'Tis
The Season to be Jolly
Christmas
is here! Parents and spouses rush into your store buying musical instruments,
spending whatever it takes to make loved ones happy and launch them toward
a lifetime of musical euphoria. Everyone knows that you are the place
to buy quality instruments. Consumers trust your expertise and value it
by purchasing from you. No one sits at home in front of a cozy fire pointing
and clicking since they can come to you and pay sales tax, contributing
to the maintenance of their own state. Moreover, each customer will sign
up for lessons (you can't get that in public schools anymore) and continue
studying music at your store indefinitely. Yup, 'tis the season to be
jolly!
Did the Grinch steal your Christmas? If the above isn't
happening to you, don't fret, you're probably not alone. Holiday expectations
were "skeptical" across the board. With a controversial war
(did somebody say "invasion?"), a questionable economy, gas
prices that should end obesity, and people searching for the cheapest
form of "distractment," most music stores are somewhere between
"doom and gloom" and "getting by."
Consumerism today makes many independent retailers want to roll over and
play dead. However, those who will prevail are survivalists armed with
attitude and advertising that commands attention. It's worthless (literally)
to compete by offering more (and more) for less. In the race to zero profit,
one simultaneously challenges the competition to devalue products and
services faster, all in a bid for the lowest common denominator consumer.
Caution to those reading on: I'm in a bad mood. The Scrooge
in me is tired of "the market is what it is; listen to your customers;
the customer is always right;" etc. I'm also tired of "so-and-so's
MAP is too low; they shouldn't sell their products online or in big box
stores; unreasonable buy-ins;" etc. I understand gripes about Internet
sales tax and mismanaged suppliers (Dan Vedda spelled that out beautifully
in October). However, to many other complaints, I say "bah humbug!"
For example, I support MAP, but it's just a manufacturer policy to heal
their dealers' self-inflicted wounds. Ultimately, retailers far too often
shoot themselves in the foot. Stop buying from the big mean manufacturers
who screw you. You don't have to. There is no shortage of competitive
products from manufacturers with fair practices. Ask George Hines, a very
successful retailer who understands this and professed it at a NAMM Breakfast
Session. The power of the checkbook hits them where it hurts. If you want
to survive, change your attitude. That is the first step to getting the
"meanie mannies" to change theirs.
The same goes for customers-they need an education and a
"perceived value" adjustment. If you want to attract more lessons,
offer high quality education and charge more-somewhere between sports
and academic tutoring. For years, I kept raising my rates to weed out
students and lighten my load. It worked and it didn't. I rid myself of
babysitting gigs but acquired more serious students than I could accommodate.
Cost reflects value. Do you want to convert video gamers and instant messengers
into music students? Then promote the value of learning music and charge
accordingly. Parents will take greater interest, wonder into the store
more frequently, and invest in more profitable instruments (the "investment
in lessons versus investment in equipment" equation).
Instead of trying to close sales by throwing in "everything
but the kitchen sink," show customers that you are committed to earning
their business. Advertise a free set of strings, sticks, reeds, etc. not
only with instrument purchases, but also when you fail to make the sale-"The
Fail to Make the Sale Challenge." If you spend time "selling"
to customers who don't buy on the spot, tell them that they will still
get the free gift even if they buy a competing product (a brand that you
do not sell but is in the same price range) elsewhere-a "thank you"
for the opportunity to earn their business. Take their name and note the
products that you demonstrated. Tell them that they must bring in the
receipt within fifteen days of purchase to receive the free goods. What
does this accomplish? 1) It demonstrates how confident you are in your
products and services. 2) You have the first opportunity to make the sale
and educate each customer on your products and services, sighting quality
differences between your "pre-screened" inventory and products
infiltrating the indiscriminate marketplace. 3) If you fail to make the
sale, you have a chance to see those customers again, find out why you
failed (knowledge is power), and earn their business on something else-they
may still be within their return period if they bought at a chain or big
box, giving you a second chance to make the sale after the fact. Make
it fun so that customers won't feel guilty or pressured, and you can laugh
with them even if they shopped elsewhere. It's about relationships, so
give them a warm fuzzy feeling.
The key is to make your customer service inspire confidence
and good will.
Unsure salesmen send customers running; convincing ones have customers
paying a premium. It's about selling value. Believe in your products and
truly understand them. Your own conviction will permeate the customers.
Finally, while retailers complain about customers' "nickel
and diming" and lack of loyalty or appreciation, dealers often treat
suppliers/manufacturers in a similar fashion. Suppliers/manufacturers
then pass it on to their subcontractors. It's a perverse form of "trickle
down economics." Everyone wants the best short-term deal but doesn't
consider long-term value. Whatever happened to treating others the way
you would like them to treat you? As Gandhi once said, "You must
be the change you wish to see in the world."
Ravi (www.HeyRavi.com) tours the country performing original
music, conducting product clinics, and lecturing on the music industry.
With professional endorsements and business savvy, the former guitarist
of three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
The
Internet hasn't obliterated the need for human interaction, but it has
masked the desire. When I was a kid, those who didn't go out and play
in the street were "weird." Today the "weird" kids
are playing in the street while "normal" ones hangout online.
Even musicians-many of whom entered this business for "the hang"-have
surrendered to affordable technology and sacrificed creative synergy by
working alone in home studios and uploading "final" productions
to the world.
However, I believe that we miss routine human relations without realizing
it. Certainly ATMs and Stamps.com facilitate some of life's most pedestrian
tasks, but certain activities should naturally inspire the desire for
human interaction. Creating music is fun and meant to be communal, and
the excitement of exploring and obtaining the gear that gives a voice
to one's artistic imagination is enhanced when shared with like-minded
people. I have more in common with the people in local music stores-staff
and fellow patrons-than in almost any other arena. Visiting Connecticut
Music in Stamford CT-where I bought many guitars including my first-is
mandatory (actually therapeutic) for me whenever I head north to see family
and friends. Furthermore, hanging around independent music stores across
the country while on tour effortlessly spawns new friendships.
With "You've Got Mail" as the new "Good Morning"
for millions, it is increasingly important for businesses that depend
on face-to-face interaction to seek out those opportunities. It is not
enough to prevent existing customers from hitting the "information
superhighway." One has to penetrate the field and actively steal
potential customers from the mouse by meeting them face-to-face and seducing
them with personality, enthusiasm, and professionalism. "Horn drives"
and similar events at local schools are ideal to secure rental contracts
with busy parents. However, to target serious musicians-the industry's
middle-class who has drive, resources, and a commitment to investing in
their careers-one cannot beat the positive energy environment of music
business conferences and festivals.
These multi-day events are popping up everywhere, and manufacturers
such as Sennheiser, Bose, and Taylor are seizing the opportunity to connect
with potential product users. I regularly engage manufacturers to specifically
sponsor my seminars at such events. Greg Bennett Guitars sponsored my
opening lecture at this year's Atlantis in Atlanta. Martin Guitars sponsored
my presence on panels at both Cutting Edge in New Orleans and the Independent
Music Conference in Philadelphia several years ago, as did Brian Moore
Guitars at NEMO in Boston.
"While many manufacturers traditionally target larger tradeshow and
conference events, they miss the value of Dfest," says Angie DeVour,
founder and COO/CFO of Diversafest in Tulsa, OK. "Most folks who
actually buy their products don't attend larger events because of high
travel costs, badge costs, etc. Because we focus on independent and emerging
artists, the bulk of our attendees are independent musicians, independent
studio owners, and music enthusiasts. This is a chance to demo products
directly to consumers who use them. It can be especially effective to
demo new products and see how real musicians respond."
I sat on panels and conducted my "Instant Guitarification"
clinic at Dfest this year, and Bose was omnipresent. They provided state-of-the-art
sound reinforcement for panels, clinics, and at some outside venues hosting
the festival's band performances.
"The Live Music Technology Group (LMTG) at Bose is
interested in connecting with musicians who perform at small to medium
sized venues-up to 300 or possibly 500 capacity-because this is where
the L1 system is designed to be used, and because this venue size demographic
fits the vast majority of performing musicians," says Mark Chipeur,
Senior Market Representative for LMTG, Bose Corporation. "I made
a unilateral decision on behalf of Bose to support Dfest because many
of the musicians in attendance fit this demographic. In 2006, I also supported
the Folk Alliance Conference in Austin and the Monterey Jazz Festival."
There are likely even greater returns if local music stores
are in the loop. Of the 2000 panel and 75000 festival attendees at last
year's Atlantis Music Conference & Festival, about 45% were from the
Metropolitan area. At Dfest, 15000 attendees (1000 attending panels) were
from Tulsa and 56% from Oklahoma-I brought in Firey Brothers (the local
Greg Bennett Guitars dealer) to sponsor my clinic. With a growing number
of independent retailers having a Web presence, it is priceless to shake
hands with potential local customers as well as regional/national ones
who could wind up on the other end of the mouse.
"A local instrument store benefits from sponsoring
and exhibiting at Atlantis because the clientele they seek are our exact
demographics: artists in multiple genres that have enough interest in
furthering their careers to attend an educational, networking event in
the interest of gaining the knowledge they need to be successful,"
says Mark Willis, owner/partner of Atlantis. "They gravitate to the
music store and musical instrument displays for these very same reasons."
DeVour adds, "There is a budding musician waiting to
emerge from nearly every festival attendee, and with the excitement and
inspiration that so many feel after attending Dfest-when just regular
folks decide it is time to buy a new guitar and take up guitar lessons,
or keyboard, drums, trumpet, or fiddle-they are going to be inclined to
go to the store whose brand they saw over and over as a sponsor of Dfest."
Perhaps a co-op arrangement between a manufacturer and their
local dealer would be the most beneficial for everyone. If the manufacturer
bought the sponsorship and the local dealer manned the booth, brand exposure
would remain prominent while simultaneously building lasting personal
relationships between buyers and sellers. That is after all the key to
creating long-term customers.
Ravi (www.HeyRavi.com) tours the country performing original
music, conducting product clinics, and lecturing on the music industry.
With professional endorsements and business savvy, the former guitarist
of three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
Endorse
This!
Endorsement
deals have been prevalent in our industry for a long time. With rock stars
living the dreams of amateurs, most "wannabes" fantasize about
the possibility that playing the same instruments just might produce similar
results. Companies in many industries align themselves with celebrities
in order to capitalize on "star power," and those in the limelight
savor the fruits of free or discounted product and added exposure. However,
the staying power of "chart toppers" has diminished and less
visible artists consume iPods via iTunes. With more music reaching more
people through more channels, it may take more endorsement deals today
to achieve the impact of yesterday.
"The conventional wisdom is that advertising and endorsers
work, and we subscribe to the conventional wisdom," says Harvey Levy,
vice president of Levy's Leathers Ltd. "The president of Coca Cola
was once asked if he thought all of his advertising was a waste of money.
He allowed that probably 50% was a waste. He just didn't know which 50%.
I look at endorsements as part of our advertising budget, and our ability
to track the effectiveness of endorsers is as difficult as trying to determine
the effectiveness of advertising in general."
Sennheiser's artist relations manager Kristy Jo Winkler
adds, "It's not easy pinpointing who will have staying power, but
we can get a feel for how an artist's career is going based on conversations
with their engineers and crew or management, as well as the partnerships
they have already formulated with other companies outside of the music
industry. If you're unsigned and unknown and you're a band or engineer
that is working 225 shows a year, doing steady promotion, and can show
us that you're 'talking nice' about our equipment, we can begin talking
and start building a relationship to create trust and credibility. Ultimately,
we want all of our artists to become huge stars. Most music manufacturers
are not the size of Coca-Cola or Nokia and do not have millions of dollars
of advertising budget to spend. So, when millions of people watch the
various awards shows and the Super Bowl, and there's an artist on stage
we work with using our microphones, we get something we can't afford to
buy-mass exposure."
Harvey Levy paid me a great compliment at NAMM in Austin.
"I was just telling someone the other day that you are an artist
who really understands what manufacturers want." That's both flattering
and comforting since I always strive to bring the most value that I can
to my business relationships. However, there are many artists who just
don't get it, which hurts their own reputations and our industry in general.
A fellow musician from a major touring band recently came over to my studio
and commented, "You actually play your endorsements! Most guys I
know store their endorsements and take what they really like out on the
gig." I've heard manufacturers complain about their ability to enforce
MAP online due to artists selling their free or discounted new gear for
profit on eBay via "Buy It Now." Moreover, I know artists who
have sold new gear to students and friends as a favor; they aren't necessarily
profiting from the sale, but they are taking business away from local
music stores.
Such behavior astounds me. I only solicit deals with manufacturers
who want an active long-term relationship for mutual benefit, conduct
their business with integrity, and create products that genuinely contribute
to my career and artistry-those that were already part of my stage and
would continue to be regardless of the professional relationship. When
companies solicit me, I make sure that I can use their non-competing products
with the same conviction as those that I discovered on my own. Once armed
with a complete understanding of their marketing goals and strategy, I'll
happily walk down the aisle. Why compromise my integrity and reputation
by shopping around for the best endorsement deal on equipment that I'd
prefer not to use? I'm in the business of making music, not peddling gear.
If I can simultaneously promote products that I truly value, then there
are added benefits for everyone.
The problem stems from most artists believing that they
are "endorsed" by a manufacturer rather than "endorsing"
a product in exchange for sponsorship. Therefore, they feel entitled to
the support since the prevailing notion is that they have already earned
it. I actually find it more flattering to be "endorsing" than
"being endorsed"-it demonstrates that my opinion is valued.
To reinforce the structure of the relationship, perhaps endorsement deals
should dictate the language to be used publicly-Artist's Name "professionally
endorses" Manufacturer's Name. More often than not, the roles are
reversed on artist Web sites and press kits. If an artist truly understands
that his endorsement is a public declaration of his own feelings and commitment
toward a product, he might think twice about undermining his credibility.
With a proper understanding, deals could be engineered to
directly benefit dealers on a local or regional level. Why not target
in-house music teachers? They are the single biggest influence on students'
purchasing decisions. AC/DC's Angus Young made me want to play guitar,
but his SG took a back seat to my teacher's Stratocaster. I had the same
influence over my students. An application process establishing certain
criteria and an agreement to use certain products in lessons could result
in free or discounted gear to teachers from their favorite manufacturer(s)-as
long as those products are sold through the dealer where they teach. This
could even work well as an agreement between teachers and stores.
Endorsement deals can yield great benefits at every level.
The trick is to understand the market, the purpose, and the relationship.
Artists, manufacturers, dealers, consumers...everybody wins!
Ravi (www.HeyRavi.com) tours the country performing original
music, conducting product clinics, and lecturing on the music industry.
With professional endorsements and business savvy, the former guitarist
of three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
"Pleasantly
surprised!"
From
officials to manufacturers to the most independent of retailers, positive
vibes about NAMM's summer show in Austin prevailed. Enough gear-goggled
"Nammsters" traversed the floor to create a "worthwhile"
atmosphere. "We saw a number of local dealers we wouldn't ordinarily
have met" said Karl Kussmaul of Sony Pro Audio. Scott Wunschel of
Nady Systems added, "We came to Austin with a regional show mentality
and left with much more than a local result, developing new international
business that was never much of a summer show plan."
Retailers also seemed pleased, from nearby Sam Gibbs Music
in Wichita Falls Texas to distant Union Music in Worcester Massachusetts.
Moreover, everyone appeared to value the midyear gathering. "For
there not to be a summer show would be symptomatic of a faltering industry,"
affirmed Linda Smith of Greenwich Music in Greenwich Connecticut. "And
Austin is good."
Perhaps upbeat attitudes sprouted from bottomed-out expectations.
Most anticipated dismal attendance. The free beer ran out at opening night's
The Hang, indicating that even NAMM thought "small." Once the
booze ran out, the crowd wasn't far behind.
Off to the races
If NAMM outgrew Nashville, it's now small enough to go back, although
Nashville's maiden voyage was only a third the size of Austin's. Products
ranged from the novice's crutch to the professional's delight, but one
could cover the floor in a day. I discovered self-tuning guitar machine
heads for those who can't tune by ear (or use a tuner, apparently). Who
wants to hear guitar players who can't learn to tune? Isn't that part
of ear training? Conversely, Sony's PCM-D1 portable recorder-using high
quality condenser microphones and recording beyond CD quality-reminds
us that iPod's must not be the standard by which musicians create their
art. Nothing beats truly great sound; let's inspire the world to appreciate
it!
Local reps Cowser-Lee capitalized on the significant regional
presence. Dealers received "passports" on which they could earn
five stamps by visiting each of Cowser-Lee's manufacturers-Samick, Gator,
Sony, Casio, and Show Solutions. Completed passports were drawn for prizes.
Each manufacturer contributed something, and Cowser-Lee shelled out for
the grand prize-a cruise!
Bacon n' eggs
Friday's NAMM U "Breakfast Session" began with an emotional
guitar presentation to terminally ill child Trent Brumblow, whose dream
to attend NAMM was granted by Make-A-Wish Foundation. This was a necessary
reminder of how privileged we are to facilitate the artistic dreams of
others.
Joe Lamond's insightful "State of the Industry"
followed. I enjoyed manufacturer Mathias Von Heydekampf of Telex Communications
metaphoric explanation of how "the demo makes the sale." Like
cappuccino over coffee, one must raise the quality standards of consumers
through demos, letting them "taste" better products for which
they will be willing to stand in line and pay more. However, Sterling
Ball "spontaneously" intruding to share his opinions after the
floor had been turned over to retailers was a slap in the little guy's
face. The manufacturers had already been heard, and this "extension"
resulted in the retailers' eventually beginning with "I know we're
behind so I'll talk quickly." They are the face of our industry-the
liaisons between products and people. No one influences and encounters
the "state" of our industry more than retailers. They need to
be heard.
Saturday's "Town Hall Meeting" was more condescending toward
retailers. This was their opportunity to address critical issues and receive
explanations from "the other side." Yet, most answers focused
on faults and responsibilities of retailers rather than how the industry
could unite on these contentious subjects. "It really fell short
of saying what's on people's minds," remarked Smith. "Major
issues such as tiered pricing should have been addressed, as well as further
justification for manufacturers going into big box stores."
