Download - Music Inc. Magazine

100 Pages·2011·13.26 MB·English

SUPPLIERS SEEK GROWTH OUTSIDE THE MI INDUSTRY PAGE 25

SUPPLIERS SEEK GROWTH OUTSIDE MUSIC PRODUCTS INDUSTRY PAGE 25
M
u
s
ic
in
c
.
MMAAYY 22001111 II MMUUSSIICCIINNCCMMAAGG..CCOOMM
THE The
SEVEN
J
O
H
N
NEW M
IC
H
A
E
L
’s
M MOST IMPORTANT
U
s
IC
E-TALITY AND sOUND PRODUCT ABswmeainltelhsdr i’rvscei anCtnrtooa Gr gryueo Li-mtiaanakrsn ep&ci reed
b I T TRENDS guitars
H
E
s
O
Nathan Nguyen of Instrumental Savings U
R
C
on changing the rules of school music retail E 2
0
1
1 of 2011 John Michael’s
PAGE 30 I P
RIN Music and Sound’s
T
RE Event Marketing
T
A
IL T b The iRevolution PAGE 44 {PAGE 14}
R
E
N
D b The Retro Resurgence PAGE 48
s Print Retailers Adapt
b All-in-One Amps PAGE 52 to Market Challenges
b The Tuner Explosion PAGE 56 {PAGE 98}
b Digital Wireless Comes of Age PAGE 60
b The Hobbyist DJ PAGE 64
b Investment-Worthy Print PAGE 68
M
A
Y
2
0
1
1
b Breaking Gear Trends PAGE 38
b Show Floor News PAGE 50
b ‘Best In Show’ Report PAGE 54
b The Top 50 Products PAGE 57
{PAGE 14}
Print Retailers Adapt to Market Challenges {PAGE 98}

MAY 2011 i Vol. 22, No. 4
PUBliSHER
Frank Alkyer
EDiToR
Zach Phillips
ASSociATE EDiToR
Katie Kailus
coNTRiBUTiNG EDiToRS
Bobby Reed, Aaron Cohen
WEST coAST coRRESPoNDENT
Sara Farr
ADVERTiSiNG SAlES MANAGER
John Cahill
WESTERN AccoUNT EXEcUTiVE
Tom Burns
clASSifiED AD SAlES
Sue Mahal
ART DiREcToR
Andy Williams
coNTRiBUTiNG DESiGNER
Ara Tirado
ciRcUlATioN MANAGER
Maureen Flaherty
BooKKEEPiNG
Margaret Stevens
iNTERN
Hilary Brown
PRESiDENT
Kevin Maher
officES
Ph [phone] • Fax [phone]
e-mail: [email protected]
cUSToMER SERVicE
[phone]
Jack Maher, President 1970-2003
SUBSCRIPTION RATES: $50 one year (11 issues). $90
two years (22 issues) to U.S.A. addresses. $75 one
year (11 issues), $140 two years (22 issues) to Canada
and other foreign countries. Air mail delivery at cost.
SINGLE COPY (and back issues, limited supply): $9.95
to any address, surface mail. Air mail delivery at cost.
We cannot be responsible for unsolicited manuscripts
and photos. Nothing may be reprinted in whole or in part
without written permission from Maher Publications Inc.
Copyright 2011 by Maher Publications Inc., all for-
eign rights reserved. Trademark register pending.
OTHER MAHER PUBLICATIONS:
DownBeat, UpBeat Daily
CHANGE OF ADDRESS: Please allow six weeks for your
change to become effective. When notifying us of your
new address, include your current MUSIC INC. label
showing your old address. MUSIC INC. (ISSN 1050-1681)
Published monthly, except April. Printed in U.S.A.
by Maher Publications Inc. 102 N. Haven, Elm-
hurst, IL 60126-2932. Periodical Postage Paid at
Elmhurst, IL and at additional mailing offices.
POSTMASTER: Send address changes to MUSIC
INC., P.O. Box 11688, St. Paul, MN 55111-0688
2008 2008
4 I MUSIC INC. I MAY 2011

