SPECIAL: SUMMER NAMM ISSUE
June 16, 2008
VOLUME 25 NO.6

THE MAGAZINE FOR MUSICAL INSTRUMENT AND SOUND PRODUCT MERCHANDISERS

 

   
 

VIDEO WEBCAST
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-Table of Contents
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-RPMD-Yay! Boston’s Seaport Hotel was the place to be in late April for tons of information to help you sell print music products.
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Music City Miracle? Is this the year Summer NAMM makes a great comeback?
-Moonlighting. A look at manufacturers/reps who still perform regular gigs and how it helps them in their day jobs.

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The Bright Stuff. We always hear the bad news going on in the world. How about the good news?
-The 'Real' Guitar Heroes. What will the future of the guitar industry look like?

-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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COLUMNS

-The Music & Sound Independent Retailer Rebecca Apodaca of A&D Music is more than a retailer. Much more. Find out what she does—some of which you can also do—to make the wallet fatter. Plus, more about the IMRA/MSO merger.
-MSR Exclusive Blue Microphones said it found the right fit when equity firm Transom Capital came on board. What it means for you as a dealer and what the company’s future holds.
-NAMM University Listings Your one-stop source for every NAMM educational event taking place at Summer NAMM in Nashville this month.
-The Utah Jazz put up quite a battle in the NBA playoffs. Now, Spy finds out if area retailers will put up a big battle for his/her business.
-Five MinutesA big promotion and oh yeah, that “little” deal Kaman made with Fender. In the meantime, he’s one of the top guys at the biggest musical instruments distributor. A chat with Kaman Music’s Paul Damiano is overdue.
-Sales Guru.More store advice is on the way from Gene Fresco. When the customer thinks, “What’s in it for me?” you will have many answers.
-Veddatorial.Dan Vedda describes how to boost the Recreational Music Making movement, and what we can learn from the highly-respected CEO of PepsiCo.
-Mary Luehrsen, director of affairs and government relations for NAMM, can often be found on Capitol Hill fighting for legislation to help promote and protect our industry. What you probably don’t know is she formerly worked for the Texaco Foundation (now part of Chevron). What possible link could Texaco and NAMM have? You’ll find out. Believe us, it has nothing to do with oil either.


CURTAIN CALL
-Steve Stevens, Rock and Roll may be known for its wild behavior, but the genre has at least one law abider in Steve Stevens.
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Frank Black of the Pixies credits Haley's Comet for starting him on his career path?
-KT Tunstall dismounted from her horse and climbed out of her cherry tree to talk with us.
-Peter Frampton comes alive to tell us what guitars, effects, and amps he loves.
-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.

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DJ TIMES / DJ EXPO
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RPMD - Yay!
Hines Speech is Talk of the Show
[June 2008 - Page 1]

The Retail Print and Music Dealers Association (RPMDA) annual convention at the Seaport Hotel in Boston from April 24 to 26 was highlighted by a fun and casual atmosphere at manufacturer booths and provided advice that many consider a must for you to stand out. Almost 290 people attended the show, with more than 30 first-time guests. Fifty-nine exhibitors were on hand.

Retailers and manufacturer employees alike offered rave reviews for the seminar titled “Company Culture & Success in an Ever Changing Industry.” The session, presented by George Hines of George’s Music, dominated talk at several lunches on April 25, the second day of the three-day event. “Consumers can go online 24 hours a day, seven days a week, and find any product they want,” said Hines. “And they can find the lowest price if they spend enough time doing so. Product and price do not give us an advantage any longer over our competition. So what does that leave us with? Strictly, the culture we have in the people who work for us and the processes we have. Culture is now your differentiation.”

“Our objective together is to define culture,” he continued. “And how do we measure that culture on both our customers and our associates to increase our success? This is the new value we will be dealing with in the next 10 years both in our stores and online. First, let’s start with a definition of culture. Culture consists of shared values and conduct that set the standard for how employees behave and how we interact both with our customers and associates.”

Hines began by discussing the inverted pyramid, which he said he borrowed from retailer Nordstrom. On top of that pyramid are the customers, followed by the associates, the management, retail support, and at the bottom, the company president. “When I walk into my stores, I’m the company cheerleader,” said Hines. “It’s gotten to the point that when I walk in, [associates] are actually happy to see me. I really care about the people in my company and I think they care about me. I love the music industry.

Thirty-one years doing something you love is the biggest blessing I can get.”

Hines continued to talk about a customer bill of rights he provides and postcards he sends out to VIPs (very important players). Customers who spend more than $300 become VIPs, and are entitled to accessories discounts. Monthly follow-up postcards go out to those customers. George’s Music also has a 1-800 customer hotline that is “manned by real people.”

Hines is a big fan of operations checklists, when you go into a store and check off a list of several criteria. “We have eight pages that say what is going on in our stores and what we are expecting,” said Hines. “That includes cleanliness and everything else.”

Hines attacked the huge problem many of you have: finding good employees. Among the things he uses is the PASS test, which measures a propensity for a potential employee to use drugs, how well they will work with a team, etc. “We spend a huge amount of time on that,” he said. “We don’t want to have the culture diluted in any way. If they get past that, we do typically 1,000 to 2,000 interviews a year. We hire about 20 to 30 people a year. We get great quality employees because we’re doing so much pre-work.”

If you like to provide online applications for potential employees, Hines recommended checking out the affordable Taleo at www.taleo.com—a process utilized by Starbucks—to make sure you’re getting the right application for your needs. “We’ve been using it for more than a year and about half of the people we hire are from the online application system. We get 60 to 70 online applications per month.”

Once George’s Music finds the right employee after an exhaustive process, that’s where the store separates itself from many in any industry. We’ll let Hines explain. “A lot of people say the [employee’s] first day is the worst day. We try to make the first day the best day. We make sure that when they come in on day one, they feel really good before they leave. What are some of the things we do? We have a welcome card we sign and send to their home before they start. Imagine if you’re that new employee. You probably gave notice at the old job and are waiting to start a new job. You get a welcome card signed by everyone in the office. If you’re married and your spouse sees that, it’s pretty good.

“We also do a first-day celebration cake,” added Hines. “We do not have a celebration cake when they’re leaving. That’s not a good thing to celebrate! And on the first day, we have a welcome phone call from someone in the support staff. We have about 10 people working in retail support. When we hire someone, we get background information about their hobbies, what they play, etc. When the support staff member gets on the phone with that new [hire], they already know something about them.”



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