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| PMC officers Brad Smith, Paul Damiano, David Levine, and Karl Dustman |
The session also touched on a topic that’s been on everyone’s minds lately—the economy. Christy Schmitt of Union Bank was on hand and she advised that banks should be a retailer’s last resort. “You don’t need banks if you’re really managing your business well,” she said. Some ways she suggested retailers can better manage their businesses is by looking into local marketing, managing their expenses, and being smart about credit cards.
“Receivables and payables are where you can really manage your funds,” she said. Request that the money owed to you be paid by credit card because you’ll get the funds faster, and when buying on credit, try to get the longest terms possible. “Tighten your inventory spending and buy things you know will turn right away,” she added.
“If you have to go to a bank, they probably won’t give you money if you need it. Banks are in business too,” Schmitt advised. But if you do have to utilize a bank, “put as much money as you can in one bank that’s solid and build a relationship with that banker.”
Hinley added that though retailers may be preoccupied with money matters at the moment, that doesn’t mean the sky is falling. “Not all customers are backing off spending in the same way,” he said, pointing to one retailer who told him that he isn’t selling as many step-up instruments, but his entry-level business is going strong.
“Buyers are protecting their resources and are pickier about who they do business with,” said Hinely. “So get out of your office. Get on the floor and get face to face with your customers. Treat every interaction like a sacred moment. Your employees will emulate your behavior.”
During the RMM event, NAMM’s Morgan Ringwald opened by saying children often are told they are not musical enough to be in a band. “Unfortunately, a lot of kids are going to take that message with them through life,” he said. “RMM is something to offer to those kids.”
Remo’s John Fitzgerald then kicked off the festivities by having all members of the coalition perform its own drum circle using a variety of instruments. Several speeches followed including “The Piano Guy,” Scott Houston, who said, “I categorically deny the nonsense our industry is fading. My business is better than it’s ever been. I don’t buy that pianos are dying. What we need to do is to focus on what people want. Who’s my audience?”
The next speaker, Debra Perez of Valley Keyboards in Texas, spoke next. “We have an RMM program at the store. It is really working for the teachers and the students. We have an answer. We have something to offer people. We have music. We’re changing the perception in our community. We tell people that everyone can play music; no talent required.”
Saturday’s Alright For Learning
Danny Rocks and Alan Friedman hosted “25 Ideas to Improve Your Business—NOW!” during Saturday’s breakfast session. The two of them had contacted 200 music industry leaders for suggestions with proven results that dealers can implement in their stores. The top 25 were chosen and presented in four categories—Sales and Promotions, Technology, Financial Management, and Business Operations.
Ted Eschliman of Dietze Music told of the time his store acquired 1,000 reusable bags. They put the store’s logo on them and put them up for sale. Customers would get a discount, no questions asked, every time they came to the store with a bag. This helped his staff to not only identify long-term customers who deserved special treatment, but helped them to close larger purchases. The bags were promoted only by e-mail and word of mouth, and were a big money maker for the store as they broke even after selling 375 of them.
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| Roland debuts its V-Piano at its booth |
Another unique idea came from John and Nedra Pedersen of Pedersen’s Band & Orchestra in Burbank, Calif. To help create relationships with the parents of school-aged children, the store held a petting instrument zoo. Children wandered through “woodwindland,” “brassland” and “stringland” learning the history of each instrument and learning how to hold and play the instruments as well. As they left each land, the children were asked to pick their favorite instrument, thereby helping the store to qualify the customer.
Tristann Rieck of Milwaukee’s Brass Bell Music felt it was important to maintain school program relations, too. Rieck held a “thank you” banquet for Brass Bell’s band and orchestral teachers and also invited new prospects. Rieck noted that it’s important to say “thank you” throughout the year so your clients know they’re being thought of.
Along the same lines, Pete Gamber said it’s important to promote the teachers in your own store. He invites new teachers to monthly sales meetings and helps his salespeople to get to know them.
Menchey Music Service’s Joel Menchey streamlined his rental program by working with a credit check company. Customers would have to pass a credit check to apply for rentals. If they failed, Menchey offered them a Plan B, for example, an option for buyback.
Customers aren’t the only ones dealing with credit problems, as Gerson Rosenbloom, President of Medley Music Corp. in Philadelphia noted, offering some financial advice from personal experience. “Temptation is the brother of lack of fiscal discipline,” he said. Suppliers encourage you to pay by credit card but you have to keep yourself in check or else you’ll end up with money out on inventory, but not as much in the bank. Expanding on that, Liane Rockley of Rockley Music offered that retailers should call all their banks and credit card companies and renegotiate lower interest rates, adding that you might be surprised how hard companies will work to keep your business.
Saturday brought more action with perhaps the Percussion Marketing Council’s best-attended meeting in its history. Of special note was talk of the Roots of Rhythm classroom drumming education program being brought to Iraq in the fall by drum circle facilitator Christine Stevens and Dr. Craig Woodson. Other topics of discussion included brainstorming about November’s International Drum Month following a successful “Girls Just Wanna Have Drums” campaign last year.
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