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
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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CLUB WORLD
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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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