Bill Mendello, CEO of Fender, explained their choice to
do business with mass-merchants, but left many retailers reaching for
the knife twisting in their backs. "The decision is, what do we think
is best for us and the industry? Our research shows that 90% of the people
in the US have never stepped into a music store, and we believe that some
of these people who have not stepped into a music store may have the inclination
to want to play a musical instrument. We believe that mass-merchants attract
that other 90%." He also claimed, "The average Fender buyer
goes on to buy 14 guitars in his lifetime" (suggesting that independents
get 13 sales from the untapped 90%).
What's the likelihood that mass-market consumers will upgrade
at independent stores? They'll probably go from Costco to Guitar Center
or the "tax-less" Internet. The independents' foothold is with
entry-level customers, and therefore Fender is pulling the rug from under
those who pioneered their brand. Granted, they attempt to keep independents
involved with free strings or lesson coupons redeemable at their stores.
However, Smith wonders, "Has anyone done a survey to see how many
coupons have actually been redeemed?"
I'd like to see a structured debate between panels of retailers
and manufacturers, moderated and timed. Questions could be advanced so
that complete answers are delivered efficiently. Spontaneous rebuttals
would seal any holes. One could draw conclusions on MAP, the "Big
Box" reality, Internet policies, etc.
NAMM struggles with their members feeling poorly represented,
hence the rise of Aimm, faimm, and other retailer associations. Sure,
NAMM is "in bed" with manufacturers whose booths fund the show.
However, that revenue is used to grow the market and provide member services.
In some respects, NAMM is a funnel through which manufacturers contribute
to the survival of retailers. That's not a bad thing, and the more the
industry supports NAMM, the more NAMM can support the industry. Do independents
need their own association? "Nay" I say. Instead, empower and
influence the one you've got!
Ravi (www.HeyRavi.com) tours the country performing original
music, conducting product clinics, and lecturing on the music industry.
With professional endorsements and business savvy, the former guitarist
of three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
The
musical instruments industry is on a mission to make creating music part
of everyone's lifestyle. In an effort to grow the market, manufacturers
strategically place products in the backgrounds of films, TV shows, magazine
shoots, and commercials. Cross promotions with companies including Xerox
and Hewlett Packard can be seen on TV, at airports, and in other public
arenas. The presence of instruments in Average Joe's daily activities
should raise his awareness and hopefully inspire participation. In conjunction
with the campaign, decent (and not so decent) Asian manufactured instruments
are accessible to just about everyone. If the repeated suggestion to make
music intercepts enough Xbox bound teenagers, we're on the right track!
However, it's not all "peachy keen." Making music
part of everyone's lifestyle also extinguishes the aura surrounding one's
ability to create music. By promoting it as something that anyone can
do, the commitment to developing one's talent is less seducing, and those
requiring instant gratification (and who isn't these days, although some
prefer to call it "A.D.D.") are bound to be disenchanted. I
recently had a talented student shift his focus to martial arts. "There
is nothing special about being able to play guitar," he asserted.
"Every kid in school is playing an instrument." Plus, his parents
wanted him to develop a "unique" skill set for college applications.
Frankly, it sounds like just about anyone is making music
today. Exceptional factory presets and computer generated beats will turn
the talent-less into self-proclaimed "musicians" and "producers."
Add a creative publicist to the mix and their concoctions surf the airwaves,
further diminishing the publicly perceived standard of musicianship. Even
the Grammy Awards have become somewhat of an industry embarrassment.
Catering to the lowest common denominator doesn't always
work. Take the airline industry for example. Discount tickets and ruthless
competition following airline deregulation in 1978 has shrunk margins
resulting in poor service, unfairly treated employees, questionable safety,
and ultimately a lower quality of customer-yesterday's loyal jetsetters
wore jackets and ties while today's bottom feeding frequent flyers sport
tank tops and flip flops. Once upon a time, flying was special. Now it's
the equivalent of a Greyhound bus with wings. Consequently, frustrated
customers who can afford to fly turn to the roads instead.
We are creating a similar scenario by becoming a discount
business and "de-specializing" the process of becoming a musician.
The mass appeal approach has paved the way for Linens 'n Things, Target,
Best Buy, and Wal-Mart to provide musical instruments of questionable
quality without any guidance. The industry is targeting Average Joe who
prefers to shop the faceless Internet or big box retailer rather than
a potentially intimidating music store. Adding insult to injury, schools
are omitting music programs and teenagers hang out "cyberly"
instead of getting together and forming bands. Genuine enthusiasm for
making music is fading, and the repercussions show up on both sides of
the counter. Musical instruments may be an industry in decline.
A college professor specializing in international education
gratuitously responded to my two-part column about First Act and Wal-Mart.
He tracks pop culture to get a shorthand view of global perception, and
argued that customers prefer to buy instruments online and in mass-market
retailers because traditional music stores are intimidating, condescending,
and rarely provide the basic services that I claimed they do.
"Last year I shopped most of the music stores in my
state with $100 bill in my pocket with the intent to spend it all anywhere
on anything that a salesperson could convince me on," he said. "The
lack of customer service and unfriendly atmosphere ran me out of all of
them, without spending a penny. Music stores treat customers like they
are impositions, not customers. The lack of musical involvement in our
culture is related to music stores and their lame effort in servicing
customers, not Wal-Mart and not First Act!"
Indeed, some customers may actually be an imposition given
current consumer mentality of demanding more for less in exchange for
no loyalty! However, if that frustration is universally projected onto
everyone who walks in the door, retailers must take some responsibility
for digging their own graves. If consumers can no longer find inspiration
or convenience at the local music store, there may be no reason to come
in at all. Like the traveler who opts for the road instead of the skies,
he will still ultimately reach his destination.
I have certainly heard others complain about independent
retailers as well, and have had disappointing experiences of my own-sales
associates saying they would be right with me but then forgot, guitars
on racks with the grimiest of strings, etc. At times I have been very
disappointed with the lack of "set-up" of instruments that my
own students purchased at local stores. Granted, this is only a percentage
of customers and dealers, but a few bad apples
as the saying goes.
It will take unilateral pride and passion to justify the existence of
the independent retailer in today's consumer climate.
"Music as a lifestyle" offers benefits in terms
of broadening the market and exposing musical opportunities, but there
needs to be a balance. People pay more for exclusive experiences and are
willing to invest more for greater return. So, why hand out musicianship
with a generic attitude at a disposable price? Creating music must be
sold as something worthy of commitment and investment. As the world becomes
more global, society seems to become more artistically and culturally
oblivious. One must showcase the dream, provide the inspiration, and participate
in customers' artistic development-all at the local community level. Music
stores are galleries of artistic euphoria and personal opportunity. Let's
project that image into the world. Isn't that why you opened your doors
in the first place?
Ravi (www.HeyRavi.com) tours the country performing original
music, conducting product clinics, and lecturing on the music industry.
With professional endorsements and business savvy, the former guitarist
of three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
Objects of Desire
As
one who studies our industry, I must be aware of the latest trends and
technology in the music community. Furthermore, as a professional musician
I need to know about the hottest gear to help me execute my craft. I have
a wonderful opportunity to visit music stores across the country while
on my Instant Guitarification clinic tours. Consequently, I come across
lots of gear-some I own, some I know, and some I yearn to discover-but
often find that I am more knowledgeable than the salesmen about products
that interest me. Granted, most music stores are thinly staffed. One cannot
expect sales associates to stay on top of the rapidly developing technology
packed into every computerized gizmo that is "state of the art"
today but obsolete tomorrow. Conversely, if complete and accurate information
is not obtainable from a music store, why leave the house in the first
place? The Internet will provide the facts, so why not start-and possibly
finish-online? One word: Inspiration.
Customers want their eyes opened and time saved if they are going to
make the effort to visit a music store. People are busier than ever, and
targeted product recommendations that enhance their artistic productivity
are paramount. For those who don't have hours to read trades, look at
ads, surf endlessly on the Web, or buy something at Guitar Center and
explore it for 30 days (only to find that it doesn't fit their needs and
must be returned), the local music store should be the most efficient
source of musical inspiration and personalized product recommendations.
This is where "mom & pop" can leave the "shareholders"
choking in the dust. It's important to understand the products that one
sells, but it is potentially more important to understand your customer-not
just his immediate needs. Why? The 80/20 rule of marketing: 80% of your
business comes from 20% of your customers. Trying to be all things to
all people doesn't work unless one is peddling for peanuts in the Wal-mart
world. Guitar Center is an excellent product education and fulfillment
store. I am frequently impressed by the well-informed department oriented
employees, as long as I let them know exactly what I want. However, with
so many products and customers, getting to know the clientele beyond their
immediate needs is unrealistic. I rarely discover anything interesting
at Guitar Center (the noisy and impersonal environment isn't conducive),
but can often find the item that I request.
Until about fifteen years ago, I regularly visited my local music store,
perused the inventory, and explored the unknown. They knew me well (I
was a local college kid) and always drew my attention to items that they
thought would peak my interests-not with dollar signs in their eyes, but
simply pure pleasure in nurturing my musical growth. Sometimes they would
gratuitously call me about something that had just arrived. I bought at
least three guitars, a couple of processors, and an amp or two (plus many
more strings, straps, etc.) that I otherwise may never have discovered.
These tools were instrumental (pun intended) in my musical development.
Moreover, whenever I felt like I was in a tonal rut, that store was my
"one stop inspiration shop."
However, for the next ten years I avoided music stores entirely. Guitar
Center and Sam Ash were germinating and I found them unfriendly-once they
noticed me they would talk down to me. The independent stores diverged.
Some tried to compete by stocking something for everyone and thus lacked
product knowledge. Others only sold what the chains did not, resulting
in an insufficient selection. I started doing my own product research
through trades and catalogs, and Santa Claus put on his brown suit and
delivered merchandise to my doorstep all year round.
Most professionals know what they want and prefer to shop where they
know it is in stock. It's not surprising that so many mention Guitar Center
as their music store of choice in the "Toy Store" column, especially
since GC is very good at stroking celebrity egos. When I lived in New
Orleans, I was treated like a star every time I walked into Guitar Center
(my Martin Guitar ad was displayed throughout the store). There was no
shortage of employees taking care of me, and the manager usually came
out to say hello. However, humble settings are often more inviting. "Mom
& Pop" can make a star feel at home and "Average Joe"
feel like a star.
As computer chips shrink and owners manuals grow, manufacturers need
to do more to help dealers effectively represent their products. Inspire
dealers to represent the line, but ultimately let them choose what to
stock. They will be better representatives if they focus on products that
best serve their markets. Provide them with a product demonstration DVD-perhaps
five minutes of sales tips for employees and ten minutes of demonstration
for customers, per product. This should not be available direct to the
public; the idea is to keep customers in the store with the equipment.
Every dealer should invest two hundred bucks in a DVD/TV combo (or two)
for customer education. Discs could play in rotation and on demand.
Inspiring the needs of the core 20% of customers is imperative. One must
understand their dreams, desires, and goals; and then lead the way. Dealers
are not financial advisors. Too many sales associates go right to the
bottom of the food chain, probably in the hopes of securing an immediate
sale over the competition. Instead, ignite their dreams by showing the
most desirable solution to their needs, regardless of price. Then, back
track if necessary and offer less expensive alternatives-an intermediate
step toward obtaining their ultimate "object of desire."
Ravi (www.HeyRavi.com) tours the country performing original music,
conducting product clinics, and lecturing on the music industry. With
professional endorsements and business savvy, the former guitarist of
three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
Act 2(part
2 of 2)
Last
month I told you about the "First Act Challenge." The gentleman
at First Act's NAMM booth suggested that I buy a guitar at Wal-mart to
dispel any notion that First Act may be turning off potential musicians
(rather than giving birth to them) due to product quality. The company
firmly believes that they are creating musicians out of mass-market shoppers
whose interest in guitar is sparked upon seeing very affordable options
at Wal-mart, Target, Linens and Things, etc. This article is not intended
to be a product review. My goal is to determine if the $75 guitar-which
I purchased on the same receipt as paper towels, coffee filters, and other
household items
go figure-will ultimately inspire musical interest
and foster musical growth.
Once home with the retro looking bright red ME501, I was anxious to take
it for a spin. Upon first strum, all strings were slightly flat except
for the "G"-almost two whole tones sharp. Fortunately, the package
includes a "Quick Start Guide" offering several methods for
tuning. However, it presumes that the first-timer has a sense of pitch.
In reality, most beginners do not. Furthermore, I suspect those diving
into the world of music via Wal-mart may be more "out of tune"
than most. Even after several lessons it can be difficult to hear which
direction one must turn the peg, especially when it is significantly flat
or sharp like this "G" string. There is a good chance that the
string will break during the process. Then what? Will the "Quick
Start Guide" also tell you how to change the strings? As a matter
of fact it does.
I tuned up and began examining the neck. It was chunky but straight,
and relatively easy to play given the very low action. However, the guitar
continuously went out of tune. Since I am likely the first human to have
touched it since it landed on US shores, the strings needed to be stretched
(the directions did not tell me that). That solved the problem except
for the "B" string which continued to detune slightly-most likely
a slipping peg. Over the course of a week, the low action became too low.
A neck/action adjustment would fix the buzzing, and the "Quick Start
Guide" does explain how to regulate the action and truss rod (yes,
this guitar has a truss rod).
It would be irrelevant to compare this to a professional instrument given
the price point and target market. However, First Act claims that Paul
Westerberg of The Replacements bought one at Wal-mart while shopping for
shaving cream and loved it so much that he used it (the guitar, and possibly
the shaving cream as well) on tour. I honestly cannot figure out that
one. Nevertheless, I have my very first "six string"-a Cort
which cost my parents a little more than $75 twenty years ago-and this
seems like a more suitable comparison. The ME501 excelled in every way
(although I personally prefer the appearance of my Cort). The First Act
played better and while the pickups are nondescript, they are suitably
clean. I brought it to a student of mine who was unimpressed, but he volunteered
that it outplayed his first guitar as well.
Ultimately, if my Cort inspired me to play, this First Act could do the
same for others. However, because of the required maintenance, the presence
of a friend or relative with guitar experience would be required-no one
should spend $40 for a professional "set-up" in order to make
a $75 guitar playable. I believe that a novice in my shoes would rather
return the product to Wal-mart. Conversely, if the guitar had been purchased
in a music store, the dealer would have educated the customer on the instrument
as well as explain where it falls in the "food chain." Moreover,
the guitar would have been tuned before it left the store, and the dealer
would have been available to resolve any action and tuning problems. What
would Wal-mart do for me?
I boxed up the guitar and took it back to the store. "The guitar
is out of tune," I told the customer service person. Before I knew
it, she scanned the box and handed me a receipt showing a $75 (plus tax)
refund on my credit card. There was no conversation at all since this
was all that they could offer.
"Does this just go back on the shelf?" I asked. "No,"
she said. "It goes back to the factory so they can fix it, and then
they will ship it out again." What a great deal for UPS! So, what
would a typical Wal-mart guitar purchaser do next? Would he go to a music
store or buy a video game? I would bet that someone who never knew that
they wanted a guitar until they saw it at Wal-mart would trade-in this
experience for a less cumbersome video game.
If Wal-mart/First Act creates quitters out of those who otherwise would
not have tried, then "no harm no foul." However, I am concerned
about those who are interested and decided to test the waters with a cheap
option. Ultimately, only time will tell. First Act reports significant
sales, and if overall guitar sales are increasing proportionately, then
First Act is providing our entire industry a very valuable service. Now
they are breaking into the MI channel, opening brand showrooms, and promoting
a custom shop that is luring high profile endorsements. It is a smart
company with big plans, significant resources, and a strong commitment
to what they do. As for the competition, they ought to roll up their sleeves
and figure out a way to educate up-and-coming musicians on where to find
Act 2.
Ravi (www.HeyRavi.com) tours the country performing original music,
conducting product clinics, and lecturing on the music industry. With
professional endorsements and business savvy, the former guitarist of
three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
Act 1 (part
1 of 2)
One
of my winter NAMM missions was to learn about the company that many believe
compromises the guitar industry-First Act. The manufacturer dominates
the selling of guitars through mass-market chains. They are snagging entry
level customers from traditional music instrument retailers-or-perhaps
they have simply captured a market that Moms & Pops didn't want but
now wish they had. These mass-market capitalists saw an opportunity that
our own industry warriors overlooked. However, the product quality has
ignited debate about the ultimate impact of their existence.
To be or not to be?
Ever since First Act hit the scene, traditional dealers have complained.
"Customers are coming in with Wal-mart guitars that don't play and
are not even fixable. Then I'm the bad guy because I won't, or can't,
fix a guitar that they shouldn't have bought in the first place!"
If this is the experience for a first time guitar buyer, that potential
musician will probably remain "potential" while turning to video
games instead.
"The fundamental purpose of First Act is to promote and deliver
the opportunity to play music to everybody who wants it," states
the company's Web site quoting Bernard Chiu, Chairman of the Board. "This
is the dream I will fulfill, and the mantra that our people all live and
work by everyday."
Certainly some of our industry bigwigs (Fender, Epiphone, Samick, etc.)
deliver that opportunity "to everybody who wants it," and they
do it better than anyone else through knowledgeable music dealers. However,
promoting the opportunity in mass-market arenas may indeed inspire those
who never knew that they wanted it. Regardless, if the instrument ultimately
frustrates rather than encourages, a guitar was sold at the cost of a
lifetime of music (not to mention musical purchases).
NAMM booth #4268
I had never actually touched a First Act guitar but had seen them through
plastic windows in cardboard boxes stacked at Wal-mart. A young long-haired
fellow was working the company's booth. As I perused the guitars, he smiled
and asked me to let him know if I needed anything. Then, an older corporate-ish
gentleman passed by and offered his help. "I'm interested in learning
more about the line," I said. "I write for the Music & Sound
Retailer. I'm one of the people in this industry that has given you a
hard time." (I suppose I wouldn't make a good MI Spy!)
