Jaramillo’s insightful comments about the company, its products, its strategic positioning and its future made for a very interesting discussion. Enjoy.

The Music & Sound Retailer: Let’s start with your background. Touch on the highlights of your own story as it pertains to the music products and lighting technology industries. Tell us about the path you’ve traveled, bringing us right up to the present day.

Ana Jaramillo: As a child, I was very active in the arts. I played piano for many years and was also very involved in dance as a ballet dancer. When I was younger, I won a ballet competition, and I had planned on going to Julliard. However, being 15 and of Cuban descent, my parents refused to let me go. I continued to dance for a few years, and then eventually just fizzled out of it. But, music, singing and dancing are still things I’m very passionate about.

I started in this industry about 15 or 16 years ago on the sound side, working as a Marketing Assistant for Vestax in Florida. After Vestax decided to move out of Florida, I began working with a DJ store in Ft. Lauderdale developing their distribution sales. They sold sound, lighting and all types of DJ equipment to smaller stores that couldn’t afford to open up direct with manufacturers. I did that for about two years, and then went on to work for Chauvet. I’ve been here for about 12 years.

At Chauvet, I started as a Sales Assistant. I was then promoted to Southern Territory Manager; back then, we were small enough that we only needed two Territory Managers. We kept growing and I became the Northeast Territory Manager. I have worked with almost every customer that we have! Last year, when we restructured our sales team, I was promoted to National Sales Manager for CHAUVET DJ. CHAUVET DJ serves the entertainment lighting market for DJs, bands, musicians, stages, event productions and clubs.

The Retailer: What are your key day-to-day responsibilities and duties in your role with Chauvet? What’s your favorite part of your job?

Jaramillo: I oversee the national sales department for CHAUVET DJ. I have four great Territory Managers working with me, handling different territories and managing teams of manufacturers’ representatives. On a day-to-day basis, I interact with existing customers and key account holders. My main focus is to tap into new markets and develop new business and, to me, that’s the most exciting part. I have a few things in the works, but I can’t really talk about them yet. [Laughs.] But, it’s exciting to be able to explore other markets that we haven’t otherwise been able to access up until now. There’s so much business to be had out there.

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The Music & Sound Retailer: Let’s start with your background. Touch on the highlights of your story as it pertains to the music products industry. Tell us about the path you’ve traveled, bringing us right up to the present day.

Jeremy Payne: First, Dan, thank you for this opportunity! “Five Minutes With” is one of the articles I always read each month, so it is exciting to be able to take part. I suppose one could say I worked my way through the trenches to where I am today. I started off in music retail teaching guitar, bass and trumpet at a small independent music store. I actually was working as a cashier at a clothing retailer in a mall when, one day, this new music store I had never heard of, Generations Music, opened up just across the way. I walked across and asked if they were hiring, and the Owner behind the counter laughed at me and said, “You and every other kid that has walked in here wants to work here.” If you haven’t already guessed, he wasn’t very interested. I asked if he needed instructors, as I had been teaching on my own. I learned very early on that, in order to get what you want in life and in business, you have to be persistent. I was only about 17 at this point, so he reluctantly said “Yes,” and then asked me to give him a lesson to test my teaching chops.

I got the gig and took on as many students as I could by hanging out at the store and greeting people as they walked in the doors. Eventually, I started helping the Owner sell enough product to my students that he welcomed the idea of having me in the store to help with sales. Within six months, I had organically taken over day-to-day operations of the company; I was doing everything from sales to mopping the floors each night. Within four years of existence, the business had opened up a second location and relocated the flagship store to a higher-traffic area. I learned a lot working at Generations Music, and had a great staff working beside me. Plus, the Owner really valued me as an employee and a friend.

After graduating from college, I was freshly engaged to my beautiful wife and seeking other opportunities in the music industry to fulfill the well-known financial obligations that come with an education and a marriage. I began asking all my vendors if there were openings at their companies, and my sales rep at The Music People (TMP) said that they are always looking for good people. Within a week, I was on a plane flying to Hartford CT to meet with the Owners of TMP: the Hennesseys. Two weeks later, my wife and I packed our bags and moved to Connecticut.

My role with TMP was to manage the top-generating accounts from a sales and relationship perspective. My official title was “VIP Accounts Manager.” My core group of customers included retailers from industry buying groups, including AIMM, IMMG, iMSO and NORCAL, as well as some of our distributors. What made my position unique from our other sales team members was that I was specifically tasked with increasing business on our proprietary products, including On-Stage Stands. The remainder of our sales staff at that point also sold On-Stage Stands, but they are certified in, and have a passion for, the pro-audio products we sell through our distribution division, TMP Pro Distribution. We boast a line card of more than 170 brands.

I am happy and proud to say that, within my first two years of being the VIP Accounts Manager, sales on our proprietary goods increased by more than 40%. I successfully expanded relationships with customers and buying groups. I attribute much of my success in that position to understanding customers’ needs from my experience as a buyer in the retail world. At Generations Music, I developed a very strong understanding of what a “good” rep was and what a “not so good” rep was. Aside from sales and relationship management, I also focused some of my efforts on trade show planning. The NAMM show is our opportunity to showcase our products (new and old) and interact with our dealers face to face. This is a very important initiative for our team.

Through my sales success and the implementation of certain processes and standards of doing business, the company saw a potential for me to create and lead a new department focused on our proprietary brands. With this humbling and very much appreciated recognition, I accepted the role of On-Stage Stands Sales & Marketing Director.

The Retailer: What are your key day-to-day responsibilities and duties as OSS Sales & Marketing Director for The Music People? What’s your favorite part of your job?

Payne: My responsibility is to increase…

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By Dan Ferrisi

The music products industry is full of fascinating stories pertaining to how companies were founded, how partnerships were forged and the sometimes-unforeseeable ways in which firms evolve over histories that, in some cases, stretch back decades into the past. The story of how, in 1956, Jack Long created Long & McQuade, an iconic chain of musical instrument retailers up in Canada, might not be so unusual. What is unique, though, is how Long & McQuade birthed Yorkville Sound, a well-respected audio products manufacturer that, this year, is celebrating 50 years in business. This wide-ranging conversation with Long, who has spent a lifetime in the business, lends fascinating insight into the legacy of a man who, from youth, has lived and breathed music.

The Music & Sound Retailer: Let’s start with a historical overview. Tell me about how you became interested in music initially, and then discuss the creation of Long & McQuade.

Jack Long: When I was in grade nine of high school, they announced that anybody who wanted to learn to play a brass instrument should show up in the gym the following Friday. So, I did and here I am. [Laughs.] The first Friday, about 80 kids showed up. The man there said we had to “buzz,” and return the next Friday. Half the kids or more said, “That doesn’t sound like much good. I’m not going back.” But, some of us did. He lined all of us up in a row, and each of us had to make our sound. He went down and said, “You’re a trombone. You’re a trumpet. You’re a tuba. You’re a French horn.” When he got to me, he said, “You’re a trumpet.” So, that’s what I’ve been ever since. [Laughs.] From there, I became a professional player while I was still in high school. I was a jazz player, but I played commercial stuff…whatever they paid me to play.

Then, I went to the University of Toronto and took music education, although I never intended to be a teacher and never was. When I finished school, I played in a hotel band in Toronto for a few months and then moved to Montreal. I played in a few nightclubs; there were lots of them in those days. I played a few dance hall jobs, as was the style then. I also played in a theater for a while. Anyway, I got the idea that I wanted to start a business. So, my wife bought me a book, which said if you want to start a business, start it in something you know. I didn’t know anything about anything except music. So, I thought I’d give that a try.

I was actually doing quite well playing. I was an OK player, and there was a reasonable amount of work for people who did what I did. So, I had lots of work. But, a lot of the work was rather boring…stuff where you’d be backing shows, and we would play the same thing every night for who knows how long. It was fairly monotonous. In those days, I was kind of a jazz player. I still am, for that matter. But you didn’t get many paid gigs for playing jazz, contrary to what people might think. It was mostly commercial music. I got the odd jazz gig that was fun, but most of it was pretty “grindy” stuff. That’s what made me look at maybe doing something different.

When I started Long & McQuade, my wife and I had saved up $5,000. I actually started it with $4,000, though. I put $1,000 in reserve, but never used the reserve. I still was playing…I had to. By the time I got started, we had one child; a year-and-a-half later, we had twins. So, within a very short time of trying to start Long & McQuade, I had three kids to worry about. So, for the first few years, I was playing in clubs every night, while trying to get the thing going in the daytime.
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Our industry is fortunate to have a lot of big-name, iconic brands and individuals associated with it, and it’s pretty clear that Dean Markley would be near the top of anyone’s list. Dean Markley USA recently announced the appointment of Lori McCallian as CEO of both Dean Markley USA and Ultrasound Amplifiers, and The Retailer is pleased to present her first in-depth interview since ascending to this leadership role. Here, we discuss a bit about her background and current duties, as well as the continuing evolution of the Dean Markley brand. McCallian also surveys some of the company’s most recent product launches, while touching on how the economy has affected the company, its important relationship with the dealer channel and what those who watch the company can expect in the future.

The Music & Sound Retailer: Let’s start with your background. Touch on the highlights of your story as it pertains to the music products industry, as well as your business experience in general. Tell us about the path you’ve traveled, bringing us right up to the present day.

Lori McCallian CEO, Dean Markley USA

Lori McCallian: The early years of my career were spent in the insurance and financial services industries. While working for industry-leading companies, I gained experience in management, operations, sales and business ownership. I also had the opportunity to earn an MBA from Washington University in St. Louis. I spent the most recent few years as a consultant, helping companies that needed a “turnaround” strategy and execution plan for the future. Although I enjoyed the corporate world, I come from an entrepreneurial family who owned their own businesses, and I have continually felt the desire to be part of a private company. I was looking for a new business venture and was fortunate to meet Dean Markley through a mutual friend.

Becoming part of the Dean Markley team was appealing to me because I valued, and identified with, the 40-year successful history of the company. And, I appreciated the team’s commitment to the customer through providing quality and innovative products. In addition, as a long-time piano player and music fan, this was a great opportunity to combine two of my favorite things: music and business. As a result, I became CEO of Dean Markley USA last May.

The Retailer: What are your key day-to-day responsibilities and duties as CEO of Dean Markley? What is the best part of your job?

McCallian: Overall, my focus areas are similar to what you would expect from someone in this role. I am actively involved in the various strategic, financial and operational components of the company. With 2012 being my first year with the company, I have spent additional time on branding projects, evaluating operational efficiencies, building our team and getting to know our customers, artists, dealers and distributors. I especially appreciate being part of an innovative team that offers a product that customers enjoy and that helps to enrich lives.

The Retailer: Let’s talk about Dean Markley in broad strokes, since it’s obviously a venerable name in the industry. Give us a 10,000-foot overview of the company, discussing some of the key characteristics and qualities that it embodies. Tell us about the company’s growth and development over its history.

