"Ravi on Record"
formerly called "PURE PROFIT by
Ravi"
Reprinted on www.HeyRavi.com
with permission of the publisher, The
Music & Sound Retailer
Copyright 2004-2007
December 2006
'Tis the Season to be Jolly
November 2006
Taking it to the Streets
October 2006
Endorse This!
September 2006
Pleasantly Surprised
August 2006
Musical Lifestyles
July 2006
Objects of Desire
June 2006
Act 2 (part 2 of 2)
May 2006
Act 1 (part 1 of 2)
April 2006
Tax-i
March 2006
Nammification
February 2006
Lasting Impressions
January 2006
Teaching Values
December 2005
What's My Line?
November 2005
Home for the Holidays
October 2005
After School Employees
September 2005
Indy Industry!
August 2005
Happy Anniversary!
July 2005
Putting Your Business on the MAP
June 2005
Brand-Aid
May 2005
Paving Your Information Superdriveway
April 2005
Come Together, Right Now...
March 2005
Old McDonald
February 2005
Let's Get Clinical
January 2005
Listen Up!
December 2004
Pa Rum Pum Pum Pum
November 2004
Sex Sells
October 2004
A Little Romance Goes A Long Way
September 2004
A School of Thought
August 2004
Dream Makers: Turning Mass Market Consumers into Educated Customers
|
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." 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. 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.
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. 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.
"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.
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 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 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. 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.
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.
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.
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.
To be or not to be? "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 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 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.
"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 "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 "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 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.
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 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 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 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.
First Impression Inquiring Minds 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 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.
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.
Line up 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 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 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.
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 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 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 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.
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 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 "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.
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 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 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.
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? 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 |