Winter NAMM Review
March 15, 2009
VOLUME 26 NO.03

THE MAGAZINE FOR MUSICAL INSTRUMENT AND SOUND PRODUCT MERCHANDISERS

 
 

   
 

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-Table of Contents
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FEATURES
America the Beautiful 2010 has been a good year for American patriotism. And we don’t just mean annual rituals such as the Fourth of July.
Not Doubting Thomas
Mendello Retires, Thomas Named Fender CEO
Former Guitar Center CEO Larry Thomas has a new gig: CEO at Fender Musical Instruments Corporation.
The ‘Spin’ on the DJ Market Whether your store carries a full line of DJ products, just a few or none at all, it’s hard to dispute that these products have carved a major indentation in the MI marketplace.
Music City Mystery Summer NAMM had many highlights, but attendance dropped 4 percent compared to last year. The future of the show is a topic on many minds.
The Canadians’ Club Changes galore took place at this year’s installment of the MIAC show in Toronto. The date changed to May. The location changed. Why were the adjustments made? Did the alterations work?
Floyd Rose Sued Geoffrey McCabe, an inventor and guitarist, has sued Floyd Rose Guitars and distributor Davitt & Hanser Music for patent infringement.
Pay It Forward! You’ve heard enough bad news. We take a look at the fantastic things happening in MI today.
-‘MIM is the Word The Musical Instrument Museum opened in Phoenix to a lot of fanfare. Rebecca Apodaca, an expert on antique instruments, gives you a rundown of the latest thing to hit MI.
-‘Loud and Clear Pro audio products continue to sell. We get the scoop from four top manufacturers.
-‘Open Door’ Policy NAMM makes a big change by allowing member-invited guests on the last day of Summer NAMM.
-Musikmesse A-107K! Attendance at Musikmesse and Pro Light + Sound dipped slightly, but optimism was up.
-It’s in the Cards ! You need to have PCI DSS-compliant terminals to handle credit card transactions by July 1. What are we talking about? Don’t worry, we’ll explain.
-Unplugged Acoustic guitar sales grew dramatically in 2009 and the beginning of 2010. Is this the beginning of a new trend?
-Head of the Class! We shine the spotlight on many of the new companies that launched at NAMM.
-Musicorp Mourns Mike Murphy We honor the sale rep’s life that ended way too soon.
-Is a New Healthcare Plan Just Snake Oil? We take a thorough look at how a new public healthcare plan can affect you and your employees. ?
-Bonanza! Behringer Buys Bosch Brands Behringer’s parent company added the Midas and Klark Teknik brands to its stable.
-The Stars Will Come Out…This Weekend We highlight a few of the celebrity appearances at NAMM.
-What A Long Strange Trip It’s Been!!! We reminisce as we close out the first decade of the new millennium. It was a tough 10 years for many. How about for the music industry though? What’s ahead?
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It’s Voting Time! Here are your nominees for the 24th annual Music & Sound Awards.
-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!

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

COLUMNS
-The Music & Sound Independent Retailer: We bring back our popular Independent Retailer Round-table. Providing four pages worth of answers are Gordy Wilcher & Lisa Kirkwood.
-Five Minutes With: We lend our ears to Marty Garcia, Founder and CEO of Future Sonics.
-MI Spy: Spy makes a visit to New York City to check out stores in both downtown and midtown. Service has to be good to win over discerning New Yorkers, right? We’ll find out.
-Dan the Man: Dan Ferrisi, with the help of occasional strategically placed SAT vocabulary words, discusses the prospect that the industry may have lost luster since a promising and upbeat January NAMM show.
-Birth of a Product Two former PRS veterans combined forces to found Knaggs Guitars. The story behind the Maryland- based company, which debuted a line of products at Musikmesse.
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Sales Guru: Sales persistence pays off. Just ask Gene Fresco
-Veddatorial: Dan Vedda provides a can’t-be-missed Summer NAMM synopsis.


FORMIDABLE FEMALES

-Kathy How:Now here’s a story you don’t hear connected to MI every day. A woman who grew up in Cape Town, South Africa, studied medicine and later moved to England.
-Sarah Heil:We’ve all heard the stories about people beginning in the mailroom and later becoming the CEO of a major corporation. Those people are rare, but it does happen.
-Sue Avant is a trailblazer. She’s also someone who
has varied interests. And she is, indeed, formidable.

