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Author Topic: Selling audio equipment / being a dealer?  (Read 6149 times)

Daniel Mock

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Selling audio equipment / being a dealer?
« on: October 31, 2011, 02:53:45 PM »

I've heard it's not too difficult to get a DBA and resale license.

If I got a DBA and resale license for audio equipment what are some companies that would likely be easy to gain permission from to resell their equipment?

Any general info is appreciated, I don't know much about the subject and have been curious about it lately. 
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TJ (Tom) Cornish

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Re: Selling audio equipment / being a dealer?
« Reply #1 on: October 31, 2011, 02:59:06 PM »

I've heard it's not too difficult to get a DBA and resale license.

If I got a DBA and resale license for audio equipment what are some companies that would likely be easy to gain permission from to resell their equipment?

Any general info is appreciated, I don't know much about the subject and have been curious about it lately.
Generally becoming a dealer requires a buy-in of a certain $$$$ and often an annual revenue commitment.  Unless you have a business plan that the vendor will take seriously, you're going to have trouble being a dealer of anything interesting. 

If you want to resell something other than bottom of the barrel gear or simple commodity items, you will likely have to demonstrate technical competency, as manufacturers don't want their wares represented poorly in the market. 

Other hurdles may include unavailable market territories, advertizing commitments, etc.
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Ivan Beaver

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Re: Selling audio equipment / being a dealer?
« Reply #2 on: October 31, 2011, 03:14:02 PM »

I've heard it's not too difficult to get a DBA and resale license.

If I got a DBA and resale license for audio equipment what are some companies that would likely be easy to gain permission from to resell their equipment?

Any general info is appreciated, I don't know much about the subject and have been curious about it lately.
Are you planning on opening a store front? or just internet sales or something else?

And depending on the particualr items, remember that you may have to compete with the large box houses-who buy in bulk and often sell for prices lower than what you can buy for.

Just something to consider.
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Tim McCulloch

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Re: Selling audio equipment / being a dealer?
« Reply #3 on: October 31, 2011, 03:14:59 PM »

I've heard it's not too difficult to get a DBA and resale license.

If I got a DBA and resale license for audio equipment what are some companies that would likely be easy to gain permission from to resell their equipment?

Any general info is appreciated, I don't know much about the subject and have been curious about it lately.

Most brands require a retail store front with their products on display and available for immediate demonstration.  There are initial minimum orders and annual purchase commitments that can run into "six figures".  If you are wanting dealerships for internal use, remember that most brands already have existing dealer networks and that the brands you want are likely to have an existing dealer in your geographic region.

We went down this road over a decade ago and gave up.  It takes a serious commitment to retail to make money at this, and if you're buying solely for internal consumption, you're unlikely to meet the minimum annual purchase requirement after the first couple of years.

If you want a store front and can make a full, 100% effort at selling retail, go for it.  Otherwise I'd suggest you find jobbers that sell to contractors/installers and develop relationships with dealers and large, direct-buying end users to get the best pricing on new products.

Have fun, good luck.

Tim Mc
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duane massey

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Re: Selling audio equipment / being a dealer?
« Reply #4 on: October 31, 2011, 04:52:31 PM »

I made a deliberate  decision to only sell equipment that I build, even on projects where I am doing the full install. I have several dealers/contractors that I will refer clients to that will pay me a small commission for the sale, and this works out much better for me. No warranty issues, no liabilities if the product doesn't arrive on time, etc, and the profit margins if you "2-step" the gear are so low that it's just not worth it.
In Texas it's still worthwhile having a resale permit, as just about everything is taxed now. If you are going to be in business, even if you don't sell gear, you still have to collect taxes for the state.
YMMV....
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Duane Massey
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Bob Leonard

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Re: Selling audio equipment / being a dealer?
« Reply #5 on: October 31, 2011, 08:30:57 PM »

As everyone has already said a committment will be required, etc., etc.. What you may consider is finding a distributor who handles many manufacturers lines and, with the bank backing you, obtain a line of credit. As you purchase, sell, then repay for the gear delivered within the period allowed you may be able to increase your credit line with the distributor. A larger credit line means more goods and a steeper discount. You'll be relegated to selling what the distributor offers, but it may give you a start. Keep in mind though that 7% above cost of goods is usually a break even number. Combine that with fantastic service and in time you may be able to sell for more than the big box stores, but it's a lot of work.
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Re: Selling audio equipment / being a dealer?
« Reply #5 on: October 31, 2011, 08:30:57 PM »


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