becoming a dealer

[toddr]

i'm thinking about obtaining a dealer's license. i plan to start with internet sales and eventually open a shop. can anyone tell me the fees/costs involved and procedure to become a dealer?

[toddr]

ok nobody responded before so i'll ask again. i'm aware that i'll have to get a small business owners license and tax id#. but what is involved in being able to buy wholesale? do you contact the manufacturer and ask to become a dealer or is there an organization of dealers that you join. i apologize for my ignorance, but i have never really investigated into this before.

[Michael Lewis]

Your SS # is a tax ID number. To establish yourself as a dealer you will usually have to buy a quantity of product, like 10 instruments or whatever the company you want to deal with requires. You will usually have to have a store front, and a resale #. It depends on what state you live in, but here in California we have to go through the Board of Equalization for the resale #, and pay quarterly to the Franchise Tax Baord. Check with your local county government offices, they will be able to tell you what you need for your area.

[jim_n_virginia]

Todd go to your local Small Business Administration office and ask if they have the S.C.O.R.E. program in your area. It is a GREAT resource and the price is right! It's FREE!

It is a group of retired CEO's, CFO's, Managers, business owners etc, who volunteer to meet with people who are starting up a small business and they brainstorm with you and get you started on a business strategy and financial plan.

When I went into business for myself they were invaluable to me.

good luck

[Big Joe]

Most manufacturers are going to require you to have a pretty good investment available. You will need to stock enough of their product to make it worth their effort to help you as a dealer. You must also consider the manufacturer will look at your location and whether your market is strong enough to warrant a dealer in that location. They will also consider what other dealers they have in the vacinity. While it is good to have the product in stores, overexposure is as bad or worse than underexposure.

You also need to consider what your purpose for the business is. If it is just to have some fun with your hobby or get instruments cheap for yourself and your friends you will find you are likely to lose a tremendous amount of money in a short time. If it is to have a strong business that will be profitable and give long term sales you will have to have a different approach.

Your goals will have a lot to do with what makers will use you as a dealer also. The amount of investment you wish to make and the means you have available will also mean a lot. Even a relatively small order of small goods can run over a thousand dollars. It is not a good move if you are undercapitalized. I am willing to discuss any of this with you if you PM me. Thank you.

[Hondo]

Do your research - know your market, get your funding in place, create a business plan, chart out at least your first two years. If there is a SCORE program in your area, check it out. If not, obtain information about starting a business from your local library. The key word is business. Business is a lot more than having a pile of widgets and making them available to sell. I'm speaking from experience, though in another area.