Jonathan I think your a shop owner correct ? I'm thinking of opening my own shop, well between my brother in law and me. We want to start our own car audio shop. Where or how do you go about buying all the merchandise. The money is there so thats not a problem. Is ther like a warehouse where you buy all the merchandise or do you have to talk/deal directly with Manufactures ? WE NEED HELP< PLEASE
Number one, what is your customer base? Your location will often influence this.
What is it they will be buying, what do you plan on selling?
What will your store's overhead be? (lease, phone bill, insurance, power bills, ect.)
Number two, who will be installing for your business?
In my experience, especially this ebay/internet retail day in age, a shop can only be as strong as it's installers. The bulk of my revenue comes from installs. You must have an effiicient work force to survive. It is quite hard for small shops to expect customers to pay retail prices with the internet. You can only throw the "well here you have a warranty" pitch so much.
Don't focus on the retail versus dealer cost profit margins.
Instead focus on labor, this should be the primary source of revenue for a new shop.
Calculate your employee's monthly pay with all the overhead for one month. Come up with an hourly rate for shop time. My time is worth $50 per hour.
I'm skipping over so many important things here, im just throwin a couple of ideas towards you.
I'm not sure looking for a disributor should be your first step in opening a shop. Learning about how to a run business, especially a car audio shop, is far more important than where to buy your inventory.
In most cases, you'll consult the manufacturer for info on how to become an authorized dealer. Then you'll go through the hoopla of dealer training and that fun stuff, so go ahead and hire a guinea pig for such situations .
.