Cash From The Charts

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RECORD EARNINGS!

Many business projects offer a way to make large profits from junk.
But, very few of them are actually successfully operated. However,
here is one venture which certainly does work and of which there are
a number of successful operators. To make things even better it is a
product that almost everyone buys - and that you can obtain for a few pence!

The record business is widely known for being very profitable - and you
can enter it! But, let's be honest starting up as a record producer is
not a practical 'no cash' venture! A far easier, and in some ways more
lucrative chance, exists in dealing in old records.
You might have wondered what happens to large stocks of records once
they have fallen from the charts. The larger traders and shops can't
be bothered with the smaller profits and so they are sold in job lots
to wholesalers. There might be insufficient profit for a large
company - but for a small, efficient home based business LOTS of
money can be made!

All you need is a supply of old records and a way of selling them to
start a lucrative little retail business. But, you don't need a shop
or anything more than a few pounds to start! All you d is buy bulk stock
of records at less than trade prices and get shops to sell them for you
on commission. A simple money-spinner that has been shown to work.
All it needs is a little simple organisation!
:STOCK
FINDING STOCK - CHEAP!

Your very first step should be to buy in stocks of suitable records.
This not need cost much and you can start with œ10 - œ20. The easiest
way of buying stock is from a record stocks wholesaler. There are a
number of these and they advertise regularly in the 'Exchange and Mart'.
Ask each for a list and since they usually trade by mail order, distance
is not important. Most of these traders will sell popular ex-chart
single records for as little as œ4 -œ5per 100 (yes-that's 4p each).

You can also buy in used records as job lots at auctions or advertise
for 'records wanted' from private collectors. You will be able to buy
these from as little as 2p - 3p each!

When buying an initial stock you should buy only single records as these
are most readily saleable. You can buy new and used stocks, depending on
the capital you have available. Buy only popular records - Jazz, Country,
Childrens records etc., these sell very fast.

Make sure the records you buy are at least in reasonable condition.
They should also have a sleeve, and picture sleeves are the very best
type to buy. Buy 200 - 500 records to start off with. Sort them through
and categorise them by type.
:OUTLETS
FINDING OUTLETS - FAST!

Once you have obtained stocks of records you can turn to finding outlets
who will sell them. The best strategy is to arrange a network of local
agents, who will display the records for you and take their payment on
a commission basis. You may already have seen record displays in a
number of shops. Ex-Juke Box records are one form of this, but you can
branch out into new records.

All your local shops are potential stockists for records. It does not
matter what their other business is. Newsagents, grocers, sweetshops,
and electrical-TV shops are ideal. But, all other shops can profitably
sell your records. There are very few exceptions - butchers and
greengrocers etc.

Track down potential outlets from your own observations. The best type
of shops are privately owned. Shops that are modern, progressive and
well run are likely to be the most lucrative. If you try enough shops
it should not be difficult to find 5-15 shops in your local area who
will stock records.

You can offer your proposition to shops by way of a sales letter or
personal visit (make an appointment to call when the shop is closed).
Explain to the shop owner how your system will work, and the profits
They can expect. Remember, it is not a hard sell - the shops will be
making good profits from your venture too. Most progressive shopkeepers
should always be interested in ways of making more money and getting
more customers int their shop.

If you can come to an agreement with a shop to stock your records you
should make an informal written agreement. In particular it is important
to note how the profits from each sale will be shared. If a new single
record sells for 80p (way below usual price - and it will cost you
about 4p) then the remaining profit might be split 30p to you and 46p
to the shop. If the shop sells 30 items per week they will make œ13.80
per week - not bad for a little extra work. You would make œ9 per
shop - and what if you had 20 similar agents?

Once agreement is reached you should set a date for the records to be
supplied. This will give you time to sort out titles that seem suitable
for the type of shop and the area.

:SYSTEM
RUNNING THE SYSTEM

For maximum profits the selling system must be carefully organised.
To start with you might supply the shop with an initial stock of 100
different records. The shop is not charged for these but you get the
shopkeeper to sign for them on delivery.

If you have more capital to invest you could provide an attractive
display stand and advertising posters-leaflets. This will sell more.
But, if not, most shops will be able to make display space.

