SUMMER NAMM REVIEW ISSUE
August 15, 2009
VOLUME 26 NO.08

THE MAGAZINE FOR MUSICAL INSTRUMENT AND SOUND PRODUCT MERCHANDISERS

 

   
 

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-Table of Contents
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FEATURES
-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!
-And the Bombs Keep Coming!Another big lawsuit is filed
against the industry.
This time, there are many
more defendants.
-Drumming to Their Own BeatHow well is the drum industry holding up during these difficult times? We call on three industry experts.
-Guitar Center, Fender, and NAMM Sued
-The Health of the Independent Dealer M&SR’s fourth annual independent retailer roundtable features a new twist. For the first time, manufacturers, hand-selected by the retailers, contribute to the story.
-Born In the USA! We feature manufacturers who produce a majority of their products in the United States. Why do they make products in the USA as opposed to Asian countries? Find out.
-…And the Show Did Go On! The economy took a big bite of Summer NAMM in Nashville, but there were still bright moments.


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

COLUMNS
-The Music & Sound Independent Retailer A food drive goes really well. iMSO reaches a huge milestone. And much more.
-Music & Sound Award Dealer Nominees: We present all dealer award nominees, including an addition this year: Best New Single-Store Dealer.
-MSR Anniversary: We look at the 10-year history of Daisy Rock. Why did Tish Ciravolo found the industry’s first “girl” guitar company?
-Sales Guru: Santa Claus IS coming to town. Find out why Gene Fresco is optimistic.
-NAMM Exhibitor Listings
-NAMM University Schedule
-Five Minutes With: For our NAMM issue, we thought we’d get two guests instead of one. Bruce Forbes and C.P. Pores of Equation Audio tell you basically everything about their company and the industry in general.
-MI Spy: Spy will be somewhere at NAMM this month. (You never know where he/she will be lurking). In the meantime, Spy went to four Anaheim-area stores to check out recording software. Here are the results.
-Dan the Man: We unveil our latest column, in which new Associate Editor Dan Ferrisi tells you how he is one of the 92 percent of the country who never picks up an instrument. Why did he give up on musical instruments? Can we get him back into our industry?
-Guest Editorial: Troy Richardson, national sales manager at Tornavoz Music, and Music & Sound Award nominee, takes a fascinating look at the lawsuits that are affecting our industry. What might happen next?
-MSR Anniversary: E.M. Winston will celebrate its 30th anniversary beginning this month. We spoke to company President Don Rhodes to get a company retrospective.
-Birth of a Product: We look at the founding of Latvia-based JZ Mics and look at the new products it’s about to launch.
-Print For Profit: Dan Vedda provides plenty of tips for managing your print inventory.
-Business & Marketing: Eminence Speakers President Chris Rose tells you how expanding your inventory items can increase your bottom line in our first story. In the second page of our special section, Tommy Volinchak tells you how you sell in this age of “hyper technology.”
-MSR Special : This is Gene Fresco’s 74th NAMM show. No, that isn’t a misprint. Yes, we do mean Summer and Winter shows, though. Why is NAMM so important? What will make this year’s show great?
-Sales Guru: Dan Vedda gets charitable. Or does he?
-Veddatorial: Yes, it is a different world today. Dan Vedda explains how to navigate it.


FORMIDABLE FEMALES

-Mary Peavey Being president at Peavey Electronics is no small feat. But that is not even close to knowing the whole story about her. She is Ivy League educated, founded a commercial real estate business, is involved with numerous worthy charities, and much more.
-Jennifer Tabor found a missing market niche and is growing her business by leaps and bounds. That, and she’s only 32 years old.
-Tarina Dunwoodie got to see the moment Graph Tech was born and has served the company since she was 17. She has moved up the ladder quite a bit since then.
-Stacey Montgomery-Clark Find out how SABIAN’s Stacey Montgomery-Clark juggles two young boys at home and a huge job as vice president of marketing. She loves interactive programs at the company, most notably the Vault Tour.
-Cathy Duncan Seymour Duncan’s co-founder and chairman, received a ton of on-the-job training. But she has excelled. Creativity is one of the company’s hallmarks. Find out much more about her.
-Bee Bantug Yes, the Internet CAN be your friend as a retailer. Bee Bantug, who has provided several NAMM University sessions, can help. That’s why she co-founded Retail Up! in 2002.
-Dale Krevens For Tech 21’s Dale Krevens, being vice president is not a job. It’s an adventure. Find out why.
-Melanie Ripley Grundorf Corp. Vice President Susan Grund handles a plethora of duties at her job, but she also has jammed with the Beach Boys and makes sure the bond with the company’s employees remain strong. Learn how she juggles everything at one time and changes she’s witnessed in MI.
-Susan Grund Grundorf Corp. Vice President Susan Grund handles a plethora of duties at her job, but she also has jammed with the Beach Boys and makes sure the bond with the company’s employees remain strong. Learn how she juggles everything at one time and changes she’s witnessed in MI.
-Toby Nady graduated from college with a degree in clinical psychology. What does that have to do with music? Nothing. It’s been a long, strange trip for her. But a very good and successful trip.
-• Shawna von Behren.
-• Berenice Chauvet
-• Sue Kincade
-• Tish Ciravolo
-• Vikki Hayward
-• Roxana Ramirez
-• Susan Lipp

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Jockeying For Position
[August 2009 - Page 1]

Without Delay, We Present an Update on Everything DJ

The world has NOT ended yet. People are still buying products. Companies are still doing business. Things appear to be getting better. People are seeing movies and they’re definitely attending concerts. Beyonce and U2 have been selling tickets in hordes, just to name two.

