Kenny’s Music is launching a crowdfunding programme with the goal of becoming the largest pre-owned instrument retailer in the UK.
Headquartered in Dunfermline, Kenny’s has four shops in Scotland, including Dundee, and an expanding online shop.
Later this month Kenny’s Music will launch its crowdfunding investment programme, giving customers the chance to become part-owners of the company.
Starting at £100, those who put money into the firm will become shareholders, as well as receive exclusive discounts and deals — including the chance to do “out-of-hours” shopping like a rock-star.
Like many crowdfunding investment opportunities, there is an element of risk and those who do give money are advised they could lose it.
And Kenny’s director Alex Martens, who purchased the instrument chain in 2022, has hopes of increasing the firm’s value five times its current worth in the next five years.
Kenny’s Music crowdfunding launch
Speaking with The Courier, Alex explained how Kenny’s plan on becoming “the home” of pre-owned instruments.
He said:Â “We took over the company in 2022, and I had previously worked for Kenny’s Music and a long time before that, Sound Control.
“In that time, we have grown massively, by around 39% to the last financial year.
“And now, we are trying to keep moving forward. We want to become the largest pre-owned musical instrument retailer in the country.
“We looked into various funding options, like private investment, but we felt as a retailer crowd funding really works. It puts our customers right at the heart of our business.
“As a retailer, customers are one of the most important parts of the business, and if they are investors, even better.
“We want to build an army of Kenny’s Music super fans, who will buy and sell from us, tell their friends about us.”
Advantages of pre-owned
Alex explained the benefits of pre-owned instruments, both as a financial incentive and the environmental benefits.
Some guitars on offer at Kenny’s were made in the 1950s, he said, with the goods “built to last”.
“Pre-owned is great in a number of ways, owners can turned their unwanted guitars and instruments into cash, and it is good for the environment too,” he adds.
“It gives Kenny’s the opportunity to sell rarer instruments too.
“And what we want to do is become the UK’s home of pre-loved instruments, we want to corner that market.
“A lot of our competitors dabble in pre-owned, but we want to make it more than 50% of our business. It is a win-win for everyone.”
Sound investment
Those who take-up the investment opportunity will be rewarded with exclusive “perks and discounts”.
These include discount vouchers, the chance to buy instruments at “cost” price and out-of-hours shopping experiences.
“Investors will have the same shares as we have. If we pay dividends, they will be paid dividends,” he explains.
“If we sell the company, they will benefit from the sale. And what we are aiming to do is make the company worth five times its current value within five years.
“There is an element of risk, the same as any experienced investor would have.
“On all our communications, we have ‘do not invest unless you are prepared to lose all of the money you invest’.”
And even as many retailers move the majority of their offerings online, Alex explains the aim for Kenny’s would be to have a “bricks and mortar” store.
“Musical instruments are different to a lot of other products.
“A lot of customers would rather get their hands on a guitar or keyboard.
“They want to listen to how it sounds and feels before buying.
“We do sell a lot online and around a third of our business is online. But we do believe bricks and mortar stores are essential, if you want to try something out properly.”
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