McCallian: Dean Markley has always been based on high quality products that appeal to even the most discerning ear for tone. The company benefited from tremendous growth throughout the ’70s, ’80s and ’90s through innovation that still stands on its own today. During the past decade, the company struggled with understanding the global economy and the need for modernization in manufacturing, operational efficiency and branding. The innovation and creativity has come roaring back with the Helix product line, as well as significant changes in our branding, advertising and public relations. We’ve also been very happy with improved operational efficiency, global partnerships and a leaner manufacturing process. We’re very excited about what’s happening now.

The Retailer: When you look at Dean Markley as it currently exists, what would you say you’re the proudest of? What makes the company stand apart, not only from its competitors but also from all companies in the music products industry?

McCallian: Our company’s 40-year culture and strength is built on product quality, differentiation and innovation—all with the customer as a central focus. The culture is built on continued innovation and creativity, with a demanding and relentless pursuit of the perfect tone. Everyone is involved in this pursuit. We are very interactive with our staff, our artists and our customers, and we welcome their feedback regularly. The combination of unique products, loyal customers, dedicated staff and the very best artists in the industry is, ultimately, what delivers our end result. We are very proud that every Dean Markley product is a collective effort.

The Retailer: In our music-centric industry, a great number of creative individuals often work for manufacturers. Would you say that the Dean Markley team is a very creative one, where the products they’re involved with on a daily basis are actually a big part of their lives outside the office?

McCallian: Yes, there are many creative minds on the Dean Markley team, including and especially Dean himself. He’s like a mad scientist who spends all day in his lab, thinking of new ideas. His innovation encourages everyone to pursue every idea. Most of us are musicians and have a passion for playing. And that, in turn, leads to an extensive knowledge of our current products, as well as lively discussion about continued enhancements and additions to our product line.

The Retailer: Shine a light on some of the most recent product releases from Dean Markley. Going forward, what are you going to be pushing most aggressively? What do you have in store for us at the NAMM show this month?

McCallian: Our most recent product release has been the Helix line of strings. Helix is best known for its revolutionary and patented hyper-elliptical winding process. Helix strings last longer than coated strings do, without dulling the tone, and they have an amazingly high output for full, rich sound across the tonal spectrum. The Helix string line is in addition to our successful Signature and Blue Steel offerings. Ultrasound amplifiers will also be a focus. We have been using the amplifiers for all acoustic instruments, including guitar, mandolin and banjo. We’ve also had several jazz guitarists start using the amplifiers because of their amazingly transparent amplification. We will have some exciting partnerships that will be announced at NAMM that will further diversify our brand. Stay tuned….

The Retailer: What is Dean Markley’s philosophy when it comes to working with dealers and the dealer channel? Would you say that working closely with dealers is a big part of your approach to business?

McCallian: Absolutely! Dealers are a very important part of our model. In many ways, they are the face of our brand to the consumer. This is why our sales team is working closer with our dealers than ever before to support their efforts by offering additional education on our products, brand marketing, and helping them protect and improve margins for our product line. One of the major changes for our company under the new management is to be more dealer-centric and make sure we help their businesses succeed.

The Retailer: Is there anything that the dealer channel could do that would be helpful to you, as a manufacturer? Do you have any suggestions to give the channel, which would help music retailers to sell Dean Markley products even better?

McCallian: Yes. They could better educate themselves on our product line. Our products have unique qualities to them that set them apart from our competition. It’s why so many top artists choose Dean Markley. We can also help with clinics and in-store campaigns, and we are very willing to help with marketing ideas to drive traffic to the stores. We have many great dealer specials that will improve their margin and increase volume. Call us!

McCallian and Lita Ford

The Retailer: Both in the U.S. and globally, economic times during the past few years have been difficult. How well has Dean Markley withstood tough economic times? What proactive steps has the company taken to minimize economy-related pain?

McCallian: We view the challenging economic times as an opportunity to further fine-tune our operation and cost structure, target our marketing efforts and strengthen our partnerships with our dealers and distributors. As a result of our cost evaluation, we have identified significant cost savings in our manufacturing and operational process, which allows us to pass along improved margins to our dealers and distributors through our new pricing strategy. We have already had some great success stories, with several stores increasing profit and sales through this approach. We’re excited to help dealers.

The Retailer: What does the future hold for Dean Markley? Do you foresee any major changes or shifts in terms of the product pipeline, market segments, business relationships or company strategy? What can we expect to see?

McCallian: We are doubling down on American-made, high quality products that give dealers a great margin. We will be adding additional products, such as instruments and accessories, to our portfolio very soon. And we’ll utilize a more diverse product offering to help dealers combine their purchasing power and maximize savings, while improving their profitability. Once again, there are more details to come at NAMM, so be sure to stop by the booth!

The Retailer: Is there anything you’d like to add?

McCallian: Is Dean Markley himself as crazy as he seems? YES! Seriously, though, thank you for the opportunity to be featured in your publication and to share some updates from the Dean Markley team.

Michael Spremulli • CEO, Vision Musical Instruments

There are lots of people in the music products industry who can boast of having vision. After all, our space is teeming with product innovation, creativity and passion to make something beautiful. Michael Spremulli definitely has vision, which makes the name of his company, Vision Musical Instruments, quite appropriate. Spremulli essentially grew up in the music space, and it’s clearly in his DNA. In this extensive interview, we discuss his company, his products and what he thinks our industry needs more of. (Hint: It’s cooperation, communication and an abiding sense that manufacturers and retailers’ fates are intertwined.)

If you aren’t familiar with Vision Musical Instruments yet, you soon will be….

The Music & Sound Retailer: I’d like to start with your background as it pertains to music and audio. Talk about how you got your start, bringing us right up to the present day.

Michael Spremulli: I started playing drums and taking lessons at the age of five, during which time my father was busy repairing woodwind instruments at Norwalk Music, the only music store in town at that time. Today, 34 years later, it is one of the most respected music stores in Fairfield County CT, as well as in the music industry. As a kid, I spent almost every waking hour of my life in that store and had every SKU and price memorized. The reps would come in and review new products and features, and I absolutely loved being there and being involved. I got a kick out of how the older guys who worked behind the counter would constantly ask me—I was all of 10 years old at the time—how much the instruments were, how they worked and whether I could demo the products for their customers.

Customers would even come into the store and say, “Well, I’d prefer to be waited on by someone older and more knowledgeable,” until they listened to my sales pitch and experienced my demos! [Laughs.]

I spent almost all of my high school and college years working on the sales floor of Norwalk Music, and also Ridgefield Music, a store owned and operated by my uncle. The two retail stores were located in towns about 35 minutes apart that are very different socioeconomically and culturally. Each man ran his business very differently, as well. So, I was able to absorb a tremendous amount of information from each of them and learn some very valuable lessons.

My early retail experience was a springboard to my studying harmony and theory, percussion and jazz guitar at William Patterson University in New Jersey, where I majored in percussion with a minor in jazz guitar. I continue to play both drums and guitar today.

A decade later, I left the retail side of the business and launched AAA Band Rentals, which is a musical instrument rental program provider serving retail stores. We set up affiliate retail partnerships for companies that either could not afford to, or would prefer to preserve their capital and not purchase the inventory, thus avoiding the overhead, billing and collection side of the business. We helped to provide school-age children with quality instrument rentals and accessories, as well as repair services. Being on the supply side of the industry gave me insight and a slightly different perspective on the retail side of the industry, because I was made privy to our affiliate partners’ business dealings. It was at that time that I recognized a serious need for what I would consider a “true” partnership between manufacturers, distributors and retailers that was sorely lacking in the music products industry.

There are a few manufacturers that do a great job helping to educate retailers…that have a true, equitable partnership that serves to strengthen each of their businesses. We began to realize that, as a whole, there was a void in the industry that we could fill. Some of it was product related, but the essence of it was the manufacturing, distribution and retail relationship side of the business, which I thought could be enhanced. Over the past 30 years, I’ve witnessed firsthand the challenges that face music retailers in both strong and weak economies. The core mission of Vision Musical Instruments is truly to partner with our dealer network and become an invaluable asset to each and every one of our partners, no matter how big or small.

The Retailer: Elaborate on the Vision Musical Instruments philosophy and  your approach to business with this company.

Spremulli: Coming from the retail side, dealers can greatly benefit from a more equitable relationship with a manufacturer and distributor. To that end, we’ve created comprehensive incentive dealership programs that include training our inside service reps to be so much more than order takers. Dealers are hired with the understanding that their role is to genuinely and effectively expand that relationship. In addition, our credit department is directly connected to our sales force. We work closely with the dealer to establish credit terms and credit lines that are designed to ensure our dealers’ success. Our vision is to develop and promote products that truly add value and prestige to foster the success of our dealer network.

In my travels, I came across Mérida Extrema guitars, which absolutely blew me away based on their build quality, sonic excellence and exquisite craftsmanship. In my entire career, I had not come across a guitar that was as superior or as value added. It is extremely well made, and it’s comprised of “the best of the best” in terms of quality, manufacturing process and value.

The Retailer: Tell me more about the products that are under the Vision Musical Instruments umbrella.

Spremulli: Vision Musical Instruments offers music retailers true, bona fide value. So, Mérida guitars and LuLu ukuleles offer what I truly believe to be the finest products in their product category in a highly saturated and intensely competitive market. Mérida guitars are unparalleled, handcrafted instruments made from solid woods that offer superior sound quality. Every serious musician who has picked one up has been incredibly impressed.

LuLu ukuleles, too, are what serious players want. It is a fine, handmade instrument that is very different from any other ukulele on the market at its price point. They’re moderately priced and offer significant value. LuLu ukes are manufactured using all solid woods and the best available third-party parts: Grover machines, Graph Tech nuts and compensated saddles, and D’Addario Nyltech strings. It also comes with an absolutely gorgeous hard shell case and a complimentary Planet Waves small humidifier, which is a unique offering in the industry. It’s a beautiful package that a dealer could easily showcase at retail and earn an attractive profit from.

These are just a few of the key benefits that differentiate Vision Musical Instruments. Having been in the business for as long as I have been, I’ve been exposed to just about everything that the market has to offer. When we started the company, my goal was—and still is—to make it stand out from the competition with instruments that are exceptional in every way as compared to the current market offerings.

The Retailer: I’d like to get a sense of what you do day to day within Vision Musical Instruments. If somebody else were to do your job for a day, what would the key duties and responsibilities be? What’s the best part of your job?

Spremulli: The best part of my job is overseeing a product line that I’m really proud of, and working with people whom I have handpicked to work alongside me. We all work very, very hard, and we have a great time doing it. We have some really terrific products that I’m proud of, and we continue to develop and perfect each of the lines. It’s where my heart is. I’m still very hands-on, and I love the products and the industry. I’ve been going to NAMM shows since I was barely 10, and I still look forward to going to them today. I’m really involved in the nuts and bolts of what we do here, in terms of offering superior handmade products to the music products industry.

