April, 2013 - Music & Sound Retailer

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Although Nashville has had itsfair share of natural disasters, includinga devastating flood in 2010,Corner Music is not currentlyfacing the same issues as MonsterMusic has been. According toScott FM, guitar sales at CornerMusic are on upswing thus far in2013. The Nashville store had asolid 2011, which was bested by anexcellent 2012. And the AcousticManager told The Retailer heexpects an even better 2013.When The Retailer contactedTegeler, he understandablypointed out it was a bit too earlyto get a great feel for where 2013was going in terms of guitar sales.Thus far, he said, 2013 overallsales at Tegeler Music havebeen “steady and much moreconsistent. We’re not seeing thepeaks and valleys that we saw lastyear. The roller coaster ride thatconsumer confidence took lastyear didn’t help anyone, in myopinion.”Regarding guitars, Tegeleracknowledged 2013 sales are abit soft, but for a positive reason.“We had a better-than-expectedDecember in the guitar department,”he said. “[Therefore], ourinventory levels have been unusuallylow and we are just now startingto receive all of the NAMMre-orders. The good news is wedo have a number of customerswho are anxious to see all thenew guitars that were ordered atthe show, and I expect a numbermicro pedals, macro sound100%90%80%100%70%90%60%80%50%70%40%60%30%50%20%40%10%30%0%20%10%100%90%80%100%70%90%60%80%50%70%40%60%30%50%20%40%10%30%0%20%MI SalesTrakMI SalesTrak0%10%Jan '12 Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan '13Jan '12 Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan '13Jan '12 Feb May June July Aug Sept Dec Mar Apr Oct Nov Jan '13Amber 1.1 1.0 1.2 1.4 1.2 1.4 1.2 1.2 1.1 0.9 0.9 0.8 1.0Black 29.9 28.6 27.8 27.3 27.8 28.4 28.3 27.2 28.4 27.7 34.7 30.2 28.6Blonde 2.2 2.1 2.5 2.6 2.6 2.2 2.2 2.4 2.3 2.5 1.8 2.2 2.2Blue 5.6 6.6 5.8 5.7 5.0 6.1 5.7 5.5 5.7 5.4 4.8 5.0 4.6Brown Jan 2.1'12 Feb 2.1 Mar 2.0 Apr 2.6 May 2.2 June 2.2 July 1.9 Aug 2.1 Sept 2.1 Oct 2.1 Nov 1.7 Dec 1.6 Jan 2.9'13BurgundyAmber3.21.13.41.03.61.22.81.42.61.22.61.42.51.22.31.22.71.12.60.92.00.91.90.82.41.0BlackGold29.91.428.61.327.81.527.31.627.81.628.41.528.31.527.21.428.41.327.71.734.71.330.20.928.61.2Gray/SilverBlonde2.72.22.92.12.62.52.52.62.32.62.52.22.62.22.42.42.12.32.22.52.31.81.82.22.62.2GreenBlue 5.60.6 0.96.60.95.80.95.70.95.01.06.11.15.71.15.50.95.71.25.40.84.80.75.01.14.6NaturalBrown3.12.12.92.13.02.03.42.63.42.22.82.23.11.93.32.13.22.13.02.12.21.71.81.62.92.9BurgundyOrange 1.03.20.93.40.93.60.82.81.02.60.72.60.92.50.82.30.72.70.72.60.82.01.21.90.82.4OtherGold 1.43.3 3.91.33.81.54.11.64.31.64.01.54.11.54.41.44.81.34.61.74.61.35.90.94.01.2Gray/SilverRed 14.42.713.62.913.72.613.12.514.32.312.72.512.42.612.22.414.02.113.32.213.12.314.71.814.12.6SunburstGreen21.50.621.20.922.50.923.50.923.20.922.91.022.71.123.71.122.50.924.11.222.50.823.50.723.41.1NaturalWhite 8.03.18.32.98.33.07.63.47.33.49.02.89.63.110.23.38.23.28.13.06.62.27.81.88.32.9Orange 1.0 0.9 0.9 0.8 1.0 0.7 0.9 0.8 0.7 0.7 0.8 1.2 0.8Other 3.3 3.9 3.8 4.1 4.3 4.0 4.1 4.4 4.8 4.6 4.6 5.9 4.0Red 14.4 13.6 13.7 13.1 14.3 12.7 12.4 12.2 14.0 13.3 13.1 14.7 14.1Sunburst 21.5 Copyright 21.2 22.5 © 2013 Marketing 23.5 23.2 Information 22.9Services, 22.7Inc. All 23.7 Rights Reserved. 