Retail Squeeze - The Pressure on Independent Retail Increases

A talk about independent guitar store retail and it's growing set of challenges.

[creativeconcerts]

Thanks, Mark, for bringing this up, and you are absolutely correct in your assessment.
I was the tech/store manager in the store he is discussing for 6 years.
The main reason this happened was that the plaza we were in was bought by a large conglomerate. We had just signed a 3 year lease with the previous owners before the sale.
The new company took over and didnt raise the rent, but enacted new "Management fees" that raised the rent amount by 1/3rd.
The businesses in the plaza got together and contacted a lawyer who said that this loophole would be almost impossible to fight, and the company has so much money they would just keep us in court until we were all bankrupt.
My life and passion is guitar. Myself, and the other guys in that shop put years of sweat blood and tears into it.
But I know my community needs a music store. I know my community can sustain a music store. So we won't stop trying to put instruments in starry eyed kids hands, and being a source for the power of music here.
"I shall return!"

[brotherharmonius]

My man. Former mom and pop specialty retailer here. Survived the big crash of 2008/9 but, after two years of white-knuckling it, Covid did us in after 28 years. Although I miss my business and my life has changed immeasurably since we closed, I am kind of glad to be done because I do not want through it again. I hope your shop makes it through this mess and I hope it's not too hard on you. This is an age-old story, times get really tough, the little guys can't hold out, the big guys with deep pockets move in and one more unique, locally owned business that has community identity, sponsors little league teams, and donates to local school and charity fund drives is gone. Replaced by a faceless corporation run by bean counters and lawyers, offering zero local character. It's a sad and costly homogenization of our country.

[briangardner]

I live in Las Vegas, thousands of miles from your store - but I WANT YOU TO SURVIVE!!!! That's because I believe this country is better and stronger with independent business men and women with all sort of private businesses doing well. SO here's wishing that you keep surviving and expanding!!! I will share with you a piece of business knowledge that I read once that the number of mailings to previous customers DOES have a strong effect on the gross income of a business. I do not know how you might implement this, but ANY mailings, even of post cards, or holding "open house" events - local pro musicians doing clinics in your store etc...all this kind of activity brings people into your shop and that also is a good thing to have going on on a regular business. Wishing you much success. Brian - Las Vegas, NV

[bassuniverse]

The down side of buying instruments online is that you don’t get to try the instrument and don’t know how it feel and sounds. I hope your shop stays open for ever ❤

[UncleWallyMusic-peternobile]

Thanks for the insights and for hanging on. Music thrives at the grass roots.

[joythief]

Blackrock is destroying what’s left of this country

[SupaFUZZZZZZ]

I am constantly amazed at the ability of small business owners to just survive. There does seem to be a shakeout taking effect. Hope we don't get to the point where there are three big stores on the internet and nothing else. We have to have local music shops like this.

[BigJohn]

I turn 30 this year and I’ve set a goal to open a high end guitar shop on the south side of Atlanta by the time I’m 40.

Your videos are wildly insightful. Taking things slow, one day at a time, but I remain hopeful I can realize this goal and meet the market demand that exists where I live.

[JayceAllanGuitar]

Always enjoy watching your videos, no matter the subject. Cheers.

[thekengrace]

We feel the squeeze. Mom and Pop music retailer in Indiana since 1939. Just bought the business in 2023. It's a tough market and circumstances are not making it easier. Still, we keep pushing through. Thanks for all you do. I'm a fan of your show.

[DakotaClayBand]

"rent is too damn high!" 😂😅 You make me laugh!
I agree, shipping is higher than Willie Nelson right now!

[senseiruss]

Mark, thanks for this video. It’s a very sobering and realistic description of what it’s like for small businesses today, especially the brick-and-mortar ones. Sorry to see this happening up there in NH. As far as commercial establishment rent, I feel your pain; it has been insane here in Brooklyn, NY for decades.

We had a karate school here from 1991 to 2006. By 2006, our rent had gone from $1, 200 per month (in 1991) to $3, 000 in 2006. When we wanted to renew our lease (at $3, 000), they told us that they wanted not $3, 000, but instead said the lowest rent they could offer us was $8, 000. Needless to say, we closed the dojo. I believe that space now rents for $20, 000 per month today, for a fitness gym that currently occupies it.

Anyway, your video was very well-explained and detailed, you covered a lot of important points in only 10 minutes. I hope you can survive the state of things and stay in business.

[JAL-bn]

I love small independent stores, but the world we live in today has become dominated by big retailers like Walmart, Amazon, Guitar Center, Sweetwater, etc. I remember as a kid in the 70's, I got my first guitar when I was 6 from a small shop not far from my house. And then in my teen years, I enjoyed checking out the local guitar shops (we had about 8 to 10 decent sized shops in the area). Now, we have Guitar Center and a handful of really small stores that mainly survive giving lessons and doing repairs. I think one of the main draws of online retailers is that they have such a huge selection and often have what you want in stock. Small stores in my area don't carry all the brands and models I am interested in, and certainly not in the colors, quantity, etc. that an online retailer can. Same thing goes for shoes, clothing, etc. It's sad what has happened, but it's also understandable. People want choices and they want a good deal. It was much simpler when we only had a few of this or that to choose from and now we have hundreds or thousands of choices. I walk into a guitar store now and can't find anything I want, but I could (and do) spend thousands online with no problem. It's just the sad reality of how things are nowadays.

[TheKevinNewsom]

Thank you for your videos. I recently visited a local music store in Middle Tennessee. The owner explained that about 90% of his business has shifted to home/car audio.

[billcunningham]

Mark with a new haircut! Looking good my friend.

Squeeze! Yes. Love Squeeze. Went to a Fleetwood Mac concert not knowing the opening band. The Public Address announcer said something to the effect of “Ladies and Gentlemen… Squeeze!” And the place went nuts. I was stunned and so happy to see Squeeze live.

As always, enjoy you sharing your insight and experience in these videos.

[GuitarFinds]

Thank you for mentioning The Squeeze. I've had the song "up in the junction" in my head for the longest time but I could never remember the band's name or the song title. You mentioning the band helped me remember that's who I was looking for!

[claytontube]

the shop near me (small town Kentucky) usually has barely any inventory, but suddenly they had about 20 Gibson Mastertone banjos. It was an estate, someone passed away and his widow sold his banjos. That may be the key for local shops, deal in used instruments and offer cash for collections. Lots of boomers will be passing away and leave big guitar collections, and you won't have to deal with shipping and dealer requirements.

[anthonyb]

Gary, I respect your ideal and your efforts. We had a small music and stereo store years ago, we busted our butts to keep it going for 8 years. It got too hard.

I’ve sold most of my guitar collection, can’t afford anything new. I have presently found two small guitar shops strictly dealing in repairs and used instruments. Maybe that’s a way to keep it alive.
Thanks for your videos

[salrenzulli]

This isn't just about lease and rent costs, it's more about our addiction to the global markets. We like to say that we support local, but run to Chinese goods and frown over trade equity. We simply can't have it both ways.

[znmcg]

Best guitar channel on the tube keep up the work