Thread: how much to open car stereo shop?

new england area

Originally Posted by dim-8

i'm starting this thread because i was wondering how much it would cost to open a car stereo shop...

here's my list

@ 700 sf of showroom space, 2 garage bays... maybe @ $2000/mo
legal fees for startup ???
salary's for 1 or 2 employees for first few weeks ???

here's where i get hung up, how much should be spent for stock of stereo's, subs, speakers, amps, etc?? how much for salary's, how much for legal fees to open up business?

My old boss always had $50,000-$100,000 worth of stock on hand depending on the season. Summer and Christmas time are almost always the busiest. As for salaries plan on paying a competent installer $15-$20/hour + benefits to start depending on local pay scales. Benefits are what's going to kill you, absolute minimum you're going to need workmen's comp insurance for all your employees. You're also going to need insurance for the stock and vehicles on the lot or in the shop which can be expensive because when the air hammer slips, body work gets expensive. You're going to need a demo board too, I have no idea what they cost now but if I remember right, my old boss paid around $10,000 for his which accomodated 26 head units and 14 pairs of speakers (I think). You might be able to build a board yourself if you're tight on financing. You'll need to spring for some tools for the shop. Most installers will bring their own hand tools but things like compressors, air tools, table saws, routers, etc. you'll have to provide. Make friends with the guy that drives the local Snap On truck, you're going to be using him a lot more than likely.

Here's a tip for you when hiring installers, make sure they're either certified or are willing to get certified within the first year of employment, make it a condition of employment. With big chain stores now offering installs by certified installers it'll make it that much easier to get customers to buy through you. You should also consider a demo vehicle, they're expensive to build but they pay off in the long run if done well. You want a showcase for your product and installs so a demo vehicle is perfect for this. Pictures of custom installs also pay off, put a couple of photo albums out on your sales counters so customers can see your work. Most stereo shops in my area don't make it but if you develop a good reputation for quality custom installs and good customer service you should do OK.

Originally Posted by Red GTi VR6

there's so much more to somehting like this than can really be covered in a post....lol

I'd have to agree with that, I don't know a lot about actually getting a business up and running but if you need any advice on setting up the install side of it feel free to pm me. I spent 6 years installing full time and used to be MECP certified before I chose my current profession.