April, 2013 - Music & Sound Retailer

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