The LuLu ukulele line is my brainchild. On a day-to-day basis, I oversee the operations. We have people in place who are the best at what they do: from our U.S. Sales Manager, Greg Sotire, and his exceptional relationship-management skills to our credit department, which, as I said, will work with dealers to help make them successful, plus our rep teams, which are very carefully chosen. And I interface personally with each of them, as well. I spend some time on the road going out with the reps to make sure they’re conveying the same message and philosophy, so that it is consistent from start to finish. I continue to employ best practices that I learned from a very early age when I was cutting my teeth in the music products business.

I find the most effective business-building strategy is to surround myself with the best the market can bear. The most challenging aspect of my job is to deal with the part of the business that is not necessarily that much fun: bill paying. [Laughs.] The nuts and bolts of the business, like, say, a leak in the roof. The non-glamorous parts of the business. My role as CEO is much more than a trade or a job; it’s something I’ve been involved in since I was barely 10 years old. It’s become a way of life and a labor of love.

The Retailer: What would you say you’re the proudest of with respect to the company? What sets the company apart from others in the industry and makes you happiest to have created it?

Spremulli: It’s the focus that we have on our dealers. Having come from the retail side, I have experienced firsthand what I would consider less-than-equitable relationships between manufacturers and distributors. I’m proud that we put a strong emphasis not only on superior products, but also on the dealer relationship. When a retailer reads this article, it is my hope that they will be able to connect with me. From the beginning, we set out to make this company different, with a laser focus on maximizing the value of our partnerships. That makes me proud. That’s why I started this business.

The Retailer: Can you make more concrete some of the ways in which you foster a mutually beneficial relationship with retailers? What do you do to ensure that you are helping them?

Spremulli: We’re putting programs in place, such as stock balancing programs. Never will a sales rep, either an inside sales rep or an outside sales rep, put pressure on a retailer to buy something that’s not right for them or to meet a quota. We are only successful if our retailers are successful. And although that sounds clichéd, we live and die by that.

I can’t tell you how many times I felt that the relationships were not equitable. Our number-one priority is that relationship. If something is not right, they pick up the phone and call me personally. We are here to make that relationship a strong one. There’s no disconnect between our sales force and our credit staff. We will not have a salesperson go out and start beating someone up and then have the credit department pick up the pieces. The entire process is seamless.

The Retailer: What could the dealer channel do that would be helpful to you, as a manufacturer/distributor? Do you have any constructive criticism for music products retailers?

Spremulli: Yes. In any relationship, open and candid communication is most effective. I’ve seen retailers run away from the phone when a manufacturer calls, either looking to collect a bill or to speak to them about something else. A manufacturer has to be open-minded and willing to listen. A retailer has to make sure that they’re communicating and truly hearing the manufacturer. Our goal is to stay connected. And I think the retailer needs to do the same. The retailer needs to reach out and let us know what they need, what they want, what’s working and what’s not working. For example, if you are going to be late on a bill, then call. Don’t run away from the phone or hide. Pick up the phone and say, “Hey, this is our situation. We’re not running from you, but this is where we’re at.”

It makes for a more effective and efficient working relationship…one of mutual respect and honesty.

The Retailer: How has the economy affected you and your business? What is it like working in the music products space at this point in time?

Spremulli: We certainly considered the economy when we sat down and started putting this company together. We felt the time was right, even in a compromised economy. Actually, we thought it was the perfect time for a company with a philosophy like ours to offer music retailers true, bona fide value. We don’t see the economic climate as necessarily detrimental to our growth strategy. We feel the current market is an excellent time for a company like ours to flourish: a company that offers premium, handmade products manufactured both internationally and domestically.

We have taken proactive steps to create a climate for dealers to want to do business with us.

The Retailer: Do you feel like the music products industry is in a strong position right now, overall? Are you optimistic, pessimistic or cautious right now, with respect to the industry as a whole?

Spremulli: I think we all need to be cautiously optimistic. The industry and the economy have seen some very difficult times, yet there are clear signs that the economy is slowly turning around.

With value-added and cost-effective products like ours, we believe that our dealers will be more successful. I think part of the job we do as distributors and manufacturers in helping dealers with their business is not putting the pad down and saying, “We need an order.” We need to put ourselves in their shoes; we need to help educate them. We’re in a better position to do that. Also, it is important to note that a lot of music stores are owned by people who aren’t necessarily businesspeople. Some are excellent businesspeople; yet, there are many, many stores that I’ve visited where the owner is a fantastic musician, but may not be a strong businessperson.

Again, with my background of more than 30 years in the business, my overriding goal is to reach out to retailers and help them to be as successful as they can be. I can’t run their business for them, but I’m certainly more than willing to help in any way I can to guide them, as well as to learn from them.

As I said earlier, there are some companies that do a fantastic job, setting up seminars and inviting dealers to benefit from tried-and-true practices. And it’s not just to push their product line and jam it down their throat but, really, to have them understand how to buy, when to buy, how much to buy, etc. Dealers must ultimately make these decisions for themselves, but with intelligent guidance. I think, if more of us on this side of the chain did that, we could make a significant impact on the industry as a whole. I’d like to see more of that.

The Retailer: If someone is going to be watching Vision Musical Instruments from here, what could that observer expect to see in the future? Looking at everything from the market segments in which you’re involved to the product pipeline to business relationships and company strategy, what will the future hold?

Spremulli: Mérida guitars and LuLu ukuleles are just the beginning for Vision Musical Instruments. We’ve got many, many new and exciting products in the pipeline and innovative programs in development.

I’m constantly looking for quality and value to bring to our industry. I won’t bring a product to market until I’m absolutely convinced it offers unparalleled value and prestige. So, we’re working very hard, and are actually extremely excited to be putting the finishing touches on a fantastic lineup of orchestral strings, woodwind and brasswind instruments, premium quality cases and bags, and a wide assortment of attractive accessories.

The Retailer: Is there anything I’ve not asked about that you think would be important to share with our readers?

Spremulli: We are working now on setting up well-qualified endorsees or brand ambassadors. Here, too, we are looking for both established and emerging artists who represent a wide variety of music genres and who genuinely love our instruments. We recognize how powerful these endorsements are when promoting a brand, which is true not only with musical instruments but also with any consumer product. Brand endorsees, as well as a well-planned national advertising campaign, are just a few of the ways we plan to aid our dealer partners in the sale of our brands.

John Krupa, Director of Sales, RCF USA

By Dan Ferrisi

Noted New York Times columnist Thomas Friedman famously observed that the planet is getting “hot, flat and crowded,” the middle descriptor meant to convey our increasingly globalized marketplace and world. The global flavor of commerce is abundantly evident in the music products market, in which one finds several companies that are based overseas but have either U.S. satellite offices or semi-autonomous U.S. divisions. In this month’s Five Minutes With, The Retailer speaks to John Krupa, Director of Sales, RCF USA. Drawing on the attributes of the RCF Group—based in Reggio Emilia, Italy, and boasting a storied history—RCF USA has a real story to tell. Krupa shares it with us, adding his insightful perspective.

The Music & Sound Retailer: To start, let’s touch on your background. Share the highlights of your own story as it pertains to the music and audio products industry. Recount the path that you’ve traveled, bringing us right up to the present and where you are today.

John Krupa: Like many others, I started in this industry as a performing musician and moved into MI retail to help pay the bills. After a few years of working my way up through the retail ranks, I made the transition into the independent manufacturer’s rep world, where I spent 14 very enjoyable years. During that time, I worked for RCF as a representative in the New York Metro area and made enough of a splash to be recruited by RCF to come work for them directly. I’ve been Director of Sales here at RCF USA for the last five years. I guess you could say my career path has been a logical progression. I’ve enjoyed my stops along the way and found each to be a great learning experience. I’m happy to have moved through this industry the way I have, and I feel incredibly content with the position where I currently am. This is where I want to be.

The Retailer: In terms of what you are responsible for day-to-day as part of the RCF Group, what would you say your key contributions and duties are? What is the best part of your job?

Krupa: Every day, I wake up knowing that manufacturing companies must sell what they produce in order to stay in business. I feel a true responsibility to each and every person who works for the company—for, if I fail at my job, we all hit the unemployment line. That’s how I envision my role, and I take that charge very seriously. You’ve heard the expression that “salespeople eat what they kill”? In my world, sales management is responsible for feeding the pack. Also, the word “salesperson” might carry a stigma to some, but definitely not to me. I am proud to be in sales, because I understand sales to be a critical part of a company structure. I love what I do and try to do my job better each day.

Since the day I arrived here, our sales have increased nearly 750 percent. So, I guess what I’m doing is working. I don’t mean to make light of this fact. Believe me, all of RCF USA’s (and my own) victories and successes to date have been very hard won. Personally, I am a devout workaholic who puts in 80-plus hours per week.

To answer your other question, my favorite part of the job is working alongside the great team I have here at RCF, our dealers and our rep force that I can’t speak highly enough about. They’re simply the best in the industry. I’ve known many of them for several decades, and I’m honored to be working alongside them in this role.

The Retailer: Let’s talk about the RCF Group in broad strokes. Give us a 10,000-foot view of the organization, discussing its structure and where RCF USA, Inc., fits in. What are some of the key characteristics and qualities the organization embodies? Share details of the company’s growth and development over its history.

Krupa: The RCF Group today is comprised of several brands and numerous satellite offices around the world. RCF began in 1947 in Reggio Emilia, Italy, as an OEM transducer company. It took almost 50 years before they made their first “finished” pro audio speaker cabinet and, during those years, they evolved into one of the world leaders in loudspeaker transducer design. dB Technologies began in 1976 in Bologna, Italy, primarily as an MI electronics company. The RCF Group was born by combining these companies in 2008 (and going public on the Milan stock exchange), and RCF USA then became the RCF Group’s wholly owned branch in the United States.

What I truly love, being the amateur historian that I am, is that the chronicle of the RCF Group is quite storied and complex. At the center of it, though, the RCF Group remains an engineering-centric company. At first consideration, this might not seem so unique. But, I have been around other great companies that are trying intently to become profit centers above all else. They have lost sight of the belief that it should be about the products first and foremost. RCF truly has a passion for what they do and how they do it. I know it sounds corny, but I can really sense that passion in the products they produce. That’s why I’m here.

The Retailer: When you look at RCF as it currently exists, what makes you proudest to be affiliated with it? What makes the organization stand apart, not only from its competitors but also from all companies in the music and audio products industry?

Krupa: It’s that passion…that real desire to turn out the best quality works of art they can. It’s as if I dream that there’s an accountant at the RCF factory saying, “You spent how much on that thing?!”, and I hear the engineers stoically replying, “We spent exactly what was necessary to make it right.” Actually, I know the R&D people and accountants in Italy quite well, and that fictional conversation never took place because everyone’s on the same page there! Maybe it’s a cultural thing; Ferrari isn’t producing second-rate cars and the Coliseum isn’t just another building. I’m extremely proud of the people who design and build our products, but I’m also proud of the products! I can’t tell you how many times I’ve heard from our customers, “These products should cost more,” and I can’t tell you how good that makes me personally feel. Value. What a concept!