-Mary Ann Giorgio It sure sounds like a great job to cover soap operas like Days of our Lives and speak to celebrities on a daily basis. But MXL’s Mary Ann Giorgio was never comfortable in that industry. She sure is comfortable at MXL Microphones though.
-Fusion Bags For the first time, we feature multiple people in this column. We look at the genesis and growth of the all-women founded business, Fusion Bags.
-Linda Arink is one of the very few female executives at a DJ company. Learn how she became involved and why she hopes we won’t even need to have a column about top industry females in the future.
-Debbe Stephenson stumbled upon MI shortly after college, but is sure glad she did. She’s now president and COO of Pro Co Sound.
-• Mary Peavey
-• Jennifer Tabor
-• Tarina Dunwoodie
-• Stacey Montgomery-Clark.
-• Cathy Duncan
-• Bee Bantug
-• Dale Krevens
-• Melanie Ripley
-• Susan Grund
-• Toby Nady
-• Shawna von Behren.
-• Berenice Chauvet
-• Sue Kincade
-• Tish Ciravolo
-• Vikki Hayward
-• Roxana Ramirez
-• Susan Lipp


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An Unforgettable 20th Anniversary
[March 2009 - Page 1]

When Behringer wants to throw to party, the company is serious. It’s an all-out affair. Even with the economy in turmoil, Behringer invited the press and key dealers to join its employees first in Hong Kong and then in Zhongshan, which is in China’s Guangdong Province. The celebration? Behringer’s 20th anniversary, as well as the seventh anniversary of Behringer’s Eurotec Electronics Factory.

While in Hong Kong, guests were treated to a dinner buffet cruise with a “Symphony of Light Show.” While aboard the cruise, exquisite views of Victoria Harbor abounded.

Hong Kong was under British control until 1996. So to say its culture is unique is an understatement. It truly is east meets west. Asian architecture is prevalent. But, there is a New York deli that actually imports its food from New York City. McDonalds and Pizza Huts also litter the landscape. And that’s not to mention the main tourist area, known as “The Peak,” where you’ll find Bubba Gump Shrimp Factory, Madame Tussaud’s, and more.

But Hong Kong only covered the first day of the event: Feb. 19. Guests were ferried from Hong Kong to Zhongshan on Feb. 20 and were treated to meals, tours, and more.

And then, on Feb. 21, Behringer stepped up its game even more. In the morning, members of the press were bussed to Behringer City, the company’s 2 million-sq.-ft. manufacturing facility. A full tour of the location lasted for two hours. Behringer City is the home to 2,800 employees. The facility is not only where the employees work, but where they live. A lunchroom, televisions, ping pong tables, a library, and a DVD room are located on the campus. And let’s not exclude a full basketball court. Basketball has become a humongous deal in China, brought on by the massive success of Yao Ming of the Houston Rockets, and, to a lesser extent, Yi Jianglin of the New Jersey Nets.

Of course, a lot of work is done at the facility as well. The plant has the capacity to produce 30,000 guitars and 60,000 speakers monthly.

Save the Biggest For Last
The three-day event ended with a bang. Eurotec’s seventh anniversary party. If you have an impressive memory of the Music & Sound Retailer, you may recall we were in China for Eurotec’s fifth anniversary party. This is what the same author wrote during that event: “Before media and dealers walked into the catering hall, guests were serenaded by a band. Dealers and members of the media walked into the catering hall in procession style. They were greeted by a standing ovation from the Eurotec Employees.
“When the party started,” we continued, “there were speeches by [Behringer Founder] Uli Behringer and [CEO Michael] Deeb, translated from English to Chinese of course, and then out pranced dancers, singers, a fashion show, and even a ‘Mr. and Mrs. Eurotec’ contest. That was combined with a Chinese feast of Miso soup, lamb, duck, beer, etc.”

Uli Behringer and Michael Deeb are not only men who possess a massive number of frequent flyer miles. They are showmen. The three-day event Behringer hosted is how it throws parties. This year, perhaps the party was even more grandiose because of the depressing economy. And as always, the Chinese employees are as excited about the Eurotec party as a child eagerly awaiting the opportunity to open his or her presents on Christmas morning. “If anyone had asked me twenty years ago if Behringer would have 3,500 employees around the world and be one of the biggest companies in the MI market, I would have said they were nuts!” said Uli Behringer. “We owe our success to the dedication and passion of our employees who produce astounding products. We could not have achieved this level of success without the support of the press and our worldwide dealer and distributor network. We absolutely owe a debt of gratitude to our customers who understand the value we bring, and have become loyal users and advocates.”

“We enter 2009 with a solid cash position, no hard debt and near-complete control over our manufacturing and distribution channels,” said Deeb. “Over the last several years, Behringer has invested significantly to assure control over as much of our destiny as possible. We can’t say that we cornered the market on wisdom a few years ago. We simply applied sound business practices to assure a predictable future for ourselves and our customers. These decisions and activities place us now in a very stable position to not only weather this economic downturn, but to take advantage of it through expansion and acquisition.”

As the party finally dissipated early in the morning on Feb. 22, guests were bussed back to the Shangri-La Hotel, where they were able to get some shut-eye before adjusting back to the huge time disparity in the United States and getting back to work.

However, when you visit China, the culture is so unique and the trip so long that you simply cannot forget for the rest of your life.

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