Surging prices, seldom reductions in rent, and strained suppliers: Could crowdfunding be the solution to sustain family-owned guitar stores? A unique fundraising initiative from one such business aims to preserve its operations.
Traditional guitar stores are crumbling at an alarming speed. Last year, Sam Ash shuttered all its locations, and the music instrument retail market felt a $200 million squeeze, shrinking from $7.5 billion in 2023 to $7.3 billion in 2024, according to Music Trades. Notable British music institutions like GAK and PMT were forced to close their doors within a fortnight. Bax Music in the Netherlands and Belgium also bit the dust.
Now, Hobgoblin Music - a family-owned business specializing in acoustic and folk instruments, operating 9 shops across the UK since 1976 - is on a mission to buck the trend. They're eyeing a unique crowdfunding campaign to raise $256K (£190K), offering a 9.5% equity stake in their business.
"Retailers face similar challenges: rising costs, online competition, EU complications, pandemic losses, and increased prices for rent, wages, and supplies while banks are reluctant to lend," says Nicola Rain, executive director of Hobgoblin Music, in an exclusive interview with us. "Online competition eats into profits, especially for big brands, and aggressive marketing by cheap drop-shipping companies has created a perfect storm for the guitar industry."
I recently dropped by Hobgoblin Music's Brighton outlet and had a riveting conversation with a knowledgeable staff member about obscure folk guitarists like Wizz Jones and Susan Alcorn. Such personal, in-store conversations, and the resulting connection, are tough to replicate online.
Hobgoblin Music's enthusiastic clientele even includes music heavyweights like Sir Paul McCartney, who visits their London branch from time to time and chats with the staff – their favorite type of customer! McCartney has purchased a Blueridge guitar and a mandolin crafted by Paul Hathway from Hobgoblin Music, often featuring these instruments in photos and videos.
For local music stores, these moments of unadulterated connection are their secret weapon against online titans. Rain explains, "Customers who continue to support music shops are doing so because they find value in the experience. Shops that cater to their needs, offer good service and advice, and ensure each customer has a positive store visit have a better chance at survival."
Emphasizing in-store experiences – whether it's personalized service or organizing events like master classes, clinics, and meet-and-greets – is vital for weathering the storm. Specializing in premium, niche, and rare instruments furthers this strategy by offering customers something they won't find online.
As Guitar Center CEO Gabe Dalporto pointed out in an interview last year with YouTuber Phillip McKnight, "We don't want to compete with Amazon for low-end, cheap instruments. We'll shine in the premium product market, focusing on providing better customer service and an unparalleled experience."
Inspired by other successful crowdfunding campaigns and confident in their community, Hobgoblin Music decided to offer its customers an opportunity to invest in their shared history. Rain shares, "Our customers have supported us for 49 years, sharing their skills and returning to us repeatedly. We wanted to include them in our future."
Music enthusiasts who want to safeguard their local music store can do their part by visiting the shop, even if they don't make a purchase. Secondly, sharing positive experiences in reviews on Google, Yell, Trustpilot, and any other platform can help boost their local store's visibility and reputation. Lastly, one should always try to buy accessories locally to support businesses one cares about.
After all, brick-and-mortar music stores offer an unparalleled playground for experimentation, discovery, and connection – experiences that can't be replicated online.
- Despite the closure of numerous music stores, Hobgoblin Music, a family-owned business specializing in acoustic and folk instruments, is aiming to buck the trend by launching a crowdfunding campaign for $256K.
- Notable figures like Sir Paul McCartney are among Hobgoblin Music's enthusiastic clientele, who value the in-store experiences and personalized service that the store provides.
- In an effort to highlight the importance of these tangible, in-store experiences, Music enthusiasts can support their local music stores by visiting, sharing positive reviews, and purchasing accessories locally.
- Guitar Center's CEO Gabe Dalporto emphasized the importance of focusing on the premium product market, providing better customer service, and creating an unparalleled experience to stand out from online competitors.
- With the unique offer of investing in Hobgoblin Music's future through their crowdfunding campaign, the store aims to include its long-time supporters in shaping the business's destiny.
