training facility type thing.
Re: Pro Audio Sales
So it wouldn't be a good "side" project? I know a lot of guys will build and sell stuff like cases or speakers or do other things on the side for money besides mix. But I am really interested in being a Midas dealer and a dealer for a few other companies. I feel like it would not only be a good way to stay up to date with gear and what not, but also make money and get the company name out there. If I did a gig with like a high school and they were like "Oh we like this set up, we wish we had one or knew where to get one" I could be like, "I'll sell it and install it for you". Maybe Im just wayy off! haha
So it wouldn't be a good "side" project? I know a lot of guys will build and sell stuff like cases or speakers or do other things on the side for money besides mix. But I am really interested in being a Midas dealer and a dealer for a few other companies. I feel like it would not only be a good way to stay up to date with gear and what not, but also make money and get the company name out there. If I did a gig with like a high school and they were like "Oh we like this set up, we wish we had one or knew where to get one" I could be like, "I'll sell it and install it for you". Maybe Im just wayy off! haha
Re: Pro Audio Sales
Many places can set up you up as a wholesale dealer giving you access to a lot of different brands from one source. The pricing is not as good as direct dealer pricing but much better than retail.
You'll at least need a state tax ID number to apply for any dealership or wholesale account.
Depending on your level of sales you'll need to file state taxes at least every six months.
I am set up as a direct dealer for a few lines and have a couple of wholesale accounts.
Many places can set up you up as a wholesale dealer giving you access to a lot of different brands from one source. The pricing is not as good as direct dealer pricing but much better than retail.
You'll at least need a state tax ID number to apply for any dealership or wholesale account.
Depending on your level of sales you'll need to file state taxes at least every six months.
I am set up as a direct dealer for a few lines and have a couple of wholesale accounts.
Re: Pro Audio Sales
Why exactly would they buy from you instead of someone else? If you're just placing the order for a board, they might as well place the order themselves.
There is a lot to consider if you really want to get into this. Buying and selling product requires that you are set up to collect sales tax. You can't just say you're too small to do that, as the tax collectors don't have a sense of humor about tax evasion.
And then there's having enough capital to get the gear from the dealer. Just because you have a customer that wants to spend $20K doesn't mean the dealer is going to send you the gear without getting paid first, or at least have a line of credit on file. And if you expect the customer to pre-pay for the gear, that's just one more reason for them to order somewhere else.
And then you have to realize that the requirements for dealerships are extremely small. Small enough that a lot of sound providers are able to get set up as dealers, whereas their only real customer is themselves. They buy gear and use it and then sell off their used gear regularly. This makes nearly new gear available on the market at or below your cost readily available. The companies buying new gear are not going to buy from you, so who does that leave as a customer?
The only way to make money at this would be to commit to HUGE volumes of gear, which would get you better pricing, and then have a way to move that gear. Definitely not something you're going to be able to start up as a side business.
Why exactly would they buy from you instead of someone else? If you're just placing the order for a board, they might as well place the order themselves.
There is a lot to consider if you really want to get into this. Buying and selling product requires that you are set up to collect sales tax. You can't just say you're too small to do that, as the tax collectors don't have a sense of humor about tax evasion.
And then there's having enough capital to get the gear from the dealer. Just because you have a customer that wants to spend $20K doesn't mean the dealer is going to send you the gear without getting paid first, or at least have a line of credit on file. And if you expect the customer to pre-pay for the gear, that's just one more reason for them to order somewhere else.
And then you have to realize that the requirements for dealerships are extremely small. Small enough that a lot of sound providers are able to get set up as dealers, whereas their only real customer is themselves. They buy gear and use it and then sell off their used gear regularly. This makes nearly new gear available on the market at or below your cost readily available. The companies buying new gear are not going to buy from you, so who does that leave as a customer?
The only way to make money at this would be to commit to HUGE volumes of gear, which would get you better pricing, and then have a way to move that gear. Definitely not something you're going to be able to start up as a side business.
Re: Pro Audio Sales
Thats very true. So what you're saying is someone will go buy stuff, use it with intent to sell, then sell cheaper and say "oh yeah it's gently used" and do it that way?
Thats very true. So what you're saying is someone will go buy stuff, use it with intent to sell, then sell cheaper and say "oh yeah it's gently used" and do it that way?