22.5 24.1 22.5 23.5 23.4White 8.0 8.3 8.3 7.6 7.3 9.0 9.6 10.2 8.2 8.1 6.6 7.8 8.3MI SalesTrakMI SalesTrak0%Copyright © 2013 Marketing Information Services, Inc. All Rights Reserved.Jan '12 Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan '13Jan '12 Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan '13Jan '12 Feb May June July Aug Sept Nov Dec Mar Apr Oct Jan '13Amber 0.5 0.6 0.7 0.5 0.6 0.6 0.6 0.5 0.5 0.5 0.7 0.4 1.0Black 11.7 12.9 12.0 12.6 10.6 10.3 10.5 9.4 9.1 9.1 10.0 10.5 9.1Blonde 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Blue 1.6 1.6 1.7 1.3 1.5 1.4 1.8 1.5 1.8 1.6 1.4 1.4 1.4Brown Jan 0.9'12 Feb 0.8 Mar 1.0 Apr 0.8 May 0.8 June 0.7 July 0.9 Aug 0.7 Sept 0.6 Oct 0.7 Nov 0.6 Dec 0.6 Jan 0.8'13Burgundy Amber 0.1 0.5 0.2 0.6 0.2 0.7 0.2 0.5 0.2 0.6 0.2 0.6 0.2 0.6 0.2 0.5 0.3 0.5 0.1 0.5 0.2 0.7 0.1 0.4 0.2 1.0Black Gold 11.7 12.9 12.0 12.6 10.6 10.3 0.0 10.5 0.0 0.0 9.4 0.0 9.1 9.1 10.0 10.5 0.0 9.1Gray/Silver Blonde 0.0 0.1 0.1 0.0 0.1 0.0 0.2 0.0 0.2 0.0 0.2 0.0 0.1 0.0 0.1 0.0 0.1 0.0 0.1 0.0 0.1 0.0 0.0 0.1 0.0Green Blue 0.1 1.6 0.1 1.6 0.1 1.7 0.1 1.3 0.1 1.5 0.1 1.4 0.1 1.8 0.1 1.5 0.1 1.8 0.1 1.6 0.1 1.4 0.1 1.4 0.1 1.4Natural Brown 71.4 0.9 69.1 0.8 69.6 1.0 70.4 0.8 72.5 0.8 72.0 0.7 70.6 0.9 73.7 0.7 73.2 0.6 73.4 0.7 72.6 0.6 72.7 0.6 73.8 0.8Burgundy Orange 0.2 0.1 0.2 0.2 0.2 0.3 0.2 0.2 0.1 0.2 0.2 0.2 0.3 0.2 0.1 0.1 0.2 0.1 0.2Other Gold 1.0 0.9 0.9 1.0 0.8 0.8 0.0 1.0 0.0 0.8 0.0 0.9 0.0 1.3 1.2 1.2 0.0 0.9Gray/Silver Red 1.5 0.1 1.3 0.1 1.3 0.1 1.1 0.2 1.1 0.2 1.2 0.2 1.3 0.1 1.2 0.1 0.9 0.1 1.1 0.1 1.1 0.1 1.0 0.0 1.1 0.1Sunburst Green 10.8 0.1 11.9 0.1 12.1 0.1 11.3 0.1 11.2 0.1 12.3 0.1 12.8 0.1 11.5 0.1 12.1 0.1 11.7 0.1 11.7 0.1 11.5 0.1 11.3 0.1Natural White 71.4 0.2 69.1 0.3 69.6 0.2 70.4 0.2 72.5 0.1 72.0 0.1 70.6 0.2 73.7 0.1 73.2 0.2 73.4 0.1 72.6 0.2 72.7 0.1 73.8 0.1Orange 0.2 0.2 0.2 0.2 0.3 0.2 0.1 0.2 0.2 0.2 0.1 0.1 0.2Other 1.0 0.9 0.9 1.0 0.8 0.8 1.0 0.8 0.9 1.3 1.2 1.2 0.9Red 1.5 1.3 1.3 1.1 1.1 1.2 1.3 1.2 0.9 1.1 1.1 1.0 1.1Sunburst 10.8 Copyright 11.9 12.1 © 2013 Marketing 11.3 11.2 Information 12.3Services, 12.8Inc. All 11.5 Rights Reserved. 12.1 11.7 11.7 11.5 11.3White 0.2 0.3 0.2 0.2 0.1 0.1 0.2 0.1 0.2 0.1 0.2 0.1 0.1Electric GuitarsColor Trend - Unit ShareElectric GuitarsJanuary 2013Color Trend - Unit ShareJanuary 2013AmberBlackBlondeBlueBrownBurgundy AmberGold BlackGray/Silver BlondeGreen BlueNatural BrownOrange BurgundyOther GoldRed Gray/SilverSunburst GreenWhite NaturalOrangeOtherRedSunburstWhiteAcoustic GuitarsColor Trend - Unit ShareAcoustic GuitarsJanuary 2013Color Trend - Unit ShareJanuary 2013AmberBlackBlondeBlueBrown AmberBurgundy BlackGold BlondeGray/Silver BlueGreen BrownNatural BurgundyOrange GoldOther Gray/SilverRed GreenSunburst NaturalWhite OrangeOtherRedSunburstWhitewww.OSIAMO.comof them won’t be hanging on thewall for very long.”Two ways to help make 2013a banner year for in-store guitarsales are new products—likelyintroduced at January’s NAMMshow—as well as in-store promotions.Retailers agreed thatthis year’s Anaheim show didn’tproduce “must-have” guitars thatevery consumer would assuredlysalivate over. However, manyexcellent guitar products werelaunched that MI dealers believethey can sell.For example, Tegeler gave alot of credit to Ibanez “for alwayscoming up with something newand interesting, like its 30-fretguitar. The guitar for players whoreally like high notes,” he said.