MS Retailer August 15, 2007 - Vol.24 No.8 - Music & Sound Retailer

less than that for a lesson, do themath. stipulate that ‘no refunds areoffered on the prepaid lessons’ oryou will ‘only provide a refund onlesson sessions after a 16-week initialminimum as the student needsto at least provide a good attempt atlearning the instrument.’ this putspressure on the parent to enforcethat their kid practices the instrumentand attends their lessonsfaithfully. You also make sure youlet them know you will set up theinstrument to play the best it canduring the lesson period and willperform scheduled maintenancesuch as string changes on a regularbasis as needed: monthly, etc.(which you charge the customerfor the strings, etc.). if you feel youcannot offer the instrument for free,offer it at one-third or one-half ofthe sellinG PRice of the massmerchant or chain store along withthe lesson program. this is how youcan take back the music businessfrom the mass merchants to whereit belongs, to folks like you whoare building players for a lifetimeof making music. if a manufacturercomplains about you sellinga guitar pack, drum set, etc., orthreatens to cut you off for sellingthem below MaP price, find a goodquality instrument, which there arenow many available, either a lesserknown or possible no-name brandto do this. at the end of the initial 26weeks of lessons, you may also offera trade-up deal to a better instrument/amp,etc. with an additionalprepaid 26 weeks of lessons. Getinventive in your marketing of yourstore and services! also, teach thestudent an easy song or two fromone of their musical heroes; it goesa long way in keeping their interestin continuing to play and a feelingof accomplishment. another thingindie Mi stores can do is promotemusicians. Hold musician meetingsessions on a weeknight orsaturday morning. sometimes kidswho want to form bands attenddifferent schools in the same townor in other nearby towns and it canbe hard to find band mates with thesame musical interests. When kidsform Bands, it becomes a sumof the parts, and they will keep uptheir interest in becoming seasonedskilled musicians. the band growsand their purchases grow for moregear of all types. along with thesemusician meeting sessions, holdperformances, jams in your stores,and parking lots and team up withyour local parks and recreation departmentto promote your store andthe local musicians in your area.”—Tom Concorde, FBT USA▼“independent retailers won’tbe successful if they try to copy thebig guys. they need to carefullyassess their own strengths (andweaknesses) and capitalize on thosestrengths. they can generally bemore agile than a chain and cantailor their product mix and effortstoward the local market. specialtyretailing implies specialty activities.consider offering services that thebig guys may not be able to offersuch as trade-ins, rentals, hometrials (with deposits as appropriate),service loaners, support of localmusic-oriented events, in-store clinics,and anything else you can thinkof. talk to your sales reps and askthem to share success stories fromother independent dealers. networkwith other independent dealers tofind what has and hasn’t worked forthem.”—Dean Standing, Rane▼“independent retailers cankeep pace with chain stores andmass marketers by evaluatingwhat works for these retailers andthen incorporating these conceptsinto their retail environment. Forexample, the overall appearanceof the store, layout and traffic flow,execution of product displays, use ofeffective graphics, background music,etc., are all elements that, whendone with excellence, can helpindependents better compete intheir market against larger retailers.Going beyond appearances, independentsshould consider the valueof e-commerce systems, inventorymanagement software, structuredsales training, and strategic salespromotions. after all, doing whatwas done 10 years ago in today’smarketplace will not work.also, retailers who are wellestablishedin a town or area canleverage existing relationships withlocal schools, churches, and clubs.accordingly, well-managed lessondepartments, band instrument rentalsand sheet music/instructionalmaterials can become profit centersfor independent retailers. theseideas, when combined, can helpindependents keep pace with chainsand mass marketers for both storetraffic and sales.”—Jack Hanser,Hanser Music Group▼“the best way for independentdealers to gain a competitiveedge against mass retailers is tobecome very good at the thingsmass retailers typically have problemswith. Personalized service bya knowledgeable staff is a key componentat differentiating your storefrom the big box down the street.encourage your sales staff to takethe time to get to know the nuancesof your product mix. Request thatmanufacturers assist you with trainingfor your staff and make surethe importance of customer serviceand satisfaction is stressed to youremployees. there is no substitutefor a satisfied customer. secondly,the independent retailers canhelp themselves by ensuring theirproduct mix includes a healthyselection of products that cannot bepurchased in large retail chains. Beon the lookout for brands that areexclusive to independent retailers(like Mapex drums). this will helpprevent price wars that can compromisecritical profit margins.lastly, build a strategy to encouragerepeat sales. When you sell adrum set or guitar, do whatever ittakes to makes sure the customercomes back to you for heads, hardware,strings or sheet music. Makesure you get contact information,so you can follow up and offer yourcustomers future opportunities foradd-on sales. Build a continuingrelationship with your customersand make sure they come to youfor that accessory in the future.they are your customers. it’s yourresponsibility to keep them.”—Jeff Ivester, Mapex▼“independent music dealerscan provide true consumeradded value by focusing onproviding well informed productinformation, clear and concise feature/benefitproduct comparisonsand delivering best-in-class in-storecustomer service.”—Peter Brinkman, Casio▼“independent dealers shouldstart by evaluating their business’strengths and weaknesses versusthe chain store. to do this theyshould consider becoming a secretshopper. Visit the chain store andassess their product offerings,sales expertise, product knowledge,and marketing acumen. thenthey should shop at their own storeand answer the same question.”—David Luster, GE Money▼“continue to service theireducational community andminimize their desire to expandoutside their respective communities.Present clinics, master classes,and workshops utilizing educators,artists, and employees supportedby their respective manufacturers.continue to offer parents an opportunityfor involvement. educatorsand parents are the industry’sgreatest allies.”—Bruce Silva,Buffet Crampon▼“identify your storestrengths and weaknesses. expandon strengths and improve weaknesses.Keep a close watch onyour competition. learn from yourobservations and strive to continuallyimprove. stay involved withcommunity, schools, the local musicscene, music ministries, soundcompanies, and other groups thatharbor customers. Join your localchamber of commerce and supportthe business community—theywill support you. advertise in localmusic scene publications. offer lessons,service, repairs, instrumentsetup and social programs. Haveclinics, appearances and socialactivities as much as possible. nobuzz equals no biz. Make sure tosend press releases to local pressabout events. Become part of a buyinggroup. discuss your challenges,plans, and opportunities withvendors. ask for specific strategiesfrom vendors to help with thosechallenges, plans, and opportunities.Revise your strategy at leasttwice per year. and have fun; that’swhat originally interested you inthe music business.”—Bill Wenzloff, SoundEnhancement Products▼“independent dealers need toaccess their competitive advantagevs. chain and mass market retailersand exploit those differences ina way that builds a loyal base ofcustomers. they cannot attemptto compete on the same level asthe other two as this won’t provide20 auGust 2007