We discussed how the company was founded by mass-market veterans rather
than professional guitar players or builders, and that First Act now must
breach the professional market in order to give credibility to the brand
(which they are attempting to do with custom-shop models, high profile
endorsements, and a music store line). I conveyed that many of us in the
industry feel that potential musicians are better served buying "dream
making" tools in venues that provide a high level of product education
and service. He certainly didn't disagree, but maintained that he unequivocally
believes that First Act in Wal-mart is uncovering potential musicians
who otherwise would not be interested. I countered, "Okay, but isn't
it possible that the quality is turning people off rather than encouraging
them to pursue music?" Then he punched me-kidding! "The only
way to judge is for you to go to Wal-mart and buy one for yourself,"
he said. "If I send you one, there is no proof that what I send you
is representative of what the average customer purchases in the store."
Scratching the itch
Recently, a credit card company sent me a $10 gift card to Wal-mart as
a "thanks" for subscribing to some service to which I don't
remember subscribing. This reminded me of the "First Act Challenge,"
so my wife and I ventured off to our "local" Wal-mart (I am
one of the few who live over an hour away from a Wal-mart). We filled
our cart with paper towels, coffee filters, and a paperback novel. We
didn't see any guitars until we approached the cashier. There it was:
a bright red First Act electric guitar on the exiting side of the checkout
lanes. There was only one model available (ME501 "Custom Single Cutaway
Body"), offering no opportunity to compare features. However, this
$159.92 guitar was "rolled back" to only $98. It certainly seemed
like a great deal.
I asked customer service for some information and was told to inquire
in the "Vision Center." Why would eye glasses and guitars share
a department? I entered the Vision Center and stood patiently in line
with visually impaired fellow shoppers. I asked for some information and
the eyeglass specialist replied, "I don't know anything about them
other than that you need an amplifier and a cord." It reminded me
of a time when I asked a Wal-mart employee how to use a steam cleaner
and he replied "You plug it in." Anyone contemplating a guitar
purchase would have to gamble, but there was little to lose given the
30 day return policy.
I placed the guitar in the cart with the paper towels, coffee filters,
etc. It rang up as $75! "Why, since it was marked at $98?" I
asked the cashier. She didn't know (or particularly care). I was so pleased
to save the extra $23-and bewildered by purchasing a guitar and coffee
filters on the same receipt-that I completely forgot to use my gift card!
On the drive home I debated whether I wanted First Act to shine or flounder.
If they shine, the public's perceived value of guitars and consequently
the perceived value of playing guitar could decline. If they flounder,
than many a star may never be born. What could I expect for $75? What
should I expect? Stay tuned for the second act next month.
Ravi (www.HeyRavi.com) tours the country performing original music,
conducting product clinics, and lecturing on the music industry. With
professional endorsements and business savvy, the former guitarist of
three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
Tax-i
Now
that you have paid your annual debt to Uncle Sam, did you remember to
include the "sales and use" tax due for online purchases? Sure,
we think we save a few bucks clicking instead of schlepping, but unless
we settle up every April, Uncle Sam (or one of his fifty nephews and nieces)
may come knocking.
"Currently, consumers are legally required to pay a corresponding
use tax on online purchases when the seller does not collect the sales
tax," states www.e-fairness.org-a coalition advocating fairness for
businesses and consumers. "Many consumers do not understand their
use tax responsibility, and compliance with use tax requirements is very
low. Therefore, millions of Americans that shop on the Internet or through
catalogs are in violation of the law."
Perhaps this is the message to convey to brick and mortar browsers who
ultimately buy online. A little education can go a long way. I know people
who regularly copied CDs until I asked, "Would you go to Tower Records
and walk out with one under your jacket?" Granted, people feel guiltier
about taking money from "starving artists" than the government.
Yet, it won't hurt to remind customers who bargain with "sales tax"
that unless they report online purchases and pay the owed tax (plus the
accountant who puts it all together), they are breaking the law.
Opposing i-pinions
Internet sales tax is a big buzz in our industry, as is criticism of our
"instant gratification" society. While online retailers have
a "final price" advantage over most brick and mortar, traditional
stores maintain the "instant gratification" advantage-as long
as they are conveniently located with ample parking, have product in stock,
and demonstrate stellar customer service.
"I don't think sales tax really makes the difference for most customers"
says Jay Heath of Middletown Music, Middletown, Delaware. "I find
over the top customer service to be the ultimate closer. Winning customers
from the Internet and catalogs has been our objective from day one."
Don Edwards of Bronstein Music, San Francisco CA, has a different point
of view. "The lack of sales tax online has a tremendous impact. I
no longer sell synthesizers because customers can and do buy them online
for 8.5% less." Indeed, a synthesizer has less individuality than
a guitar. Edwards continues, "A customer came in last Saturday to
buy a flight case for his new synthesizer. I asked him where he bought
the synth and he sheepishly admitted 'online.' When I asked him why he
chose not to buy it from a local dealer, he answered 'sales tax.'"
Why such different opinions? For starters, Delaware is one of five states
without sales tax (Alaska, Montana, New Hampshire, and Oregon are the
others). Therefore, one could also argue that retailers in those states
share the unfair advantage. They may lose fewer customers to the Internet
and even draw customers from across the state line (who may ultimately
pay more in gas than they save on tax). However, Heath balances that equation.
"The fact is commercial real estate, rents, and advertising are all
higher here than in neighboring states. This is all driven by the 'tax-free'
advantage."
Catalogs have offered tax free shopping for a long time, but the Internet
has surely increased "out of state" purchases. Moreover, "free
shipping" is the ultimate mouse trap. How do online retailers offer
such incentive? They have to if they want to compete in cyber-land-customers
expect it. "We leverage the economics of the Internet to offer you
enormous savings over anything we have seen," states Music123.com,
a prominent music retailer on the Internet. That must mean less overhead,
volume purchasing discounts, and volume shipping discounts. Furthermore,
certain manufacturers have been known to drop ship orders, and perhaps
some still do.
Googling over guitars
Shopping often begins on the Internet, even if one is simply searching
for a local dealer. Google "Schecter" and the first thing one
sees is: "Schecter at Music123.com. 1000s of guitars in stock, free
shipping, 45 day returns." Click and "the Internet's most comprehensive
music super store" offers a tax free price on a guitar with which
the consumer will venture into his local store, armed and ready to negotiate.
This is a double whammy because the online retailer arms the customer
but probably loses the sale, and "mom and pop" services the
customer making virtually no profit-unless, of course, the manufacturer
enforces a responsible MAP yielding reasonable margins.
"Customers want to see and touch it first," remarks Edwards.
"Then they tell us how they value personal service and want to buy
from us
as long as we match the online price." Ultimately, Bronstein
has to sell at 8.5% below MAP to close that deal, service included! Otherwise,
they are just a showroom for the "virtual" competition.
Dick Cheney
Manufacturers shaking hands with retailers cross competing over different
mediums could backfire, and drop shipping is shooting one's friend in
the face. If unfair Internet competition persuades brick and mortar stores
to stop carrying certain products, online retailers may struggle to sell
those items that consumers can no longer experience locally. "I try
to buy smart and only carry products that offer an even playing field
to smaller independent dealers such as myself," says Heath. "If
I can't compete with the catalogs, boxes, and the Internet, I'll simply
get behind an alternate product."
Until there is sales tax reform, a change in product distribution, or
a different consumer mentality (don't hold your breath), traditional retailers
must focus on services that will always be needed, not simply "valued."
"There are two things one can't get online," says Edwards, "music
lessons and repairs. Accessories is definitely one of the keys, but you
need a happenin' school to sell a lot of them."
Ravi (www.HeyRavi.com) tours the country performing original music,
conducting product clinics, and lecturing on the music industry. With
professional endorsements and business savvy, the former guitarist of
three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
Nammification
Like
many of us, I survived a very full schedule in Anaheim! Between "All
Star Guitar Night," NAMM University, and the booths of companies
that I endorse as a performer, I was fortunate to speak with many of you
and gain a broader perspective of the trade show and the impact that it
has on our industry. Thanks for stopping me in the booths, aisles, lobbies
and elevators. I greatly appreciate your comments, insight, and encouragement.
The NAMM Show is always filled with great prospects. Opportunities present
themselves frequently if one is prepared to recognize and capitalize on
them. As Evan Skopp, VP of Sales and Marketing for Seymour Duncan/Baseline
Pickups, eloquently surmised, "NAMM is more than just meeting with
USA dealers: it's about forging and strengthening business relationships
with existing dealers, international distributors, OEM customers, end
users, vendors, the press, artists, and, perhaps most importantly, potential
customers. Plus, it gives us the opportunity to let all those relationships
benefit from the face-to-face contact. There's something infinitely more
'human' about a handshake and a smile that you just can't duplicate with
a mere pdf attached to an e-mail."
NAMM U
NAMM University is worth the trip alone. I have presented seminars at
the past three shows and attendance has consistently been impressive.
Sharing information is the best way to strengthen our industry. Even though
there is so much "Nammification" competing for one's time, educating
ourselves about issues and potential solutions empowers us to run our
businesses and impact our industry and communities more effectively.
"NAMM really stepped up to the plate for the record breaking free
breakfast 'Big Issues' event," agrees Johnny Thompson, speaking on
behalf of the California independent retailers association, Music For
Everyone. "This is going to pay off big time in the education about
these issues and the beginning of NAMM's proactive stance in dealing with
the tough issues of our time. NAMM stood up for the entire industry in
their effort to help create more trade between suppliers, sellers and
consumers."
Patrick Cummings, president of iGuitar Inc., is also a big proponent
of NAMM University but feels that more can be done to put our industry
on the cutting edge. "One area that is lacking is training dealers
to modernize their guitar department with computers and guitar related
software," he says. "Tim Ryan, CEO of M-Audio, said 'the computer
is becoming the center of the universe for musicians,' and I agree. There
is tremendous 'ad-on' revenue for retailers that sell computer based products
to guitarists; it cannot be ignored." Cummings would also like to
see free wireless access to all exhibitors at the shows. Perhaps that
would help bring web presence and interactive technologies to the forefront.
After hours
All Star Guitar Night, Acoustic Café, and PRS and Sennheiser parties
boasted phenomenal talent and superb entertainment. "We see and hear
so many great musicians reminding us that NAMM Music Convention is about
the music as well as the business," says Thompson. Skopp concurs,
"The evening parties give us a chance to meet with our business partners
in a relaxed setting, plus we get a chance to listen to great music-which
is the tie that binds all of us in this industry, at least on some level."
However, evening events can be a bit daunting after long hours on the
trade floor. Too many attendees "crash" in their hotel rooms
trying to escape the volume barrage in public forums. "Maybe we're
getting old, but after eight hours of extreme intensity on the show floor,
the last think we need is more of the same blaring loudness in every hotel
lobby," remarks Dick Boak of CF Martin Guitars. Perhaps if NAMM gave
everyone a sonic "time out" between day and evening activities,
the talent-filled concerts would be appreciated by more "Nammsters."
In the books
Many manufacturers reported increased NAMM traffic and sales over previous
years. "We saw the main difference in international attendance,"
said Stefanie Reichert, VP Marketing for Sennheiser USA. "Many more
global Sennheiser customers came to this year's show. NAMM has become
a truly international event."
Others feel that it would be more cost effective to bring dealers to
company headquarters for a focused product education, eliminating the
competition from neighboring booths. However, like a musician trying to
grow a following in a crowded bar with big screen TVs and "sex-starved"
singles looking to feed their cravings, the setting becomes a barometer
of one's ability to steal attention from the competition.
"Much of the displays are the same as last year, but there are always
products and suppliers that I am not familiar with," says Thompson.
"I always find important new additions to our inventory." From
the manufacturer's side, Boak adds, "Exhibiting at NAMM is critical
to our business. It is our vehicle to introduce our new ideas to the musical
community and it is where we write the majority of our advance orders
for the year. To convey this amount of energy, product and information
individually to our dealers would be inefficient and ineffective."
Winter 2006 is in the books. Perhaps the current problem with the summer
shows is our own skepticism about moving to new cities. While one cannot
ignore a struggling economy and increased competition for consumer attention,
embracing Austin could push fourth quarter figures above 2005's. NAMM
is not effective without industry support. From the smallest dealer to
the largest manufacturer, just showing up helps unite our industry. Together,
we can prevent musically detached businesses from taking our beloved bull
by the horns. Moreover, we can transform our industry from "discount"
to "added value." See you in Austin, which according to the
Texans is "the live music capital of the world!"
Ravi (www.HeyRavi.com) tours the country performing original music,
conducting product clinics, and lecturing on the music industry. With
professional endorsements and business savvy, the former guitarist of
three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
Lasting Impressions
The
desire to play an instrument is often inspired by artists with whom one
identifies. AC/DC was my initial source of inspiration and guitarist Angus
Young represented the energy and showmanship that lured me toward the
instrument (evident in my Junior High School videos where I traversed
the stage like a chicken on steroids). However, I favored the Fender Stratocaster-the
"other" guitar that big rock stars played-over Young's Gibson.
While Fenders and Gibsons were out of my parents' price range, a "Strat"
style Cort (around $100) fit the bill. I was thrilled with it because
it paved the way to a "professional" brand. As my tastes broadened
to Clapton, Cray, and Stevie Ray, I wanted a real "Strat" more
than ever. However, my teacher was selling his 1970's Les Paul Custom
(it was too heavy for him following a car accident) so I bought it for
$600. I finally played what the pros played, and an American Standard
Stratocaster came next. Over the next decade, I only bought Fenders and
Gibsons. Ironically, I don't own either brand today.
First Impression
While shopping at Best Buy a few days ago, I heard guitar strums competing
with blaring TVs from the "Home Theater" department. My ears
lead me to a disgraceful display of two Fender "Starcasters"
and two Gibson/Baldwin "Signature" models-an SG and a Les Paul.
To the left, the boxed inventory laid flat on top of one another, each
carton with a large plastic window revealing the enclosed guitar. It was
like buying a toy truck at Kmart. GHS strings, Shure and Audio Technica
microphones, and a tuner hung behind. The display guitars sat gingerly
on cheap stands, and both Fenders were missing high "E" strings.
The plastic wrap over the pick guards were filthy and one was severely
peeling off. Each product (they were not presented in a manner worthy
of the term "instrument") sold for around $175. I felt genuinely
sad to see these legendary brands-my childhood dreams-reduced to a "Tonka
Toy." Furthermore, parents can toss them into shopping carts while
running errands with junior in tow. "I'll get you a 'Fender' if you
stop hitting your sister!"
Inquiring Minds
While specialty music stores also sell inexpensive Squires and Epiphones,
most possess the knowledge and integrity to educate customers about the
product. I flagged down a Best Buy salesman and asked him to explain the
differences between Fenders and Gibsons. He was stumped. I pursued the
investigation and commented that the Fenders had a narrow "thingy
near the metal" (single coil in the bridge position) and the Gibsons
had wider "thingys" (humbuckers). He agreed. So, I also mentioned
that the Fenders had five strings while the Gibsons had six. He counted
them and confirmed that this was indeed a difference, but added that he
was not sure that it was supposed to be that way. I asked for a more knowledgeable
salesman so he suggested that I inquire in "Music" (CDs). After
ten minutes of searching there for knowledge, I gave up.
The cashier asked me if I found everything I needed. "I couldn't
get any help with electric guitars," I responded. So she phoned the
folks in "Home Theater."
"Is there someone who can help a customer with 'gwitars?'"
she asked. The person on the other end could not understand what she was
talking about. "Gwitars, I said. Gwitars!" She was then transferred
to the "Music" department. Of course, I already knew that was
futile. "We might make a sale if someone can help this customer!"
she yelled into the phone. They transferred her to "Media" where
someone was finally willing to help. She handed me the phone so I asked
my question. He responded, "I was the guy helping you earlier. If
no one in the 'Music' department could help, then we just can't help you."
Changing Lanes
Unfortunately, I find this experience typical of "big box" customer
service. However, what disappoints me is not the retailer (I don't expect
more), but the representation of our industry's most famous brands-the
ones we see most in movies and on TV. If I were "Average Joe"
trying to buy junior a guitar at Best Buy, I would probably end up with
a video game instead. Manufacturers understandably need to explore new
retail channels as Internet and mass market become a larger part of the
retail landscape. However, to increase the public's interest in playing
music, there must be pride and integrity in how "playing music"
is presented. It is not the same as "playing the radio" or "playing
a video game" and should not be sold in the same context. Musicians
"create" music, requiring talent, practice, and commitment.
This should be marketed as something valuable and worthy of investment.
Why not empower independent stores-who care about the products-to reach
broader markets through co-op advertising, dealer events/clinics, MAPS
with profitable margins, in-store product training, and countless other
vehicles?
Earning and owning quality brand name instruments instills pride, value,
and commitment to my musical studies, recordings, and performances. Fender
and Gibson are benchmarks for guitarists and manufacturers. Those "standards"
should be cherished and maintained. How can we expect the public to value
instruments when our own industry appears to neglect them? If we present
musicianship as something worth "earning" (and I don't mean
by not physically beating one's sibling), "investing in," and
"cultivating," perhaps arts education would once again be valued
by schools and society overall. That would help create long-term multiple
musical instrument investors rather than one-time disposable product purchasers.
Anything "long-term" seems counterintuitive to today's corporate
"quarterly report" mentality, and increasing mergers and acquisitions
widen the distance between CEOs and communities. However, a self-sustaining
industry must cultivate the cultural interests that feed it.
Ravi (www.HeyRavi.com) tours the country performing original music,
conducting product clinics, and lecturing on the music industry. With
professional endorsements and business savvy, the former guitarist of
three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
Teaching Values
Music
lessons need to be valued more by everyone. I often speak about the importance
of reprogramming consumers' perception of instrument value, but perhaps
this is even more critical. If learning to play music required greater
financial investment and the industry pushed for it to be specialized
rather than part of everyone's lifestyle, the perceived value of music
in and of itself would likely rise. Those stealing songs (illegally downloading
and burning CDs) and photocopying sheet music might give a second thought
to copyright. Public schools slashing arts programs from budgets-sending
the message that music is not important-might encounter added pressure
to reconsider their position. Who knows, maybe we would hear better music
on the radio!
