 Class of 2007
New Companies and Products Make the Grade at NAMM
Christmas may be long over, but for MI, the chance to view all the hot new toys comes later. It was NAMM time all over again and many companies chose the show as a chance to debut their hottest new products, and even some companies made a first big splash in Anaheim. So what was this year’s Tickle Me Elmo?
[continued] >>
The State of the MI Industry...
We’ve heard the talk. We’ve seen the stories in this magazine. Times have been tough for retailers. But how tough was 2006? Are you optimistic about 2007? To get those answers and a bunch more, we went straight to the source: you. We surveyed our readership, and the pie charts, as well as this story, have the answers.
[continued] >>
CURTAIN CALL
Muriel Anderson
Les Paul once said, “Just one hell of a great player…she plays the guitar like we all wish to play.” He was talking about Muriel Anderson
[continued] >>
 THE LATEST BUZZ
Eddie Highlights Fender Event
Dealers were buzzing and many “Jumped” out of their chairs after Eddie Van Halen made a surprise visit during Fender’s dealer appreciation party on Jan. 19 in the Marriott Anaheim Ballroom E. Eddie talked about and played his red Fender Frankenstein model. For more, see the March NAMM wrap up issue.
Messe Acquires Productpilot
Koelnmesse and Messe Frankfurt signed a letter of intent that sets the stage for the acquisition of a 50 percent interest in Productpilot GmbH in spring 2007. The Productpilot Internet platform is used to help boost exhibition business by allowing exhibitors access to targeted, professional contacts for a flat fee.
GC Re-Bids for WWBW
Guitar Center’s Musician’s Friend division entered a bid for bankrupt Indiana retailer The Woodwind & Brasswind on Jan. 30 for $29.9 million, approximately $7.2 million less than its initial bid. This comes after former lead bidder Steinway unexpectedly pulled its offer on Jan. 16, causing judge Harry C. Dees, chief judge for the U.S. Bankrupcty Court, Northern District of Indiana, South Bend Division, to delay the auction. According to a Steinway press release, it withdrew because of a “failure of certain conditions necessary to close the transaction,” a claim denied by store owner Dennis Bamber’s attorney, Chad Gettleman. Musician’s Friend filed court papers stating that it should also keep Steinway’s $2 million deposit, according to the Dow Jones Newswires. “[Steinway] has forfeited the deposit, may be subject to further claims for damages sustained by [Woodwind & Brasswind’s] estate, and is no longer entitled to receive the termination fee regardless of the outcome of the sale hearing,” according to the court papers.
|
Gibson Embraces Tronical
Gibson Guitar and Tronical Gmbh entered into an exclusive worldwide sale and distribution agreement for Tronical’s PowerTune System. The product, which allows a guitar to tune itself, will be available on several Gibson guitar models beginning this spring. |
AND MUCH MORE BUZZ WITHIN THE PAGES OF
THE MUSIC & SOUND RETAILER
 ENTIRE FEB '07 ISSUE CLICK HERE (32.2MB)
Letters to the Editor
I’d like to comment on a reference to the outcome of the American Booksellers Association’s lawsuits against Barnes & Noble (B&N) and Borders Books made by Dan Vedda in his December “Veddatorial” as well as on its implications for our industry.
While it’s true that the final agreement resulted in previously unavailable discounts from vendors in the range of 2 to 4 percent ended up being allowed to dealers other than B&N and Borders, this percentage is equal to 100 percent of what was alleged in that suit as being illegally provided. I don’t think anyone in our industry is under the illusion that the discounts being offered to large retailers in our industry are anywhere near this small. A similar victory in our industry would be a vastly greater boon to independent retailers than the booksellers received. To be fair, it’s unlikely that such a victory in our industry would result in those discounts being offered to everyone, only that they would cease to be offered to only a few. However, this is enough of a victory to ensure that independent retailers are not faced with competitors who can afford to sell below the independents’ cost.
Further, our industry is structurally very different from the book industry.
While that industry is dominated by a handful (3-5) of publishers, ours has a much greater number of competing companies. This is a major reason why the only recourse for the booksellers was legal action. There was no avenue for quiet, diplomatic negotiations to foster a solution any other way. The music products industry, due to its much greater competition among manufacturers, has far more likelihood of resolving these issues one vendor at a time until a “ground swell” is created that makes it clear to all vendors the value of compliance. This process is part and parcel of something Dan Vedda states he is in agreement with, which is the recognition of “Indie Friendly” manufacturers.
Additionally, it should be obvious to anyone in our industry that it’s very “leaky.” Due both to the number of vendors and the turnover (one might even say recycling) of employees, information about what’s really going on is readily available and will continue to become available in the future.
This makes it more likely that a positive outcome for independents can be achieved through negotiation and will suffer less deterioration over time as well.
However, this process can only start once independent retailers make a concerted effort to become informed on the issues and means getting organized into an association that is exclusively focused on helping indies.
This organization needs to be separate from local and regional buying groups since, as Dan points out, their focus is different.
It’s only fair to mention that I am acting as the temporary secretary for IMRA, the Independent Music Retailers Association, which plans to be a legal and functioning organization prior to Summer NAMM. If you have questions about it, you can reach me at contact@contactimra.com
Sincerely,
Bill Stevens
ENTIRE FEB '07 ISSUE CLICK HERE (32.2MB) |