Yes, the first quarter of 2009 was abysmal and the second quarter has looked better, although not great.

How has the DJ/lighting market been? Let’s find out. We’ll also take a glance at what technologies are changing the always-evolving DJ/lighting industry.

Responding this year are Alan Cabasso, president at GCI Technologies; Dan Goldsmith, president at X-Laser, LLC; Albert Chauvet, founder of Chauvet Lighting; and David Saghian, president of Marathon Professional.

And for more on the DJ/lighting industry, please check out our Five Minutes With story this month with Alfred Gonzales from American DJ.

We asked two questions of our respondents.

Here’s question No. 1: How is the DJ/lighting market faring? Has the economy caused consumers to cut back on purchases at all?

Cabasso: “The DJ market slowed down the first three to four months of this year and has now kick started up again. May was a good month for GCI Technologies and June has been on a record pace. It seems that with the economy crunch and a high unemployment rate, the music industry somehow generates more business. People like to listen to music to get them in a better mood. It’s easy to start a job as a DJ. For under $1,000, you can begin a new profession. Dealers are all still wary of the current economic times, but are also seeing a bright light starting to shine through the black wall. Internet customers are still buying and selling products at a brisk pace.”

Goldsmith:
“The economy has most certainly caused consumers to cut back on their spending, but much more importantly, their spending habits are changing. Whereas a few years ago someone would buy a light just because it looked cool and then figure out how to use it later, consumers are now looking for value in those products by making sure they will have a return on investment. This has also led to an increased trend of buying ‘B-stock,’ refurb, and knock-off products so that the initial purchase cost is lower. However, we will soon start seeing the pendulum swing in the other direction as those lower cost options begin to frustrate the marketplace with failures and we will again see a resurgence of initial purchases of higher end product.”

Chauvet:
“The DJ/lighting market is clearly affected by the general economic slump. Contracted disposable incomes generally translate into fewer parties and events on the consumer side, or at least more basic parties without the bells and whistles and the ‘wow’ effect that lighting offers and for which DJs would normally charge a premium. This causes DJs to think twice before updating or upgrading their gear. But it’s still good business. People will still party and get married and go to concerts and dance and entertain, albeit on a smaller or less frequent scale. And DJs thrive on new toys; new gadgets.”

Saghian: “Consumers always look at ways how to cut back on the things they want to buy. We must all agree that the recession has affected everyone. But in the DJ industry, I may say that we are still doing good…well not like the recent years of sales, but people still tend to lean on the cheap side that has quality and the essentials of a DJ gear with probably a number of extra features. They are beginning to be aware of our current situation; hence the ‘noun’ smart shopper. That is why we’re developing our product line to meet in the middle — affordability and quality for dealers and manufacturers. If you live in certain cities like Los Angeles, New York, or San Francisco, where people still go out to party, then a DJ will have to buy or upgrade gear. Bars and clubs will always look for good quality, pricey speakers. Even churches need quality audio products… so basically it’s been almost the same for us until we could come up with another good strategy to play along with the crisis.”

Question No. 2: What’s one hot technology in the DJ/lighting sector that could have potential?

Saghian: “For me, it’s software controllers or the all-in-one gears. Well, at first, longtime DJ’s are dissing the concept of just bringing a software controller and a laptop… but the vast majority of DJ’s now are looking for some gear that could do the mix they always do with the consideration of portability. Taking into account various mixing techniques a software controller performs, we still hear some complaints that the computer sometimes crashes in the middle of the gig. We don’t want that. That is why the companies that makes them are doing the best they can to perfect their products. All-in-one gears like our newly-released products—the DCM-3000 and DCM-5000—have the ability to recognize digital media files thru a CD, USB, or an SD card that makes it versatile. It is loaded of extra features including digital scratch, brake and reverse, mp3 id3 tag and folder search, built-in BPM counter, and the best part is that it is very portable and affordable.”

Chauvet: “It is more important than ever to come up with compelling, innovative products that are not just novel but also address specific needs of the customers and solve lighting installations, performance, or transportation challenges. This is where LEDs continue to make a big impact as they allow us to address specific DJ needs such as enhanced portability, ease of transportation and installation, and heat management. Or, you seek to come up with technologies that enhance an existing product so that it delivers more than the customer would expect. For example, thanks to our latest laser technology breakthrough in gradient lenses, our new Scorpion Storm lasers not only offer sharp high power beams that circumvent the need for a special variance. They also deliver amazing floor and wall effects without the need for fog. To have a top-notch laser and a high impact wall-and-floor effect at once and ready to use out of the box is quite an irresistible package for any DJ. And thanks to that, lasers are poised for a big comeback.” 

Cabasso: “The software business is booming and we at GCI Technologies are entering this market with our new Groove DJ software and will release several controllers in the fourth quarter of this year. DJ mixers, sound cards, and handheld recorders that use USB are also in demand. We offer the PS-626USB mixer by Gemini and several handheld recorders by Ikey-Audio that record to USB and SD card in various formats.”

Goldsmith: “Aside from the obvious growth spurts in the computer- and MP3-based systems sector and the market for LED products which has already proven itself, lasers are the next big thing coming along. In the last decade, prices have fallen dramatically, having now leveled off at about a quarter of what they used to be while the technological advancements are making laser products far more applicable to a wide range of performance environments that do not include Pink Floyd. Lasers have capabilities FAR beyond those of any other lighting product technology and as the marketplace learns more about those advantages, we will see an even greater overall growth.”  

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