Listing Number:  1000005179

 

This CD & DVD retailer's proprietary methods of doing business are based on the owner’s 26 years in the industry. There are over 400,000 CDs & DVDs that American consumers can potentially purchase, but very few of the 10,000+ US businesses that sell CDs & DVDs have access to them.  This business is one of the very few able to do so! This business has done this so well, that it has received the local paper’s Best Music Store Award each year since 1994!  It has achieved its high level of service by building its entire operation around client needs. Technology captures historical consumer data to aid in the store's buying practices. Technology is also used for systems that enable staff members to find music & movies for customers that other stores can’t.

 

Many people believe independent CD retailers are becoming obsolete due to digital music downloads. But according to the Recording Industry Association of America, digital downloaded music sales are only about 14% of total music sales, and independent record stores have had a very stable market share over the past several years while big box retailers have experienced declines in customers buying music from them. The music industry is a stable environment for retailers who offer specialized services and selection.

 

This store is located in a newly renovated shopping center that houses large national retailers such as Bed Bath & Beyond, Starbucks, Michaels, Rite Aid, Ross, Ace Hardware, Winco, Blockbuster, Quiznos, Applebee’s, Radio Shack and Sleep Country USA, Petco, and Lane Bryant.  Most independent music & movies stores have a "mom & pop" feel. Not this store!  The 2,648 sq. ft. store is easily mistaken for a national chain with attractive lighting, colorful fixtures, theme carpet, professional signs, technology, and vast selection.  The sale includes all furniture, fixtures, and equipment - worth nearly $300,000 at current market price. 

 

There are a variety of opportunities for a buyer to expand this business.  The most logical is to use this business' strong proprietary systems & branding and duplicate it in currently under-served nearby markets to create a chain with greater economies of scale.  Other opportunities include: increase the level of higher-margin previously owned CD and DVD inventory; create a franchise; develop a web-based E-commerce sales division; offer digital content sales and/or web-hosting for peer-to-peer trading; offer on-line movie rentals for local customers; and provide delivery service for rentals and sales.

 

There is a well-trained staff in-place that will continue with the business that can largely operate the business on their own. The seller will also provide reasonable transition training and support.

 

The business is located in Longview, Washington, a northwest town famous for its panoramic views, low cost living, abundance of recreational opportunities, and slower pace lifestyle, but within one hour of all that a bigger city has to offer (Portland, OR).

 

Sales:                        $779,866

Recast Earnings:     $  90,785

Price:                        $329,000 plus inventory

Seller Note:           Seller will carry a $65,000 note for qualified buyers.

 

Initial Info Package & NDA for 1000005179