Silas Pradetto
Graduate Student
Re: Pro Audio Sales
That's pretty much what my company and all other medium-size production companies I know of do. This is exactly what Camel Traders is - the store name for American Concert Entertainment Services in Troy, NY.
Selling gear at or below cost is not something I want to do; I don't want to devalue the product. Unfortunately it seems that the market itself is devalued.
The other major problem with selling product is MAP - you literally have to advertise the exact same price that every other online retailer already is advertising. Then when your JBL speaker is the same price as the same JBL speaker at Musician's Friend, you wonder why you never sell anything. So small-scale sales are limited to word-of-mouth customers, repeat customers, or local customers. You are never going to be able to compete online or via any advertising media anywhere.
That's pretty much what my company and all other medium-size production companies I know of do. This is exactly what Camel Traders is - the store name for American Concert Entertainment Services in Troy, NY.
Selling gear at or below cost is not something I want to do; I don't want to devalue the product. Unfortunately it seems that the market itself is devalued.
The other major problem with selling product is MAP - you literally have to advertise the exact same price that every other online retailer already is advertising. Then when your JBL speaker is the same price as the same JBL speaker at Musician's Friend, you wonder why you never sell anything. So small-scale sales are limited to word-of-mouth customers, repeat customers, or local customers. You are never going to be able to compete online or via any advertising media anywhere.
Re: Pro Audio Sales
I'm a dealer for things I can make money on- not stuff Guitar Center sells. You just can't compete. 90% of the stuff I buy is for installs. I have very good relationships with dealers on everything else and buy most items at cost anyway.
Evan
I'm a dealer for things I can make money on- not stuff Guitar Center sells. You just can't compete. 90% of the stuff I buy is for installs. I have very good relationships with dealers on everything else and buy most items at cost anyway.
Evan
Re: Pro Audio Sales
So do dealers get hurt by things like Guitar Center and Musicians Friends and what not because of the price? Example: if someone needs X for a show but its too expensive and they would rather go to a "store" like guitar center and settle for Z when they could go to a company and get exactly what they need.
So do dealers get hurt by things like Guitar Center and Musicians Friends and what not because of the price? Example: if someone needs X for a show but its too expensive and they would rather go to a "store" like guitar center and settle for Z when they could go to a company and get exactly what they need.
Re: Pro Audio Sales
1) what do you mean not stuff guitar center sells? like big stuff such as midas/digico or out of the ordinary stuff that people may not always need like stage, rigging, etc?
2) Are you selling Harford sound shirts? Because I want one...TJ said I could buy one off of you
1) what do you mean not stuff guitar center sells? like big stuff such as midas/digico or out of the ordinary stuff that people may not always need like stage, rigging, etc?
2) Are you selling Harford sound shirts? Because I want one...TJ said I could buy one off of you
Re: Pro Audio Sales
No worries, what could go wrong...
JR
[edit- in case it isn't obvious that I am joking... starting a new dealership from scratch is very difficult to do profitably /edit]
No worries, what could go wrong...
JR
[edit- in case it isn't obvious that I am joking... starting a new dealership from scratch is very difficult to do profitably /edit]
Last edited:
Re: Pro Audio Sales
FWIW, I get all of my bulk cable and connectors at the GC Pro nearest to me. Cheapest option I have at the moment, and at the price I've managed to get, it's not much more expensive than direct from VTG/Mogami/Neutrik/etc. That's what you're going up against, at least in some areas.
FWIW, I get all of my bulk cable and connectors at the GC Pro nearest to me. Cheapest option I have at the moment, and at the price I've managed to get, it's not much more expensive than direct from VTG/Mogami/Neutrik/etc. That's what you're going up against, at least in some areas.
Re: Pro Audio Sales
You might want to consider going to work for an established Manufacturer's Representative firm. This is an independent rep firm who represents different product manufacturers to a customer base. They basically serve as a local point of contact for dealers and occasionally work with end users who are experiencing problems. I know there are some reps around your area. You should look into the brands you are interested and see who reps them in your area.
You might want to consider going to work for an established Manufacturer's Representative firm. This is an independent rep firm who represents different product manufacturers to a customer base. They basically serve as a local point of contact for dealers and occasionally work with end users who are experiencing problems. I know there are some reps around your area. You should look into the brands you are interested and see who reps them in your area.