Independent music retailers must seize the opportunity and accept the
responsibility to provide music education by offering lessons and charging
appropriately. It upsets me that many retailers practically "give"
lessons away. Music instruction should cost at least as much as athletic
trainers and academic tutors. Playing sports may build team spirit, discipline,
and social skills-as does playing in a band-but learning music also develops
critical thinking (Jessica Simpson notwithstanding). This additional ability
procures achievement in every other subject, yet is not cultivated in
today's "force it in rather than pull it out" teaching methods
in schools.
If neighboring stores cooperatively increased the cost of music lessons,
they would create better musical experiences and more successful human
beings while also raising their own bottom line. Relative to a higher
cost of music education, it would be easier to sell more expensive instruments
yielding wider margins. Slacking teachers who talk more than teach could
be replaced by more dedicated counterparts, and students who forget their
books week after week would disappear. Parents would require junior to
make a stronger commitment rather than simply occupying him with cheap
music lessons while mom gets a manicure. Many years ago, I commented to
a colleague that I felt like an expensive babysitter. He retorted, "We're
not that expensive, even for babysitters!" Sure enough, our store
raised its prices and the babysitting decreased. Remarkably, the number
of overall students continued to rise.
However, quality music education must not be cost prohibitive to those
who could benefit the most. If one raises the price, one should also establish
a balance, such as offering "scholarships" to those on food
stamps. This could be financed by "gifts" from wealthier students
or local philanthropists, or by automatically donating a dollar from each
lesson to the fund. I'm no commie but Karl Marx had a few good ideas!
At least musically there would be "no child left behind."
Most of my teaching today is done through university lectures and guitar
clinics (www.InstantGuitarification.com) at independent retailers around
the country. However, I taught in a small but growing store for about
ten years-the same place where I began my quest eight years earlier to
become AC/DC's Angus Young (school boy uniform not included). During those
eighteen years, I learned a great deal about the importance of music stores
to a community, and in particular, the impact of good teachers. Even today,
I learn much about local lesson programs while on the road. Disappointingly,
the need for higher teaching standards is overwhelming.
Performance schedules of private teachers understandably take precedence
over their commitment to students-I don't know of many musicians who dreamed
of teaching at "Ma and Pa's Music." However, this negatively
affects the student (who is also a "customer") and the store.
Inconsistent lessons result in fragmented knowledge, and frequent absences
result in frustrated customers. One advantage of teaching amongst several
instructors is the ability to provide substitutes. While some students
may have qualms, it is better for them than skipping a week-as long as
lessons are well structured by the regular teacher and carried out properly
by the substitute. Furthermore, it greatly facilitates scheduling and
accounting by eliminating make-ups and refunds.
Teachers and sales associates also need to work together. The business
relationship between lessons and retail is a fundamental part of the independent
music retailer business model. Some stores encourage (perhaps require)
teachers to use the inventory during lessons, but many instructors oppose
being "used" this way and feel it is not their job to sell instruments.
However, it seems sensible to me. If instructors want to have a place
to teach, they need to be team players. Moreover, many teachers' instruments
exceed the quality and price appropriate for most students, and repeated
exposure inspires kids to spend hard-earned mowing, shoveling, and paper
route money on professional level gear. They would likely overspend on
instruments that do not appropriately fit their developing needs and tastes.
By playing instruments during lessons that are most appropriate for students
(I often switched guitars based on the individual student), one also educates
them on the tools of the trade that best serve their interests.
Teachers should also encourage students to buy music books rather than
writing out songs for them, and require that they purchase blank chord
charts and manuscript instead of wasting time drawing lines and boxes
on blank pages. Retailers must inform teachers of the tools available,
and invite them to influence inventory in terms of stocking what their
students need. Lessons and retail equal more as a whole than the sum of
their parts.
Our industry must not allow itself to reduce the public's perceived value
of music education as we repeatedly have with instruments. Lessons are
the saving grace for many stores in this Internet bargain hunting economy.
The logistics of studying music locally still works in the independent
retailers' favor. Therefore, before we see "how low one can go,"
let's offer better teaching programs at a price that instills value and
commands respect.
Ravi (www.HeyRavi.com) tours the country performing original music,
conducting product clinics, and lecturing on the music industry. With
professional endorsements and business savvy, the former guitarist of
three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
What's My Line?
I
am expecting to be overwhelmed once again by the number of guitar lines
on display next month at NAMM. With so many mergers and acquisitions plus
increased manufacturing overseas, it is difficult to distinguish one from
another. While many string brands have come from only a handful of factories
for years, this "identity crisis" now extends to the instrument.
Nevertheless, a keen eye (and hopefully an ear or two) can uncover gems
that equal more as a whole than the sum of their parts.
Line up
Independent dealers must focus on brands not sold in big boxes, chains,
or catalogs. Trying to be all things to all people is ultimately a losing
battle. A new student of mine-16 years old working after school to pay
his musical instrument debts-recently dropped two grand on an Ibanez JEM
from our catalog "friend." He had never played or seen it first
hand, despite having a dealer around the corner. I hope he understood
the value of local retailers once I spent half his lesson adjusting the
neck and intonation just to get it to play. Now he is focused on a Carvin
amp (only sold direct) with which he has no personal experience. Why?
Steve Vai! He does not want to run the risk of being talked out of sounding
"Flex-Able," although I frequently remind him that practice
is a "Vai-able" option.
The biggest risk is taking no risk at all. I would like to see independent
dealers pioneering underdog brands that boast quality components and craftsmanship.
Asian manufacturing surpasses expectations, offering more "bang for
the buck" than ever before. I understand the pressure to draw consumers
with major lines, but large "buy ins" and miniscule margins
result in dealers' resources being too heavily invested for the good of
the consumer. Showrooms are monopolized and warehouse conditions may be
less than ideal.
In the recording industry, music lovers fall victim to larger stores
with massive displays that actually offer fewer titles-no wonder downloading
is so popular. One is surrounded by Britney showing off her "money
maker" (granted, things could be worse)! Despite co-op advertising
dollars and "free goods" assisting the retailer with unloading
units (which ultimately comes out of the artist's pocket), big record
corporations are slowly losing market share to independent labels refusing
to be gobbled up. I think we will also see this happen in music instrument
retail, and smart manufacturers will successfully navigate that course.
Independent dealers will probably always outnumber chains, and by protecting
them with exclusive lines, profitable MAPs, and good customer service
(the dealer is the customer), one will achieve gradual but long term solid
product branding. Additionally, stores must brand themselves on product
value and customer service (the consumer is the customer) regardless of
the lines they carry.
Ad-ing Lines
Product advertising at the dealer level is smart business. However, anyone
promoting big name brands mostly serves chain retailers and catalogs.
They can hang the same guitar for cheaper (albeit 20 feet in the air which
requires a chiropractor for both the customer and guitar once brought
back down to earth) and tack on enticing return policies. Since most consumers
see no harm in burning "Mom & Pop" for information and then
dropping their dollars in shareholders' pockets, why be a tool for the
competition?
Advertising dollars smartly spent on underdog lines is a better investment.
One advantage of having many brands to choose from is that two local dealers
can tap into the same market sector with different but competitive products.
If I had my own little shop, I would invite local and regional competitors
over one evening-perhaps baiting them with wine and cheese-to discuss
how to improve business and better serve our mutual market. Together,
we could buy local television and radio spots promoting the underdog lines
that we carry collectively and the benefits of personal attention. This
would make us a stronger force against big boxes, chains, catalogs, and
the Internet. We would play on the same team competing for customers and
cross referring as necessary, but ultimately seizing every opportunity
to draw attention to our own inventories. Consumers might actually start
to buy based on value rather than brand name and price
as long as
we teach the customer (who is not "always right" by the way)
what value really is!
Line Dancing
One can still acquire expensive "buy in" lines through trade-ins
or on consignment to sell as used or "previously owned" (like
a Mercedes Benz with 100,000 miles on it). Customers' brand name inquiries
could then be answered with one of a kind brand name answers. Once they
are in your store, your entire inventory is fair game. However, for consumers
determined to buy labels as cheaply as possible with 30 days to wind back
the clock, I would keep printed directions to the closest chain retailer
under my counter. On the back, I would suggest questions to ask when buying
an instrument. What happens to gear returned within 30 days? How long
has the instrument been hanging 20 feet in the air where the heat rises?
Who actually manufactures this product sold under that name? Are instruments
checked and set up upon store delivery and rechecked and set up again
before the customer takes them home? What is involved in getting warranty
service? Etc.
These are tough times for the little guy. However, Wal-mart's consumer
satisfaction index remains low despite its remarkable revenue. It is only
a question of time before consumers begin to rediscover true value, and
our job is to demonstrate it. Focusing your business and defining your
customer will provide those shoppers with an attractive alternative. So,
ask yourself while perusing NAMM next month, "What's my line?"
Ravi (www.HeyRavi.com) tours the country performing original music,
conducting product clinics, and lecturing on the music industry. With
professional endorsements and business savvy, the former guitarist of
three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
Home for the
Holidays
Many
students purchase instruments from retailers other than where they take
their lessons. Even with competitive or lower "in house" prices,
the illusion that bigger is better and cheaper prevails. Since big boxes
get volume discounts and online retailers and catalogs usually offer free
shipping and no sales tax, it is easy to understand the basis for such
preconceptions. The value of service frequently goes unrecognized by time-taxed
customers who simply want the largest selection and lowest prices under
one roof. Furthermore, 30 day "no questions asked" return policies
create the illusion of customer service, even though this means that "new"
instruments may come with a month's worth of someone else's use (or abuse)-no
questions asked!
Consumers may assume that regardless of where they purchase their instruments,
free service is available where they take lessons. After all, that is
the long standing personal and financial relationship. Perhaps a sense
of entitlement overshadows feelings of guilt; perhaps there is no guilt
at all. For everyone's benefit, it is important to bring these drifters
home for the holidays, especially while naughty kids are being nice and
Santa Clauses check shopping lists twice.
Selling Service
With aggressive marketing campaigns strategically placing products in
television shows and films, combined with vast amounts of information
available online, yesterday's service businesses have become today's fulfillment
centers. However, like responsible physicians treating self-diagnosed
patients in search of specific prescriptions, conscientious retailers
must stamp out preconceptions, properly diagnose customers' needs, and
prescribe appropriate remedies.
Theoretically, anyone can compete on price, but selection is more difficult.
However, a carefully chosen inventory saves everyone time and money. I
much prefer to shop at stores that sell products for me as opposed to
"something for everyone." Liberal return policies offer perceived
value, but eliminating the need or desire to return items altogether is
priceless. That is customer service that cannot be bought online!
"Customers value our service when we have the opportunity to demonstrate
it," says Melissa Loggins, owner of Music Authority in Cumming GA.
"When someone buys their first guitar from us, they almost always
buy their second from us as well."
Music Authority offers the ultimate in service, especially around the
holidays. "I give my home and cell phone numbers to customers planning
a Christmas surprise," says Loggins. "If they need help assembling
a drum set under the tree, they can call me at 1:00AM on Christmas Eve."
Clinics are also a great way to ring in the holiday season
ca-ching!
Entertaining and informative "in store" experiences assemble
captive audiences open to recognizing the value of products and services.
During my clinics, I stress that the product is only half of the "good
deal." The other half is the service that only comes from retailers
who truly care about their customers.
Capturing the Upgrade
It is essential to be aware of customers' interests and inclinations,
and retailers should talk privately with parents around the holidays,
perhaps during their child's lesson, to get a sense of any gift-giving
intentions. "Sometimes we don't even know that they are looking,
and then students show up for lessons with new instruments bought elsewhere,"
says Loggins. "However, if we know that a student is looking to upgrade,
we can intercept and generally get the sale."
Incentives to buy "in house" must be enticing and well-targeted
to the whole family. Parents ultimately control the bank, but even pre-teens
are becoming shrewd brokers. Kids are increasingly aware of their ability
to persuade mom and dad by demonstrating good value, although they often
tend to disregard consumer ethics. "I am amazed to overhear twelve
year olds advising their parents to save a few dollars by purchasing online
or through a catalog," says Loggins. "Yet, those same kids come
in here and bang on our drums all day."
Even if price tags rise slightly above the competition, student discounts
can keep customers regular (you know what I mean
no prunes needed).
For example, Music Authority distributes holiday savings cards providing
exclusive discounts to students. Various deals are available for the entire
season, both before and after Christmas, enabling gift-givers as well
as receivers to benefit from the savings. They also send out "single
purchase" savings cards to students during their birthday months.
Expanding the Sales Force
Teacher recommendations are possibly the single biggest influence in student
instrument purchases. Store owners and managers must coordinate with teachers
on inventory. While retailers may not be able to carry the exact brands
preferred by instructors, similar models or configurations are generally
available within multiple lines, such as a Strat style body with a humbucker
in the bridge.
Music Authority places instruments in every studio and requires their
instructors to teach using products that they sell. "They understand
that if we don't survive, they don't have a place to teach," Loggins
emphasizes. "Teachers can choose any products, as long as we have
a reasonable inventory, and keep them in their studios for six months.
Then we will sell those items at a discount and once again outfit their
studios. That way our teachers' preferences are always incorporated."
Manufacturers could also strike endorsement deals directly with teachers.
By awarding below dealer cost discounts to qualifying instructors (perhaps
those with more than two years of dedicated teaching at an authorized
dealer) in exchange for exclusive use during lessons, manufacturers would
increase their exposure over the competition and dealers would keep more
sales in house. Furthermore, teachers would likely use and promote these
products outside the teaching studio as well.
Few wake up on Christmas morning contemplating price points, but everyone
sleeps better knowing that they got a good deal. Christmas is the season
for giving, and providing your customers with a flawless purchasing experience
is possibly the greatest gift of all.
Ravi (www.HeyRavi.com) tours the country performing original music,
conducting product clinics, and lecturing on the music industry. With
professional endorsements and business savvy, the former guitarist of
three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
After School
Employees
These
days, I am pleasantly surprised whenever I walk into a store or restaurant
and the salesperson or waiter/waitress demonstrates a degree of knowledge
and competence. It is unfortunate that this seems to be the exception
rather than the norm. One shouldn't have to pay for service; it ought
to be part of the purchasing experience. Yet, with the popularity of big
box stores, self-service check outs, and airport e-ticket kiosks, service
now comes at a premium. Most airlines impose a surcharge when making reservations
with human beings, as do computer and software companies for telephone
support, and ATMs and the post office's online "Click-N-Ship"
are preferred options for time-deprived consumers. I often find myself
avoiding human contact (or incompetence) whenever possible, to the point
where irritating automated telephone menus are favorable over outsourced
human labor in India that often isn't grasping my needs-and I'm half Indian!
How ironic that human interaction has become both expensive and disposable
at the same time.
If the majority of retail experiences conditions customers
to be totally self reliant, service oriented industries like ours have
to exemplify the value of service. I have to hand it to Guitar
Center, as for the most part their sales force is well trained and informed.
Sure, there are many independents that also make the grade, but without
the employee benefits package to offer, one rarely gets the pick of the
litter.
Young at heart
"After School" employees are probably the most dreaded encounter
during a consumer's daily errands. The acne plagued teenager behind the
cash register generally lacks initiative and life experience, and cannot
relate to the average customer. How does a 17 year old recommend a movie
or CD to a 45 year old when their tastes are (hopefully) very different?
How does a teenager working in a sports store sympathize with middle aged
men trying to find exercise apparatus that won't pain their aching backs?
Kids working in drug stores, grocery stores, or similar establishments
are usually doing it for the paycheck or at the insistence of their parents
(as opposed to interest in the job, climbing the company ladder, or having
a passion for the product). They are primarily focused on meeting up with
their "first loves" after work. Our industry is fortunate in
this regard because there are plenty of teenagers looking for employment
whose first love is playing music. Ultimately, one must hire personnel
that possess similar interests to customers and an enthusiasm for the
products.
I watched "Finding Neverland" this week-the film about playwright
James Matthew Barrie who penned Peter Pan. He had this clever idea of
planting 25 children sporadically amongst the audience, which otherwise
consisted of older snobby theater-goers anticipating a more "serious"
play. Barrie foresaw that the younger energy would help each surrounding
adult find the child within himself, enabling everyone to relate to the
magic of Peter Pan.
It occurred to me that this type of "energy transfer" could
inspire musical instrument purchases. Who would relate to your customers
better than a passionate, hormonally charged teenager? After all, the
majority of music store patrons are kids, parents shopping for their kids,
or mid-life crises tapping into childhood dreams. If there is any venue
where high school kids could be ultimate salespeople, it is a music instrument
retailer.
Shirley Cate, owner of Beanstalk Music in McCalla Alabama, agrees. "They
exude an enthusiasm that cannot be artificially created. Their passion
for music overrides a lack in sales experience."
Cate hired eighteen year old Timothy Naugher about eight months ago as
her sole employee. "Tim's youth is an asset in the respect that he
relates very well with most of the guitarists who come in," says
Cate. "Even the older players enjoy his tips and helpful hints."
Certainly a degree of professionalism must be adopted in order to run
a store, but it is important not to stamp out youthful fire with bureaucratic
business practices. "I'm able to turn things over to him almost completely,
feeling assured that he will treat the customers with the same personal
attention that I try to provide," says Cate. "If he has questions,
he knows I'm only a phone call away."
For Naugher, it doesn't get any better. "It's definitely the best
job I could have," he says. "I could get something that paid
a little bit better, but then I probably wouldn't love my job. I have
flexible hours, get to form relationships with other musicians, and help
people with anything they don't know about guitars. Best of all, I get
paid to try out guitars!"
A nurturing experience
The music industry is better learned in the field than in the classroom.
Furthermore, retail experience teaches many valuable business and life
skills. Working in an independent dealer can pave the way for a thriving
career in the arts, and more importantly, help cultivate a successful
human being.
"Most of my friends work at a car wash," states Naugher. "But
I've learned about setting up guitars, received tips on playing, and debated
on which are the best guitars, amps, picks, strings, effects, etc. Plus,
no matter how much I practice, some senior citizen will come into Beanstalk
and play twenty-times better than I [Author's note: Funny, no matter how
much I practice, I know there is a nine year old out there who can play
circles around me
perspective is everything!]. I discovered how hard
it is for an independent company to actually make it in the market. The
main thing that I've learned though is that you have to have a strong
passion for music, a strong will not to give up, and know your product
in order to run an independent music business."
