I've only started posting here, and I'm still looking for help!!

I am involved in a new music retail business. A friend of mine has started the company, and has asked me to oversee the keyboard/music tech dept.

We are trying to be financially frugal, and ensure the longterm stability of the shop. However, I am disappointed in the stance Yamaha have taken.

They have a minimum £3000 first order. I was hoping to get some of the smaller arranger keyboards in for the Christmas market, but the £3000 has to be spent on the "high end" gear eg, Tyros 2 (I am actually very interested in buying one myself).

I thought companies may have let shops have demo models to increase sales and interest in their products, but it is going to cost us over £3000, and no one would want a used keyboard, so we would need to get 1 new boxed Tyros 2 and put the other on show..........

Not ideal considering we can't, at this moment, afford to pay the £3000 minimum for the 1st order. So do any of you guys have any ideas, or suggestions about how we should proceed?

I feel we are in a no win situation, and it is disappointing because if given the chance, I feel confident that I could sell the likes of the Tyros 2, but at the minute Yamaha have priced themselves out of the market.

Thanks for any help.

Stein,

I don't want to discourage you and your friend, but:
I just calculated the irish pound against the euro, which is;
3000 Irish Pounds = euro 3.809
IF uk pst
3000 uk pst = euro 4.440

Now if you consider that the avarage consumer price on the mainland called Europe is around euro 3.200,-- including VAT,
I think you might draw the conclusion, that it's Yamaha's way of letting you know that they don't want to do business with you yet.

Feel free to mail me, as I don't think it's a good idea to discuss this on the forum...

Fred

If I should keep this conversation off the forum, let me know. Don't want to be causing any hassle or breaking any rules considering I'm a new member!!

Thanks for the reply Fred. We are now an active retailer and are doing well. We have ads in the local press, and soon national. I am pretty desperate, for selfish reasons, for getting a Tyros 2 in store, as I am looking for one myself!! And I was hoping we would have the option of even ordering on demand initially. But this £3000 limit, even puts this idea in jeopardy.

Yamaha have only discussed this over the phone with us, and haven't even seen the premises (which are pretty impressive and based in a fantastic location)yet, so the barriers put in the way of us being able to demo premier Yamaha equipment is a little confusing. I had been under the impression that certain models may have been given as demo models to increase sales...........how wrong and naive I was!!

Stein,
My background is starting a small music store/school operation with limited funds. I held the business for 15 years before selling it. At that time we had over 400 students and 13 teachers.

1-Major companies are not interest in building your new business. They are interested in building their own business and protecting the dealers who are established.

2-You have a mind set on how you wish to start. I feel you must go with what has been given to you, within that you will find your growth and profit.

3-Used instrument are a good way to go – better margin of prophet and fairly easy to come by.

4-Adding music lesson will give you a supply of prospective buyers. There are programs which you can tie the lessons and instrument sale together.

5-When the profits come in you will be in a better position to deal with the Yamaha’s.

6-For a year or two I had to buy from an established dealer at a special price which left enough room for me to make my profit. My business started to produce enough dollars so that I could buy in volume, get special discounts and buy direct.

7-The business began to flourish when I learned what the people wanted, work with what I had and allowed some of my ideas to be put on the shelf.

I hope this helps, John C.

Hello Stein,
Don't worry it's no problem on this forum,(as long as you do not start advertising, that is ) but I wrote it more for your own privacy, as it can be very wise to not publicly publish business strategies!

One of the rules in Retail;
Never SELL no to a customer.

So if you think you can have extra turnover with a Brand you cannot get directly, like Yamaha, you get it in-directly, like John said!
Most compatitors/colleges won't have problems with it, as their turnover at yamaha could potentially grow.

Another rule;
Business first then the hobby!
So don't buy something just because YOU like it, but buy something you can SELL and make PROFIT!

I can go on for ages on this subject, which would go way beyond the meaning of this section of the BBS.

In fact I think John gave you pretty good lines already.

Then f.i. the Tyros II, I gave you the consumer price in europe, which means you can already figure out what the max is you should pay.
First deduct the VAT, then another 20%.

I presume you did ask for a VAT numer for your new company?
If you have a VAT number already, you can order without paying VAT from all countries within the EEC!

If you need any further help with it, feel free to mail.

Fred

Thanks very much for taking the time to reply. Things have changed slightly with regards to Yamaha.

Without going into too many details, the information I received regarding the initial orders was partially incorrect. So, I can retract my initial rant!! Hopefully things will be resolved within the next few weeks. Yamaha is definitely one brand I have consumer experience with in the past, so I would love to have them on board.

I totally agree with you Freddy regarding getting in products that will sell, rather than products I want to play , but maybe I can make an exception with the Tyros 2, because I could very well convince myself to buy one But seriously, it is about having at least the potential to get this sort of premier product, even if it is on customer request initially.

So thanks again Freddy and Bruno. I really appreciate you's taking the time to reply, and thanks for the advice.

[This message has been edited by Stein67 (edited 10-13-2006).]