Volumes double at Music Magpie
A MACCLESFIELD business that buys and sells CDs online has doubled its trading volumes by expanding to handle DVDs and games.
Music Magpie was set up in 2007 by two former directors of the Music Zone retail chain, managing director Steve Oliver and IT and operations director Walter Gleeson.
Mr Oliver said the business has started buying twice as many units a day – around 5,000 to 10,000 – since expanding to cover DVDs and games earlier this month.
Users of the site are given a price for their CD after entering its barcode. Music Magpie then provides free postage and sends a cheque once the item’s quality has been checked.
The site now has 50,000 registered users and has paid out more than £458,000. It has no retail outlets, but operates from a warehouse in Macclesfield.
Mr Oliver said: “We’ve been able to pay out that much from our revenues because it’s a cash generative business. We’re turning sales around very quickly.”
He added there was still a keen demand for secondhand CDs, with many retailing at £3.99, despite the popularity of music downloads – legitimate and illegal.
Mr Oliver, who is also the managing director of the Fragrance Shop retail chain, founded Music Magpie after the demise of Music Zone.
He became managing director at Music Zone following a £12m management buyout in 2005 but the business was forced to close when bankers withdrew credit facilities.
