April, 2013 - Music & Sound Retailer

4%3%2%1%0%-1%-2%Change in Retail Sales (Dollars) 2012 vs. 2011Acoustic Guitars +3.1%Source: MI SalesTrak®For further information contact: info@misalestrak.comElectric Guitars -1.2%Total Guitars +1.0%Ibanez and Ventura for the firsttime last year. “Ibanez has reallyhelped out our electric sales andVentura was the perfect choice tohelp increase sales with lowerpricedacoustics,” he stated. “Ican’t really pick any specificmodels that were hot sellers. Itwas more a matter of what guitarsoffered the best value and qualityfor the money. If the quality wasthere and the price was right, thename on the headstock wasn’t asimportant.”Overall, Monster Music’s BrianReardon was pleased with 2012guitar sales. But a natural disasterof epic proportions dramaticallyaffected register rings. “We wereup at least 20% year over yearfor every individual month fromJanuary through September, andthose same percentages held truefor guitar sales,” he said. “[But]for some reason, HurricaneSandy decided to pay us a visitand things changed on a dime.We were closed completely for afull week. Many of our customerslost homes and cars and/orwere without power for two tothree weeks. There was a nearlymonth-long shortage of gasoline.Suffice to say that people werenot lining up to buy guitars whenthey didn’t know where their nexttank of gas was coming from.Consequently, business in general,and guitar sales in particular,were very soft (down about 10%to 15%) straight through theholidays. It still proved to be anOK year on the whole, but with atruly disappointing finish.”As for acoustic versus electricsales, Corner Music’s Scott FMsaid acoustics sales were especiallystrong last year. “High-endGibsons were our top seller, butbasic and intermediate modelsdid well, too,” he said. “Overall,acoustic sales did better thanother departments [by a] two-toone[margin].”Reasons cited in the past forwhy acoustic sales have recentlyoutpaced those of electrics is acheaper price tag (acoustic playersdon’t need to buy an amp),a surplus of celebrities who playacoustic guitars and acousticsbeing easier to learn as a firstinstrument. Are those threeaspects still propelling sales?“It seems that whoever is inpopular music these days are eitherelectronic artists or acousticplayers,” noted Scott FM. “Thatcould be a factor. You also getinto acoustics more easily moneywisein these tough times.”Reardon saw acoustic guitarsales outpace those for electricsat his store, as well. Price was theone and only reason. “A customercan purchase a starter acousticfrom me for right around $100,whereas a basic starter electricpackage will run them twice that,”he said. “This ratio will hold truestraight up the ladder, as well.While this is, more than anythingelse, anecdotal, I just did a visualscan of the 250 or so guitars thatI have in stock. I would guessthe blended retail price point foran acoustic is $300, whereas theblended price point for an electricis north of $600. Obviously, thiswill vary based on the lines onecarries; but, at my shop, this pricedifferential has to factor in to theextent to which acoustics outpaceelectrics.”Tegeler had a slightly differenttake. “Acoustic sales still outpacedelectrics in 2012,” he said. “But,overall, electrics have done betterthan they have been in awhile. Asfar as why acoustics are still stronger,I think it has to do somewhatwith the overall cost factor. Butmostly because acoustic musicin general still seems to be verypopular in our area.”Nothing Like The PresentWill an improved economy in2013 lead to better times at MIstores? At Monster Music, 2013has been all about returning tonormal in the wake of HurricaneSandy. “While we are still dealingwith the aftermath of Sandy,I do finally feel we are back tonormal,” relayed Reardon. “Weare actually slightly ahead of lastFebruary, and February 2012was a very good month here. So,that’s an encouraging sign. AtMonster Music, we have focusedon developing relationships withguitar manufacturers and we’rereally trying to become known forrepresenting them.”For example, Monster Musicsteadily increased its supportfor Reverend Guitars. “They area small company, but are verywell respected among players,”Reardon stated. “We are their onlydealer on Long Island and hope tokeep it that way.”MUSIC & SOUND RETAILER 51