The Retailer: In what ways is the European market different from the North American market? In what ways are the two markets similar? Proportionally speaking, has RCF dedicated energy more toward one global region than another, or is its attention spread evenly across global markets?

Krupa: That’s a great question, Dan. In many instances, the U.S. pro audio market drives the European and other foreign markets. The U.S. entertainment industry is so culturally significant in all corners of the world that it absolutely has an effect on what pro audio products are in use beyond U.S. borders. In other words, if a renowned U.S. artist uses “X” brand, it likely has global implications, whereas the reciprocal is rarely the case. As more U.S. artists tour the world, their tour riders often showcase a large percentage of U.S. brands, which then become the sought-after brands in those other countries. The influence of the U.S. market on other, foreign markets is unsurpassed. Thus, it’s a common belief of numerous European and Asian pro audio companies that, to get maximum penetration into global markets, they must first target the U.S. market.

Such is not necessarily the case with the RCF Group. RCF is currently a relatively unknown commodity in North America, but we’re very popular in many other parts of the globe, the Italian market being our largest. The RCF Group has a far more global, non-U.S.-centric strategy than what you might expect, and it’s working great. The RCF Group is growing tremendously worldwide, not just in the U.S.

While on the topic of European and North American differences, I should mention that there is a nominal, yet (to some) perceptible, difference in the products themselves. European loudspeaker products have a tendency to be more mid-frequency dominant for the purpose of greater articulation, whereas a number of North American products have been branded “boom and sizzle,” with a concentration on more low and high frequencies (a common EQ setting in America for home stereos). Some people prefer the tuning of certain products; some people prefer the tuning of others. Sound is subjective. What someone likes, another might not. Rather than chase one style of tuning or try to adapt oneself to the prevailing tuning in a certain area, I’ve always felt that companies should embrace who they are. Though we’re in a comparatively small market (relative to GDP), there’s enough diversity to allow for many manufacturers to get their share of the marketplace. There will never be one prevailing, definitive sound that’s unanimously accepted. So, companies should manufacture what they believe is the ideal product for the market, and let sales and marketing take over from there. A great analogy from one of my reps compares auto racing to the business world.

If you spend your entire race drafting behind the leader, then the best you’ll ever finish is second. If you run your own race, you give yourself the best chance of winning.
Sorry for the tangents, Dan. To answer your original question regarding the RCF Group’s allocation of resources, it’s pretty evenly apportioned. HQ has always understood that the U.S. market is important to the world market in terms of its earning potential and influence on other markets. That being said, RCF USA is pretty much self-sufficient in our operations.

The Retailer: Shine a light on some of the most recent product releases under the RCF Group umbrella. Going forward, what are you going to be pushing most aggressively? What is coming soon that you might want to preview? Why do these represent important additions to the marketplace?

Krupa: In 2012, we better understand the sales channels for our finished products. Every day, we understand our customers better, as well as what they want from us. It might come as a shock, but we’ve learned that everyone at RCF—from end users to the CEO—appreciates that we haven’t and won’t partake in the “race to zero” that so many of our competitors feel obliged to join. Entry level just isn’t our game. The RCF Group, especially here in America, is focused more on our flagship products…our top-of-the-line products.

We’ve come to see that our active line arrays and active wedges are some of the most widely accepted of our offerings, and our newest products are therefore in those categories. Up to today, RCF USA has directed its resources mostly into the live sound and retail marketplaces. In the near future, look for us to make a push into the contractor world, with new products dedicated to that market. For us, that’s our final uncharted territory to explore.

The Retailer: Articulate the company’s philosophy when it comes to working with dealers and the dealer channel. Would you say that working closely with dealers is a big part of the RCF Group’s approach to business?

Krupa: Without our dealers, we’re nothing. We know that. They are the most important link in our chain. I divide our dealers into two categories. We have “dealers” and we have “partners,” and I do take the distinction between those words literally. We appreciate our dealers very much, but it’s our partners with whom we’re most aligned at this time. Dealers resell our goods; partners resell our brand. We’re at a point in our history where we are seeking out partners. We love “outside-the-box” promotions…anything to help make potential customers aware of who we are and what we stand for. We try to support, in any way we can, those who “do” for us. We must work hand-in-hand with our teammates if we are to become who we intend to be.

The Retailer: Is there anything that the dealer channel could do that would be helpful to you, as a manufacturer? Do you have any suggestions to give the channel, which would help music retailers to sell RCF products even better?

Krupa: My recommendation to the retail market segment on something that would help us jointly would be run your own race. Look sincerely at what you’re doing and make the determination if you’re better off following someone else’s lead or better off charting your own course. In making your decision, you might want to remember that that “someone” I’m referring to might just have more competitive advantages than you have. Manufacturers seeking partners will work with you. They’ll try hard to give you what you need to win your race. They succeed only when you succeed. Partner up with a manufacturer: That’s my advice. We’re in it together.

The Retailer: Economic times have been tough globally for the last several years. Working within a corporate structure that’s based in Italy, you have exposure to far-flung markets across Europe, North America and elsewhere. How has being a global company and brand affected RCF’s ability to weather difficult economic times?

Krupa: I truly thought that the worldwide financial crisis would have had much more of a negative impact on the RCF Group, being that our HQ is geographically near the epicenter of the crisis. As your question alludes to, Dan, it’s been the RCF Group’s overall broad success that has kept us moving forward at a good clip, never even feeling the slightest bump in the road. For example, China has become the RCF Group’s second largest market outside of Italy. The Italian, American and Chinese financial crises have fortunately struck at different times, like a wave going across the globe. Luckily, when one country was being pummeled by the wave, the last country the wave hit was already in a bit of recovery. I’m no economist, but I do believe the wave has left us now and it’s all recovery from here. (Knock on wood.)

Oh, and I don’t want to leave this discussion out of my answer. Though only tangentially affiliated with the global economic crisis, the worldwide neodymium crisis is something I should mention. Due to a greatly increased demand and a contraction in the production of this rare-earth metal, the price on neodymium has skyrocketed (I believe the price has gone up something like 1,200 percent in the last 24 months), which has had a huge impact on the loudspeaker transducer market. This is something we’ve tried to explain to our customers, and I hope they understand the predicament we’re in. RCF is trying to remedy this problem quickly by utilizing other materials and removing neo drivers from a number of our products. This has made for a challenging time for us. But, our factory is incredibly dynamic and has done an excellent job in adapting to these circumstances.

The Retailer: What does the future hold for RCF? What can people who follow the company expect to see?

Krupa: One-word answer: Growth.

The Retailer: What are your closing thoughts?

Krupa: Dan, I just wanted to thank you for this opportunity and, again, to express my immense appreciation to everyone who has helped RCF USA get to the point we’re at now. We still have a long way to go before we even come close to reaching our potential here in this great country. But, with the team of partners, dealers, reps and internal staff we have assembled, it’s really only a matter of time.

By Dan Ferrisi

Bob Yerby, Vice President, Sales & Marketing, has had a pretty incredible career with Remo, Inc., spanning more than 20 years and numerous divergent roles that encompassed a broad spectrum of responsibilities. Speaking to Yerby, his passion for both the music industry and Remo specifically could not have been more evident. In this in-depth interview, Yerby brings us back to the beginning of his career, sharing funny anecdotes and fond memories. He also traces his history with Remo, talking about the experiences he’s had and elaborating on what makes Remo special, both on the product front and in terms of corporate culture.

I hope readers get as much information and enjoyment from the discussion below as I got from the conversation.

The Music & Sound Retailer: Let’s touch on your background. Share the highlights of your own story as it pertains to the music products industry. Recount the path that you’ve traveled, bringing us up to the present and where you are today.

Bob Yerby: How I got my start in the industry was interesting. It was in the summer of 1990, and I was taking summer jobs during school. An opportunity opened up in the studio cartage industry in LA. My first employer in the cartage industry was Drum Doctors. Clients included Vinnie Colaiuta, Jeff Porcaro, Curt Bisquera, Ricky Lawson and Jim Keltner to name a few. As a young person coming into the industry, I had the opportunity to do studio cartage for some of the best drummers in the business. It was a pretty amazing experience for me. I found myself in a reality check pretty early on. As a young drummer, I practiced a lot, played the Hollywood Strip circuit with different bands and attended the Dick Grove School of Music. When I first got a look at the studio session industry, it was a big eye-opener. I was watching and working for guys who were at the top of their game at a very young age. This was before the digital recording era and the session industry was really cooking. Guys were recording to two-inch tape and ADATs. It wasn’t like Pro Tools is today, where you can copy and paste parts together. These guys needed a good pass on every take. At that time, Jeff Porcaro, Vinnie Colaiuta and Jim Keltner were first call drummers doing one or two sessions a day at different recording studios around Los Angeles. It was challenging getting around town to all the downbeats for these sessions on time. [Laughs.] I remember crashing a company van at a McDonald’s. My colleague and I cut the corner too close and took out the side of the van…just trying to make it from Ocean Way over to Capitol. [Laughs.]

Later that same year, Vinnie got the Sting gig, Jeff Porcaro went out with Toto and business slowed down. I wasn’t able to get the hours. Ross Garfield, who still runs Drum Doctors, had been talking to Remo about an opening in research and development. I happened to get a call from Herbie May, who is now our Director of Engineering and R&D. He wanted me to come in for an interview. I said, “I’d be honored to come in for an interview.” I went in for the interview in October of 1991. I was hired into research and development. The first job assignment he gave me is one I’ll never forget.

It was my first day and Herbie comes in with a stack of 20 14-inch heads. He said, “I want you to take these into the torture chamber,” which was our testing room, “and play on each of these heads for half an hour.” I’m thinking, “Wow! What a great gig!” [Laughs.] I did different types of drumhead testing, from playing to manual pull testing for durability. In 1992, I began the development of our world percussion instruments: the advent of the djembes, tubanos and other shaped shell instruments. I was involved in making the prototypes. That involved getting the prints from the engineers and executing prototypes into production. In 1994, I then became a Quality Control Supervisor. After the products were in production, I was in charge of final inspections for products that were ready to go to market. A year later, I applied for a job in our customer service department. After getting that position, I took a lot of the things I had learned from R&D, production and quality control to customer service. This was a great experience, working directly with customers. I handled the DW account, Remo artists, dealers and distributors. A few years later, I accepted the role of Artist Relations Manager. I was responsible for developing relationships with the world’s top drummers and signing new talent. This was instrumental to my growth in the industry. Being responsible for an artist roster like Remo’s, you are working with a lot of different types of guys. I found it challenging and exciting to be corresponding with the different personalities. Six years later, I went into product management and was appointed Product Manager for drumheads and accessories, responsible for developing new products ideas and innovations. Two years later, I was appointed National Sales Manager. This was another important learning curve for me in the industry. I was responsible for dealer and distribution networks…establishing more solid relationships with customers in North America. I was then appointed Director of Sales, where I was responsible for global sales for Remo, Inc. I’m currently the Vice President of Sales & Marketing, which I’ve been for the past five years.

