There’s no question amp sales are related to guitar sales. But the two are very different, hence our decision to cover guitars and amps in separate issues this year. One major difference is most consumers own much fewer amps than guitars. In fact, experts say there’s an average of a 6:1 guitar-to-amp ownership ratio.
Your sales approach is perhaps much different as well. That’s why we invited five manufacturer specialists to join us with information and tips. Our panel comprises Nick Bowcott, U.S. product manager for Marshall; Joe Warrick, Yorkville’s sales manager for U.S. brands; Joe Delaney, product professional manager for Behringer; Darrell Smith, amps product manager for Line 6; and Lloyd Baggs, founder of L.R. Baggs. (For additional information, please also check out this month’s Five Minutes With, which features Doug Reynolds, division manager for Randall).
Our panel began by discussing recent industry data, which has shown guitar amp sales figures are down recently. The quintet, however, had differing opinions on why this is occurring. “For the instrument amplifier market, which includes cabinet sales, the figures we got show a 12-percent decline in unit sales as opposed to 2005,” said Bowcott. “A whole bunch of things can be contributing to this. The economic state of the country; gas is more expensive, there’s a war, and people have less disposable income. I personally think amplifiers are vital to life, but it’s not as vital as food and gas. We also have to look at another factor. I don’t think Marshall’s biggest competition is Fender, Mesa/Boogie, or Crate. We’re competing with iPods, Game Boys, and skateboards.”
Added Delaney: “I can’t say any one thing has caused this, but I’m sure other technologies that have encroached on what you need to make guitar sounds have had an effect. Things like computer modeling technologies and the ability to get modeled guitar sounds for recording without actually using an amplifier have been factors.”
But Baggs said he’s not concerned about the figures. “We’ve heard this same thing for as long as we’ve been in business,” he said. “It entirely depends on the customer who we’re talking to. We sell a lot of OEM. So we feel it if the industry is in the tank. Right now, most of our customers seem pretty excited and upbeat and our business is growing substantially. So it’s hard for me to put too much weight on overall industry trends because if you offer people a good quality product, that’s your best insurance against those types of upturns and downturns.”
Added Baggs: “In terms of economic trends, the entertainment business has always done well in economic downturns. During the Great Depression, the entertainment business was excellent. And musical equipment is a dream for a lot of people. So I think we’re a little insulated [against economic downturns].”
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