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

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(continued from page 21)that only works with the Internet,and a third sales force that workssolely with independent dealers.That’s because the business modelsof these three main areas of our existingbusiness are totally different.We have divided and conquered theexisting distribution channels andwill continue to do so if the distributionchannels alter.”—Greg Batusic, Line 6▼“There potentially could besome changes. What will probablyhappen is we will diversify better soour eggs are in more baskets. Asfar as sales focus goes, Kyser’s bigproduct is the six-string capo, whichis in upwards of 80 percent of themarket. Partial capos are going tobe the backbone of the next decade.There are five companies makingpartial capos now and we knowthere will be more coming sincecompanies have already announcedit. So for us, it’s about re-winning thepartial capo all over again.”—Randall Williams, Kyser<strong>Music</strong>al Products▼“You have to go where yourcustomers are and where themarket is going. If anything, we maystart offering different models to themass retailers and independents.Certain products are well suited forthe mass retailer and others are not.We can offer perhaps more customizableproducts for independents.We have to do business across theboard—chains and independents—to keep our company growing.”—Larry Fishman, FishmanTransducers▼“E-commerce has becomea very important element of ourdistribution. When I say e-commerce,I mean providing physicalgoods to retailers on the Web. AtHal Leonard, we’ve made tremendousfinancial investments in thelast five years in building systemsto better accommodate e-commerceaccounts. E-commerce accountstypically want one or two items veryquickly, so it’s a different kind of‘picking’ cycle in a warehouse thana traditional larger order that wouldgo to a physical retail location. Wesee more and more dealers going inthat direction. Perhaps that’s evenmore important to those of us inthe music media side of the world(books and DVDs), because theyPaul Foschinolend themselves so well to e-commerce.A second issue is a hardcorefundamental of music retail: just-intimeinventory. No one talks aboutit anymore. But the reality is it haschanged dramatically and now isexpected. We’ve been changing ourinventory systems to move fasterand be able to ship smaller ordersmore frequently opposed to largerorders more efficiently.”—Larry Morton,Hal Leonard▼“We already have. In what hasbeen historically a fairly static musicretail and distribution channel, therehas been a significant amount ofchange in the past few years. Myguess is it will continue to changeand evolve, and it could go a numberof different ways. Obviously, anyadditional shifts on our part will bebased on the pace and path of thisevolution. Our business has beenbuilt on support from independentdealers, and that will continue tostay important to us.”—Steve Young,Elixir Strings▼“The only constant is change.It’s very difficult to say if there willbe major catastrophic changes. Isee things changing but I don’t seeany specific trends. We will have toadapt to those changes.”—Daryl McCain,Antigua Winds▼“Of course, we don’t have acrystal ball, but Hohner Incorporated’sfocus in the foreseeable focusis on developing our core brandsand moving away from what I callthe ‘jobber/distributor mentality.’The role of distributors is changingrapidly due to the Internet and otherfactors.”—Rick Gagliano, Hohner▼“More so than ever, I think anopportunity exists for the ‘click-andmortar’dealers and for manufacturersand distributors to serve thatTim Dorwartsector. We are really harnessing thatenvironment where consumers areshopping and learning a lot aboutthe products. Instead of turning itover, we are looking for solutions tofacilitate those sales, but at the sametime, we are including independentdealers. Later this year, we will beintroducing a program that allowsconsumers to purchase products onour Web site and the independentretailer closest to the customerhandles the sale.”—TJ Baden,Baden Guitars▼“We’ve already been undergoinga change in the last year anda-half…In these times, we have totake destiny into our hands. Onething we decided was instead ofcontinuing to put out developmentalmoney to come up with newproducts under the D’Andrea andSnarling Dogs banners, we partneredwith smaller niche brandssuch as Rebel Straps and Ice Pixand we distribute those brands, aswell as our products, to dealers. Inthe last six months, our stated goalhas been to become the largestsmall distributor.”—Fred DiTomasso,D’Andrea Inc.▼“Currently there is a consumershift to more and more onlinebuying. We have already startedworking closely with dealers whowant to make sure the Mel Bay lineis well represented and user friendlyon their Internet site. We highlyvalue the relationships our road repsand telemarketers have with theirretail accounts. We try to provideincredible information and service toour accounts and this requires us tohire very carefully for these positions.So the brick-andmortar storesare still very important to us and willcontinue to be. It is our job to makesure our product works for them. Wehave so many niches in our line thatwe can craft a music department justright for any store.”—Bill Bay, Mel Bay▼“I’m seeing shifts now, andthe shifts are upward. I’ve seen a60 percent increase in our dealerproduct this year and a 20 percentincrease in our direct product. Ihave needed to look for additionalvendors. The dealers are feedingour increase. I think dealers aremaking moves that make moresense for them. I believe dealersare starting to find new niches.”