The Retailer: That’s a pretty incredible run within one company, especially being able to gain such a broad perspective as a result of working in so many positions.

Yerby: I celebrated 20 years back in October and, looking back, it’s been a wonderful ride. I’ve really learned a lot about R&D, manufacturing and quality control, along with sales and marketing in the music products industry. In addition to MI, I’ve also learned a lot about recreational activities, as well as health and wellness benefits with the use of drumming as a tool.

The Retailer: In terms of what you are responsible for day-to-day within Remo, what are your key contributions? What is the best part of your job?

Yerby: In the economic climate that we are currently in, driving sales is my top priority. We want to make sure we have really good sales programs in place and are always paying attention to customer needs. We also want to keep our fill rates high, and support our dealer and distributor networks with the proper marketing assets to keep the product moving through the channels. I really enjoy the leadership role in our department. Our team is the strongest that it’s ever been. I think our marketing team is really talented. We have a smart, young group of people who can really execute. I enjoy the creative process of making sure our marketing is up to date and relevant.

The Retailer: Let’s talk about Remo in broad strokes. Give us a 10,000-foot view of the company, discussing some of the key characteristics and qualities that it embodies. Tell us about the company’s growth and development over its history.

Yerby: Remo, Inc., is a drumhead company first and foremost. Remo Belli was the first to successfully take a working synthetic drumhead design to market. There were other drumhead efforts and ideas out there prior to Remo’s (Ludwig and Slingerland, to be specific), but his original design is still used today by all drumhead companies. That’s the poured open channel drumhead. We would never say we were the first. For the record, snare and bass drumheads were mentioned in the DuPont Mylar patent that was issued in 1953. The first known patent for the drumhead was issued back in 1958 to a gentleman named James V. Irwin, but the design was technically flawed. Remo’s original design in 1958 was influential because it worked. It could go to the proper tension levels that could stand up to all playing situations in that era. This is why we are most famous for the drumhead.

Fast-forwarding into the 1980s, we began R&D in drum sets, hand drums and tambourines. In the early ’90s, we started developing the world percussion product line that has been very successful in areas of show business, recreational drumming and education. Currently, our company has a tremendous responsibility to drummers and drum manufacturers all over the world. We take pride in making the highest quality drumheads and setting the standard for the global drumhead market.

We are also very responsible in other areas, such as recreational music making and wellness. In our view, anybody can play a drum and should play, because it’s fun and healthy. Remo Belli has planted the seeds in two key areas: recreational music making, along with health and wellness. Health Rhythms, for example, is evidence-based protocol on natural killer cells (specialized white cells) that seek out and destroy infected cells, with drumming as a tool. It’s amazing what we’ve learned in other areas, such as autism, learning disabilities and social disorders, with the use of the drum.

The Retailer: When you look at Remo as it currently exists, what would you say you’re the proudest of? What makes the company stand apart, not only from its competitors but also from all companies in the music products industry?

Yerby: I’m most proud of what we have accomplished over the past 55 years. The evolution of the drumhead…creating different sounds for all areas of drums and percussion. Our accomplishments in the areas of recreational music making and Health Rhythms are phenomenal. I’m very proud of what we do on the humanitarian side. I’ve been able to witness incredible things. For example, we were sponsoring the drum circle at the National Association of School Music Dealers (NASMD) convention in San Antonio, and a person in a wheelchair was observing. We clamped a Paddle Drum to the armrest of this person’s wheelchair and he began to hit the drum. The smile and emotion that was generated was so powerful that it was difficult for me to keep my composure. The vibration…the sound of the drum…and this physically challenged person being enabled to participate was just unbelievable.

The Retailer: In our music-centric industry, a great number of creative individuals often work for manufacturers. Would you say that the Remo team is a very creative one, where the products they’re involved with on a daily basis are actually a big part of the team’s lives outside the office?

Yerby: Absolutely. We have some really creative people who work in the sales and marketing department. I’m still the Senior Product Manager for drumheads, developing prototypes and coming up with new ideas. Our testing programs involve employees who are good drummers, artists and drum techs. Between our marketing and R&D departments, we can develop great sounds for the market very quickly. In world percussion product development, we’ve got some great percussionists who work here, as well. When we’re developing sounds for drums and percussion, we know we have something great before it goes to market.

The Retailer: Shine a light on some of the most recent product releases from Remo. Going forward, what are you going to be pushing most aggressively? What is coming soon that you might want to preview? Why do these represent important additions to the marketplace?

Yerby: We have some interesting products coming out in 2013 for drumheads and for world percussion. These products are still in the development stages. Last year, we had great success with the new Clear Vintage Emperors, Powerstroke Pro Bass Drumheads, Global Frame Drums and the Mondo Cajons. In the past few years, drumhead product launches have been really good for consumers. We’ve been able to create great-sounding drumheads that last a long time. In tough economic times, you want to create products that give consumers more bang for the buck. It’s stretching their dollars. I think we’ve done a really good job creating products with great durability and sound quality.

The Retailer: What is your philosophy when it comes to working with dealers and the dealer channel? Would you say that working closely with dealers is a big part of Remo’s approach to business?

Yerby: Our relationship with the dealer base is very important. The independents, drum shops and large retail chains need our support 100 percent. We want to make sure that our dealer and distributor networks are solid. We want to provide dealers with good sales programs and quality customer service to provide sufficient stocking levels, and inventory turns with good margins. We are contacting dealers constantly just to make sure products are turning through and business is OK.

The Retailer: Both in the U.S. and globally, economic times during the past few years have been difficult. How well has Remo weathered the continuing economic storm? What proactive steps has the company taken to minimize any economy-related pain?

Yerby: Our approach is to make sure that there are consistent deals out there that dealers can take advantage of. Obviously, everyone has to look at the bottom line and control costs, whether you’re a manufacturer, a distributor or a dealer. We all want to be as proactive as possible to keep product moving through the channel. These economic conditions are unprecedented, and Remo is in a fortunate place. We have a great brand equity position in the market, which is not something that can be taken for granted. We have to keep up our momentum and make sure that we’re acting as the best partner we can be in this economic climate.

The Retailer: What does the future hold for Remo? Do you foresee any major changes or shifts in terms of the product pipeline, market segments, business relationships or company strategy? What can we expect to see?

Yerby: Dealers can expect to see more innovations from us. I think we’re immensely strong in these areas. Our ability to develop programs and new sounds for different markets, such as show business, recreational music making and education, along with health and wellness, is unwavering. These attributes will be the key to our success going forward into the future.

The Retailer: What are your closing thoughts?

Yerby: When I first joined the company in 1991, I didn’t envision myself 20 years later being where I am today. It has been a great ride and a wonderful learning experience. I find myself very fortunate to have Remo Belli and Brock Kaericher as mentors. I love this company and take great pride in working with some of the best people in the music business.

Grant Brewer, Yule Jabara, Brock Jabara and Chris Locke.

By Dan Ferrisi

Both as a consumer and as an observer of industry, I have a great deal of respect for, and a desire to engage in commerce with, family businesses, which historically have made up the backbone of American enterprise. In the music products space, one of the best examples of a quality family business is Galaxy Audio, which earned its outstanding reputation under the guidance of Brock Jabara and, now, is helmed by Yule Jabara as company CEO. In my detailed discussion with Yule, he gives insight into his background, discusses Galaxy’s history and what makes the company unique, and espouses its philosophy with respect to working with dealers.

The Music & Sound Retailer: To start, let’s touch on your background. Share the highlights of your own story as it pertains to the audio and music industries. Recount the path that you’ve traveled.
Yule Jabara: I started out at a very young age, because this is a family business. My dad would actually bring me into the factory when I was a young kid…eight years old. It was just a tiny little place…a couple production lines where we ran Hot Spots. That was our main product—really our only product—at the time. So, he would bring me into the factory during the summertime so I’d stay out of trouble. He told me that, if I wanted to work, I could for 25 cents an hour (this was in the late ’80s and early ’90s). He’d have me cleaning bathrooms, sweeping the floors and doing some of the general facility maintenance. And, you know, just like any eight-year-old kid being forced to do that, I hated it. As time progressed, though, I developed a lot of interest in the company and wanted to work in the family business. I realized it was something that was fascinating to me.

So, in high school, dad let me hire a couple of my buddies and we’d come in as a second shift after school and run one of the production lines. We’d build Hot Spots all night, and that was really cool. I enjoyed it a lot. It helped me learn a little more about the family business and what we do. After high school, I went to college…sometimes. I didn’t have much drive or passion to continue with school. I was much more interested in going to work. Dad knew I was supposed to be in school, but I’d come into the office and he’d ask, “Don’t you have class today?” And I’d say, “Yeah, but I just wanted to come in and work.” He hated that. He wanted me to get an education. But, I also knew that he was happy that I wanted to be part of the business.

Shortly after that, I started taking over a sales position, managing our sales reps, working with our dealers and traveling around the country. And that was one of the coolest things for me: At 20 years old, I was driving around the country, spending month after month after month out on the road, for the dominant part of the year. I was traveling around, working with dealers and reps. And, I was really learning about our business: listening to dealers and their stories about the industry and how manufacturers treat them.

The Retailer: What was the progression from this time, your early 20s, to the present?
Jabara: I spent about 10 or 11 years in the Sales Manager position. For the last five years or so of that, I became more important to the company. I had a strong drive to do more and grow our business. My dad did a great job of building what he’s built, but I wanted to take it to the next level. So, I pushed myself into getting involved in more aspects of the business than sales: getting myself involved in product design and all of that. So, I pushed myself into the CEO position and out as Sales Manager. And, for the last few years, like I told my dad, I did a pretty poor job of being Sales Manager because I was too busy trying to run and grow our business. So, in the last year, we hired a new person to take on a sales position with us. We very quickly put him into the position of Sales Manager, so I could take over officially as CEO. Even though I’ve basically been running the business for the last few years, dad finally said, “OK, I can let go a little bit more and officially put you in charge.”

The Retailer: That certainly must have felt great.
Jabara: Absolutely! It was a very proud moment for me, and I’m sure somewhat surreal for my dad, who’s not one to let go of his company…his baby that he’s built. But, he was also very proud that he’d passed it on to the next generation. And, hopefully, we can keep it growing.

The Retailer: In terms of what you are responsible for day-to-day within Galaxy Audio, what would you say your key contributions are? What is the best part of your job?
Jabara: Man, you know, with this being such a small business, we don’t have a lot of people here. So, not that I think any CEO’s job is glamorous, but I would certainly say that mine is far from it. Sometimes, I’m back in the warehouse packing up boxes on a busy day. I work with research and development on new product designs, purchasing, accounting, marketing and incoming phone calls. You know, it’s a huge array of jobs that I do. And I love every one of them. It’s exciting to be a part of everything. I’m certainly not afraid to get my hands dirty…like I said, I’ll get back there and unload a container. I feel that it’s my job to step up and help everybody. That’s a great thing for me, because it keeps me involved in every aspect of the business.

