Why I haven't gone into the boutique business

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4/16/2003 3:25 PM

R.G.

Why I haven't gone into the boutique business I've been designing and building musical equipment all my adult life. I get asked a lot why I haven't started an effects business.     It's really a matter of focus - to be successful at an effects business you need to do a lot of stuff that is not related to effects or the music industry at all. In fact, being successful at an effects business probably means you'll do almost NO work with the effects themselves.     Consider what successful businesses do. They advertise - a lot. They manage ordering and inventory, hiring, firing, accounting, payroll, insurance, building ramps to comply with the ADA, dealing with OSHA complaints, dealing with disgruntled customers, dealing with *insane* customers, paying utility bills, getting loans, worrying about cash flow and paying taxes. Oh, yeah, lots of paying taxes.     A hot new sounding effect circuit in a slickly designed, user friendly, durable case won't do it.     Where are you going to get form-fitting shipping cartons and those little plastic wrappers to keep them nice? Where are you getting your instruction manuals printed? Where are you getting your *shipping cartons* printed? Do you have your order entry software or paper forms ready? Are you going to build a fair amount of inventory and wait to sell them, or build to order and hope you get them completed in time?     The entire mess of running a small shop falls on your shoulders. If you don't have a captive market, or some kind of unique group of people who want your stuff, you're going to have to compete - hard. You'll have to beat the sidewalk to all kinds of stores to get them to stock your stuff and not the stuff from the last seventeen guys that came through with *their* bright ideas. You're going to have to go to trade shows. You're going to have to decide whether the internet is enough advertising or if you need to get that half page in Guitar Player.     If you're going to build a few pedals and sell them from your web site, great! If you're at all competant about it, you'll make several thousand dollars a year at it.     Don't let my opinions discourage you; keep a clear head about what you need to do to run a business, and if it's the right thing to do, JUMP!     Until you've done some clear headed evaluation, as they say - don't quit your day job     I've kept falling on the side of getting a better return on my time by working a day job, and playing at effects. I like messing with electronics. I don't like deciding whether my inventory is LIFO or FIFO.     R.G.

 

4/16/2003 6:58 PM

Matt

I once saw a quote in a beer-brewing book made by a guy who started a micro-brewery. It goes something like: "I had the world's greatest hobby and I had to go and ruin it by making it my profession."     Here's another quote but I don't know where it came from: "Don't do what you love, love what you do." Kinda makes sense for someone like me who often thinks that playing guitar or building amps is a dream job and my good paying, good benefits, low pressure job on a National Wildlife Reserve is so bad.     Matt

 

4/18/2003 4:53 PM

Mark

RG - that's exactly how I was with recording..   I used to work a day job, and run a small project studio at night (as well as work as engineer at a few other places)..   it got to an important crossroads where I had to decide whether to stick with my day job (technology) or my night job (recording).. while I love recording, I dont' like the BUSINESS end of it.. so now it's just my hobby again, and I'm happy.     I can relate 100%.   "-)

 

4/20/2003 8:38 AM

nic

large scale production, the right niche, and the value First I wanna say, Gosh it is great to read the wisdom of old school ampagers like Mr. RG Keen again!     You go to any Guitar Center and they will tell you that they do not stock zvex (for example) based on the simple fact that the volume doesn't meet their buying power. This may be true, it could be partially true?     If you break it down and think about it all big sellers want are cheapo shit, from the pink Strats that GC bought from Fender and resold cheap in the '70's to the Danelectro reissues of the late '90's. Strange yet desireable items like a Fender Blender will sit on their rack for months. Their guys don't know how to sell them, they aren't paid to know how to sell them. They are paid to sell things that sell themselves, Line6.     On that note, with any business it is important to find the right niche. In my town the one store that know's their niche is Emerald City guitars. It is a boutique retailer, but many more famous people visit Jay before the GC simply because his selection is unique, AND he sells things. The only other place in town that has an interesting selection WILL NOT budge on prices and attempt to play the GC game and that is ironically called the "Trading Musician". I don't know which consumers they prey on in order to stay in business, but they have been sitting on the same inventory for the past 5 years I have lived here. Or so it seems.     A person that I know who can contribute to this very topic is Mr. Vex himself. If you wanna distribute your product to stores, you gotta know the clientel of each store. Ultimately, not EVERY guitar player has internet access. Some of our friends have found fantastic niches online, Steve of Small Bear, Joe of NIN, and our friend from musictoyz.com. How likely is the cheapest store front for everyone? My website and business only gets hits when I ACTIVELY mention it and pursue the thing.     I am sure Mr. Keen could do a nice business for himself if he did not have responsibilities like a family to provide for. He'd probably make as much as any pizza delivery guy, which would be fine for a bachelor...     BTW, I paid my rent the one and only month I ACTIVELY pursued my website, just about one year ago today. I spent a lot of time on it and in the long run lost a long term girlfriend over it. What is it worth? Besides your investors and partners it is important to realize what time you have for business vs. your loved ones. Many of the entrepenuers of America have been young AND single from the freedom fry master Simplot to the OS baron Bill Gates. Good luck! I remain single to this day in pursuit of the "right niche".       nic

 

4/18/2003 6:20 PM

Doug H

Re: Why I haven't gone into the boutique business I hear ya, R.G. My day job has its ups and downs. Overall it's decent and it pays the bills and has nice benefits. I'm happy that when I've had some bad days at work, I've had this hobby to enjoy and take my mind off of it. I wouldn't want this to -become- the bad day at work.     As far as focus is concerned, I love designing and breadboarding. But I hate assembly and construction, let alone all the business stuff...     Doug

 

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