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-First ever M.I. video webcast
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-Table of Contents
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-Guitar Hero is all the rage for consumers.
-Need to take a break from searching for the latest gear during The NAMM Show? Here are some celebrity appearances and parties to check out.
-Attendance increased at Music China and Prolight + Sound, and Kenny G made a big splash.
-Improving next month's NAMM Show is like making the 1972 Miami Dolphins better. But NAMM is certainly not resting on its laurels.
-We reveal all of the manufacturer nominees for Music & Sound Awards to be handed out next month at The NAMM Show.
-Counterfeiting on MI products, particularly guitars, may have received minimal national press, but the problem is real and not going away.
-Find out how to sell products your customers are probably not looking to buy.
-M&SR features its second annual independent retailer roundtable. What's on dealer's mind's this year. Are things better than last year?
-Females playing musical instruments now outnumber males, according to a NAMM/Gallup survey.
-Industry leaders paved the way for the next 10 years.
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-The Latest, Industry, Dealers, People and Product Buzz and Showcases.
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-Dan Vedda shares every thought not appearing in his monthly column right here.
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-Robert Gault, president of Eminence Speaker, knows a massive amount about China and the pro audio industry. Enough said.
-To say Kurt Ballou, Converge's guitarist, doesn't treat guitars well is like saying the New England Patriots are a decent football team. Ballou had to find a guitar to take a pounding. Here's why he chose First Act's Sheena.
-The amazing story of how Gear Source Music reopened days after a flood took it apart. Spy ventured to the Pacific Northwest to the great city of Seattle. Five minutes with a great wealth of knowledge in the percussion industry, Remo Belli.
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-John Flansburgh, They Might Be Giants' John Flansburgh is a big fan of several independent dealers as well as a host of manufacturers.
-Matt Rubano, the bass player for the red-hot band Taking Back Sunday. Even better, he likes to shop for MI gear.
-Paul English, Willie Nelson has had four wives in 40 years, but only one drummer in that same time frame.
-John 5, When your name is a number, you must be cool. John 5, who played with Marilyn Manson and Rob Zombie, says idolizing Eddie Van Halen was a big mistake. How is that possible?
-Luke Pritchard may be “all together Kook-y,” but he has cool memories from the days he visited retail stores.
-Eddie Ojeda; Lead guitarist for Twisted Sister.
-Will Lee; Getting that gig isn’t easy and took a lot of blood, sweat, and tears.
-Imogen Heap writes songs, plays piano and the nail violin,Does she plan to design her own instrument?
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[Month 2007 - Page 2] |
M&SR: So what's the best result an independent retailer can ask for from the possible FTC investigation? Not the most likely result, but the best?
Stevens: The best result would be to stop this industry from acting like 1950s pawn shops. Level things out. Become a real business and not "Let's Make a Deal," which is frankly the way this industry is operating now.
M&SR: In last year's independent retailer, some expressed doom and said they'd be out of business within five years. But with the emergence of buying groups, etc., do you feel any better this year?
Lovell: We're still not out of the woods, but at least we've organized an escape route. And there's a much bigger awareness about these [buying] groups. The indies are really getting to know each other.
Hix: It's really cool everyone is talking. I tried to do this in the Chicago area 30 years ago. But because the climate was different, they didn't feel that joining these groups was necessary.
Stevens: The NORCAL group will celebrate its 10th anniversary in 2008. The most valuable thing we do is talk to each other. The only real peer group independent retailers have are other independent retailers. The manufacturers, reps, your wife, banker, and the guys you went to high school with don't know your business. Independent dealers have felt isolated for a long time. So independent dealers are feeling better where they are at even though it doesn't necessarily improve the bottom line.
M&SR: So give us some names. Which companies do you like working with often?
Lovell: Yorkville and ESP. And I don't deal with Hoshino but I know it has integrity. What you're asking is, who has integrity? Yorkville, ESP, and Hoshino have integrity.
Hix: Yorkville, ESP, and Hoshino have been great. I've also done very well with Mapex.
Lovell: Something to point out though is some companies "lean" toward you for awhile. Other companies set their sights on you. And some companies have their mindsets on growing the indie.
Hix: It can also be the rep. I've had great relationships with some reps and I've talked to other dealers who don't. So I'm not sure if it's the manufacturer or the rep.
Lovell: To me, it's been out of the reps' hands for a long time. It's corporate policy.
Knowles: One of the reasons why we came to Summer NAMM was to find companies that cater to the independent. One that would allow you to make money. One that has a good quality product. We've dealt with Taye Drums. It offers one kit at Musician's Friend and you can sell that kit and still make in the high 40s [percent] in margin. That's something I look for. I like Taye Drums. Another company we found is Stagg. It has a line of hand-hammered caste cymbals and we can make 50 points on it as opposed to 38, 37, 35, or low 30s from other companies. We discovered Proel. With some of its products, we can make in the high 60s. Those are the products that are keeping us going. The ones we can buy for $3 and sell for $17.95.
M&SR: What margin percentage do you need to survive?
Stevens: You look at NAMM's "Cost of Doing Business" surveys. For at least a decade, they've said a store needs to make at least 36 percent. There are manufacturers out there that give you 25 percent MAP. That's tantamount to them saying, "I don't expect you to make a living off of my product." I don't see any other way to interpret that.
Knowles: For us to break even, based on the last figures I've seen, we need to have between a 37 to 39 percent margin. With gas prices rising and [other factors], we need to have a higher margin.
M&SR: Let's say you just finished college, love music, and were trying to decide on what career you would get into. Would you open or work for a music store today?
Knowles: That's a tough question, because every time I go to a trade show, I always hear the question, "If you knew now what you knew then, would you do it over?" I don't know. I enjoy the equipment. I enjoy the people. It's a love/hate relationship. There are days where I dread going to work. There are days I love going to work and being around the people. The people make it enjoyable. But I don't know if I would do it again or not.
M&SR: Let's ask the question another way. What are you happy about in MI? What keeps your drive going to keep doing it?
Knowles: It's the feeling I get when a mom or dad buys their child their first guitar. The sheer look of excitement on that young child's face when they get that first guitar. They don't know what to do with it. But immediately, they want to hold it. They want to put a strap on. They want to cradle it. You can see the passion in their eyes. It's the passion we all had when we first got into this business. There's nothing I want to see more than that person mastering the guitar, taking lessons, and becoming a gigging musician. I want to see them happy. That's what keeps me coming back.
Stevens: I can think of almost no one I know in the 41 years I've been in this industry who is in it strictly for the financial reward. Sometimes, people take over stores and that might be their desire, but for everyone else, it's about music. It's about creating musicians. It's about making music makers. Even for people who don't play anymore-like myself-it's still about the music.
Hix: The thing I find most rewarding in my business is we have a "Rock University" program where we teach kids to play and conduct recitals. And seeing a little dude or dudette; when they get their first guitar and play their first show is what does it for me. And I'm talking about 9 to 14 year olds, who are innocent and not jaded. The looks I see on their faces keep me in the business. But to answer your [previous] question, would I invite anyone to get into our business? Absolutely not.
[end]
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