Every time the shop sells a record to a customer the selling price is
kept by him. Each week or fortnight you arrange to visit the shop to
collect your share of the profits. To do this simply count the records
unsold and deduct from the number of records you have left. Multiply
the resulting amount by your share of the record and collect this amount
from the shopkeeper. Now is a good time to tidy and restock the display.
Repeat this process at regular intervals to collect your earnings and
provide a ready-selling stock.

The great advantage with this system is nobody can lose. The shop gets
extra money in the till for doing nothing other than selling the records.
You get large profits on each sale with a ready made selling outlet!
You don't pay anything to sell your stock unless the shopkeeper
makes a sale!

After a short period, of operation record sales, will become more
regular. Customers will get t use the service on a regular basis
, often buying several each week. Your records are much more affordable
than 'chart hits' and, although they will be a little out of date,
they are still in constant demand from the millions of music lovers!

Particular agents in your network might show special promise. In these
cases you might agree to take up a whole section of the shop with your
record displays. You could also consider introducing L.P's (long
playing records. These can be bought for as little as œ3-4 for 20,
but will sell for œ1-2 each. This is still much cheaper than normal
record shop stock and so should sell fast. And you're wrong if you
think people only buy the 'top ten'! Good, new and used 'ex hit'
records DO sell well.

:ALTERNATIVE
THE MAIL ORDER ALTERNATIVE

Without doubt selling through shop agents is the easiest and most
profitable way of making money from second hand quality records.
With a little work you can have a steady income in a very short time.
And, some people are doing it now - it's proven! But, once you have
fully exploited the potential in your area, or if you require a
different business there are other alternatives.

Mail Order is well known as a highly effective method of selling all
sorts of goods. You can easily sell these records by mail order.
Their low cost means breakage in the post is not a serious problem.
And, the mark up available makes them ideal as mail order products.

You should compile a simple but neat catalogue of the records you
have on offer. Most wholesalers offer continuity of stock. Then,
advertise in the music press and newspapers for your bargain record
supplies. Ask enquirers to send you a large SAE to keep costs low.
Also, you can hire names and addresses of those who have bought by
mail order before, from list brokers and send out catalogues to them.
Keep advertising until you get a good flow of enquiries. This may need
some capital so it is not QUITE so easy as selling via shops! When
orders come in, all you need is to bank the takings and despatch
the record orders. These should be simply wrapped only. Do not go
to the expense of elaborate packing or insurance. If a record is
broken in the post you can replace it more cheaply than the cost of
protection in the post. Send a further catalogue with orders as this
usually generates more business.

Be sure to keep names and addresses of past customers. This is essential
for mail order success. Re-Mail past customers from time to time with
your latest offers. You can also rent out the use of this 'mailing list'
to other mail order companies. At time of writing you could charge œ80
per 1000, just for permission to use your list once. All good mail order
operators do this, for an extra additional source of income.

Mail order is well known for its high rates of return in a relatively
short time. The record is an ideal product for selling in this way,
and can lead to abusiness with considerable turnover in only a few
months. It has been done before - many times!

:BIGIDEAS
GETTING BIG IDEAS

As with any business it pays to be continuously developing and
looking for new sidelines. When you have some experience with records,
consider sound cassettes and video tapes through your shop outlets.
Many video cassettes are available at prices that make them cheap
enough to watch once and then wipe clean. This could be an even more
profitable sideline.

Many of the record wholesalers who supply your business, will also
deal in collectable and rare records. With experience, there is no
reason why you cannot offer collectable items in your shop, or more
ideally your mail order selection. Indeed, some collectable records
might sell at up to œ30 each and be very highly sought after. The
really rare records can be an investment with their value increasing
steadily - certainly something to think about!

There is absolutely no reason why this system cannot be applied to
many other goods. Simply obtain them cheap, from suppliers and get
shops t sell on commission. There are few reasons why it would not
work. But, if you really want to be sure of a successful business do
start with records. They are the ideal product for this type of
operation. And, above all, selling them in this way, is already proven
as a successful business venture. No need to wait for it to develop
as with so many other things!