Ron Stiko Estate Antique Phonograph Parts & Service Business

[soundgen]

$100,000 in inventory (retail, most likely) would take years, if not decades to move. The low total number of current collectors, along with the fact that most of the machines in collections have already been fixed, doesn't leave much of a market... New barn finds and unknown machines recently discovered would be the primary market...

10% of actual inventory value, would be more appropriate to start, otherwise the financial risk is too great...

The Inventory $100,000 will be cost when you have an item made in bulk it can take 20 to 30 years to sell all items , you therefore have to retail at at least 4X to take potential % interest in account so the retail value will be $400 to $500,000 , I just can't understand the auctioneers sloppy STIKO Estate and they can still alter the post title

[AZ*]

A lot of interesting comments so far.

I am not convinced that the unit prices listed in the $100K inventory are retail. Many seem too low from what I recall paying when I purchased from Ron at Union. Markup, of course, will vary depending on the item and the quantity purchased. But more importantly, in scanning through the inventory, I noticed items that were pictured but not listed. Where are the Edison horn cranes listed on the spreadsheet? Did I miss it? There were some rolls of spring steel shown, but I did not see any reference to mainsprings in the inventory. Also, no mention of the various pieces of metal working equipment that are included in the sale. Anyone who is considering buying this business and inventory will need to travel to New York and look it over in person. One of the elements of the sale is the list of suppliers Ron used. We all know that Ron kept those relationships confidential, and the list will not be revealed beforehand.

It will require a special type of person to buy this as a business. I remember when the Smiths were attempting to sell their casting business. I thought to myself at the time, "What is the remaining market for Columbia travelling arms or Orthophonic back brackets?" The Smiths were eventually able to sell their business, but I have no insight about how successful the new owner has been.

I recall talking to Ron decades ago, not many years after he acquired Neal Gerichten's parts inventory. Ron even used Neal's catalog for a while. I wouldn't be surprised if some of the stuff in those pictures originally belonged to Neal.

I could be wrong and I hope I am, but I seriously doubt that somebody will buy the business and run it the same way Ron did. Ron was very special.

[Raphael]

A few thoughts from somebody who has started, bought and sold several businesses over the past 42 years:

-This is a turnkey business proposition, not just a collection of spare parts, and there is tooling and other hardware in addition to the intangibles (customer & supplier lists, goodwill, etc.)

-Ron, bless his heart, ran the business in an old-fashioned manner, but not very efficiently in this age of computers and e-commerce. A simple website could be developed and on-line purchasing of common parts would make it easier for both buyer and seller.

-Customer, and especially supplier, lists are incalculable assets. Too many comments on the Forum are focused on the inventory value alone, which IMO is necessary to assume an ongoing business operation but not long-term viability.

-What Mrs. Sitko and Steve Stanton need to find and identify is an enterprising, smart person with lots of enthusiasm, who can take a modest investment (roughly the price of an average new car these days) and take it to the next level. The parts inventory alone should be a guarantee against financial loss.

-Most business sales, big or small, are arranged with some sort of financing. Mrs. Sitko would be well advised to consider some percentage of seller financing, to enable a buyer, especially a younger one, to get going and kick-start the business. Perhaps if the auction does not result in a sale, this will be the next step.

Raphael

[Victrolacollector]

I just hope a good soul can get those parts and carry on the work of Ron. I will say Ron made parts that were affordable, that when I was a younger teen earning minimum wage, I could afford to restore my first machine. I’m sure he helped so many others in their restorations.
He had the knowledge and expertise, first class parts.

I had talked to my brother in California, he has the machine shop knowledge, ran a successful fountain pen manufacturing and repair business, he loves antiques and is also meticulous in his work, he has the storage facility and the capital to run something of this magnitude. I don’t have the space, capital and to acquire and store parts. I thought of working with him on this, he is thinking about it, but he did say 100k is a lot of investment.

All in all, I just hope the best for Mrs. Sitko, that Ron’s wishes are kept and it’s a win win for Mrs. Sitko, the person(s) that acquires it and the phonograph community. I just hope that prices on parts will stay relatively affordable and not some rediculous price like 150.00 for a mainspring.

Only time will tell.

Cheers!

Jerry P.

[edisonplayer]

I'd like to see someone take over where Ron Sitko left off.edisonplayer.

[Stephen_Madara]

Looks like 2 interested buyers have bid so far . Steve

[Ahmed]

Link to post from the new owner here

viewtopic.php?f=9&t=50523