Ravi (www.HeyRavi.com) tours the country performing original music
and, as a consultant, lecturing on ethics and marketing in the music industry.
With professional endorsements and business savvy, the former guitarist
of three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
An Indy Industry
July
marked the first time that I had been to Indianapolis while being virtually
unaware of auto racing (with the exception of a photo op with Chris Martin
of CF Martin & Co and his Indy 500 special edition guitar). Summer
NAMM joined forces with the Midwest Music Summit and dominated the city
for a very musical weekend. The merging of these conferences represents
an important relationship that has always existed, but rarely converged
in a convention environment (certainly not to this degree). Musical instruments,
recording, and performing are part of the same industry, and it is important
that both sides meet on common ground to experience each other's products
and talents, all in an effort to create more music makers who ultimately
write, record, and perform music worthy of our ears.
While participants had mixed reports, my experience was great. I delivered
a couple of NAMM University lectures called "Making the Most of In-Store
Clinics" (soon to be seen in a Retailer "Business and Marketing"
column), spoke at the Midwest Music Summit on "Marketing and Promotion,"
reunited over dinner with the owners of Greenwich Music (Greenwich, CT)-the
independent retailer where I once taught guitar for over ten years, and
then capped off the weekend by performing at a regular NAMM highlight,
Muriel Anderson's "All Star Guitar Night." This event benefits
Music for Life Alliance, who unites and strengthens the efforts of individuals
and organizations actively supporting music education for children who
may not otherwise be able to experience the educational, psychological,
and social benefits of making music.
Indy or not Indy
It was good to see many of my manufacturing and retailing friends in Indianapolis.
However, I am disappointed that some staple companies like Yamaha, Korg,
and Marshall stayed home. I understand the need to cut costs (especially
when few corporations these days think beyond quarterly reports), but
it is also important to back the trade show, which also means supporting
dealers and our industry in general. Companies like Digitech and Sennheiser
scaled back considerably, but nevertheless made the trip and proudly displayed
their products.
There was no shortage of positive feedback as well. John Hawkins, vice
president of MI division of SMC (Samick) said that while the dealer attendance
was not as strong as it was in Nashville, SMC would support NAMM to make
Indy, Austin, or a return to Nashville show a success. Chris Martin, CEO
of CF Martin & Co., told me that he was pleasantly surprised to discover
how close Indianapolis was to so many other cities, enabling many of his
reps to drive to the show in less than five hours. Amp guru James Brown
of Kustom Amps (who in part sponsored "All Star Guitar Night,"
helping us all sound good on stage) felt that some of the major companies
pulling out gave underdogs a better chance to be noticed and write heartier
orders.
Taxing Mornings
Like in Anaheim, 8:30am was worth waking up for. NAMM University breakfast
sessions were well attended, educational, inspirational, and entertaining.
On Saturday, Alan Friedman and Allen Greenberg went head to head (who
knew that CPAs have this much fun?) exploring the realities of our industry.
This session triggered something in my mind that could prove to be of
great value in my own personal missions, but more importantly, in combating
some of our industry's heaviest obstacles. Greenberg made a brief comment
in regard to another point he was making: "You can deduct excess
inventory at cost if you donate it-check with your tax advisor for the
specific rules."
My wheels started churning, as it instantly inspired an equation that
could reverse price deflation and grow the market. Given the excess inventory
that stores acquire in order to satisfy certain manufacturer buy-in requirements,
costly warehousing is often necessary. Unfortunately, Ebay provides a
less expensive alternative by allowing retailers to quickly unload excess
inventory at cost (via "Buy It Now") to avoid paying for storage
altogether. I say "unfortunately" because while the solution
may help cash flow, it ultimately lowers the public's perceived value
of the product and what they are willing to pay for it. Ultimately, the
industry competes against itself at the smallest margins. If we were to
remove this self-destructive method of doing business from Ebay and instead
donate excess inventory to schools, homeless children shelters, or organizations
under the Music for Life Alliance (who can oversee the distribution and
application of donated instruments), then retailers could deduct the cost
of those instruments from their taxes while simultaneously encouraging
and enabling more people to learn music. This will make more music makers
and therefore increase the market for musical instruments. Everybody wins!
Just to be sure that my formula made sense, I bounced this off Friedman
and Greenberg after their session. They both agreed that it is a really
good idea, keeping in mind that deducting cost has a smaller cash value
than selling for cost. However, in the big picture, it may indeed be the
difference between staying in business and closing the doors forever.
I look forward to Anaheim and to "invading" Austin with all
the wonderful things that this industry has to offer. It's undeniable
that everyone's "bullish" predications expressed on NAMM panels
fires up the largest manufacturers and smallest independent retailers.
The trick is to carry that momentum home and sustain it in our own business
microcosms. Each month, I hope to help achieve that with this column.
I too am optimistic, but we can't sit back and wait for it to happen.
Each of us needs to grab our bull by the horns and steer it in the right
direction. We cannot rely on anyone else. It truly is an Indy Industry.
Ravi (www.HeyRavi.com) tours the country performing original music
and, as a consultant, lecturing on ethics and marketing in the music industry.
With professional endorsements and business savvy, the former guitarist
of three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
Happy Anniversary!
This
issue marks the one year anniversary of "Pure Profit." I hope
my rants, raves, and suggestions have been and continue to be of value
to you. Thank you for reading each month, and I'm especially grateful
to those of you who have written to me with comments and reactions.
Last night my wife and I watched a wonderful movie called "The Notebook."
It's one of those tear-jerkers that inspire self reflection and conversation,
especially between life partners. We found ourselves revaluing what we
have and reevaluating what we want-from ourselves, each other, and society.
Perhaps most importantly, we analyzed the way we spend our time and how
much of it we commit to the things that are truly most worthy.
Knowing that I had planned to embark this morning on a new year of musical
instrument retail analysis, I posed the question: "Do I really care
about the musical instrument retail industry?" The answer is "No"-at
least not from a professional point of view. I already possess the gear
that I need and acquire most of what I want through professional relationships
with manufacturers. No longer do I teach in music stores, and I only carry
a handful of private students who will get the product education that
they need as long as I am their teacher, regardless of whether they ultimately
purchase locally, online, or at Wal-Mart. In no way does my livelihood
depend on the success of your store or products.
So why do I dedicate this time to conceiving and writing articles for
a trade magazine? Because what I do deeply care about is the society in
which I live, both currently and in the future. Furthermore, most of my
passions are invested in and nourished by the arts. Ultimately, musical
instruments play a vital role in cultural advancement.
May I Help You?
Like most Americans, a significant amount of my time and money is spent
on retail transactions. In a country of consumers, the local shop is possibly
one's earliest exposure to the imagery and reality of a society. Children
shopping with their parents witness loved ones browsing desired items
and being helped ("May I help you?") by strangers. Smiles are
bountiful (hopefully) and everything leads up to a mutually pleasing transaction-a
swap of product for currency (although the example is compromised when
swiping a credit card). Finally, these once strangers now bonded by mutual
interests exchange pleasantries, good wishes, and invitations to meet
again. Ignorance truly is bliss; naivety of youth projects eternal happiness
and
then one grows up!
The sincerity in routine salesmanship as described above is instantly
elevated when one owns the business and genuinely loves the products for
sale. What is more gratifying than serving someone else's deep interests
and passions? This energy is ultimately experienced (consciously and unconsciously)
on both sides of the counter. The seller loves his job while the buyer
is seeing a world of dreams and opportunities unfold in front of him.
I'm not interested in dealing with a world full of "Plan B's."
I want to live in a world where everyone loves how they spend their time.
Money comes and goes, but time is gone forever.
Bill Robinson of SMC-the company that markets Greg Bennett Guitars exclusively
through independent retailers-commented at a sales representatives' dinner
that I recently attended, "We are so lucky to sell products that
we are passionate about. Just imagine, we could be in the 'screw' business
selling nuts and bolts!" (Granted, most artists think everyone in
the music industry is in the "screw business," but that's another
story.)
Spreading the Love
The independent music retailer is a great example of product, passion,
and cultural advancement existing under one roof. Just by opening your
doors, an important artistic outreach program is established locally.
Independent stores bring global products to consumers in a comfortable,
community-minded setting. Mass-marketers do not understand that (nor do
they care to) and neither do shareholders.
The first time I walked into a music store as a prospective buyer, beautiful
products combined with genuine passion and enthusiasm from the sales force
were abundant, and incomparable to anything that I had experienced in
other categories of retailers. Perhaps it was the culmination of those
elements that launched me on the path of musicianship. Nevertheless, I
began to avoid music stores several years later; especially once I moved
away from the non-biological "Mom-and-Pop" who paved my musical
path. I found the noise level of mega-stores to be irritating and the
overall decline of service and product expertise frustrating. Furthermore,
the larger inventories demonstrated a lack of product discretion and dealer
pride. Conversely, today one cannot rely on small independents having
a wide enough selection since many are limited to product lines with affordable
"buy ins." For the educated consumer, the Internet eliminates
many of these industry created obstacles. As Patrick Cummings, president
of Brian Moore Guitars, once told me, "We have to remove all the
obstacles between the product and the cash register."
We must never lose sight of why we embark on labors of love in the first
place. As a musical instrument manufacturer or retailer, is it to sell
products you love? Perhaps it is to nurture and service the artistically
inclined community. Whatever the reasons, revisit them frequently and
stay true to the course. There are certainly easier ways to make a buck.
One must not lose track of the dream, the mission, or the opportunity.
I'll get back to keeping the doors open in next month's issue. For now,
let us revel in the glory of making great music, cultivating the arts,
fulfilling childhood dreams, and above all, positively advancing culture
and society. Happy Anniversary!
Ravi (www.HeyRavi.com) tours the country performing original music
and, as a consultant, lecturing on ethics and marketing in the music industry.
With professional endorsements and business savvy, the former guitarist
of three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
Putting Your Business
on the MAP
Perhaps
the best way to stabilize music instrument retail is to eliminate MSRPs
and put everyone and everything on the MAP. "Minimum Advertised Price"
applied universally would prevent further margin shrinking (how low can
we go?) and create competition based on value instead of dollars. Customer
service would improve and the publicly perceived value of musical instruments
would rise-leading to greater dealer appreciation, customer loyalty, and
increased profits.
Coming Together
Unifying an industry of entrepreneurs is no easy task. I once tried to
get fellow local bands to agree to not play hometown clubs for less than
$500/night, and only with written contracts. Most agreed, and surely this
would have led to greener pastures (pun intended). However, the best band
in town-playing a mix of sophisticated originals and unique renditions
of covers-regularly undercut the market that I was trying to create. They
were so good and eager to play that it became impossible for any of us
to make a reasonable income performing locally. Once they disbanded, club
owners conditioned to getting greatness for almost nothing expected the
rest of us to comply. What resulted was an onslaught of mediocre cover
bands (those of us with talent and integrity moved on to better paying
territories) performing to new audiences who had no appreciation for music
as a focal point. Several years later, there was no worthwhile local music
scene at all. The moral of the story: If we don't keep each other in business,
the industry suffers and everyone sets sail on the Titanic.
NAMM brings artists, retailers, and manufacturers together twice a year,
but that sense of unity evaporates once everyone returns to the comfort
(or turmoil) of his own business environment. Joe Lamond, president of
NAMM, recounted a fable at the winter show equating incentive with success.
A fox is chasing a rabbit. Surely the fox is stronger and faster, making
him the obvious projected winner. However, one must not be too quick to
judge. The fox chases his dinner; the rabbit runs for his life.
Okay, the rabbit has greater incentive. However, how many Peter Cottontails
would it take to "outfox" a fox?
Doing the Math
MAP is the fastest route to ending price deflation and increasing profit
percentages. Granted, what ultimately matters is profit dollars, not percentages.
If all manufacturers eliminate hefty purchase order requirements and establish
margins that eliminate having to sell twice as much today to achieve the
profits of yesterday, smaller retailers won't need additional warehouses.
Bigger percentages, less expenses
you do the math. Manufacturers
benefit from profitable dealers that can better service their customers.
The quest for revenue rather than earnings marks the downfall of many
big businesses in America. Our industry must learn from those failures
and do better. Instead of creating a market that fits the model, create
a model that fits the market!
With MAPs, chains would no longer undercut independents, but volume buyers
could still benefit from wholesale bulk discounts, thus creating an even
greater margin while maintaining perceived value at the cash register.
If Guitar Center can compete on service, wider margins combined with customer
loyalty would cover higher operating costs. Independents could maintain
market share by keeping customers satisfied, and even grow by focusing
on the personal customer attention that only smaller venders can provide.
Wal-Mart is a different ballgame. Mass-market manufacturers play on the
same low price, low margin, high volume team as their retailers. Season
ticket holders gaze from the cheap seats. I have heard musical instrument
manufacturers defend selling through mass-market chains by claiming that
it benefits independent dealers. It certainly could inspire musical interest
amongst the lowest common Joe (and hopefully Jane too), but sales are
also lured away from "Mom-and-Pop." Without industry-wide MAPs,
independents lose on price and customers lose on quality.
Unfortunately, mass-market brands, models, and quality differ from those
in specialty stores. MAPs won't crossover. They may ultimately lose market
influence to brands like First Act-a company created by mass-market merchandisers,
not musicians or industry veterans. "First Act is led by a team of
proven entrepreneurs who apply their extensive knowledge of mass merchant
retail channels to the multi-billion dollar music category," states
the company's Web site. Had Fender been the Wal-Mart product, they could
guide "penny-wise pound-foolish" consumers to recognizing that
the "guitar in the box" is only a first step to musicianship.
Perhaps that would have benefited independent dealers. Instead, First
Act's Web site reads, "Rewarding for advanced musicians, yet easy
for beginners, First Act products bring you great sound quality and craftsmanship."
Whether or not this claim is true today, what stops them from validating
it tomorrow once they have cultivated the crop? They now have a showroom
in Manhattan and build professional artist relationships and "custom
shop" instruments. They could corner a multi-tiered market under
one brand through the world's largest retailer, literally knocking everyone
else off the MAP.
Raising the Bar
Consumers need to be told that music is foremost an art form, not a pastime.
Manufacturers, retailers, and artists must lead this campaign together.
Stores should encourage teachers and local musicians to help the next
generation (and their parents) recognize the value in paying higher prices
for better quality, as should professional artist endorsements.
Offering a "free lesson with any guitar purchase" isn't sold
at Wal-Mart, and just might lure the customer. With dealers pocketing
at least fifty points on an instrument sale (assuming MAPs are smartly
set and respected), paying a teacher for a private lesson is a small investment
with big payoff potential for all parties. Whether one has teachers on
staff or refers inquiries to local instructors, strike a deal that is
beneficial to the store, teacher, and "junior" getting his first
guitar for Christmas.
While the devious can circumnavigate the MAPs, our industry should not
maintain a "starving artist" mentality. No one needs to sell
junk or sacrifice profits. Regulated prices will lead everyone in the
right direction.
Ravi (www.HeyRavi.com) tours the country performing original music
and, as a consultant, lecturing on ethics and marketing in the music industry.
With professional endorsements and business savvy, the former guitarist
of three-time Grammy nominee Hanson has released two albums independently.
His autobiography is published by Simon & Schuster.
Brand-Aid
The
most important brand that emanates from a retailer's walls is one that
defines the purchasing experience. I know that my local music store carries
the most popular brands. More importantly, I know they have what I need-regardless
of the brand name-and that they'll back it up with service I can trust.
A business needs to stand for something beyond the product names it sells;
think of it as a "brand identity."
The Internet broadens a consumer's local options and the days of "selling"
on showroom floors are dwindling. With so much information, comparison
shopping, reviews, and purchasing opportunities online, it's increasingly
difficult to prove the value of the in-store experience. Fortunately,
non-computer-driven instruments-like guitars-equal more as a whole than
the sum of their parts. A NAMM panelist contrasted instruments to bed
sheets, sighting that you cannot simply determine quality and suitability
by counting the threads. Hence, local retailers still maintain the advantage
by disseminating correct information and matching the right product with
the customer's needs. In this day and age, that is the brand identity
to promote.
Branding is a huge part of the larger music industry. Madonna and Bruce
Springsteen worked long and hard to become "The Material Girl"
and "The Boss." It takes a strong, unwavering long-term commitment
to the heart and soul of one's niche. In some cases, the integrity in
making that commitment creates a niche in itself, as most people still
recognize sincerity even if they fail to value it at the cash register.
The store name makes the first impression. A former student of mine began
his search for a teacher through the yellow pages. He found our two local
music stores and called the one named after the state rather than the
competition, which was named after the town. "It just sounded bigger"
he told me. "I figured they would know more teachers." Ironically,
the town's namesake has a significant "in-house" teaching program,
while the "state" store refers inquiries to a handful of teachers.
There are several store names that I will never forget: Strings Attached-I
know what they sell and they probably do it with a sense of humor; Loser's
Music-the name will stick with me, but I don't want to be seen inside;
Guitar Center-no doubt about what they stock, although the name doesn't
truly encompass the scope of their inventory; and Guitar Cabin-sounds
like a cozy version of Guitar Center (without the keyboard and drum departments).
Forming an Identity
Contrary to the earlier example of my student, naming a store after the
town instead of the state might create a stronger identity if the town
has an aura of its own. Tennessee Music doesn't express as much as Nashville
Music, but on the other hand, MO Music has a fun double entendre with
which St. Louis Music will never compete. Of course, NO Music (for New
Orleans) might turn away more customers than Louisiana Music, which exudes
a vibe all of its own.
Bob Baker (www.bob-baker.com), a fellow music industry lecturer/consultant,
wrote an inspiring and insightful book on branding called Poor Richard's
Branding Yourself Online (Top Floor Publications; 2001). This book motivated
me to do some branding of my own by starting www.CultureofIntegrity.org
and www.ArtisticIntegrity.org. Baker's techniques apply to the brick and
mortar world as well, helping one develop a "BIS" (Brand Identity
Statement).
