Published June 2, 2010
The case of Sarasota Guitar Company is a textbook example of how to launch a business in a tough economy. First, find a way to provide products for a fraction of your competitors' prices. Next, give your customers everything they could possible ask for, before they even ask for it. And finally, watch the money start pouring in.
Selling guitars out of a 10-foot by 10-foot booth at the Red Barn Flea Market last year, Sarasota Guitar Company owner Scott Cook could never have imagined what his business would look like today. In December, he decided to take a chance in a highly unstable economy on opening a 900-square-foot retail store at 4333 South Tamiami Trail, Suite A. Fortunately, Cook was armed with a brilliant concept, which is why last Thursday, less than six months after opening, he moved two doors down to Suite C, effectively doubling his retail space.
Cook's golden idea was to sell factory-second guitars – instruments with small imperfections that guitar companies deem, for one reason or another, unworthy to sell at full retail prices. These are brand new guitars with a minor cosmetic defect like a blemish in the finish, but are otherwise physically unharmed and play like a charm. "Sometimes we can't find anything wrong with them," says Cook. "But because of that they're saving quite a bit of money – usually anywhere from 50-70 percent off the manufacturers suggested list price."
The trouble with factory-seconds is they typically don't come with a manufacturer's warranty. Enter Sarasota Guitar Company's "Certified Guitar Guarantee." The agreement includes a one-year parts and labor warranty through SGC and offers a 30-day money back guarantee. If you find something wrong with the instrument, or just don't like it for any reason at all, they'll give you a full refund with no restocking fee. "We originally designed the business to do well in this kind of economic climate," says Cook. "The Certified Guitar Guarantee is a big part of it because music is expensive for most people, and we're trying to make it affordable to everyone."
SGC also carries an expanding variety of pristine factory-first instruments, gear and accessories by contracting with an array of manufacturers to become an authorized dealer. And the thing that sets them apart from other authorized dealers is yet another guarantee: If someone finds the product at a lower price within 30 days of purchase, they'll give them the difference plus 25 percent of that amount. Not surprisingly, Cook has found that a little generosity and a dedication to customer satisfaction goes a long way.
"We're actually getting close to selling our 1000th guitar," he says. "It's incredible, it's only six months and I had somebody that read about us on the Internet and came down from Ohio saying they had to visit our shop. That's crazy!" Cook actually installed a cable TV in the shop thinking he'd watch a show when business was slow. He hasn't turned it on since the week they opened. "We're probably going to have our biggest month since opening in December, which was Christmas time. So it really has not slowed down."
Obviously, limbo-low prices and comforting guarantees will bring in business, but Cook says the company's community involvement and local activism have been a key factor in their success as well: "We were involved in the Noise Ordinance CD, we did some charity work for Darfur with the Jewish Federation and we're going to have the Racing Dog Rescue here during our event."
The event Cook is referring to is a June 12 concert to break in their new and roomier storefront, being dubbed, "The Biggest Guitar Event in Sarasota History." The guitar extravaganza will feature a handful of local bands, food vendors, manufacturers' reps from guitar companies Dean, ESP and Washburn passing out free merch, and a performance by Michael Angelo Batio, the former guitarist for Nitrate, known worldwide as one of the fastest guitarists in history. His signature move is simultaneously shredding on both necks of his famous double-neck guitar.
And Sarasota Guitar Company's expansion doesn't stop at increasing show floor size and bringing in international acts. The new location will soon become the official headquarters of SarasotaGuitarLessons.com, with plans to launch an online hub for instrument instruction next month, similar to Musician's Friend, opening SGC's services up to a national audience. And to top it all off, they are looking at possibly opening a second location within the next year.
"It has exceeded our expectations, definitely," says Cook. "People still want to buy guitars, they just can't afford to buy the expensive guitars anymore. So we made it more affordable for people. Businesses that offer value are going to do well."
Sarasota Guitar Company, 4333 S. Tamiami Trail, Sarasota, 924-8321 or sarasotaguitarcompany.com, store hours are 10 a.m.-8 p.m. Mon.-Sat., 11 a.m.-5 p.m. Sun.; "The Biggest Guitar Event in Sarasota History" featuring Michael Angelo Batio, 11 a.m.-5 p.m. June 12, call for cost.
