Consumers spend upwards of $8 billion a year on musical instruments and equipment. So it’s no surprise that entrepreneurial musicians are looking to turn their passion into profits within the music resale industry. However, being a talented musician doesn’t always translate into owning a successful music business.
There are many moving parts and costs in a business that those without entrepreneurial experience may struggle with, which is why many aspiring music resale store owners turn to the franchise model. With a proven framework for every process imaginable, music resale franchises like Music Go Round® under Winmark - the Resale Company®, are the perfect solution for aspiring business owners.
At Winmark, we’ve been partnering with franchisees for over 30 years and have established a fantastic track record of success for our franchisees through our continued leadership in the resale industry, commitment to sustainability, and comprehensive support.
Here is a quick breakdown of the costs associated with opening a music store franchise, and why franchising is well worth the initial investment:
Music resale stores with a good amount of inventory may have a large store footprint. For high-traffic and highly-visible areas, independent operators could easily spend hundreds of thousands of dollars on securing a site alone. And, they have little direction on site selection and contractual negotiations, aside from the advice of realtors and leasing agents.
Within a franchise system, however, you’re not alone when it comes to your real estate search. We don’t expect you to have a space before signing a franchise agreement, Winmark has a network of brokers who understand our brands and the real estate we’re looking for. We have established guidelines and criteria for site selection, which you’ll learn about during your first week of training.
With five retail brands and over 1,300 stores, Winmark understands the retail industry and all the nuances of commercial real estate, as well as the needs of our franchisees. Our franchisees get access to guidance in resale site selection, setting them up for success before they even open their doors.
Additionally, Music Go Round offers multi-channel sales strategies that help generate online success. Franchisees are able to elevate their business opportunities by utilizing proprietary e-commerce platforms that make products more accessible and purchasing more convenient. With these capabilities and our multi-channel approach, our brands reach more consumers and connect with individual communities through an easy-to-use e-commerce platform that helps drive more revenue and grows brand awareness.
Stocking a music store full of inventory is another significant initial investment. And for music enthusiasts, it can be easy to get carried away with buying different, unique instruments and equipment that may not be big sellers. This can quickly put them in a difficult position, as they need to turn over inventory constantly just to stay on top of expenses. For someone with little experience in inventory management or merchandising, this feat becomes even more difficult.
Within the Winmark franchise system, however, our franchisees go through extensive product and inventory management training to guide them on their business journey. We understand that franchisee success is vital to our success, so franchisees have access to ongoing support from our training, marketing, and operations teams and best-in-class point-of-sale, inventory management, and pricing software systems. Franchisees can easily track and manage inventory with the guidance of our Field Operations Managers, who are retail experts with years of experience. In the music business, Winmark offers an advantage to our franchisees in our proven support path and recognized brand name in the resale industry.
The results speak for themselves. We qualify Music Go Round candidates on an approximate investment of $400,000, and our average store’s gross sales are $1,289,906, for a gross profit of $619,770 each year.* With ongoing support and optimized inventory management, Music Go Round franchisees can efficiently stay on top of inventory needs and generate impressive returns to create a successful business.
Marketing and Advertising
Other independent music stores take on marketing and advertising efforts themselves, investing sparse amounts of time in social media and grassroots initiatives. While marketing may seem like an area where you can cut corners as a new business owner, you actually cannot afford to.
Music Go Round franchisees, on the other hand, have the support of our marketing department, which is dedicated to offering a multitude of options for marketing support, including social media, event marketing materials, local store marketing programs, and so much more.
As a Winmark franchisee, you will have access to a media buyer experienced in working with the Music Go Round brand. They’ll work with you to lay out your media plan, ensuring your marketing dollars are spent in the right places to generate the best return on your investment. And, with the international presence of the Winmark name, you’ll benefit from widespread brand awareness that startups can’t compete with.
The Winmark Difference
Your music resale store business investment depends on so many different factors, that it can be difficult to predict the exact cost of opening. For many independent operators, this can quickly add up to a significantly higher investment than expected, especially if they don’t have extensive business management experience.
However, when you open a music store with a Winmark franchise like Music Go Round, you have support when creating your business plan and a clear understanding of start-up costs. You also have the invaluable opportunity to be in an ever-growing, established resale market, provide eco-friendly shopping options consumers want, and consistently draw from the industry-leading expertise and guidance of our corporate team.
When you have the support of a reputable franchisor who walks you through every step, turning your passion into a successful business is easier. Learn more about opening a Music Go Round in your community.
*The Average Store numbers are the 2022 Average Gross Sales and Average Gross Profit amounts stated in Schedule “I” of the 2023 Music Go Round® Franchise Disclosure Document (as reported by the 36 stores in the U.S. that had been in operation at least one year as of December 31, 2022). Of the 36 stores, 17 or 47% of the stores attained or exceeded the Average Gross Sales, and 16 or 44%of the stores attained or exceeded the Average Gross Profit. The top quartile Average Gross Sales and Average Gross Profit only relates to the 9 Music Go Round® Stores that ranked in the top 25% of the gross sales range. Of the 9 stores in the top quartile, 3 or 33% of the stores attained or exceeded the top quartile Average Gross Sales and Average Gross Profit. A new franchisee’s results will likely differ from these results.