Personal experience: how I opened a musical instrument store

Boris Kolesnikov opened a musical instrument shop 10 years ago, when he was in high school. At first, SKIFMUSIC was based only on the Internet, and then acquired two physical locations - in Samara and in Moscow. In addition, on the Volga shores, showcases with guitars are complemented by a full-fledged bar. We talked with the founder and found out why to bring goods from America, why it is not worth lowering prices in order to attract customers, and why a musical instrument store needs its own bar with a giant collection of craft beer.

Music group and first order from America

I became interested in music at the age of seven. My mother's friend had a son who played the piano. Every time we came to visit, he showed his skills. I liked it so much that I began to ask my parents to take me to a music school. They had neither the time nor the money for this, but by the second grade I reached out with my fists on the table and nevertheless began to learn how to play the keyboards.

When I finished the music school, I also mastered the guitar, which allowed me to become a full-fledged member of the school rock band. In the 11th grade, along with already accomplished musicians, we played in "Basement" and "Skvoznyak" - the cult bars of Samara.

Tools are as important to a musician as paper and a pen are to a writer, so I've always wanted quality equipment. Once I found a great guitar, but in Russia it cost $ 1,000. Even taking into account my summer part-time jobs at the construction site, there was not enough money, so I began to look for ways to save money.

On one of the thematic forums, I met a man who said that he lives in America and can help me buy an instrument for only $ 300. At that time, I did not leave Odessa further, so the United States seemed to me a different universe, but curiosity prevailed. I took a chance, sent the money and began to wait. Two months later, he stopped hoping, but a notice was unexpectedly brought home. A huge box with the same guitar was waiting for me at the post office.

I realized that goods from America are much cheaper, and began to deliver them to Russia on a regular basis. There are things abroad that cannot be found in our country.

I created a website, uploaded models of guitars that I can deliver, and started receiving orders. I bought tools from the profit so that they were already in stock, like in a real online store. Clients learned about me on music forums, where I was actively advertised.

The transfer point for the delivery of goods from America was the same guy who helped me with the purchase of a guitar. He accepted the instruments, checked them, repackaged them and sent them to Russia.

First shop and clash with contractors

After four years of running an online store, I realized that I needed a physical point. Our group had a base for rehearsals, and over time it turned into a real warehouse: there were so many guitars and cases that it became impossible to move around calmly. There was another reason: the buyers from the forum did not particularly trust the boy Bor from Samara, who offered them to transfer money. To gain trust, we needed a real store.

I decided to spend the summer after my first year at university preparing for the opening of my first store. I had no business experience, so I thought it was a good idea to open up near our biggest competitor. People will come to them and visit us at the same time. Based on this, I found a shopping center, negotiated with the rental department and chose a section of 17 square meters.

At that time, I had 250,000 rubles saved up, and I took another 500,000 rubles on credit. The guarantor was my mother, who, together with my father, supported these undertakings from the very first day.

First of all, I drew how, in my understanding, the premises should look like, and then I started looking for commercial equipment. It turned out that the same guitar hooks on the Internet are very expensive, so I found an ordinary dude welder, gave him money, and he did everything in some alley.

My biggest mistake was the thought that I could finish the finishing work in three months. It seemed that if the contractors promised to complete everything by August 20, so it will be. In fact, I came at the appointed time and they said to me: "Oh, we haven't had a horse lying around here yet, let's see you in a month?"

Three days before the opening, I just lived in the store in order to have time to finish everything.

Arrangement of the point cost 150,000 rubles, and the rent cost 60,000 rubles for three months - you had to pay them right away. I spent the rest of the money on purchasing goods.

Employees, first profit and relocation

The first employee was a drummer from my group, who did not work anywhere at that time. I asked him to become a sales manager for a store and he agreed.

Over time, we realized that it was rather difficult to work together, so we hired one more person. I immediately applied for an individual entrepreneur, officially got the guys to work and started paying taxes for them. Managers received a minimum salary and a percentage of sales - this is the standard scheme.

The store began to make a profit from the first month: we came out in plus by 50,000 rubles. Many guys from the musical community knew me well, so they immediately began to drop by. But most importantly, buyers from other cities were no longer afraid to contact SKIFMUSIC. We posted photos from a real store, so they could safely pay for the goods in advance and wait for delivery.

We lasted only a year in the first room. There were too many goods - everything was littered with tools. In addition, the grandmothers from the neighboring stalls simply hated us, because the rockers came and played their guitars with might and main.

I started looking for another premises, and in 2010 we moved to a 70-square store. The rent cost 40,000 rubles, but we began to feel much more comfortable and were able to expand the range: we brought in keys, as well as sound and light equipment.

Search for a music database and a branch in Moscow

In 2011, I graduated from the university and realized that we need a point in Moscow: the customers of the online store are mainly from the capital. I remembered that the musicians rehearse at special bases several times a week - we ourselves were on these when we toured. The premises there are simply huge, so from time to time 100 musicians find themselves in one place at once. They are our most interested audience.

I found a very large Under The Ground base, got in touch with the manager and said I wanted to open my own store. It turned out that he already knew about us thanks to the YouTube channel, which we hosted together with the famous guitarist Sergei Tabachnikov: he was sitting on the couch in his underpants and reviewing instruments. The videos got 500,000 views, which is quite good for a narrow topic.

I came to Moscow, saw an incredible stream of musicians, but they refused to rent me: there was no suitable room.

