"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


'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.


Taking It To The Streets

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.


Musical Lifestyles

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