"Regardless of what your general area of expertise is, you must
focus on a particular slice of the pie and make certain your name is attached
to it," writes Baker. "Think of this concept as Nitro (your
name) and Glycerin (your specialty). Either ingredient alone is powerless.
Put them together and you have an explosive combination."
Larry's Musical Madness in Hickory, N.C. seems to exemplify Baker's recommendation.
The name gives a personal touch while also suggesting that the crazy artist
within each of us can find his muse within Larry's walls.
Personality Please
Many stores are simply named after their owner, but unless he's able to
project his personality into the advertising-most New Yorkers remember
Crazy Eddie-it's hard to establish a brand identity. Crazy Eddie's prices
were supposedly "insane," although I'm not convinced that people
wanted to be screamed at while choosing a TV. Nevertheless, if one can
walk into a store and actually "strike a chord" with the person
who has the pride (or guts) to put his name behind everything he sells,
that can endear a customer for life.
Branding goes well beyond the preconceived message. As Sterling Ball,
son of Ernie Ball and CEO of the company, said during a NAMM panel event,
"Every time I pull up in front of Guitar Center, there are four guys
with mullets smoking out front. And you wonder why mom doesn't go in there!"
His point is valid. Not only does this reduce sales help inside, but it
brands our industry in a less than rosy color. Furthermore, it discourages
parents chauffeuring little league rockers from patronizing the store
and nurturing their child's musical aspirations. "The mental perceptions
that exist inside the minds of people who make up your target audience
are just as important as your ideas about how you'd like to be perceived,"
writes Baker.
Most of us entered the music business with a passion for music and enthusiasm
for our industry. Incorporate these emotions into the experience you give
your customers and you will connect with their own rock-star dreams and
artistic inclinations. All business owners should spend more time in patrons'
shoes than polishing their own. Evaluate what inspires a sale and wear
it on your sleeve
and on your marquee.
One cannot successfully be all things to all people. However, you can
know your products and your customers. Nothing speaks louder than word
of mouth. Provide these walking and talking billboards with an experience
that they will want to share with friends. Don't focus on offering the
lowest possible price. Offer the greatest possible value and you'll have
the brand that everyone in town is talking about.
Ravi tours the country performing original music and, as a consultant,
lecturing on ethics and marketing in the music industry. With professional
endorsements and business savvy, the former guitarist of three-time Grammy
nominee Hanson has released two albums independently. His autobiography
was published by Simon & Schuster
Paving Your Information
Superdriveway
While
the Internet creates competition in almost every industry, we are fortunate
that one cannot yet download a guitar-and I don't see that happening anytime
soon. However, nothing prevents today's consumers from signing online,
googling "Stratocaster," and finding a slew of online vendors
selling guitars at competitive prices. Mass merchants may attract newbies,
but the Internet lures potential and existing clientele from a local retailer's
driveway to the "Information Superhighway."
"When eBay started out, it was a forum where one could sell an item
to another person in an auction type environment," says Mike Roberts
of Connecticut Music-a family owned and operated store in Stamford, CT.
"Now, eBay is full of retailers using it as another method to unload
inventory with a 'Buy Now' option that takes the entire auction process
out of the equation. There was something much more honest about the original
concept of eBay being a place where we looked for things we couldn't find
anywhere else."
Most consumers first visit "mom-and-pop" for a test drive,
and while they are there, tap the proverbial parents for information and
advice before closing the deal elsewhere. Since expertise and customer
service frequently fall short of inspiring loyalty, one cannot always
fault consumers for succumbing to the ease of online shopping and prepackaged
bundles. Ultimately, local retailers must seize this opportunity to demonstrate
the value of bricks and mortar.
I recently visited a major chain store to explore digital workstations.
After clumsily answering a few of my questions, it was obvious that the
assistant manager "assisting" me didn't know the products well
enough to sell to a pro-although he might successfully turn novices into
unsatisfied customers! He fabricated specifications, fumbled with buttons,
and thumbed through product manuals attempting to quench my lingering
thirst.
Eventually frustration set in, so I requested product literature. "If
I carried literature for everything I sold, I would be a book store rather
than an instrument dealer," he retorted. "Check the manufacturers'
Web sites. You'll get more info there than from any piece of paper."
That certainly "took the wind out of his 'sale!'" Why send
me home to sign online where there is more competition than on Manhattan's
48th street? Once I'm in my PJs and armed with a mouse, I'm likely to
surf the Web for the best deal.
However, Roberts agrees that the industry does a terrific job with Web
sites. "I find out more useful information there than anywhere else
and always encourage my customers to visit the manufacturer sites for
the most updated information."
When customers can test drive an instrument and have 100 percent of their
questions instantly answered, more deals close locally. Product literature
educates both the sales force and customers. If manufacturer Web sites
provide the cheapest and most effective way to disseminate up-to-date
information, every store should turn the cyber-foe into a cyber-friend.
The industry could greatly benefit by manufacturers providing dealers
with exclusive online access to information beyond advertisements and
product reviews. This would increase showroom floor traffic while strengthening
dealer loyalty. Stores should have a customer computer terminal with limited
Web access and a printer. Or, at the very least, sales associates should
have online access to instantly view and print product information.
Local retailers can also promote online with Web sites geared toward
inventory information rather than processing transactions. This would
reduce further devaluing of the industry with lowest common denominator
forms of capitalism. "Although we post a small amount of used gear
for sale on our site, I prefer not to sell via the Internet," says
Roberts. "I post the used gear more for my local customers to see
what has come in, and when I get an inquiry from out of the local area,
I always encourage them to check out their local dealers first before
making a purchase over the Internet"
NAMM creates helpful programs that blend the Internet and "in store"
promotions. The Music Edge is a wonderful resource that gathers teens
online and encourages them to park their parents' cars (and wallets) in
the local music store's "driveway." Through national campaigns
like "Fastest Drummer Contest," NAMM provides retailers with
all the tools to create a customer playground. The Retail Tool Kit (available
at www.themusicedge.com) provides a drum pad, trigger, "Drumometer"
(stroke counter), and the formula for hosting successful community events.
The accompanying CD-Rom contains customizable ads, posters, score sheets,
and press release templates; and the DVD includes suggestions, testimonials,
and a video promotion loop. Furthermore, they track the competition online,
melding national cyber glory with local human interaction. As the guidebook
states, "The sense of community you create will pay dividends at
the cash register long after the prizes have been awarded."
Another advantage that bricks and mortar has over clicks and portals
is the ability to "set-up" instruments immediately following
the sale. Shipping is not a recipe for pristine instruments. Good dealers
give them a once over pre-display and again post-purchase. "We inspect
every guitar when it comes in from the manufacturer and every guitar is
setup to the customer's specifications before it leaves the store,"
says Roberts.
Customers should gladly wait 15 minutes, or even return later, to pick
up their new freshly-strung and properly-adjusted instrument (like one
does for a bicycle). If they can't be bothered, provide a "free adjustment
and string change" coupon to be redeemed once the instrument "settles
in." That isn't sold at Wal-Mart and certainly can't be downloaded.
"What we offer a customer that the Internet will never be able to
offer is taking the time to make sure the customer makes the correct purchase,"
says Roberts. "It's the most important thing you can do as a merchant."
Ravi tours the country performing original music and, as a consultant,
lecturing on ethics and marketing in the music industry. With professional
endorsements and business savvy, the former guitarist of three-time Grammy
nominee Hanson has released two albums independently. His autobiography
was published by Simon & Schuster
Come Together,
Right Now...
After
a hiatus of several years, I returned to the big show in January. NAMM
was highly charged like I had remembered it - enough to make the most
focused mind exhibit symptoms of Attention Deficit Hyperactivity Disorder.
Crowds circulated through aisles like starving artists at an "all
you can eat" buffet, stopping at every booth for a taste.
This year was different for me in that I was "exhibiting" rather
than running around like a chicken with its head cut off (I have never
actually seen this phenomenon, but so the expression goes). I showcased
my "Instant Guitarification" clinics at the Greg Bennett Guitars/SMC
booth, performed on Sennheiser's stage, and lectured about "Manufacturing
and Selling Dreams" at the NAMM University Idea Center. I also found
time to traverse the floor in search of old friends and new gear.
It was immediately obvious that the world does not need another guitar
line, especially since much of what is on the market is indistinguishable
from its competition. However, the most adventurous could sort through
all the oysters and eventually find a few pearls. Brian Moore pushes technology
with high-quality electric guitars capable of delivering digital audio
directly into home computers via built-in USB ports. SMC jumps out with
a unique marketing strategy, making the very affordable Greg Bennett Guitars
exclusively available to independent retailers with "dealer friendly"
MAP prices and no MSRPs, creating unparalleled value to retailers and
their customers. Martin guitars is turning up the volume with "Aura"
electronics by Fishman, blending traditional piezo with phenomenal microphone
sound models. Granted, you may think that I am biased since I have professional
relationships with these companies. However, they are forward thinkers
and role models for our industry. That is why I proudly endorse them.
Despite the wide array of gear and gadgets, nothing impressed me more
than NAMM University's "Breakfast Sessions." Late evenings of
exceptional performances at Thursday's Sennheiser party, Friday's Acoustic
Café (featuring the California Guitar Trio with bassist Tony Levin
and Yes vocalist Jon Anderson, followed by Kaki King and others), and
Saturday's Muriel Anderson's All Star Guitar Night certainly made getting
up for the 8am seminars a morning person's nightmare. However, once I
reached the ballroom from my bedroom (luckily both were at the Hilton),
adrenaline took over.
Friday and Saturday morning, I searched for a seat amongst hundreds of
others who had beaten me to the breakfast buffet. Mark Woods Rock Orchestra
wowed the audience with their electric violins on Friday, and acoustic
guitarist Eric Roche stunned the crowd on Saturday. These performances
were a better "pick me up" than Starbuck's strongest brew, setting
the pace for the rest of the day.
The discussions immediately followed, beginning shortly after 8:30am.
I have participated in panels at many music business conferences (both
on the dais and in the audience), and while most are fun and educational,
these were a cut above. Witty and well-spoken moderators, extremely qualified
panelists, and highly-organized talks with Power Point presentations made
for an invigorating morning mental exercise.
Friday's panel, entitled "The Increasingly Changing Demographics
of Your Customers: Where Do We Go from Here?" focused on marketing
to older Americans. The panel included manufacturers and retailers who
are proactive in tackling this growing demographic. I am not a proponent
of refocusing the industry toward "playing music as a lifestyle,"
but I cannot imagine a better or healthier way to spend one's golden years.
I suppose golf caters to weekend enthusiasts as well as full-time professionals,
so why shouldn't playing an instrument? Perhaps keyboards that generate
accompaniment should be targeted at seniors rather than up-and-comers.
They provide instant enjoyment and a sense of accomplishment, but overly
intuitive technology compromises potentially creative young minds. We
should keep the industry's primary focus on students and professionals,
as they live and inspire dreams, ultimately keeping the multi-billion
dollar music industry alive. Musicianship is not a pastime; it is an experience
that lasts a lifetime.
Saturday's panel, called "Manufacturers Are from Mars, Retailers
Are from Venus," dealt with ways for these industry players to better
understand one another. Opposing panelists paired off and engaged in role
play, adopting the real life roles of their counterparts. This exercise
was interesting in terms of discovering both points of view - a common
exercise used in marriage counseling. While many of the issues were predictable
and not exclusive to the musical instruments industry, it was encouraging
to see "both sides" working together. I will never understand
why some manufacturers "stick it" to their loyal dealers by
imposing outrageous buy-ins while offering minimum support and protection.
Nor will I ever appreciate dealers who sell below MAP or accept competitor's
coupons. However, these educational sessions remind everyone, hopefully,
that we all play on the same side with the same objective - to bring quality
music to the masses.
When I was 14, I worked as an entry-level mechanic at a Fuji bicycle
dealer - the only job I ever held outside of music. There was one other
Fuji dealer in town. My boss and his "rival" had a healthy relationship,
frequently shuttling inventory and spare parts back and forth to help
each other service their customers' needs. Both stores carried many of
the same models at the same prices. The competition ultimately came down
to providing the best purchasing experience and follow up service. Neither
dealer tried to undercut the other, yet both prospered until my boss retired
and sold to someone with a more aggressive vision of capitalism. A few
years later, our store was history.
Admittedly, times have changed. There is a different consumer mentality
and more corporate and Internet competition. Local independent dealers
must work together more than ever to demonstrate value and service the
market with pride and integrity. Even distant "shareholders"
should harmonize with the locals to help keep our industry healthy. With
NAMM at the core encouraging positive business relationships, can't we
all just get along?
Ravi tours the country performing original music and, as a consultant,
lecturing on ethics and marketing in the music industry. With professional
endorsements and business savvy, the former guitarist of three-time Grammy
nominee Hanson has released two albums independently. His autobiography
was published by Simon & Schuster
Old McDonald
My
parents always made it possible for me to acquire the instruments and
studio gear that I wanted, but they never made it easy. Gifts were given
only on Christmas and birthdays. Loans had to be repaid. Above all, commitment
to the art form was required before any financial investment was made.
As I negotiated leaving college early and using leftover funds to upgrade
my studio, my father insisted that I assemble a business plan; only then
did he help me put it into action. Consequently, I owned a variety of
nice guitars and a sophisticated home recording facility by the age of
twenty. I repaid my debts and regularly upgraded equipment by taking on
recording clients, guitar students, and band gigs every weekend.
Times have changed. "Baby-boomers" and "Generation Xers"
are overly eager to please their children materially. Good parenting is
graded according to the Jones'as far as keeping junior busy and
well outfitted. As a result, teenagers and their parents parade around
town today with a sense of entitlement. We live in the age of Internet
bargain hunting and instant gratification, expecting immediate returns
from minimal investments. "No pain, no complain."
The music instrument industry, like many others, has become "Mcdonaldized"
while catering to this consumer mentality. Whether it is Guitar Center
or a local "mom & pop," the golden arches has no boundaries.
Just about everyone fishes for the lowest common denominator, pushing
identical items at competitive prices with price-matching guarantees.
Tack on low interest rates and a liberal return policy, and you have God's
gift to the Generation X consumer (not to mention the downfall of healthy
capitalism)!
Musical instruments may be moving into Wal-Mart, but Wal-Mart is moving
into independent music retailers. They "distribute" merchandise
to end-users. Music instrument stores, on the other hand, supposedly "sell"
merchandiseultimately creating the value of being in business. However,
a prospective guitarist voyaging into any music store for the first time
will invariably be pointed to a "Strat Pack" (or something competitive
from non-Fender dealers). Fender's version is a colorful cardboard box
containing an Indonesian made Squire Stratocaster, a small practice amp,
and the appropriate accoutrements; all for around $279.
That is my childhood dream in a box, mass-marketed within a budget that
almost anyone can affordI feel so special! Rising stars don't have
to think, listen, learn, or acquire any musical instrument knowledge while
paving the road to an artistic journey. All decisions have been made by
the manufacturer except color, of which there are limited options. Why
even leave the house anymore? I would rather shop online; competitive
prices, rarely any tax, and free shipping promotions are only a few mouse
clicks away.
Admittedly, the "Strat Pack" is convenient for the new generation
consumer, but when did becoming an artist revolve around convenience?
"If it were easy everybody would do it" rings truer today than
ever before. The world doesn't need more guitar players; we need more
musicians. Making music requires more investment than simply purchasing
gear (unless one is an up-and-coming "producer," as outstanding
factory presets and over intuitive sequencers level the creative playing
field
like a tornado).
I recently ventured into a major chain near Los Angeles. The first thing
that caught my eye was a fire engine red guitarnot because it was
attractive, but because there were about fifty of these generic, store-brand
babies hanging on a rack like cheap suits. Wall to wall monotony at only
$79 a piece! $300 guitars "feel" expensive after this bargain
barrage near the front door. This kind of marketing conditions the customer
to think cheap, want cheap, and settle for nothing but cheapall
before plucking a single string.
The salesman told me that the $79 jobs are "toys geared towards
Grandma who wants to buy junior a guitar for his birthday." Grandma
is probably not reading up on humbuckers versus single coil pickups, most
likely has not heard of Hoobastank or Slipknot, and social security payments
may be running tight these days. So, cheap guitars make everyone happy,
right? Junior will be until a few weeks later when he quits his musical
adventure because his warped toy disguised as a guitar doesn't inspire
or foster musical growth and collects more dust than dings.
Is this what we mean by pricing instruments to be accessible? Cheap instruments
deny access to sustained interest in making music. How can one expect
strong commitments to learning music if disposable instruments purchased
with disposable income dominate the music student market?
That being said, a $79 guitar has its place in the market, as do slick
package deals. My very first "six string" fell into this price
category, albeit over twenty years ago. However, I navigated through higher
priced, more inspiring options before finding one that suited my parents'
birthday budget and my rock star needs. Additionally, I learned about
distortion, tremolo, and other sonic considerations while auditioning
different entry-level amplifiers. Once we settled on the relatively inexpensive
investment, the purchasing experience prepared us for what my instrument
wasn't and educated us on what my next one could be. That process inspired
goals, commitment, and a long term outlook on my future in music.
The "de-Mcdonaldization" of our industry is essential. Independent
retailers must pioneer lines and educate their customers on value of owning
quality instruments. The "Strat Pack" may be right for some,
but an introduction to purchasing a "dream tool" should not
begin (and likely end) with a cardboard box. Carrying quality lines that
lack name recognition and focusing on inventory that the chains and big
boxes can't or won't sell creates golden opportunities to compete in the
marketplace. Customers will recognize the value of service when shown
desirable products that they otherwise would not find. Draw them in with
household names and turn them on with the industry's hidden treasures.
I have said it before: music retail was founded upon serving the arts.
Let's make product education the greatest value in our business.
Ravi tours the country performing original music and, as a consultant,
lecturing on ethics and marketing in the music industry. With professional
endorsements and business savvy, the former guitarist of three-time Grammy
nominee Hanson has released two albums independently. His autobiography
was published by Simon & Schuster
Let's Get Clinical
As
technology advances, the overall quality of goods and services appears
to decline. Perhaps this is due to the latest gadgetry being designed
for "do it yourselfers." As a result, professional services
are in less demand, tools of the trade are often "consumer"
rather than "industrial" quality, and mediocre results become
the standard for which we settle.