“Breedlove has a new mid-levelAmerican guitar made of myrtlewood that’s pretty nice,” addedScott FM. “Gibson put out anaffordable model of a J35 that I’mlooking forward to, as well.”Two companies really caughtReardon’s eye at NAMM. “ESPGuitars launched a new line,the LTD Elite series, which areproduced in Japan—by their famedluthiers—but at a considerablylower price than their ESP-brandedguitars,” Reardon recalled. “I wasamazed at the quality and thelook. And despite a price pointthat might be a challenge to sellCopyright © 2013 Marketing Information Services, Inc. All Rights Reserved.($1,399 MAP), I think I’ll have anice market for them. Reverendintroduced several new modelsfor the metal market—the Bayonetwas my favorite—and I had acouple sold before I even returnedfrom NAMM.”Switching gears to in-store promotions,Tegeler acknowledgedhis store was overdue to host one.“We plan to do more artist clinicsand master classes this year, mostlybecause it creates a great senseof camaraderie between our storeand the entire music communityin our area,” he said. “We focus alot on supporting our communityin general, but also supporting livemusic in any way we can. As far52 APRIL 2013
as a sales promotion that workswell for us, we hold a ‘Guitar fora Penny’ promotion every year orso. The sale is structured so thatwhen a customer buys two guitarsat once, they actually can get oneof them for a penny. It is one ofthe most fun sales events we do.”Reardon concluded saying thathe loves hosting in-store guitarpromotions. “We do an openhouse for a particular guitar line,”he said. “We hold it after hours ona Saturday night…make it exclusive.You must RSVP and ‘get onthe list.’ I’ll buy them some wineand have live music entertainmentas a treat for them, but themain focus is to get guitars into[customers’] hands. We have 13lesson rooms, and we turn eachone into a demo room for a particularmodel guitar. People beginto ‘fall’ for a particular guitar oncethey hold it and play it, whichis why our guitar open housesresult in so many sales. Many ofthe sales, however, [come from]people who return in the daysand weeks after the open houseto have a second and third ‘date’with their guitar before they bringher home.”UNDER THE HOOD(continued from page 54)development of new products,saying that the company countson them for their opinions andvaluable insight.To its credit, PRS Guitars hasshown an unyielding dedicationto the music products dealerchannel, ensuring that customerspurchase its products froman authorized partner retailer.This, of course, will hold true forthe 2-Channel Custom, as well.“A few weeks before NAMM,”Clark began, “we ‘soft-launched’these amplifiers with videosthat touched on both designand demonstration. They werethen officially launched at theNAMM show and are rolling outto dealers now.” Advertising, hesaid, is picking up this spring toraise product awareness as thecompany starts to ship largerquantities.The amps are available now.The respective MSRPs are as follows:2-Channel Custom 50 head:$1,999; 2-Channel Custom 1x12Combo: $2,145; and 2-ChannelCustom 100 head: $2,145.RENTAL PROGRAMS: A COMPELLING VALUE PROPOSITION(continued from page 36)people are willing to pay morefor that.” In short, a lighting systemthat costs, say, $200 to rentcould result in the gig paying outan additional $350.The second factor drivingdemand for lighting rentals relatesto mobile lighting systems’technological evolution, whichenables bands or DJs rentinglights to see their performancesimmediately enhanced. “Becauseof the advance of LED technology,there’s so much moreyou can do with lighting now,”Dowdle enthused. Many of themost advanced lights are bestused in multiples of three or four.