Music Inc Cover Story
The mix of gear is already supported strongly by Reverb.com, a website Kalt launched in January 2013, where musicians and dealers can buy, sell, or trade used gear. At press time, the site had done about $1.2 million on 3,500 transactions. With Reverb only taking 3.5 percent of each transaction, Kalt said that the goal of the site is to remove the price friction that exists in such platforms as Amazon and eBay.
"Even at brick-and-morter stores, there is too much of a spread between what someone is willing to pay for something and what the intrinsic value is," he said. "At 3.5 percent we open up all kinds of possibilities, and we are seeing that every day. Basically someone who couldn't make a living selling guitars on eBay because of its 12 percent can now afford it." And it's not just end-users selling on Reverb. Kalt estimated that about 800 MI retailers have sold on the site. Including the name of the seller's store and a "banner" on the seller's page helps promote other brick-and-morter stores and creates a feeling of community, Kalt said.
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