Callme,
I worked in a music store and although I didn't own it, I did have privy to the prices and can shed light on cost of music gear and the mark up. I also was the repairman, doing regular string changes, setups, and pickup swaps and let me tell you, I made good money being the repairman and earning a commission on sales. I would say advertising that you have a repairman is another good idea to think about. To offer good customer service, if I had the time, I would do the repairs with the customer next to me explaining what I was doing, another example of socializing at a music store as many who were not even their would hang out by the repair bench to 'tech' talk or learn things about guitars/ basses. It was also a ploy to build my name and get more business. First, mark up, an example, the store bought an American Standard Strat for $450 from Fender then marked it up to about $1200, and after discounts to make the customer think he was getting a deal, to $1,000, roughly coming out to 125% markup (the ever faithful list price versus sales price game). In order to sell Fenders or Gibsons, you have to obtain a license from those companies. Gibson is really tough because they want half your stock to be their merchandise. If you're someone offering a variety, having half your stock Gibsons can be expensive, which was the case with the music store I worked in.
I've been to an example of the business you're speaking of in the Washington D.C. area. This place was called the Jamming Java. Selling musical instruments didn't last long, but I think their problem was that they sold high end guitars like Les Pauls and the Warrior series instruments. This place was also a Christian place and the acts that played their were all Christian musicians. Not that there's anything wrong with that, but to each their own. Before I left the area to move back to Louisiana, they got rid of all the guitars and were only selling accessories. Anyway, to your questions. I hope I don't sound negative, I just want to give you another side of it from a business perspective.
1) Does a guitar store/ coffee shop sound more appealing to you than a regular guitar store?
To me personally, no. I like hanging out at both places, but I wouldn't want to have a drink and hear 50 million teenagers playing 'Seek and Destroy' over and over or have someone tell me to lower the amp because they are trying to study or have conversation. You also add the complexity of having to hire people specialised in both music knowledge and coffee service. So not only do you have to train them on music gear tech stuff, but then they'll have to learn how to make cappucinos, mochas, lattes, expresso, hot chocolate, and such. Are you going to offer desserts, too?
2) If there was a band that played nightly, or on weekends, would you see a guitar store/coffee shop as a good place to hang out and buy food/drinks?
This part I like and the Jammin' Java did it well with a small stage in the rear of the place. If you're going to have bands, just don't make it the ear piercing types. The bands I saw there played at comfortable levels. A coffee house gives images of relaxation and atmosphere, I would stick with bands of that theme. Bands can still play rock and sound great at comfortable levels. Also, most people at coffee houses are there to socialize which they can't do if the band is loud.
3) Would you take guitar lessons from such a store, or would you rather have an independent instructor?
That would depend on the quality of instructors there. But, as someone mentioned, maybe you could cater to the beginning musician with lessons and gear (sell low to medium quality instruments).
4) If the store bought and sold used gear, would you look into selling you gear there, or would you be more inclined to sell on online sites such as EBay or other auction sites? prices would be competitive and hassle free.
When you sell gear at a music store, the music store is the one who benefits. A music store is only going to offer you a third of the value of your instrument, then mark it up. So for example, they'll buy your instrument for a $100 and then sell it to someone else for $300. The music store will never take a loss when buying used gear. Plus, they know you're either desperate or too lazy to sell and will take advantage of it. You'll always get twice the amount if you sell your self through the paper or online.
5) Would you overall see this store as a hangout place, either by yourself, or with friends?
Depends on the atmosphere, entertainment, management.
6) If we offer to order in any products that we either do not have or do not usually stock, would you rather buy from us, or would you simply buy online?
I'm too impatient to wait for a store to order something for me. I always go the online route.
7) If you are in a band, would you like to play in such a store, or would you rather play in the usual environments, such as bars?
Again, depends on the place. I like the idea of playing in coffee houses and have enjoyed some of the shows I've seen at Barnes and Noble and Borders. I wouldn't play in a biker bar.