In a culture where we shop airfares and diagnose diseases online, the
Internet arms consumers with more pre-sale information than ever before.
Consequently, retailers must not only educate, but re-educate customers
to extinguish false notions and wrong conclusions. This complicates a
job that already must overcome the predisposition that all sales people
are Jessie James in disguise. However, it does require sales associates
to become experts in their field, which is a very good thing! I was in
a Radio Shack recently and asked the "after school" employee
for a stereo phone plug. He handed me a mono one and became agitated as
I taught him how to visually differentiate between the two. I spared him
the embarrassment of teaching him how to read the packaging (perhaps kids
don't even know what "mono" means in this age of Surround Sound)!
Today, an increasingly large number of musicians write and record songs,
and then replicate CDs or distribute digitally online, all in the comfort
of their pajamas. The days of studio outsourcing are dwindling. Therefore,
it is increasingly important to the stability and longevity of artistic
integrity, let alone cultural advancement and a financially stable music
industry, to offer the best instruments and product education to those
who are most creative. Otherwise, technology creates the music instead
of facilitating the talent. Most workstations (sequencer/sampler/synthesizer)
are so user-intuitive that the "talent-less and gift-less" can
produce better than "tolerable" results while well-trained musicians
are tempted (sometimes obligated) to cut corners. If those manufacturing
and selling instruments don't inspire and educate artists on how to travel
beyond factory presets, who will? A poorly translated owner's manual?
Or some tech support guy in India who calls himself "Jimmy?"
Many instrument manufacturers sponsor "in store" clinics, which
are crucial to shaping the future of music. Well orchestrated events increase
interest in the arts, inspire local talent, and yield long-term results
for dealers. Attendees learn everything about featured products and discover
a plethora of related items that expand their musical pallets. Retailers
earn the respect of their local music community, broaden their customer
base, and move a great deal of inventoryand I don't mean to make
room for the audience! Professional clinics create loyal and informed
customers, and also educate the sales force on products and how to effectively
sell them to customers.
I work hard to make each of my own clinics fun, informative, and inspiring.
The audiences are involved, which instills more information than just
jamming and talking at them. We discuss the featured products and product
category. Naturally, I want everyone to recognize the quality and value
of a guitar line, for example, that I am ultimately promoting. However,
as long as I have shared my knowledge and experience, I trust attendees
to ultimately make the right choices for themselves. Most importantly,
I hope that each person leaves having learned something about guitars
(how they are made, tonal characteristics, integration with other instruments,
making smart purchasing decisions, etc.). For the dealer, I aim to increase
guitar sales and overall revenue from accessories, amplifiers, and other
inventory.
Like anything of value, successful clinics require investment. Manufacturers
shoulder much of the expense (the clinician, promotional materials, etc.),
but dealers must actively promote to their local market to maximize the
return.
Greg Bennett, former vice president of Guitar Center who now designs
and markets the guitar line bearing his name, has seen benefits from all
sides. "The value of hosting clinics reaches well beyond the events
themselves," he says. "It gives dealers a reason for major media
campaigns, including local newspapers, radio, and television. Refreshments,
product giveaways, and other similar incentives also generate better attendance,
but while good turnouts are important, one should never fail to recognize
the value from the advertising opportunities alone."
This is indeed the time for a media blitz, as clinics are community events
for the musically inclined, not just the musically accomplished. Assemble
press kits including the clinician's bio and photo, clinic agenda, product
literature, store background, and event specifics. Clinicians should be
available for interviews. A charitable angle also adds value. Not only
is one investing in a good cause, but it generates more media attention.
Product giveaways are great, but consider a raffle with a nominal ticket
price and 100% of the proceeds benefiting a local charity. Neighboring
restaurants might provide complimentary hors d'oeuvres in exchange for
cross promotion. Include "Refreshments provided by XYZ" in all
advertising. Musicians are always eager to check out gear, but nothing
beckons louder than free food. The hungriest might even venture next door
for dinner. Perhaps the clinic could even take place at a local café
or pub just prior to "happy hour." Whatever it is, make it a
multidimensional community event! As long as people have a good time,
the groundwork is laid for the future. Good clinicians command repeat
performances just like any other performer, and returns are maximized
by presenting the event annually.
Local independent dealers must provide product education even if and
when Pro Tools is displayed next to modeling amps and in-ear monitors
in aisle 11 at Wal-mart. The average Joe is becoming a "Jack of all
trades," and these "masters of none" need expert guidance
before diving into the arts. Furthermore, we professional musicians are
eager to learn about the latest creations designed especially for us,
and rely on retailers to show us how they work. At the end of the day,
manufacturers, retailers, clinicians, and artists all share the same objective
- to deliver quality music to the masses. Clinics are a golden opportunity
to bring the team together and forge ahead in creating the music of the
future.
Ravi tours the country performing original music and, as a consultant,
lecturing on ethics and marketing in the music industry. With professional
endorsements and business savvy, the former guitarist of three-time Grammy
nominee Hanson has released two albums independently. His autobiography
was published by Simon & Schuster
Listen Up
I
gained a real appreciation for silence when I moved from the city to the
country. Fortunately, the occasional cricket and rustling of leaves provide
a release from what otherwise might be eerie nothingness. However, compared
to the urban hum that sets the threshold above air conditioners and subway
rumbles, my daily existence now operates a few notches lower on the decibel
meter. Relative silence is subjective and ultimately comes down to one's
acute awareness of every sound. Not only has country living increased
my consciousness of singing birds and whistling wind, but ringing ears
is now part of my daily soundscape.
During my middle and high school years, I jammed through the largest
and loudest amplifiers I could find, playing at volumes that literally
shook the house. I went to stadium concerts where fluid actually flowed
from my ear (thank you, Metallica). Years later, as the guitarist of Hanson,
the sound of 20,000 screaming 14-year-old girls (we referred to it as
a "squeakuency") overpowered floor monitors, amplifiers, and
crashing cymbals nightly. Fortunately, I became more attentive to my ears
and took precautions as my career climbed the decibel meter. Otherwise,
a little tinnitus might be the least of my problems today.
The most valuable investment musicians can make is in protecting their
hearing. "The maintenance of a musician's hearing should be more
important than the maintenance of his or her instrument," states
Michael Santucci, MS, CCC-A, in the Medical Problems of Performing Artists
(Published by Hanley & Belfus, Inc., Philadelphia, PA © 1990).
"An instrument can be upgraded or replaced, but we are given only
one set of ears!"
At the 2004 NEMO Music Conference in Boston, Shure co-sponsored free
hearing screenings in cooperation with the MusiCares Foundation and the
World Council on Hearing Health. I was lecturing at the conference and
could not resist the opportunity to have my own hearing evaluated for
free. My test yielded essentially perfect results, showing high sensitivity
to tones at various frequencies ranging from 500hz-8khz. However, I still
live with constant ringing, and I'll bet that many city slickers have
yet to discover their own internal "ring tones." By the time
they do, their test numbers might not be as favorable as mine.
Foam ear plugs will never satisfy the serious performer since the attenuated
frequencies are disproportionate. Save the sponges for the audience. All
venues should provide little beer-bottle (or can) shaped plugs free of
charge, manufactured and paid for by advertisers on the packaging-can
you hear me beer and liquor companies? Or, how about ear plug dispensers
next to the condom machines in the restrooms.
Musicians need exposure to the right tools and education for long-term
rocking and rolling. High quality ear plugs, decibel meters, and resources
on hearing loss should be available from every music instrument retailer.
Music teachers should also address the risks of hearing loss with their
students. Moreover, today's technology provides the most favorable protection
devices for musicians: In Ear Monitors. These gems are now designed and
priced for musicians of all levels.
Local retailers coordinating with community health clinics to provide
free hearing screening twice a year (like going to the dentist) would
generate floor traffic and inspire musicians to take preventative action.
These events would be ideal for running in ear monitor clinics demonstrating
the flexibility and ease of use. Many musicians are intimidated by the
technology, as was I until I discovered the Sennheiser Evolution 300 IEM
with Future Sonics' universal ear pieces. I now monitor at significantly
lower volumes with far greater clarity than I ever did listening to standard
floor wedges or the house PA system.
With informative, pre-wired displays in all stores carrying "in
ear" systems, one can quickly recognize the benefits and possible
applications. A simple setup composed of a small mixer, sequencer, or
CD player with backing tracks, keyboard or guitar and amp modeler, vocal
microphone, and a couple of room microphones will emulate a typical rig.
An endless supply of foam cushions provided by the manufacturer would
allow perusing customers to audition the product anytime in a safe and
sanitary manner. Complete the station with a signal-flow diagram showing
how musicians can insert the technology into their own rigs (dividing
line level signals as needed with basic XLR splitters inserted between
a personal monitor rig and the house PA system), weekend warriors and
professionals alike will be wondering why they hadn't invested sooner.
I have come to realize that hearing is like money, and one has to decide
where and when to spend it. Frequently, I now use ear plugs when I go
out to hear bands in rock clubs-mostly because of the influx of mediocrity
bellowing from many stages. When I hear something that I really like,
I will usually swipe the "auditory credit card" and subject
my naked ears to the pulsating speakers in an effort to get the full effect.
However, I am becoming well adjusted to wearing protection and now recognize
that good music sounds better at attenuated volumes. Therefore, after
a few minutes of sonic onslaught, I generally re-plug. Even airplanes
are expensive. Wearing plugs during flights will earn musicians the most
valuable frequent flyer miles in the sky.
"The view that hearing loss is an inevitable physical disability
associated with being a musician is incorrect," Santucci writes.
"Advances in technology and the demand for more sophisticated devices
now afford musicians viable choices to effectively protect their hearing
with the least amount of compromise."
Regrettably, most musicians believe "it will never happen to me,"
yet many I know suffer some degree of hearing loss. This kind of ignorance,
or arrogance, is far too costly in the long run since, once the damage
is done, there really is no turning back. More attention must be drawn
towards hearing loss amongst musicians. Otherwise, look out Arnold Schoenberg,
atonal music may take on a whole new meaning!
Ravi tours the country performing original music and, as a consultant,
lecturing on ethics and marketing in the music industry. With professional
endorsements and business savvy, the former guitarist of three-time Grammy
nominee Hanson has released two albums independently. His autobiography
was published by Simon & Schuster
Pa Rum Pum Pum
Pum
"Band
& Orchestra" school programs fill unacceptable voids in children's
lives, as today's Internet lifestyle creates a social illusion in a reality
of solitude. Enrollment in these classes is crucial, not only for the
child's development, but also to maintain music in public school curriculums.
In the dreams of rock n' roll wannabes, trumpets and violins lurk in
the shadows of guitars and drums. Yet, we who march onto stages facing
thousands of screaming fans often begin our journeys honking and squeaking
through school funded music programs, as do many of our classical and
jazz counterparts. Even students ultimately choosing careers outside of
professional music greatly benefit. One harmonizes in every sense, developing
an appreciation for music while creating unity as a collective of individuals.
Exploring different instruments and combining them into a single orchestral
voice can be likened to people of different races finding complementary
traits and working together to create a harmonious world. The lessons
are abundant and potentially more accessible than those extracted from
playing team sports.
"There are few direct correlations between sports and intelligence,
however, there are now quite a few direct correlations between the study
of music and intelligence," says Tony Bancroft, a middle school band
teacher in El Segundo, CA and author of Growing Your Musician: A Practical
Guide for Band and Orchestra Parents (published 2004, The National
Association for Music Education). In this valuable resource, Bancroft
sites "improved problem-solving skills" and "result-oriented
behavior" as examples.
I never excelled in school sports, and those of us picked last by "team
leaders" in mandatory gym class often find less humiliating and safer
(barring the occasional trip over an instrument) team experience in elective
band or orchestra class. Research proves that music makes you smarter,
so why isn't "Band & Orchestra" also obligatory? After school
lessons and early morning practices instill a high level of commitment
and discipline. Performances inspire confidence and offer a sense of accomplishment
- not unlike the big weekend game, except that there are no losers (apart
from everyone in the band as far as the football jocks are concerned).
My brother played clarinet in his high school marching band, and I, nine
years younger, coveted that opportunity. Was it the marching, drums beating,
crowds cheering, or uniforms that hooked me? It was all of that (yes,
even the uniforms), including the one-armed quarterback who grabbed his
trumpet at half-time and marched right back onto the field (he's now a
professional musician).
My big break arrived in fourth grade, one year following my brother's
graduation. I inherited his plastic Bundy and off to auditions I went.
Since woodwinds weren't the most popular (drums were the "coolest"),
I made "Concert Band" just by showing up and squeaking. I cherished
my post and developed a reputation over the next couple of years as "the
puddle-less clarinetist"not a drop of spit on the floor to
wipe up. Granted, I rarely blew a note during concerts, but my fingerings
were perfect and no one noticed my sonic absence. Thus, I gravitated toward
guitar and graduated public high school proudly picking and strumming
in our award winning "Jazz Ensemble."
I excelled in jazz band due to outside lessons. What I learnt privately
was applied and significantly enhanced in school rehearsals (reading music
in time with fellow musicians was not a requirement for jamming in my
basement). Plus, the humiliation of being reprimanded in front of peers
was a great incentive to master the material!
Students that are fortunate enough to have music programs in school should
take advantage of them. In addition to the aforementioned benefits, their
future educational options may depend on it. "Many top colleges want
high quality students who participate in the arts and are active community
leaders" confirms Bancroft. Therefore, it's essential that both the
instruments and education are stellar.
Retailers must not create obstacles, as flustered parents may consequentially
deprive their children of this wonderful opportunity. Alternatively, encouraging
and facilitating the entire experience will make long term customers out
of experimenting families. Providing school music teachers with preprinted,
multiple choice (to insure that it complies with availability) questionnaires
depicting exactly what each student requires (instruments, accessories,
books, etc.) streamlines the process. Students will arrive ready to rent
or purchase with the essential information in hand. Only perfectly maintained
instruments should be distributed along with the appropriate accoutrements.
Extra reeds for trumpets - a major faux pas!
Offering quality instruments and flexible rental agreements is vital
to the child's artistic development. Kids should easily be able to upgrade
or switch instruments mid-semester in order to find their musical voice.
A "rent-to-own" option and reasonable purchase prices are also
imperative. "Families should dedicate themselves to success the moment
they enroll in a music program" says Bancroft. "I suggest all
parents purchase or rent-to-own immediately depending on their financial
situation." Furthermore, Santa Claus is coming to town and he doesn't
do rentals!
For most beginners, a horn is a horn and a violin is full, three-quarter,
or half size. While this may be the only criteria concerning first timers,
retailers should peruse next month's NAMM convention with an eye (and
ear) for quality - not just durability, but inspiring tone and fluid action.
Purchasing instruments to sell or rent is an investment in the arts, human
development, and customer satisfaction.
"Beginning musicians and their parents have faced an onslaught of
cheap overseas instruments," says Bancroft. "Parents need to
understand that saving a few dollars on a 'cheap' instrument will almost
surely cost them down the road. I always ask my kids, would you want your
parents to buy you a used pair of shoes? How about a new pair of shoes
without laces?"
Good band or orchestra experiences often lead to further private study.
Creating incentives for parents to augment school music programs (such
as discounted rental rates for those enrolled in private lessons) is a
win-win situation. Bancroft concurs: "If every child had private
lessons, the world would be a different place!"
Ravi tours the country performing original music and, as a consultant,
lecturing on ethics and marketing in the music industry. With professional
endorsements and business savvy, the former guitarist of three-time Grammy
nominee Hanson has released two albums independently. His autobiography
was published by Simon & Schuster.
Sex Sells
Advertising
can either talk about products or try to get into the hearts and minds
of consumers. The most successful campaigns cater to human primal impulses
to seal the deal. While targeted sensibilities vary depending on the product,
one approach provides blanket coveragesexy bodies. Whether it's
a car, drink, or perfume standing between the consumer and the cash register,
sex sells.
In the pop music industry, sex is part of the package. Drugs, sex, and
rock 'n' roll will forever be the brand identity statement of the business.
Therefore, it's unnecessary to incorporate blatant sexual overtones into
musical instrument marketing, even though record company media promotions
frequently cross the line with excessive sexual content.
Guitars are sexy by themselves, arousing the libido with eye-catching
attributes and the potential for euphoric aural experiences. By association,
guitar players are sexy because they bring those characteristics to life.
Eddie Van Halen has earned the respect of many musicians, and simultaneously
he has created fantasies in the minds of young guitar players and women
around the world. Would Ed the insurance salesman be as inspiring?
Today, playing an instrument faces tremendous competition from videogames,
the internet, and other virtual stimulants. Unfortunately, "guitar
gods" like Van Halen, Hendrix, and Clapton only come around every
15 or 20 years, giving budding musicians ample time to drift toward other
enticing activities. So, how do we keep the sex drives alive during the
off years? Do we need more rock 'n' roll icons or a Guitar Player swimsuit
edition?
"Sexy advertising helps sell sexy products," says Dean B. Zelinsky,
founder of Dean Guitars-whose marketing focuses on hormones rather than
harmonies. He admits that his "Dean Girls" offends more than
a few. "People have told me that they will never buy a Dean because
of our ads. But, if it weren't for our ads, there might not be a Dean
to buy." Zelinsky maintains that 98 percent of guitar magazine readership
is male, greatly offsetting the number of women who might be offended.
These busty girls in scantily clad outfits work the NAMM show floor.
The company also dresses up guitars by strapping them on dressed-down
women in the ad pages of magazines. Is Dean Guitars that desperate for
some lovin'?
They were when they first hit the market in 1977. Standing in the shadows
of Fender-then owned by corporate broadcast media giant CBS-and Gibsonthen
owned by ECL/Norlin (an Ecuadorian company with primary interests in concrete
and beer)Dean had to take chances just to get in the game. Designing
an ad campaign that related to the customer rather than focusing on the
product was their strategy.
"There was a generation gap between guitar players and the 'suits'
running the big companies," says Zelinsky. "We put imagery in
our advertising so that the 14-to-28 year old, predominantly male market
would say, 'Wow, these guys think like me!'"
