NAMM blew away its attendance record set last year after 84,965 registrants walked through its doors in January in Anaheim. About 81,000 attended last year. Those who attended were treated to plenty of celebrity star power, new products, tons of parties, and loads of advice. There were too many stars to mention, but some of the highlights included Eddie Van Halen’s surprise appearance at Fender’s Dealer Appreciation Party, Earth, Wind & Fire at Yamaha’s Dealer Appreciation Party, and OK Go at the Sennheiser party.
The vibe of manufacturers was upbeat. Several suppliers we spoke to said traffic at their booths was busy at all times. And manufacturers added they felt the show was better than 2006, and they were pleased with that show.
Even dealers in the back corners and basement had zero complaints. “It’s been really strong,” said one manufacturer. “Even though we’re in the corner, people continue to stop by our booth. I’m really happy.”
Dealers we spoke to also seemed happy. The only negative was two dealers telling us they just didn’t find enough new products that “wowed” them and made them want to buy them right on the spot.

Talking About My Education
Perhaps the most informative of the NAMM morning sessions was “The Big Issues: Profitability,” taking place on Friday. The panel discussion was hosted by Bill Hinely and composed of Eric Matzat, president of Palen Music, Willis Music’s Kevin Cranley, Cranley, Skip Maggiora of Skip’s Music, George Hines of George’s Music, White House of Music’s Chris White, and Ron Papparella of Daddy’s Junky Music.
Cranley discussed the importance of turning other ideas into your own. “Even Thomas Edison once said he only had one original idea. He turned everyone else’s ideas into his own.”
Cranley added he always tends to worry about things he has no control over at his store, such as profitability. “So I say a ‘serenity prayer.’ I try to make sure I only worry about things I do have control over.”
Papparella stressed the importance of cutting costs. His best advice: “Zero-Based Budgeting,” which he said has reduced operating expenses.
“Try to reduce your operating expenses by 3 to 4 percent every year,” he said. “That adds a lot to your bottom line.”
But how do you decrease operating expenses? “Look at every line item in the budget month to month,” he recommended. “Everything must be open to renegotiation, re-examination.
“Look at your organizational structure,” he added. “Sales compensation is your biggest expense. Did you develop a plan that pays for performance, not results? And don’t just accept a 20 percent annual healthcare increase.”

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