I was just looking at Normans Rare Guitars on You Tube last night, and as usual was amazed at
the number of Vintage collectibles Norman Harris the owner has picked up and stored over the years.
His philosophy is that its like obtaining a rare painting or work of art, as an investment- well I wont
disagree on that.!!!
I would really expect however that his bread and butter earnings for the shop come from everyday
run of the mill sales, so as a general retail principle 80% of everyday sales come from 20% of your stockholding
that will be the likes of normal guitar stock,amps, sundries etc.
If he was to require additional working capital at any time then he would probably release and auction some of
these collectibles.
It also made me think of normal music shop/ on line retailers who dont have this luxury and may have to re finance
from banks particularly at the current crisis time.
I did see last week that one large chain had 536 new lines of stock listed, so if these are going by the above stock/sales
ratio it could create capital/ cash flow issues?
Yes worrying times, too many people trying to re invent the wheel, and many of us have all we need in gear!!!
What do others think on this matter?
Mike