Many thanks to SWLing Post contributor, Dan (K2IE), who notes that the owners of MTC (Main Trading Company) in Paris, Texas, are considering the sale of their retail store. Dan shared the following announcement posted in the MTC online store:
Buy a Ham Store!
Hi Friends! Christine and I have recently spoken to a realtor about our store. She thinks our commercial property along with the other rental property we own around our location is worth selling. She wants to list it and actually thinks she might have a buyer. We are thinking about it. We could always try and find a building to rent and just keep going. If we do, of course we would be looking for something bigger.
We have also thought of selling our business. We actually have several businesses all rolled into one. Our gross sales have been several million dollars per year even in 2020. Before we go any further with the realtor we thought we would put the business out there and see if there was any interest.
You may be thinking, “Why do we want to sell”? Well mainly we are just trying to plan for the future. I have a full time job outside our store. With this job I have insurance and a little retirement. I am just taking a look at all of my options. Selling the store and or the retail spot and letting someone younger come in with fresh ideas might just be what needs to happen for MTC and for my family.
Owning a ham radio store is not for the faint of heart. Money will not just come pouring in. It is hard work. Our twelve year old business has made enough to support our family and take care of multiple employees for twelve years now. We have not gotten rich by any means but we have provided for our family and have been greatly blessed.
It is very hard to put a price on it because certain things could or could not be included. Inventory fluctuates from $300K to $1Mil constantly. This could all be sold down prior to sale or could go with it. Domain names, website, real estate and certain parts of the business could or could not be included. We have a contracted US Post Office in the store that just about covers the payment on the building every month. If the business was sold and moved to another town this would have no value but if it was left here in Paris it would have value.
Vehicles, trailers and hamfest equipment could or could not be included. Right now, hamfests are not necessary and actually are not very profitable anyway but they are fun.
We also have our little Greenwood Louisiana location to consider.
If you are a go-getter, the sales and marketing type, and not afraid of hard work this may be your opportunity. You would have access to all of the lines that we carry if you pass any credit/capital requirements. I would pass along all contacts with all manufacturers and distributors we deal with.
We are Asking $350,000 without inventory, real estate , vehicles or some of the equipment. Of course I would consider trades.We might also be Flexible on Payment Terms
Think about it, Pray about it and we will do the same.-Richard
I love how open and honest he is in his description and announcement. Thank you for the tip, Dan!
But isn’t a key component “diversify”.
Even the article mentions a postal outlet.
In Canada I don’t think any “ham store” is just selling ham equipment. They all seem to sell other radios, marine and maybe business. Even Sheldon Harvey’s Radio HF (it’s not clear to me how much of a business that is these days) sells things related to bird watching (though that may just be because it interests him).
And likely most places count on mail order. That’s long been the case.
Stores devoted to hobbyist pursuits are immediately a losing proposition.
They never work unless you work exclusively on volume.
Gun stores and amateur radio stores here in the US prove this beyond a doubt. Biggest stores are the ones that have a huge Internet presence and crank through 100’s of sales a day.
Can you make an ok living? Sure. If you have any business sense and control your costs, you’re not going to starve but you’re not going to be vacationing in Monaco or shopping for a private jet anytime soon.
Problem is a majority of people are not as business savvy as they think they are.
Owning & running a business is not a part time job and I can guarantee you that as smart as you think your spouse or other family member are, they’re terrible and you’re paying them more than a seasoned professional.
“Owning a ham radio store is not for the faint of heart. ” Truer worlds have never been spoken. I worked for Henry Radio in Anaheim for five years while I went to university after four years in the Air Force. It was perfect for me. Flexible schedule. Fun team. Always-interesting customers. Products I loved. But Richard is right. It is a very tough and not financially rewarding business with low profit margins on the major items. Unless you can do it for love, don’t do it!
A ham radio retail store owner once told me that selling transceivers is almost a “charitable” effort, the profit margins are so narrow. B the time the employee is paid to take or pull the order, pack it, and ship it, there’s almost a net loss of money. The hope is that the customer will be loyal and return for accessories.
Exactly correct, Thomas.
Buying / operating a ham radio store would provide a graduate level course in how to loose money. You’re lucky to make 5% net profit on the sale of a radio. I remember one year at Dayton, Dealers were selling TS-440’s for $4 over invoice. HRO has the horsepower to negotiate mfg deals that single stores cannot dream of.
Agreed.
Curious, does anyone see a big “For Sale” sign in front of Universal Radio? It is a decades-old retailer winding down operations, and I suspect the lack of that sign probably should tell us something about the viable future of these comparatively smaller “amateur and shortwave equipment” retailers; especially the ones trying to compete in the increasingly crowded online marketplace.
And that’s why there all going belly up. HRO , GIGAPARTS , DX engineering are hanging tough. AES , universal , lentini , Texas towers , associated radio , ham station, Juns are all gone.