Perhaps our subconscious connects a gorgeous female figure with a beautifully
figured maple top. Or maybe these images consciously keep us from turning
the page, stroking our imaginations just long enough to read the text.
Either way, sexy bodies put Dean Guitars on the map.
I know several professional musicians who admittedly started playing
guitar as teenagers solely to attract girls. Ultimately, they found true
love in the music, but most young strummers probably soon gave up their
Stratocasters for other objects of pleasure.
Adolescent hormones are typically highly charged, but while many of my
friends plastered super models across every inch of bedroom drywall, the
"T&A" that turned me on the most was "talent and attitude."
I had album covers and posters of my favorite bands hanging from every
wall. Their songs and persona instigated my strongest teenage desires.
Furthermore, playing and creating music was, and often still is, the ultimate
sensual experience (sorry dear).
Had I been thumbing through guitar magazines and Dean ads as a teenager,
I would have either had the best of both worlds or lost my focus somewhere
in between. Yet, music trade magazines and NAMM shows are not typically
the birthplace of long-term musical journeys. These forums appeal to knowledgeable
players and industry insiders, although one can find fervent teenagers
hanging outside the convention centers eagerly trying to obtain a second
hand badgeand I doubt it's just to get a glimpse of the "Dean
Girls."
Brian Moore Guitars also "thinks outside the frets." Past marketing
campaigns include targeting sports and leisure enthusiasts by placing
ads in athletic publications. Their technologically advanced, computer
compatible instruments have always been powerful tools for professionals,
but they are now expanding their market with the more affordable "iGuitar"
line. Patrick Cummings, president of Brian Moore, conducted seminars this
past September at the "Digital Lifestyle Expo" in New York City,
hoping to integrate the guitar as a component of lifestyles that include
digital photography, video, and music. These instruments may also be the
all-important bridge between internet-focused teens and guitar playing,
particularly with Brian Moore's sales pitch that says the "i"
stands for "fun."
Dean continues to maintain their sexual identity by planting ads in Maxim.
"We're a sexy, racy company," Zelinsky contends. "Our ads
represent that, as does our product." However, like Brian Moore,
they are now emphasizing lifestyle. The new campaign portrays attractive
women with guitars in everyday situations as opposed to shallow, "in
your face" images.
Music instrument retail is a victim of the larger music industry's shortcomings
when it comes to marketing. Manufacturers and retailers cannot create
"guitar gods," and sexually charged ads are losing their luster
in the marketplace. Instead, one must seduce newcomers with the aura of
the artistry and provide them with the finest musical tools and education
available. If done well, they will become aroused. Perhaps the greatest
"turn on" is walking into a music store and hearing a phenomenal
player on the showroom floor. Selling the urge that's inspired by the
instrument is what ultimately seals the deal.
Ravi tours the country performing original music and, as a consultant,
lecturing on ethics and marketing in the music industry. With professional
endorsements and business savvy, the former guitarist of three-time Grammy
nominee Hanson has released two albums independently. His autobiography
was published by Simon & Schuster.
A Little Romance
Goes A Long Way
My
guitar teacher once told me that the instrument is just a tool. He likened
it to a mechanic's wrench-the right one will get the job done, but the
mechanic must first know how to fix the car. I interpreted this to mean
that talent and technique make the music; the guitar is simply a voice
of expression.
Consequently, I performed on moderately priced stock guitars (mostly
Fender Stratocasters and Gibson Les Paulsunder $1,000) for many
years, learning valuable skills getting the most out of mid-level instruments.
Owning several permitted exploration of tonal varieties and stylistic
influences. Having only one high-end guitar might have pushed me into
a corner.
Once my career hit the big leagues, I wondered if I had outgrown my gear.
I was playing some of the most glamorous gigs a musician could have (Madison
Square Garden, The White House, David Letterman Show). As endorsement
deals and manufacturer relationships came my way (along with a few extra
bucks in my pocket), the opportunity arrived for finer instruments to
grace my stage. One new "tool" in particular led me to go where
I had never gone before.
When Dick Boak from C.F. Martin Guitar Company said he marked my name
on a beautiful Martin D-42, "early on in its infancy," my expectations
skyrocketed. UPS knocked two months later, and I was nothing short of
enamored. The guitar, like all that emerge from the Pennsylvania factory,
is a work of art in itselfa masterpiece, boasting tonal and physical
splendor that inspires me beyond words.
Since that day, I have been writing and performing almost exclusively
on acoustic guitar. Having established a career playing electric in bands
where there is plenty of sonic fabric in which to hide, the nakedness
of solo acoustic performance tested my talents and professionalism. Artistic
boundaries broadened and creative juices flowed. I discovered new ways
to express my music, developing a percussive finger style of playing that
enabled me to incorporate band-like grooves. This new technique augmented
my tonal arsenal on acoustic and electric guitar.
My appreciation has also grown for acoustic legends like James Taylor,
Bob Dylan, and Joni Mitchell. Contemporaries including Dave Matthews,
John Mayer, and Keb Mo now lure my ear and inspire further study. I even
went on the road opening for Suzanne Vega!
Would I have traveled this path were it not for the Martin D-42? I'll
never know. Regardless, I am here today because of that guitar.
A musician's artistic sensibilities eventually push him to cross the
line between "practical" and "passionate." Most accomplished
players have adoring relationships with their instruments. Perhaps the
most obvious example is B.B. King, who names every guitar that steals
his heart "Lucille." He gives her unconditional respectsomething
we all hope for in our most precious relationships. However, contrary
to traditional human unions, "instrumental monogamy" is not
the norm.
"Picking up something other than my usual Strat or Tele, such as
a Baritone or my L4, automatically puts me in a different zone" remarks
Radiators guitarist Dave Malone. "I firmly believe that these machines
have souls, and you can coax out the songs that are hiding in them."
Dave and I represent a small percentage of players who through professional
affiliations have the luxury to discover these "souls" in the
favorable environment of our home or personal studio. Most musicians have
to depend on a retailer's showroom to find true love.
Ten years ago, I fell in love in the local family owned and operated
music store where I had purchased all my gear to date. The personal environment,
unchallenged by extraneous kick drums or PA systems blaring "customer
holding for pro audio, line 3," invited me to peruse new inventory
(I was only in the market for a box of strings). There she wasa
blonde in a sexy "see through" top. Her sweet voice and silky
feel seduced me. I simply had to have this Fender Telecaster 1952 Reissue.
The relationship only lasted a few years (she wanted a commitment, I wanted
to date others), but I found a freedom of expression that I had not previously
uncovered. She permitted me to say what was on my mind and in my heart,
never getting in the way.
Instrument retail stores should be the ultimate singles club, with knowledgeable
sales associates as matchmakers. Today's "mega music centers"
resemble something between an orchestra tuning up and sound check before
a rock show. The setting is anything but romantic and doesn't even make
me want to date. More intimate, quiet storesfree from commission-based
salesmen pushing for a first kissare much more likely to inspire
romance. No one likes to be smothered when courting. With the advanced
amp modeling devices currently on the market, virtual privacy is attainable
in every store. Customers can explore electronic instruments through headphones.
However, sound proof listening rooms (such as those often designated for
acoustic guitars) or even available teaching studios serve as superior
auditioning environments.
Selling by price also undermines the intrinsic value of this relationship.
I was shopping for a mattress recently, and one store chose not to display
prices on their inventory. The owner swore that when shopping for the
cradle in which one spends a third of his life, dollars should not influence
the perception of comfort, even if it is ultimately the final purchasing
decision. Perhaps higher-end musical instruments should be sold this way
as well. If customers want to shop price, they can ask. However, baiting
them with preconceived value will only inhibit the romantic possibilities.
One can't put a price on love.
Ultimately, instruments are just tools. However, chemistry will emerge
in the right relationship. Playing music is sensualthe more stimulation
from an instrument, the more inspired the artist and his creations. One
must listen to these "voices of expression." Given the chance,
they often have something incredibly beautiful to say.
Ravi tours the country performing original music and, as a consultant,
lecturing on ethics and marketing in the music industry. With professional
endorsements and business savvy, the former guitarist of three-time Grammy
nominee Hanson has released two albums independently. His autobiography
is published by Simon & Schuster.
A School of
Thought
It's
September and the school year is in full swing. For many music stores,
rentals and lessons are hitting annual highs. As school systems continue
to cut music programs, local retailers offering private instruction are
often the sole venue for cultivating the musical artists of tomorrow.
Having studio space and not using it for lessons is a loss for the retailer
and society. Even stores without studios can implement an organized system,
dispatching teachers to homes while channeling monthly or semester payments
and scheduling through the "school." Local music retailers can
and should be the nucleus of music education in their communities.
My first few years of guitar lessons were at Greenwich Music
in Connecticuta small store at the time with four teachers juggling
a few students in three shoebox studios. I went on to teach there for
a decade and watched this small retailer transform into a serious music
school boasting a significant retail showroom. Now hosting seven comfortable
studios, Greenwich Music has an enrollment of 250 students studying under
25 professional teachers. According to owner Linda Smith, music lessons
bring in one-third of her overall revenue. "At the very least, lessons
pay the rent," she said. "Nowhere in the business is the margin
as great as with lessons."
Guitar being the most requested instrument, I carried about
30 students per week (ages 10 through mid-life crisis) during my tenure.
There was occasional babysitting, but that is an opportunity to expose
the magic of music to less inclined students. I often met with supportive
parents (or spouses) who shared in the enthusiasmnot just because
they witnessed positive results musically, but also in overall well being.
A couple of kids even abandoned Ritalin! Sometimes I had to solicit parental
interaction to best serve the childreneven if mom only granted me
five minutes between her hair and nail appointments next door. However,
with the ease of email, frequent updates became routine.
Parents' busy schedules make regimented weekly trips to
the music store a convenience when junior breaks a string, needs to stock
up on accessories, or is itching to hear the latest effect pedal. Granted,
replacing a "high E" string twice a month is not going to launch
your business into the Fortune 500; however, you can't beat having target
clientelealready paying to be in your storeperuse the latest
merchandise on market while waiting for their teachers (musicians notoriously
save their sense of time for the music). Furthermore, Christmas and birthdays
often come around twice a year given the high divorce rate, and who do
all four parents turn to for gift ideas? Music teachers!
While competitive pricing on lessons and products (assuming
that manufacturers will preserve local retailers and not succumb to unscrupulous
wholesale price demands of mass-market chains) should earn the loyalty
of every student, society's price-conscious preconceptions often overshadow
reality.
"Despite the fact that we have students coming year
after year, we are still competing with the big-box stores, the internet,
and catalogs," said Smith. "It is very discouraging to see a
student who has been with us for years walk in with a guitar from Sam
Ash that we have hanging on the wall for less money."
Highly personal customer service that cares more about the
student than his wallet will help, but perhaps complementary maintenance
for instruments purchased by students would command additional consideration.
Assuming all else is equal, what's more enticing than a year of seasonal
adjustments without making special trips?
However, the real value in offering lessons is not in "net"
profit but in "gross" contribution to the lives of aspiring
musicians. In doing so, the immediate health of the community and the
future quality of the industry are vastly improved. Music education means
smarter kids today and better music tomorrow, period.
Local "music store teachers" often have little
professional training as educators, and great players are not always great
teachers. While a college degree in music education may be preferable,
professional teaching experience should never be discounted. Knowledge
and communication skills are paramount and can be evaluated over a resume
and "coffee talk." Smith confirmed, "Nothing is more important
than good teachers because they are the best form of word of mouth. If
a student loves his teacher, he will tell his friends."
Those behind the counter also play active roles in student
development. As an 11 year old waiting for my lessons with Ratso (yes,
even his wife calls him that), I frequently listened to the long-haired
salesman named Robbie strum my favorite AC/DC tunes upon request. It was
inspiring, mostly because I wanted to be Angus Young (minus the schoolboy
uniform). I felt like everyone at Greenwich Music cared about me, and
most of them did. Ratso and Rob remain good friends of mine today.
If stores strike agreements with their teachers to conduct
"after school" programs for underprivileged individuals, the
gift to the community is even greater. Publicity for such programs is
nothing to shy away from. Local press enthusiastically covers small business
philanthropy. This free promotion may ultimately recoup any financial
investment and, best of all, will inspire others to participate or initiate
similar programs. It is a win-win situation.
While no one cringes during endless renditions of "Twinkle,
Twinkle" more than I, student recitals are vitally important. "From
an educational point of view, it is an essential tool in promoting self
confidence, self esteem, and commitment to one's art," agreed Smith.
A concise program, with each performer playing a single piece and an entertaining
emcee filling in the gaps, will turn a parental obligation into an enjoyable,
well-oiled musical event that would make Henry Ford proud.
It takes a great deal of pride to run a quality school,
and the savior for independent local music stores might just be in education.
Music retail was founded upon serving the arts. Without cultivating true
artists, the final product will no longer be worth serving.
Ravi tours the country performing original music and, as a consultant,
lecturing on ethics and marketing in the music industry. With professional
endorsements and business savvy, the former guitarist of three-time Grammy
nominee Hanson has released two albums independently. His autobiography
is published by Simon & Schuster.
Dream
Makers
TURNING MASS-MARKET CONSUMERS INTO EDUCATED CUSTOMERS
The
world is catering to the mass-market consumer, and recent trends in the
music instrument manufacturing and retail business support that claim.
While corporate acquisitions may demonstrate confidence in the industry,
the result almost always creates a greater distance between company executives
and product consumers, which is ultimately shortsighted for the future
health and integrity of the business. Fender is now available at Costco,
and Yamaha sells guitars at Wal-mart...isn't Wal-mart also currently the
top seller of prerecorded music? Hmm...artist endorsed products and artist's
CDs all sold under one roof...do you smell what I smell?
Britney at...Wal-mart! Bring the entire family, watch her perform, get
a Britney songbook and go home with her latest CDall free with the
purchase of a guitar and a Pepsi! What could be better? Who needs music
stores forcing tomorrow's pop stars to get a basic education about instruments
by asking: "What kind of music do you like?"
Perhaps only entry level guitars are currently available at mass-market
outlets, but how long will it be before the budding musician is asking
the Wal-mart sales associate how a Wilkinson tremolo system compares to
a Floyd Rose? I am sure the salesman (or saleswoman, depending on the
outcome of the current class action sex discrimination lawsuit) will walk
you through the differences. I looked at carpet steam cleaners recently
and asked the Wal-mart employee how the cleaning process works. He said:
"You plug it in and turn it on." What is even more distressing
is the possibility that future "commercially successful" guitar
players may not even care (or know) enough to ask!
Nobody can compete with Wal-mart, and nor should one want to. It's like
(actually, it "is") the United States. It won't be beaten by
the competitionthere isn't any. The only way it will go out of business
is by imploding from too much greed attempting to eliminate free market
commercialism. Regardless, music retailers can protect themselves and
create loyal customers by retailing with integrity.
Local involvement is key, and contributing to the cultural enrichment
of the community will prevail over volume discounts as customer service
continues to decline at the mass-market level. Opportunities to create
or support much needed music programs in schools and other youth oriented
institutions are plentiful. Such participation also conveys to kids and
parents that their local music store exists to help cultivate artistic
talent and service their needs. I'm not talking about trying to push electric
guitars onto 10 year olds, but rather, arousing their artistic inclinations
with accessibility to these "dream making" tools of our trade.
Perhaps the most amazing and influential moment of my childhood
occurred at Connecticut Music in Stamford, CT (in the days when parents
had time to take their kids to a music store), when I held an electric
guitar for the first time, thinking that this tobacco sunburst beauty
could one day be mine. Fortunately, Santa shopped locally that year. Now,
a generation later, that $75 Cort guitar hangs front and center in my
studio, original strings and all. Moreover, Connecticut Music remains
in business todaya different location, but the same dad and three
sons behind the counter! They remember my first chord as clearly as I
do...I learned it from Joe Jr.
Manufacturers must protect smaller dealers and recognize that the future
of instrument sales and brand loyalty lies in a quality product and an
educated sales force. Walking into a mega-store with gear stacked from
floor to ceiling can be intimidating. A knowledgeable sales associate
will help navigate through the sonic sea, but too often one hears: "I'll
have to check, I don't usually work in this department." With technology
becoming more complex and customers having less time these days to tinker
(we're all too busy being our own travel agents online), swift delivery
of expertise is essential to closing the deal.
The Internet also poses challenges and opportunities for traditional retailers.
Comparison shopping is easier than ever for the "penny wise"
consumer, but like an incredible concert, nothing replaces the live show.
Most people want to feel and hear an instrument before taking it home.
However, a mediocre customer service performance will surely entice your
audience to see who else is playing around the corner, and the number
of instrument retailers on the other end of a mouse makes Manhattan's
West 48th Street look barren. Online, the most personalized experience
will beat the "cyber" competition. I have a friend at SweetwaterI
know about his kid, ex-wife, gigs, and vacations. Yet, I could pass him
on the street without blinking an eye.
Art creation is a complicated business because true art is not created
by the masses. The influx of non-musicians having professional careers
in music may drive retail sales today, but what is it doing to the music
industry as a whole? If we allow the entire business to reduce itself
to the lowest common denominator, quality art will be further buried by
mass-market music. Small stores like Greenwich Music in Connecticut and
large manufacturers like Martin Guitars are demonstrating overall growth,
but who are most of their customers? If it is professionals and students,
great. I fear, however, that hobbyists are starting to climb the ranks.
There is nothing wrong with music as a hobby, but do you want your industry
to depend on disposable income? This doesn't mean that a jock shouldn't
own a guitar, but let him go into a music store and learn about the tools
with which music is created.
One can buy decent quality tennis equipment at most discount department
stores. The sports business has catered to weekend warriors for years
while also being a highly specialized professional industry. So, why shouldn't
instrument retail follow suit? Because mediocrity has heavily infiltrated
professional music. Society's artistic standards are being reduced to
what is commercially promoted, and what is commercially promoted is what
costs the least to produce. On the tennis court, you either win or lose.
Ravi tours the country performing original music and, as a consultant,
lecturing on ethics and marketing in the music industry. With professional
endorsements and business savvy, the former guitarist of three-time Grammy
nominee Hanson has released two albums independently. His autobiography
was published by Simon & Schuster.
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