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The Basement
Pro Audio Sales
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<blockquote data-quote="Brian jojade" data-source="post: 100044" data-attributes="member: 211"><p>Re: Pro Audio Sales</p><p></p><p></p><p></p><p>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.</p><p></p><p>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. </p><p></p><p>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.</p><p></p><p>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?</p><p></p><p>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.</p></blockquote><p></p>
[QUOTE="Brian jojade, post: 100044, member: 211"] 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. [/QUOTE]
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