The Retailer: Let’s talk about Galaxy Audio in broad strokes. Give us a 10,000-foot view of the company, discussing some of the key characteristics and qualities that it embodies. Tell us about the company’s growth and development over its impressive 35-year history.
Jabara: We have added many different products now, especially in the past five or six years. As many people know, my dad started the company with the invention of a personal monitor that mounts onto a microphone stand, called the Hot Spot. For a good 25 years, that was our very, very dominant product in the company. It was really the only product people knew us for. We’ve tried numerous products over the years, and we’ve had a few successes and a few failures, like any company. I still say that the Hot Spot is kind of our biggest blessing and our biggest curse, because, as we have evolved and grown over the past few years, a lot of our dealers still look at us as the Hot Spot guys. And it’s fantastic that there is that association. I think any company would strive to have something that they’re known for, like a Kleenex. That’s kind of how we always put it: The Hot Spot is like a Kleenex; it’s just a generic term.

We have grown a lot, into wireless personal monitors, wireless microphones, portable PA systems, etc. We have a line of studio microphones out now. We’ve got some speaker boxes that we’re just getting ready to introduce. We’ve got a lot of really cool product. And I think that, sometimes, dealers will look at us and think, “Oh, how cute. This little company is trying to do some other stuff.” We are still a little company, but we do have a lot of product offerings. And I think that’s often overlooked by dealers.

The Retailer: When you look at Galaxy Audio as it currently exists, what would you say you’re the proudest of? What makes the company stand apart, not only from its competitors but also from all companies in the audio and music industries?
Jabara: I think the family business aspect means a lot to our customers. Our industry is a small industry, but there are a bunch of conglomerates and businesses that are just too big and don’t necessarily care about their customer base. We pay a lot of attention to our dealers. My dad started as a sound contractor. So, we’ve always maintained a good, healthy loyalty to the small dealer. We’re not all about trying to make the big dollars. I joke around a lot in the office with our sales team, saying, “You know what? I’m happy with $100 orders.” We’re not always out there trying to get the $10,000 deal. We’re not trying to twist somebody for more product in their store.

I’m extremely proud of the fact that we do a lot of different stuff in house. We have a design and engineering team. We have a service department. It’s amazing how many people seem impressed that we know how to service our own products. We do a lot of different things that many companies—especially those our size—don’t necessarily do.

The Retailer: In our music-centric industry, a great number of creative individuals often work for manufacturers. Would you say that the Galaxy team is a very creative one, where the products they’re involved with on a daily basis are actually a big part of the team’s lives outside the office?
Jabara: We do have a number of people around here who perform and are very familiar with what we do on an outside level. They’re able to contribute significantly to the needs and desires of what our customers are looking for. I think that’s a really cool feature of any company: to have some people who really understand what’s going on on the outside and aren’t just pencil pushers on the inside. Without that knowledge, people come up with ideas that they think others would want. By contrast, we have people who are out there performing on a weekly basis and using our products and that helps in our development and product selection.

The Retailer: Shine a light on some of the most recent product releases from Galaxy Audio. Going forward, what are you going to be pushing most aggressively? What is coming soon that you might want to preview? Why do these represent important additions to the marketplace?
Jabara: We just brought out what I think is just the coolest microphone stand. It’s strange even to say we have a really cool mic stand. But, I think we have a better mousetrap in a category that seems like it’s a fairly unimpressive category. We just came up with the name the other day: Standformer. We first showed this at InfoComm and, basically, at first glance, it looks just like a straight mic stand. However, kind of taking some technology from drum hardware, we’ve got the boom arm that tucks away into the main pole of the mic stand. So, you can turn this from a straight stand into a boom stand very quickly. Plus, the boom arm isn’t dangling around, like most of your mic stands with booms: You know, when you throw it in the back of the truck, the boom starts to get broken up. This boom is always going to be protected. It’s not going to get damaged throwing it in and out of the van. Plus, it’s got a superior cam to it. You can put a tremendous amount of pressure or weight on the end of the mic boom, and it’s not going to fall down or fall over. Whereas, sometimes, you throw a mic on the end of a mic boom and the boom arm starts to droop down a little bit. So, you’re constantly having to pull it back up throughout the night. This is just a phenomenal mic stand. And, again, it’s weird to be so excited about a mic stand. But, it is a premium product and we’ve already had great response to it.

We’re also introducing some new wireless microphone a products. That category has been doing very well for us. Plus, we do have more scheduled to be coming out in the beginning of 2013. We’re reintroducing a product line using a previous name of ours: the Core Series speakers. That’s going to be targeted at install and live sound. All of these boxes have flyware on them and pole mounts, so you can mount them onto a speaker stand. These are very affordable boxes, starting out at under $300 street price for a 12-inch. We have a 12-inch, 15-inch and 18-inch. It’s been a long time since we’ve been in the bigger speaker box market. But, it’s been our customers who have driven us to get into all of the categories we’ve grown into in the last few years.

Coming up next year, we’ll have a power amplifier line we’ll be introducing. We’re looking to get into a little bit more install sound, as far as some ceiling speakers and stuff like that. So, we’ve got a lot on our plate, and I’m actually trying to slow down just a little bit. We’ve been very aggressive over the past few years and a lot of us around here are pretty tired. We’re focusing on selling what we’ve been doing over the past few years. But, I do have a very strong desire to keep growing.

The Retailer: Galaxy Audio connects to the music products market as well as the commercial fixed-install market. How would you break down that split, in terms of proportionality?
Jabara: We’ve always been a 50/50 company, which is really cool to me. Sometimes, you’ll see the MI segment down a little bit and contracting up, or vice versa. So, we’ve been able to weather the storms when those situations arise, because we are diverse. I always joke how, when I was younger and still on the road, the first call I would walk in wearing a jacket and tie, but the next call I’d be taking all that off and unbuttoning the shirt a little bit, because I’d be walking into a music store. It’s funny because you jump back and forth like that five times throughout the day when you’re on the road. We’re dealing with both sides of our industry: MI and the contractors. It’s exciting. It’s nice going out on the road and visiting both types of customers. They both have their own unique aspects.

The Retailer: What is your philosophy when it comes to working with dealers and the dealer channel? Would you say that working closely with dealers is a big part of Galaxy Audio’s approach to business?
Jabara: I feel that it’s fundamental. Again, my dad started out as an independent contractor and music store in Wichita, and had stores in Wichita and Kansas City KS. He always pounded into my brain that these are the guys who we need to take care of. We do business with the big-box stores and the Internet guys, and we do a healthy business with them. But, we are so good to our independent dealers. We have great dealer programs and profitability. We’re not out there cutting huge deals with all of the big guys who are giving us truckload orders and stuff like that. We do a very good job of taking care of the independents. It’s something that, again, my dad kind of instilled in me from the beginning and I’ve worked hard to carry it through. Looking at the growth that we’ve had over the years, it’s come from the independents. Naturally, as we’ve brought new product out, the Internet guys and the box guys are picking up a few of our new items. But, the guys who are really supporting us are the people who I feel we’re really supporting: the independent dealers. They’re a great breed. We have the utmost faith in the continuation of the independent dealer, and we strongly support them.

The Retailer: Is there anything that the dealer channel could do that would be helpful to you, as a manufacturer? Do you have any suggestions to give the channel, which would help music retailers sell Galaxy Audio products even better?
Jabara: The first thing would be to sell more of our products. I think that would be a great thing. [Laughs.] But just in general, as regards our company, I would say give us another look. That’s what I tell people. As I said before, the Hot Spot is our biggest blessing and our biggest curse. People tend to think we’re a one-stop shop for one product, but we have a lot more to offer. We’re taking care of the independents. So, really take a look at our company and see what we have to offer. Get a demo of our product…try things out.

The Retailer: Both in the U.S. and globally, economic times during the past few years have been difficult. How well has Galaxy weathered the continuing economic storm? What proactive steps has the company taken to minimize any economy-related pain?
Jabara: We are atypical of most companies I talk to. I do talk to a number of other manufacturers…bump into them on the road and at trade shows. A lot of people over the last four years have struggled significantly, whereas we’ve more than doubled our business. We’ve weathered the storms. A lot of it is through aggression on my part, in addition to huge support from my team. We’ve gotten behind new product design, advertising, inventory; we’ve bulked up all of those things. And they’ve paid off well for us. People have noticed it and have been impressed by what we’re doing, especially during this period of time. I certainly look for us to continue to grow, and I feel like we’re making the right moves.

The Retailer: What does the future hold for Galaxy Audio? Do you foresee any major changes or shifts in terms of the product pipeline, market segments, business relationships or company strategy? What can we expect to see?
Jabara: You can expect to see what anybody who’s been focusing on our company for the last few years has already seen… aggression, unique new products and support for the independent dealer. I think they’re going to continue to see the evidence of our hard work, and that we’re ready to continue to be a major player and a big part of all our customers’ product lines. We’re going to continue to do what we’re doing. But, I do think that it’s going to be bigger and bigger every time.

Cliff Cooper • Founder & CEO, Orange Music Electronic Company

Founder & CEO, Orange Music Electronic Company

By Dan Ferrisi

In our monthly Five Minutes With interview series, many factors are taken into account to decide who the best candidates to bring to our readers are. Of course, we want to spotlight people who have had estimable careers in the music products space. We also want people who have stories to tell, whether it’s starting up a garage shop in their youth or working the touring circuit, either as a performer or as a roadie. Finally, we want an engaging personality…the kind with whom you’d happily share five minutes, and maybe even a couple hours. In Cliff Cooper, Founder and CEO, Orange Music Electronic Company, we have all of these things. This writer’s discussion with Cliff was fascinating, informative and funny, and I’m happy to share it with all of you.

As a boy, I had a recording studio in my bedroom.

The Music & Sound Retailer: To start, let’s touch on your background. Share the highlights of your own story as it pertains to the music products industry. Recount the path that you’ve traveled, bringing us right up to the present and where you are today.

Cliff Cooper: As a boy, I had a recording studio in my bedroom. In those days, of course, it was run on analog machines and it was very basic. But, between recording and playing the violin, I was led down a path toward a career in music. I really started in the music business by building a small battery amplifier with an earpiece. By plugging a guitar into the unit, you could practice without annoying the neighbors. I only sold about 30 of them, even though I placed a small advert in Melody Maker magazine.

At that time, I was also in a band called The Millionaires and recorded a song that reached number 12 on the UK charts. It was recorded by Joe Meek, who was a famous producer at the time.

I was also in a band called The Millionaires and recorded a song that reached number 12 on the UK charts.

I left the band in 1968 and rented a small, derelict shop in the West End of London that was due to be demolished. I only had enough money to open a small recording studio with the equipment that I owned. It didn’t do particularly well, mainly because the equipment wasn’t really good enough. The studio was located in the basement of the shop, so I turned the upstairs into retail and began selling my band gear.

I left the band in 1968 and rented a small, derelict shop in the West End of London.

