I'd like to chime in here on the negotiating prices thing. I hear customers all the time complain that we don't "haggle" as much as we used to. The reality is that with everyone advertising the "Best Price in the Universe", and the mail-order online companys on the web, profit margins have shrunk to be almost non-existant these days. I remember the haggling days as well. What most people don't remember was the gear all having the LIST price on the tag, then you would haggle with the shop owner to get a 30%-40% discount. Well, nowadays most music stores are already discounting their gear 35%-50% off list. That leaves us almost no room to continue to haggle and stay in business.
I had a customer the other day want to haggle over a $300 new keyboard. I said I would take a look and see what I could do. I checked our cost on the piece.... $250!!! That's a 17% margin. Anyone who is in business knows that is awful (compare that to clothing stores where they make 80%-150% margin). I go back to the customer and tell him that I can knock $10 off the price, but that's about it. They leave grumbling that we can't give a better discount.
Now these numbers are the extreme side of the picture, but it happens all to often. Prices of gear is becoming cheeper and cheeper, but the profit margins are shrinking as well. I can't offer discounts like I used to. But what stores can do is offer service. I give free setups with every guitar/bass purchase (within 30 days of buying the instrament), I offer in-house service so your gear is fixed quickly and no shipping to manufactures, I offer trade-up guarrentees on all my gear that I sell. I also offer my knowledge and assistance before and after the sale. Now I know sometimes a discount is nessecary (price matching a competitor, or the gear is damaged) but please, look at what the store offers you besides price. If it was just price, then we would all buy off Ebay
Jeremiah: I gotta give you props. GC is one of my biggest competitors (I have one about 1000ft from my store). But I admire your ethic and your desire to make things better in your store. I truely wish there was some way for music stores to work TOGETHER instead of competing with one another, but competition is nessecary. Good luck to you.