“So, now, you have four movingheads that can be synchronizedtogether, and you’re creating asystem. That’s a bigger investment,”he continued. As a result,greater trepidation could existabout making the initial leap.That, once again, is why rentingrepresents a uniquely goodoption in this case. It allowsperformers to “dip their toes inthe water” to see what lightingcan offer, without having to makea sizeable initial cash outlay. Additionally,because the products’technological advancement hasbeen concurrent with a boost inreliability and robustness, theyare better suited than ever beforeto the rigors of week-in-and-weekoutrentals. (And finally, sincesome MI stores—typically thosewith a traditional bent—evennow remain hesitant to branchout into lighting, starting a rentalprogram would also give thosestores a chance to “test thewaters” without having to makea big inventory investment at theoutset.)This much is clear: Whetherwe’re talking sound systemsor lighting packages, retailersthat aren’t capitalizing on theemerging rental trend are leavingmoney on the table. Marshallemphasized that rentals offerthe chance to put higher-value,better products in your customers’hands than they mayotherwise be able to afford; andrental programs, he said, can bea pipeline to eventual sales. “Weencourage our dealers to turnover their rental fleet on a regularbasis, and the best way to dothat is to sell rental products outof their fleet,” Marshall stated.“The used rental inventorybeing sold…creates incrediblesales opportunities that wouldn’thave existed otherwise.” Rentalprograms allow manufacturersto prove their products are justas desirable, reliable and greatperforming as advertising indicates,building brand loyalty thatcan lead not only to one sale but,perhaps, to a lifetime’s worth.Rental programs presentbrick-and-mortar music productretailers with a continuing profitcenter as well as an obvious legupon Internet competitors thataren’t equipped to hook people upweek in and week out, gig aftergig, with exactly the sound (orlighting) system they need. Theycreate a greater flow of foot traffic,204facilitating regular customer visitsto stores’ physical locations. And,since all rental arrangements arebuilt upon trust—the renter willtake care of the product and bringit back—they open the door forthe one-to-one, personal relationship-buildingat which independentmusic store owners excel.Long summed things up, saying,“Although there are some dealersfor whom the rental business is nota good fit, it can usually be madeto work for almost all dealers, ifthey are…prepared to put in thenecessary time and effort.”When the reward is as lucrativeas the one presented by rentalprograms, it’s something noretailer should dismiss.MUSIC & SOUND RETAILER 53
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April, 2013 - Music & Sound Retailer

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