SPECIAL: GUITARS
April 15 2007
VOLUME 24 NO.4

THE MAGAZINE FOR MUSICAL INSTRUMENT AND SOUND PRODUCT MERCHANDISERS

 

   
 

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FEATURES
-Here We Come to Save the Day!!We provide a plethora of accessories that manufacturers assure you will provide excellent margins.
-For Those Who Make Lesser Publicized Instruments, We Salute You!!For the first time, we pay tribute to instruments and products that get little press coverage. We provide a well-deserved spotlight for these products!
-And the Bombs Keep Coming!Another big lawsuit is filed
against the industry.
This time, there are many
more defendants.
-Drumming to Their Own BeatHow well is the drum industry holding up during these difficult times? We call on three industry experts.
-Guitar Center, Fender, and NAMM Sued
-The Health of the Independent Dealer M&SR’s fourth annual independent retailer roundtable features a new twist. For the first time, manufacturers, hand-selected by the retailers, contribute to the story.
-Born In the USA! We feature manufacturers who produce a majority of their products in the United States. Why do they make products in the USA as opposed to Asian countries? Find out.
-…And the Show Did Go On! The economy took a big bite of Summer NAMM in Nashville, but there were still bright moments.
-Jockeying For Position How is the DJ business holding up during these tough times? What’s the next hot technology? We asked the experts.
-What A Gig! Find out about plenty of manufacturer employees who still get out to play gigs. Our second annual edition is another fun read.


-The Latest, Industry, Dealers, People and Product Buzz and Showcases.

COLUMNS
-The Music & Sound Independent Retailer Chris Lovell tells you how you can private label your own products. Plus, some interesting news items.
- MI Spy: Spy takes a trip for the first time to the capital of Ohio. The home of the Buckeyes and Blue Jackets: Columbus.
-Five Minutes: We get every possible tidbit from Tom Bedell, founder of Bedell Guitar Company. The guitar company was just founded by a fishing magnate and perhaps will be the talk of the Winter NAMM show.
-Sales Guru: Santa Claus IS coming to town. Find out why Gene Fresco is optimistic.
-Veddatorial: Dan Vedda gets charitable. Or does he?


FORMIDABLE FEMALES

-Tarina Dunwoodie got to see the moment Graph Tech was born and has served the company since she was 17. She has moved up the ladder quite a bit since then.
-Stacey Montgomery-Clark Find out how SABIAN’s Stacey Montgomery-Clark juggles two young boys at home and a huge job as vice president of marketing. She loves interactive programs at the company, most notably the Vault Tour.
-Cathy Duncan Seymour Duncan’s co-founder and chairman, received a ton of on-the-job training. But she has excelled. Creativity is one of the company’s hallmarks. Find out much more about her.
-Bee Bantug Yes, the Internet CAN be your friend as a retailer. Bee Bantug, who has provided several NAMM University sessions, can help. That’s why she co-founded Retail Up! in 2002.
-Dale Krevens For Tech 21’s Dale Krevens, being vice president is not a job. It’s an adventure. Find out why.
-Melanie Ripley Grundorf Corp. Vice President Susan Grund handles a plethora of duties at her job, but she also has jammed with the Beach Boys and makes sure the bond with the company’s employees remain strong. Learn how she juggles everything at one time and changes she’s witnessed in MI.
-Susan Grund Grundorf Corp. Vice President Susan Grund handles a plethora of duties at her job, but she also has jammed with the Beach Boys and makes sure the bond with the company’s employees remain strong. Learn how she juggles everything at one time and changes she’s witnessed in MI.
-Toby Nady graduated from college with a degree in clinical psychology. What does that have to do with music? Nothing. It’s been a long, strange trip for her. But a very good and successful trip.
-• Shawna von Behren.
-• Berenice Chauvet
-• Sue Kincade
-• Tish Ciravolo
-• Vikki Hayward
-• Roxana Ramirez
-• Susan Lipp

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SURVIVOR: GUITAR STORES
[April 2007 - Page 3]

“What kills me about musicians is they go out of their way to be different. They have different hair. They have piercings and tattoos. And then when they open a guitar case, lo and behold it’s their grandfather’s guitar. A dichotomy in the extreme,” mused Peavey.

“Guitar players tend to be kind of stodgy,” added Meader. “The rule we apply a lot of times if we’re looking at a new line is it either needs to do something completely different from anything else that’s out there…or it needs to do something someone else has already done but do it better and/or for less money.”
But there’s still an influx of new products that test the limits of these “stodgy” guitarists and also give your staff a new way to sell to the customer and create a need to buy.

photo1

“I think the retailer plays a crucial role in informing and mentoring musicians. This is a strength of retail that I remember valuing a lot when I was starting out,” said Marcus Ryle, co-founder and senior vice president of research and development for Line 6. “Besides providing a great service for the customer, there’s a great economic benefit as well. If a musician doesn’t know that there are new music tools, if no one explains how these tools can expand their creativity, then a sales opportunity is lost. A customer can’t ask for what they don’t know exists.”

The availability of new technology can also create a new customer base for your store, as noted by Yamaha Guitars Marketing Manager Bryan Savage. “The RGXA2 guitar we recently released is looking at [the guitar industry] with a technological approach…adding USB to guitars where they can plug and play into a recording unit or computer,” he said. “What it’s doing is capitalizing on the high-tech guys. With home recording now, it’s so easy to get into different styles now and different instruments. It’s an easy thing for a keyboard player to get into [guitar] and check it out.”

Ryle adds that helping entry-level players embrace technology will help them stick with the instrument long term. “When I was starting out as a musician, the first instruments you could afford were typically of pretty inferior quality. Now, a beginner can have a huge range of sounds at their disposal, and actually use the same modeling technology that’s been recorded on countless platinum albums,” said Ryle. “It’s not going to instantly teach them how to play guitar, but the personal satisfaction that can come from learning your first power chord and having it sound like you’re playing in a stadium is incredible. It really creates the opportunity for so many more beginners to keep on playing and become a customer for life.”

Look at Me
OK, so you’ve set up a profitable product mix, ramped up your service efforts, and trained your staff. One element is still missing—how to get people into your store. Some stores, like Mike Lenthe’s Summerville Music in Summerville, S.C., work with the big stores in the area. “Guitar Center actually sends people our way [for lessons],” said Lenthe. “I send people to the Guitar Center just because I know they’re looking for a certain thing and that’s going to be the best price for them.”

But for other stores, the best thing to do is get your name out there in any marketing platform possible. For example, look to the local music papers in your area, said Gallenberger.
“For the cost of an eighth page or quarter-page ad, you can run a full 8 ½ x 11 color, two-sided…insert,” said Gallenberger. “We control the printing costs and define which zip codes they’re dropping it in. Plus, when a potential customer picks up the publication, an insert falls right out of it and onto their lap. They’re much more likely to see it than they are a simple print ad on page 16 that they might never even have the chance to look at.”

Bob Yale, general manager of Dave Phillips Music, decided to try radio advertising, “because if we use our postcard system we’re dealing with the people who already know we exist,” he said. By using this platform to advertise their string special, “we found 40 new customers in a day.”

Another alternative to the postcard system is an Internet evite. “It’s like you’re inviting someone to a party. And it’s free. Using an evite is powerful because it’s very personal,” said Gallenberger.

All in all, the most important way to approach your customer is with the confidence that you can compete not only with other guitar stores, but with retailers of all consumer items.
“If the musical instruments industry products, packaging, and customer support programs are not as sophisticated and complete as other industries,” warned Rhodes, “we all stand a chance of losing the first-time guitar buyer to an iPod or other popular consumer item.”

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