Hifi-AV store in Dublin Town?

[tercesire]

Hi Guys,

I would like to ask your comments/feedback about the possibility of opening a new hifi-av (from budget to mid-range) store in Dublin Town. Do you think it's a good idea to have a store in Dublin Town?

I know there is 2 stores with budget and mid-range in Dublin, but both are outside the town. Another store located in Dublin Town and one in Blackrock are more upmarket and above the mid-range prices.

Thanks in advance for all your comments/feedback.

[Sloop John B]

If Richer Sounds didn't make a go of it, I'd think it unlikely a solo business could make money in Dublin Town.

I think you'd do better opening a habidashery department.


SJB

[Ivor]

There were many reasons that Richer Sounds didn't last and none were down to poor sales.

I do think there is room for a mid range shop in Dublin city but it would be a braver man than I to do it! I don't know why Dublin can't support more hifi shops but history tells us that it doesn't.

First off you will have high rent and high rates. You will have high capital investment in stock which will also incur high insurance costs. You probably won't see any income yourself for 18 - 24 months. You might not think your business is seasonal but in summer money goes on holidays, early in the year it goes on cars, you'll need to 'piggy back' on Christmas just to stay afloat.

I wish you good luck with it but do the math.

[Diapason]

Like Ivor I'd like to think there's room, but I'd be asking a few serious questions:

- Who are you targeting really?
- What would you stock?
- How would you differentiate yourself from the likes of Cloney Audio? They actually stock quite a lot of inexpensive stuff and have reputation and history on their side too.
- How would you persuade people to buy from you rather than, e.g. amazon for specialist stuff and box-shifters like Power City for more mainstream stuff (I'm thinking TVs and lower-end hifi here).

That's aside from other financial questions which probably get sticky very quickly. Rents and general business costs have got to be prohibitive for starters, and I don't think the margins on hifi are all that great. To be honest, I'm guessing that even Cloney Audio doesn't make a huge amount of money from selling stuff in the shop, although I don't know that for sure. I imagine that custom installs for wealthy clients are where the real meat is these days.

Basically, I have absolutely no idea whether this is achievable or not, but I certainly miss the likes of Hifi Corner, Lafayette, Studio One and all those other smaller places dotted around town less than 20 years ago. This week on facebook a friend asked a tentative question about hifi and I didn't know what to tell him or where to send him, because I think the big ticket prices in the likes of Cloney would have scared him away. Still, I fear he's a bit of an outlier in even having any interest...

[Adrian]

Not a snowballs chance in hell I think.

With long lease contracts 20 to 25 years and rents doubling or even tripling every five years it would not be financially viable.

I'm currently in Munich atm.

I'm amazed at the variety of shops there are, for example one shop just selling candles and other religious ornaments.

On the continent rentals can be linked to turnover, so if a shop has a bad year, the rent drops as well. So shop variety seems much greater in Continental European cities when compared to Dublin for example.

Very little exists for men in shops these days, mostly aimed at women wear etc

Hi fi shops are a thing of the past, and camera shops are going the same way IMO.

[Ivor]

You'd probably get a 10 year lease on a smaller shop and some of the prominent shopping centres can be negotiated with, empty shops are no use to them. You'd be very surprised at the deals you can get but they will be for 3 - 5 years enough to get you off the ground ... or not!

I think because we need to hear hifi there will always be a need for bricks & mortar shops but as Adrian points out everything is stacked against you in Dublin. Ideally you would need a secondary business running such as home cinema installation, fitting out clubs and pubs, or wholesale distribution (more capital outlay).
You should certainly put together a comprehensive business plan and have a few genuine business people look at it.

I think if you really want to this you'll have to move out of the city centre and get a modest shop in D4 or D6 and start there. If that works then maybe go central... but if it works why would you?
Good luck on your quest!

[Adrian]

There was a chap down on Cork city... can't recall his name, he ran Munster Sounds. He was a nice chap, I bought a few things off him, one being a Rotel RA 921 amplifier for a friend of mine (which is still going).

I remember walking into the shop back in 1997 as I was making my way to Kent station.

The first thing I said to him was "What are you doing here"? And no.... I was not being funny, I was being deadly serious.

He was only open a few weeks / months at that stage... and he expressed surprise at my direct manner of speech. I told him straight out he was wasting his time.

Over the years I was going up and down Dublin / Cork... he sold me a Rotel amp which is still going, a NAD TT which is still going... and on one occasion I had to get a stylus for a Shure MM cart. He knew his stuff and could help you out, I think at one stage he even had speakers retailing for 10K in there as well.

But sadly the turnover was not enough to pay the electricity bill, and I am sure Council rates did not help either. He just did not have the turnover, and while several customers expressed fascination at how good a budget set up of 1000 euro ( amp, CD player, Speakers) could sound, they would still ask..."what have you got for 50 quid?"

When you are dealing with this sort of Boll**ks along with a hefty kick in the nuts by the council for rates.... you know you are on a looser. Sadly it was so... and Munster Sounds is no more, a real loss, considering they were a good bunch of guys just trying to provide a service and make a living.

[tercesire]

Hi Guys.

Thank you very much for all your responds.

I am thinking about some place which will include the main/retail room and demo room.
I think the demo room is very important.

All the costs around the business are my biggest worries.
Of course I am thinking about extra services, not just sales.

I will be monitor all your advice, recommendations, ideas.

I am always like to hear others opinions. This may open the eyes on some things a little bit wider.

Once again thanks a lot and I want ask you for more comments.

[Fran]

The only scope I see is for a mixed business where hifi would be the add-on. Selling things like headphones, headphone amps, DAPs, and the like might also help out. Find what niche exists in Dublin that is not being filled by others.


Its getting harder and harder to stay in business. I recently bought a fairly high end camera. The grey import was 65% of the cost of the Dublin (or most anywhere in Europe) price. It was a big spend for me on my other hobby and the saving was simply too much to ignore/resist. Does that hurt shops like John Gunns, Berminghams etc - yep it sure does and I feel guilty about that. But money talks.

[Sloop John B]

One area where you could create a bit of a buzz and perhaps get a niche is vinyl replay. If the sales of vinyl are going up, sales of turntables should be also. These new buyers are not saddos ( my daughter's term) like us but the young and hip or whatever youth and hipness is called these days. People are less likely to buy a turntable online.
Cloneys for all its ability in this area is a bit stuffy, although they have intelligently ensconced themselves in Tower.



Best of luck, either which way.





SJB