Shop for guitars and other SKIFMUSIC instruments in Moscow

I was upset and wandered around this base for several days until I saw a huge corridor that was not used in any way. The next day, I again came to the rental department with a diagram and, at my own expense, offered to build two walls in the corridor so that we could organize a store. For several days, the employees thought and decided that this was a good idea - this is how I got the space for rent. In a few months we issued it, and SKIFMUSIC appeared in Moscow.

The rent cost us 25,000 rubles a month, and the repairs about 400,000 rubles, but it was worth it. Even before the store opened, I collaborated with a friend who worked at a recording studio in Moscow. I sent all clients to him to help fill out the contract and take the money: it is easier for people when they transfer a large amount to a specific person.

When the store came up, sales went even better: we ordered a bunch of accessories for the musicians who bought them on their way to rehearsal. In addition, people were able to immediately pick up the contract and the check.

Local hangout and own bar

In 2016, I had the opportunity to rent a space above a store in Samara, and I decided to use it. I noticed that SKIFMUSIC is no longer just a store, but a meeting place. People came to chat with the managers because they are from the same crowd. Sometimes the guests would take beer and chips with them, and then bashfully hid them under the counter when I appeared on the horizon.

It seemed to me that the most logical thing to do is to support a get-together if it has already been organized - this also brings sales. This is how the idea came about to combine a bar and a musical instrument shop. Repair and purchase of equipment cost us 1.5 million rubles.

Initially, I thought that the bar would become a marketing tool for the store, because the musicians would come there. In fact, our guests are IT specialists, designers, programmers and many more people with other interests.

In most Samara establishments, very loud music starts playing in the evening, so it is no longer possible to talk, and our bar works in the spikisi format: you can come alone and chat with the bartender or put a record on the turntable and listen to your favorite music.

In addition, Guitar Bar has a large assortment of craft beer - over 100 items. Perhaps this is one of the reasons that attract people to our institution.

Costs and prospects

Now the store has a full service: we tune guitars, repair equipment, conduct training lessons for novice musicians. Our team consists of 35 people and is divided into installation, retail and tender departments.

We are engaged in interesting projects: we equip schools, restaurants, palaces of culture with sound and light. Once they upgraded the Moskovskaya Embankment in Cheboksary: they installed equipment along its entire length so that people could listen to cool music and useful announcements.

In addition to the already listed departments, there is a team that deals with the online store. The guys take calls all day and answer questions from customers from all over the country.

The main costs go to staff salaries, rental of premises, utilities and marketing, but you can earn pretty good money.

On average, companies in this market make a turnover of 100 million rubles per month. The marginality is from 25 to 35%.

I cannot name our profit specifically: these are hidden numbers that are not accepted to be voiced. I myself would like to know the amounts of our competitors, but we can only guess about them.

There are good prospects in this business: people have not gone anywhere and continue to play musical instruments. A huge number of cafes, bars and restaurants require lighting and sound equipment every day. At the same time, there is always room to grow. We are represented only in two out of fifteen million-plus cities, and people want the necessary guitar to be already in Novosibirsk when they want to buy it. In the future, you can get a lot more sales, and now we are working on this.

Errors and insights

At the very beginning, we mishandled the assortment: we bought what our customers did not need. This problem did not allow us to earn as much money as we could. Even now, there are over 40,000 musical items in our store, but not all of them are sold at least once a year. It is necessary to correctly analyze the market, competitors' offers, demand and the current economic situation in the country. How the showcase will be filled depends on this.

I have been doing SKIFMUSIC for 15 years now, and all this time - sheer insight. I think it would have been much easier with the instructions to build your own company, but in my case everything was done on a whim. At the university, no one told how to build a business, manage personnel, calculate finances, work with agents, or at least contact people. Most of the problems stem from the lack of this knowledge.

Before starting a project, get at least a little background: do an internship in a large company, try yourself in different positions. I would like my son to get some basic knowledge before joining the store.

Life hacks from Boris Kolesnikov

Boris Kolesnikov with Epiphone SG guitar

Don't break the market. Never drop prices in order to compete with other music entrepreneurs. The margin in our business is very limited - it is 25-30% of the turnover. You still won't last long if you give the customer a 20% discount and take only 5% for yourself. As soon as there is even one additional employee, the business model will collapse. People are ready to buy for high prices, but you need to learn how to sell for big money. Provide quality service: fast shipping, extra warranty, free tuning, or guitar lesson.
Attend major events. When I opened the store, I had no idea where to look for distributors. Only later did I find out that there are four cool specialized exhibitions: NAMM Musikmesse in Moscow, Music China in Shanghai, Musikmesse in Frankfurt and The NAMM Show in Los Angeles. Music industry representatives, dealers and producers all come together in one place, so this is a great opportunity to network and negotiate contracts. If I had known about these events earlier, I would have saved a lot of money: I stopped taking goods from dealers who sell them at exorbitant prices and convince them that they produce themselves.
Focus on a specific direction. When you sell everything, it's very difficult to compete with sites like Lamoda, Ozon or Wildberries. Find your niche like open a cool store with strings for guitars, violins, ukuleles and any other instrument. A narrow focus can ensure success because people will see you as an expert source. Customers see our specialists as professionals, so they call day and night to make sure that a particular guitar is suitable for a seven-year-old child. Don't try to embrace the immensity. You can earn enough by knowing one thing.