We sold everything the first day I opened the shop. So, I decided to start selling secondhand equipment as a means of paying the rent. The shop became successful very quickly. I called the shop “Orange” because it was my favorite color. In those days, we painted the shop in a psychedelic color orange, which caused all sorts of problems with the local councils and the local residents. They wanted me to paint it brown like the other shops, but it was too late: The shop was orange and staying that way.

The first major problem we encountered was with distributors. They refused to supply us with equipment, so we could only sell secondhand amps and guitars.

I had a background in electrical engineering and electronics. I had built my own amplifiers prior to starting Orange, so we designed our own amp. We then sent it to a manufacturer in Huddersfield to build the prototype production model. That’s how Orange started. We made our own cabinets, put speakers in them and we were away. Peter Green’s Fleetwood Mac was the first band to use Orange Amplifiers.

Jumping a bit, we closed the shop around 1980—we were forced to—because the council knocked the road down where the shop was located and we were forced to move. That’s when I dropped out of the retail business.

The ’80s was a difficult time for Orange amps. We made tube amps, but inexpensive transistor amps were flooding the market. We scaled down our production and produced a very small quantity until around 2000, when we started full production again. During the last 12 years, Orange has really grown very quickly.

The Retailer: Rewinding just a bit in Orange’s history, you mention the difficulty in the early years, where manufacturers and distributors didn’t want to help you stock your shop. What was the reason for that?
Cooper: We were in London’s West End, and I always suspected that there was a cartel of some sort operating. There were about four or five main shops close to us, and I believe one reason they wouldn’t supply us is that we all wore jeans and T-shirts instead of suits and ties. After all, I suppose, they were the old school. But they actually made life very difficult for us. We were selling only secondhand guitars and amplifiers, but we were doing more business than they were with their new equipment. It rubbed them up the wrong way and they did some very unpleasant things to us, but we managed to survive.

The Retailer: In terms of what you accomplish day-to-day within Orange Music Electronic Company, what would you say are your key duties and contributions? What do you enjoy doing the most?
Cooper: Well, I’m a little older now and I can’t travel as much as I would like, but my main job is coordinating our companies globally. We have a company in the U.S. (which we started in the year 2000), a company in Europe and a company in China. In the early morning, I get e-mails from China, followed later by e-mails from the U.S. So, I do keep fairly busy. We also have regular video Skype meetings. I really enjoy doing those. It’s fantastic just sitting in a room and talking to another group of people that work for the company on the other side of the world.

What do I enjoy most? It is, without doubt, Orange’s research and development program. We’ve developed some really great new products over the last 44 years. In fact, we built the world’s first digital amplifier back in 1970. In those days, we just couldn’t afford to have a “tailor-made chip.” So, it was built with about 100 transistors on the board. [Laughs.] It was the first of its kind and it was about four years later before anybody else brought out a digital amplifier. We called it the OMEC Digital.
We have quite a large R&D team and we have some great new products that are going to be released over the coming months.

The Retailer: Let’s talk about Orange Music Electronic Company in broad strokes. Give us a 10,000-foot view of the company, discussing some of the key characteristics and qualities that it embodies. Tell us about the company’s growth and development over its history.
Cooper: Orange has really grown in the last 12 years. We make guitar amplifiers mainly, but we’ve also moved into the bass market, which has been very, very successful for us. We have also developed the OPC, all-in-one Guitar Amplifier Recording Studio Workstation. That’s beginning to sell very well now. And it’s the first of its kind.
We also developed Isobaric guitar bass cabinets, which are powerful and tiny, in comparison to conventional cabs; and, of course, the Tiny Terror range has been enormously successful for us.
Among other developments we have introduced is the Divo OV4 (digital intelligent valve optimization). It matches and biases tubes automatically and has really caught on well in the U.S., as well as other countries around the world. One thing I can say about Orange is that we will keep moving forward, always.

The Retailer: When you look at Orange as it currently exists, what would you say you’re the proudest of? What makes it stand apart not only from competitors in the market, but also from all companies in the music products industry?
Cooper: I’d point back to what I said about R&D and new products. We have a lot of firsts. And that’s really important. We don’t stand still. There’s only so much you can do with a tube amplifier, but we keep trying to improve it. We spent a lot of time designing our output transformers and finding the best metal laminations to use in them. At the end of the day, that’s the last link in the chain apart from the speaker. You shouldn’t cut corners with output transformers. They are expensive to make properly, but the results from a good and balanced transformer make all the difference.

The Retailer: Often in the music products segment, a great number of creative individuals work for the manufacturers. Would you say that the Orange team is a very creative one, where the products that you are involved with on a daily basis are actually a big part of the team’s lives outside work?
Cooper: If you look at our creative team—the R&D department and the promotions side of the company—I would say that over 80 percent have played, or still do play, in a band. I think that’s very important. The music business is very specialized. To have a feel for the business, you have to have worked and moved in music before. When we’re interviewing new staff, we always look for people with a musical background, who have either some knowledge of playing an instrument or experience working for a company that supports music. This enables them to see and hear the product as a musician would. It also ensures they’ll know how to receive advice and criticism about our products and services in a manner they can translate to the rest of the team, thus ensuring we continue to improve.

A case in point is the OPC (Orange Personal Computer). With the OPC, we decided to build a home recording studio with an inbuilt amplifier, using JBL speakers, all in one small unit with all the programs downloaded, including Windows 7, so it is ready to use out of the box. Software can sometimes be complicated to understand and install. The OPC works out a lot cheaper than buying everything individually, and everything in the OPC is designed to match.

The Retailer: What is your philosophy when it comes to working with dealers and the dealer channel?
Cooper: Dealers are of paramount importance; their feedback is essential. It’s critical that they have the right information about the equipment we make. We do everything we can to support the dealer in every possible way. We advertise as much as possible to assist dealers in selling our products out of the store. If the dealer has any problems with any of our equipment, we will usually just exchange it without question. Yes, dealers are absolutely a crucial part of our family.

The Retailer: So, would you say it’s core to the Orange philosophy to be working closely with the dealers, and making sure both parties mutually benefit from your products?
Cooper: Yes, absolutely. Definitely.

The Retailer: Economic times during the past few years have been difficult, both in the U.S. and globally. How well has Orange weathered the continuing economic storm? What proactive steps has the company taken to minimize any economy-related pain?
Cooper: I think we’re fortunate because we are a global company. As a result, we’re dealing in different currencies: the dollar, the yen, the euro, the yuan and the pound. We have currencies from all around the world in our bank accounts. For some reason, they seem to cancel out the fluctuations in exchange rates. Fortunately, some of our accounts folks are experts with trading and currencies, and this maximizes our exchange rate negotiations. That’s very important, because we work on relatively small margins, and a small fluctuation can cause quite a big change in the profitability in that country.

Over the last few years, our business has been up year on year. So, it’s been difficult for us to notice the downturn. We’ve also always been very careful about price balancing, and always give good value for money. For instance, the new Micro Terror we have just released sells for $149. It’s a tiny 20-watt amplifier with a tube pre-amp that sounds way bigger than it looks. It also happens to sound good, too!

The Retailer: What does Orange’s future hold? Do you foresee any major changes or shifts in terms of the product pipeline, market segments, business relationships or company strategy? What can we expect to see?
Cooper: We are trying to diversify our product range a bit more within the music industry. The computer/home recording market is quite a big market, hence the OPC. For me, the business doesn’t really change that much, other than the high-tech side. At the end of the day, it will always be about music. So, from that point of view, we’ll always be there.

The Retailer: How would you describe your overall sense of the music products market right now? Do you feel like we’re strong compared to peer industries? Do you feel as though we’re struggling? Do you feel like we’re wrapped up with the entire economy overall?
Cooper: I’m cautious. Technology’s changing so quickly. For young people, there are lots of new options now. Computers compete with music. People spend time on laptops, computer games, gadgets, etc. So, yes, the music business has lost people to different interests. The Internet opens up a whole new world of things to do.
But, interestingly, a lot of these computer-related products, and companies, are beginning to cross-associate with music on a bigger scale than ever. The music business, from artists to instruments to associated equipment, is recapturing a lot of that market, as well as creating more ways than ever for music and computer technology to learn and grow together.

Dariush Rad

President & CEO, Asterope

By Dan Ferrisi

When you talk about professionals who work in the music products industry, it’s basically a given that a very large proportion of them will have a broader, personal connection to music, either as a player or DJ or producer or songwriter or any combination thereof. Dariush Rad, President and CEO, Asterope, has walked a path over the course of his career that’s truly fascinating. In this interview, we learn all the facets of music with which Rad has been involved, while also taking a deep dive into Asterope: what it offers, how it’s different, where it’s going and why it should be on your radar screen. Let’s jump right in.

The Music & Sound Retailer: Share with me some of the highlights of your own story as it pertains to the music products industry, as well as music generally. Recount the path that you’ve traveled personally.

Dariush Rad: I was raised in West Texas and was introduced to music at probably six or seven. I took guitar lessons, joined the school band, playing trumpet. I played music in band and choir through high school. I ended up going to school at the University of North Texas, which has a really renowned jazz program. I ended up getting my degree in sociology, but was very involved in music, both on campus and off campus. By the time I graduated, I had recorded a couple of pop albums. In the late ’80s, I recorded my first solo album, which was picked up by a Virgin affiliate in Europe and was played on what at the time was an early adult album alternative format.

So, I was writing songs and producing music. In the early ’90s, I moved to Nashville and my first solo album was on medium rotation on the triple-A station there. So, it’s me, my dog, a microphone and a box of CDs. In very short order, I found myself writing, recording and producing albums with players who are currently bandleader for Eric Clapton or off touring with Phil Collins…guys whom we all grew up listening to their records.

So, really, my producer career took off out in front of my artist thing, which I really enjoyed because I was more about writing and making records and things sounding good and completing projects. And somebody said, “Oh, you’re a producer? Well, we have a half-million-dollar budget and we’re going to shoot a music video.” He grabbed me by the ear and, within about a six-month time frame, I found myself with one foot in audio production and another foot in video and film production. It was interesting, because this was the time that CMT was taking off; there were big budgets for promoting country music through videos. So, that was kind of exciting to me. It was new. And that led me into interactive multimedia. I started one of the first Web design companies in Nashville back in the mid-’90s. And, with a background in audio, video, film and, now, graphic design, all of a sudden, I found myself as a multimedia producer. And it was cool. It was creative and exciting. There was music involved, and there was now video and film involved. And there were commercial applications, which I found interesting. In 2000, I moved from Nashville to Austin and I had a pretty extensive portfolio of a lot of different types of content. And I opened a marketing and design firm and I did that for several years, and then along came the technology that ultimately became Asterope. I thought, with my music background and my design and marketing background, this was really a good fit. I was blown away by the technology, and knew it was unique and very special. It deserved a chance to see the light of day and to see the market. And, so, I steered all my energy and all my relationships and my skill set into commercializing this technology. I started Asterope, and the rest is…probably the next question. [Laughs.]

The Retailer: Share a bit more detail about how Asterope was founded and why the technology represented so persuasive a proposition to you.

