How do I check a record store’s used vinyl stock before buying?
Treat the used stock as a fact to check, not a number to accept. Ask how the shop buys and grades records, sample-count and grade bins yourself, look at aged and slow stock and the share listed online, then agree the count date and method in the purchase agreement.
Used vinyl can be hard to pin down. Each record is a one-off item, graded by eye and priced by judgment. Unlike new stock, which can be counted against a supplier invoice, used stock depends on who graded it and how. Your goal is to understand the system behind the bins before you rely on any total.
How the shop buys and records
Ask how the shop buys collections from the public. Who prices them, what is written down at the counter, and are purchases recorded by lot or by record? Ask to see recent buying records. Look for whether the owner’s method could be followed by a new person, or whether it lives in one head.
Sample and grade the bins
Pick several bins at random and count them yourself, with the seller’s agreement. Check a sample for grading against the shop’s own standard, and ask a knowledgeable person you trust to help. A sample does not replace a full count, but it tells you whether the grading is consistent and whether the stock matches the records.
Aged stock and online listings
Ask what has sat in the racks longest and how the shop handles slow stock. Find out what share of the used inventory is also listed on a marketplace, and whether the same record is counted in both places. Duplicates between the shop floor and an online listing are a common source of confusion.
Agree the count in writing
Ask your lawyer to put the count date, the method, who attends and how disputes are resolved into the purchase agreement. Stock keeps moving until closing, so the date matters. Your accountant can tell you how the result flows into the closing adjustments.
A pet store sells perishable new goods, so how pet store stock is counted differs from graded used records. For the till and sales data, see what happens to the store’s point-of-sale system.
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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 CanadaGovernmentWhat are financial statements?
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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