How do I assess a music store’s guitar and amp showroom inventory?
Walk the showroom with the inventory list in hand and match every guitar and amp on the wall to a line on the list. Check condition, age on the floor and how each item was acquired. Then compare the records against what is actually there, and ask which pieces are owned outright and which are on consignment.
Instruments are unlike packaged goods. A guitar can sit for a long time and still sell, but a cosmetic flaw, a bad neck or a failing amp can turn it into a discount item. Plug in the amps. Play a sample of the guitars. Look at necks, frets, electronics and cases, and ask who does setups and repairs.
Separate stock by how it moves. Ask for sales history by brand and price range, and find out which items have been on the floor longest. Used and vintage pieces need extra care, since their records of purchase and condition are often thin. Ask who sets their prices and on what basis.
Consignment is the item to settle early. Ask for a list of anything belonging to someone else, plus any items on layaway, deposit or repair. Those are not the store’s to sell. Finally, ask whether the count will be done again at closing, and who pays for an outside counter. Ask what portion of the stock was bought for a specific customer or event, such as a school program or a local band. Special-order items can look like inventory when they are really spoken for. Photograph the wall before the count so you can compare later.
Key takeaways
- Match what is on the wall to the inventory list and check condition by playing and plugging in.
- Ask for sales history by brand and find the pieces that have sat longest.
- List consignment, layaway and repair items so they are excluded from the stock you buy.
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Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat is inventory
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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