Rad: I was contacted by a family member who had heard the patriarch of the technology speaking about it, and knew it was really unique. So, she called me and said, “Dariush, you need to get in touch with this guy.” So, I did. And everything he was working on was really fresh and progressive and completely out of the box, and was providing sonic characteristics that I’d never experienced in my life. And, so, that, for me, was the persuading factor. We worked together on some other product prototypes, but, in the end, this, to me, was the stuff that was going to be most practical and most applicable. So, I launched Asterope and we moved into what was our first production generation, and carried that to market.

We had a very intentional philosophy in how we wanted to try to take this to market. I knew that it was a disruptive technology and that marketing a disruptive technology was different from carrying traditional technologies into market. And I really think that this product marks what is considered revolutionary technology. You know, most of the time in science, things progress in what’s called evolutionary stages, where things just kind of build on each other. Every now and then, there’ll be sort of a quantum jump in a field, and that’s what I saw here. This is unique. I had enough heavyweight players I could take it to, who I knew had the best ears in the industry—whether they were players, producers or engineers—and it didn’t take long of putting it out in front of people and watching their jaws drop for me to realize this is cool. This is really different.

So, we decided, OK, we’re going to take this to market. The first thing we needed to do was get early adopters on board. And we needed to get the third-party validation that something new and fresh is going to require. And we had access to those people. We had the production skills to know how to document their responses in the form of these wonderful interviews that really were more about the artist than the product. The campaign initially was driven by these wonderful four- or five-minute interviews, with some of the top unsung heroes in the music industry telling their stories and then commenting on the product. And then we turned and used all that Web experience to try to promote those videos, so they weren’t just sitting on a handful of CDs on someone’s desk but, rather, were available to the world.

Even as we’ve built the company, knowing that was going to be the approach, I knew that having a strong communications arm at the outset was going to be critical. The technology was there. Having a manufacturing system in place was there. But getting the stuff promoted and communicated out to the market in a very intelligent and intentional way was going to be critical. And a huge part of our culture here at Asterope certainly transcends sort of the cold, scientific aspect of what we’re doing. We don’t discuss our technology and we don’t lead with our technology, because it’s really about the human aspect of music and the human aspect of sound and the human aspect of connecting with your music both as a player and as a listener. And that is what this product provides. These sonic characteristics are unique to our product. That’s something we’re very proud of and feel blessed to be part of sharing with the world.

The Retailer: Give us a sense of what you do, day-to-day, within Asterope to further the company’s success. What are your key duties and contributions? What is the best part of your job?

Rad: As the Owner and President of the company, I, as you can imagine, work on everything from managing production to setting up sales and distribution channels to marketing and the design work. That’s something I gravitate toward more, since I’m not an engineer. I spend my time growing the team, growing the brand and bettering the product. We’re constantly in product-development mode, and I found that’s something that needs to be a part of the process daily. We want to keep making our products better and better.

The company has gone through a couple of pretty poignant developmental stages, and I really feel like we’re sort of on the cusp of one of those right now, having successfully rolled out our second-generation product line and having caught the attention of people literally around the world. I guess, at this point, primarily, for me, it’s just going to be business development. The product’s propped up…the brand’s propped up…I need to develop business now, and make sure we have the infrastructure to fill the orders that, hopefully, we’re going to be adding more and more of.

The Retailer: When you look at Asterope as it currently exists, what would you say you’re the proudest of? Is there something that you would say makes your company stand apart from others in the industry?

Rad: I think what I’m most proud of is just who we are. Who we are as a team. Who we are as individuals. And, certainly, the technology itself is something I’m extremely proud of. I’m proud of the team; I’m proud of our heart. I’m proud of the culture that we hope to bring to the industry. We want to keep things as music-centric and human-centric—truly human—as possible. I mean, music is about our humanity, after all. I feel like I have a team of people who are sensitive to that at that level. We want our culture to reflect that. It’s never going to be about dollars and cents or the hard, cold metals that make up the products that we’re selling. But, again, the impact they’re having on people and, truly, the emotional, spiritual and human aspects of music.

Asterope is a Summer NAMM exhibitor.

And, honestly, that’s something I would comment on. I remember, in moving into this, telling somebody one time, “Geez…10 or 15 years ago, all I wanted was to be the next Peter Gabriel or Sting or John Lennon,” and I felt like I let part of that go to go into this venture, which is still so stimulating and I feel so blessed to be a part of it. But they told me, “Dariush, look, you’re changing the way that people listen to themselves and listen to their music. You’re raising the standard for the whole industry, sonically. How dynamic is that, versus, you know, expressing yourself in song?” The beautiful thing is, we’re surrounded by these brilliant artists. I’m going to keep making records. Everybody on my team is involved in music in some capacity outside of this organization. And that, to me, is cool.

I’m proud that we’re an Austin TX-based company. There are so many neat things going on here in Austin, as well. So many fresh, forward-thinking things that are happening. So, I think, hopefully, the city and the environment are going to help support this sort of caring, compassionate, music-centric culture that we hope to make evident in the products, the brand and any of the other initiatives to which we attach ourselves.

The Retailer: You anticipated my next question, which was whether your team is a very musically inclined one.

Rad: Absolutely. All of our guys are involved, and all of our guys use our products wherever they are. It’s exciting, because we’re proud of it, you know? It’s exciting when you sit in your quiet space where you are all the time—and you probably go through the same experience—and you send messages out into the world. And when you get evidence that people are hearing you, and that comes back to you in a favorable way, there’s nothing that feels better. It’s like, gosh, we know our efforts aren’t in vain. People have heard of us, and their eyes light up if they see us with a T-shirt on or they see us pull a cable out of a guitar case. They go, “Whoa! That’s an Asterope!” So, that’s cool. I’ve had people come up who, I guess, are just players who have seen the ads, or have met someone who’s playing through it…they come back and get kind of starry-eyed: “Wow, y’all are Asterope!” That feels good.

I never anticipated that reaction. So, it’s kind of like being an artist and having somebody come up and say, “Hey, I heard you on the radio last night!” These guys are finding us online or seeing us in print or hearing our cable.

The Internet and the technology that’s available to us now is just such an amazing part of the process. I think we’re doing a really good job of using technology…using social media…using a lot of very cool digital content to communicate not only the quality of the products, but also the intention behind the products and the culture we hope to associate with them.

The Retailer: Espouse your philosophy with respect to the dealer channel. Is working with the dealer channel a fundamental part of Asterope’s approach to business?

Rad: This has been relatively new for us, in that, when we launched the company, I knew that the Web component would be a really huge part of it. And, knowing that we would be selling through initially to the early adopters, I knew that we could get access to them, and communicate effectively with them, online. I think, at the outset, I was a bit naïve as to how rapidly we would have to move from that direct-sales model into a more traditional dealer/distributor model. We had introduced ourselves at Summer NAMM. We’d gone through one full cycle of it. But, when I went to Messe for the first time, I was there for about 48 hours and thought, “We’re not going to be able to enter the market with a direct-sales model alone.” We came back about a year ago, and that’s when we just started retooling everything. What we wanted to do was come out and be as progressive and creative as we could be in finding dealer/distributor programs that were going to be better for the customer, better for the dealers and distributors, and better for us. And finding innovative ways to incent buyers at any level is certainly one way to do that.

And, even as we speak now, we have a lot of people showing interest and a lot of different opportunities coming to us that we’re sifting through, trying to figure out how to manage the next two or three years of growth for ourselves, and afford ourselves the mobility to move into other primary verticals that we plan on participating in. You know, we launched in MI, and are just now easing into pro audio. Fortunately, those two verticals sit close enough to one another that I think this program is going to be supportive. And then, we look to the future and anticipate in what other areas people are going to be excited about our stuff. Home audio and consumer electronics are somewhere on the horizon for us. And, so, we want to be as aggressive and intentional as we can be in our approach. But, at the same time, being as young as we are, I hope that we’ll maintain humility and the capacity to learn from these guys. Every time I talk to a dealer or distributor, there’s some wonderful, critical new perspective that’s shared with us to help us better understand what their expectations and aspirations are in the transaction. So, we’re constantly trying to evolve and meet that, so we can be the best partner for those guys that we can be.

The Retailer: Is there anything, from your perspective, that the dealer channel could do that would be helpful to you, as a manufacturer?

Rad: They can continue to provide us with visibility to the real world: what they hear when people walk into the store, how we can offer better products, and what we can be doing to meet our customers’ needs. When I look at the role of the rep, you know, in this traditional dealer model, I guess they have to be out there. Dealers have so many products that have to be represented on the floor. But that would be it, really, I think. For us, you know, we do some neat things. Like, if we pick up a new dealer, we’ll start running YouTube ads in that market to try to drive foot traffic into their store. We know exactly who their audience is before we enter a market. How many people with what likes and dislikes are in that market. If this were just a one-off conversation, my thoughts would be this: One, give yourselves the opportunity to develop a relationship with all the products you want to sell. However that has to happen. Because if their reps are artists and players—I’m guessing that’s why they work in that environment—if they hear this product, they’re going to get it. They’re going to know it. And so many dealers that are carrying our product and that embrace it in that way, they tell me: “Dariush, we don’t sell a custom guitar that we don’t show off through an Asterope. It makes all of our products sound better.” And I think, for Asterope—I can’t speak in general for other OEMs—give your guys the opportunity to hear this product. Because, if they have that opportunity, there’s going to be a level of personal enthusiasm that will translate into more activity for them and for us, and a better sound for their customers.

It’s been really exciting for me to find out how we can support with PoP materials…how we approach that. We have this really cool affiliate program that I would like to see grow more, which prevents the dealer from having to make a huge cash outlay at the onset. We provide a sample kit they keep at the store, and then they just sell through, or we drop ship for them. I’d like to find a way to get all of our video interviews in the form of a small kiosk DVD player. Something that’s kind of a cool little thing where people can come in and hear interviews with different players and experience the product a little bit right there on the floor.

The Retailer: What does the future hold for Asterope? Whether one year, two years or five years from now, what do you expect we’ll see?

Rad: I think you’ll see dynamic growth, a dynamic expansion of our product line, better products that are going to be better built. Assuredly, we will continue to build our products stateside. That’s something that we are very proud of, and are committed to maintaining. And you’ll see us moving into some other verticals and, hopefully, the application of this technology into some other unexpected areas. But, right now, we’re excited and proud to be enhancing the MI industry and the pro audio industry.

The Retailer: Is there anything else that might be important to add?

Rad: I’d like to add that we recently launched our expanded, second-generation product line. It is a stronger build and better-sounding product. We offer our customers the ability to design their cable however they want it. And we build it to those specifications. We design for environment, for sound and for application. It’s critical that we help the entire industry realize that cables do matter. The connectors that you’re using matter. The materials you’re using matter.

Beyond that, we want people to know that what we’re offering isn’t a disposable accessory. It’s a disruptive technology that is changing the way people perform and hear their music. As we like to say, “It’s not a cable; it’s an Asterope.”