—John Fabian,Carter Steel Guitars▼“A shift that everyone iseither enjoying or struggling with isrevenues being generated over theWeb as opposed to brick-and-mortarstores. Many brick-and-mortarplayers have found a way to get onthe Web themselves. I don’t seethat going away. We need to havethe right interaction level with boththe Internet and the brick-and-mortarstore so we provide the rightservice level to the customer. Thecustomer wants to shop in whateverway is convenient for them. Somewant to shop at 2 a.m. online. Some,like me, prefer to walk into a storeand touch the product. We don’t seea shift, but we want to make surewe have a balance in working withboth types of resellers.”—Tim Dorwart, Stanton▼“What I’m seeing is manysystem designers and contractorsthat are working locally to install audiovideo systems in churches andschools are going to music storesto acquire the products. Many [MI]stores are being asked to providemore and a broader assortment ofpro audio equipment.”—Paul Foschino, Sony▼“Well, there are only twoand a-half years left in the decade,so I don’t think we’ll see any reallyradical shifts, but what we will seeis the continuing expansion of theInternet as an information sourceabout products and a means to purchasethem. In terms of UniversalAudio, you’ll see continuing movementtoward the desktop in bothour analog and digital products. Wehave some very interesting ideasabout other ways we can bring oldworld analog quality to desktopaudio systems.”—Matt Ward,Universal Audio42 AUGUST <strong>2007</strong>
dJ(continued from cover)Another selling point: Intoday’s fast-lane society, peoplewant to learn instruments quickly.While it takes several months,if not years, to learn some instruments,the learning curve is oftenfaster for DJs. “I think that assessmentis 100 percent dead on,”said Russell Brown, president ofOrtofon. “Even more so, as technologychanges, it becomes eveneasier. I have always tried to educatedealers about both points.Many dealers have complainedto me that 16-year-old kids withhats turned sideways walk intotheir stores, try out all of the DJequipment, and buy nothing. Butyou often have 35-year-old mobileDJs walking into stores, [who areinterested in purchasing products].“I’ve researched it,” he added.“There’s no official data, but Iguarantee you there are moreworking mobile DJs supportingtheir families than guitar playerssupporting their families.The amazing thing is, no oneaddresses these people. Nobodysells to them. I also would like tosee NAMM address this categorymore. In its reports, wireless,speakers, and power amps arelisted, but we don’t know howmany speakers were sold to mobileDJs. DJ mixers, turntables,and CD players are not the onlyDJ products.”“I absolutely agree with that[learning curve] assessment,”responded Jim Mazur, director ofproduct management at StantonDJ. “That’s the reason why a lotof people get into DJing. It’s avalue proposition. You can evenbe a DJ who doesn’t have greatmixing skills and still get a gig aweek out, as opposed to a guitaristwho is still trying to get an artform down. The barrier to entryin the DJ market is certainly a lotlower.”“I agree,” added Jim Tremayne,editor of DJ Times magazine.“The reason DJs—especiallymobile DJs—may be a bettercustomer than ‘the traditional musician’is because of the potentialof repeat business. Many, manymobile DJs have more than onelighting system, more than oneDJ rig. Many of them are also inthe market to expand. They needbig PAs for larger events andbasic PAs for smaller ones. Also,DJs of all stripes tend to be techheads,so many of them ‘haveto have’ the latest and greatesttechnology.“Also, when you’re talkingabout DJ gear, you’re not justtalking about CD players or turntables,”he added. “You’re talkinga wide range of products—speakers,amps, lights, accessories likecases, signal processing, MIDIcontrollers, DJ software, etc.And retailers shouldn’t forgetthe different niches of the DJmarket—club jock, mobile DJ,Drum upBusiness withbedroom/beginner, and upstartstudio owner. Whether they’replaying clubs or weddings, DJsare becoming more and moreadept at making music. So thatmeans, when you’re qualifying aDJ-customer, don’t forget to askif they’re producing and remixing.That means sales for studiosoftware, studio monitors, cables,studio hardware, etc.”However, Joe Fucini, spokespersonfor American DJ andAmerican Audio, had a differentperspective. “I think there aremany more similarities thandifferences between your DJ customerand musician customer,”said Fucini. “Both have dreams,and both aspire to express themselvesthrough music. In eithercase, the idea of ‘making it big’isn’t the main motivator. Sure, everyDJ and musician would like toreach the top of their respectiveworlds, but it’s the creative juicesthat keep them going; they’rehooked on the idea of entertain-Think your store hasthe local school musicbusiness covered? Whatabout the “other” school market—the students, teachers, and parentsoutside the band room? Tap into thismassive pool of potential customers bybecoming a Roots of Rhythm partnerand team up with schools and teachersin your community to help educate awhole new generation of drummers.The Percussion Marketing Council isnow actively seeking music dealers tojoin the Roots of Rhythm program. Thereis no cost or obligation to participate,just a voluntary system for forwardthinkingdealers to more effectively offertheir stores and expertise as a resourcefor classroom teachers—and a land ofdiscovery for students!A dealer activity guide, promotionalmaterials, and an online teacher /dealerdatabase registration now available atwww.rootsofrhythm.netGive your drum sales a bang!Register today at www.rootsofrhythm.netMUSIC & SOUND RETAILER 43
Page 1: SPECIAL ISSUE: DJ & LIGHTINGaUGUst
Page 4 and 5: VOLUME 24 NO. 8InsideF E AT U R E S
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MS Retailer August 15, 2007 - Vol.24 No.8 - Music & Sound Retailer

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