May 2011
TheSource2011
Cory Lake
Music Inc. delves into seven trending
product segments that are energiz-
ing music retailers, boosting profits
and, in some cases, changing the
very face of the music industry.
44 i THE iREVolUTioN
48 i THE RETRo RESURGENcE
52 i EVERYTHiNG AMPS
56 i AlMiGHTY TUNERS
60 i DiGiTAl WiRElESS
43 64 i THE HoBBYiST DJ
68 i PRiNT’S BEST-SEllERS
Photo by Travis Anderson May 2011
74 i PRiNT & MUlTiMEDiA 14 i PRofilES 33 i iNDEPENDENT RETAil
X John Michael’s Music and Sound nabs local headlines X Eschliman advocates solution-selling
78 i GUiTARS, AMPS & AccESSoRiES
X A walk through PM Music Center’s new facility
82 i AUDio & REcoRDiNG
18 i NEWS 34 i THE cUSToMER WHiSPERER
86 i DRUMS & PERcUSSioN X GC opens in Sarasota, Fla. X Billings shares six questions to ask your-
self when considering new brands
X Daddy’s moves Dedham, Mass., store
88 i PiANoS & KEYBoARDS
90 i BAND & oRcHESTRA 36 i THE RETAil DocToR
92 i DJ & liGHTiNG X Cuthrell on straightening out new hires
38 i THE lESSoN RooM
25 i PRofilE
ASK THE X Manufacturers expand to markets outside of MI X Gamber on keeping your music lessons pro-
RETAILER gram competitive against GC, Sam Ash
26 i NEWS
98 i ASK THE RETAilER
X Suppliers report minimal damage after Japan quake 40 i lESSoNS lEARNED
X Dealers adapt to changes in the print music industry X Levy’s fights alleged Chinese trademark violators X Rosenbloom looks at creating your next cash cow
6 I MUSIC INC. I MAY 2011 Cover photo by Travis Anderson

PERSPEcTiVE i BY ZAcH PHilliPS
No Fear & LoaThiNg
iN LouiSviLLe, Ky.
G
uitar Center’s officially out of hibernation. Its latest coup? A
new location in Sarasota, Fla., with a full-fledged music lessons
program. (See page 18.) It’s the mega retailer’s second store to
feature an education department, and it won’t be the last. Inde-
pendent retailers steeped in music lessons are under siege. Right?
Not in Louisville, Ky.
You’ll remember that’s where GC rolled out its first retail-based lessons
program in late January. The move drew a collective
gasp from independent retailers across the industry.
And yet, nearly three months in, it looks as if indies
still have the upper hand.
Mom’s Music is one of these Louisville indies. A
full-line dealership with 500 students weekly, Mom’s
actually saw a rise in lesson enrollment since GC
came to town, according to owner Max Maxwell. He
added that GC’s local advertising yielded a surge of
new customers at his store. And that’s not changing.
“We seem to be busier since they’ve moved in,”
Maxwell said. “From the first weekend until now,
we’ve been busier.”
Mind you, Mom’s is working to drive that business.
It launched a new website in March that features
links to YouTube teacher videos. The site came at a considerable cost, and
guess where Maxwell turned for funds?
“We ask the teachers to give back a few dollars of what they make per student
for a month to help with that,” he said. “And they’ve been amazing about it.
“Folks have been e-mailing us, saying, ‘What’s the availability of this guy?
I really want to take from this person.’ That’s been a huge, huge push for us.”
Maxwell said involving teachers in promoting lessons, even when it means
charging them, has kept morale high. “They always feel like they’re part of
what we’re doing here and they’re not just the hired teacher.”
Mom’s isn’t an isolated example. Willis Music, an independent MI retail
chain, has two stores in Louisville, both of which offer lessons. Like Mom’s,
both are flourishing in the face of more aggressive chain competition, accord-
ing to Kevin Cranley, president of the Florence, Ky.-based dealership.
“Both [of our Louisville stores] have grown since GC opened on the lessons
side,” he said. “It’s about having the right teachers. We spend a lot of time
getting really good, solid teachers.”
This isn’t to say that GC’s model has nothing to teach the music retail
industry. In his column, “Welcome to the Jungle,” Pete Gamber looks at ways
dealers can adapt some of GC’s smart practices, such as boosting print music
sales by creating lessons binders. (See page 38.)
Ultimately, Gamber and Maxwell both agree GC’s biggest impact will be on
indies with their heads in the sand. If you’re a small operation, start prepar-
ing now. As Maxwell explained, “If GC moves into a place that doesn’t have
strong education programs, then I think they could take over.” MI
8 I MUSIC INC. I MAY 2011

Online Retail the support and exposure you
Cohesion have given to GAMA and our
I received the March/April 2011 is- Teaching Guitar Workshops
sue of Music Inc. and thoroughly over that period, especially my
enjoyed the feature article, “The interview with Music Inc.’s edi-
New E-tail,” on Nathan Nguyen’s tor, Zach Phillips.
online business, Instrumental I am just one of many presi-
Savings. dents since 1995 who supported
It is interesting to read about then-president Bill Schultz’s vi-
other entrepreneurs who also be- sion of bringing guitars into the
lieve that brick-and-mortar and classroom and exposing hundreds
online stores can work cohesively of thousands of students to the
together. guitar.
Micaela Hichborn Our program worked then and
Market Research Coordinator continues to work now. GAMA
Shopatron
remains the only industry-spon-
sored organization that is dedi-
‘Music Education is cated to teaching accredited music
in Serious Trouble’ teachers how to teach guitar in
I am horrified after reading the the classroom.
March/April 2011 cover story, Harvey Levy
Past GAMA President
“The New E-tail,” about Instru-
President of Levy’s Leathers
mental Savings’ owner Nathan
Nguyen. Grateful for the
How can you hold him up Inclusion
to your readers as the future of I was just browsing through the
school music retail? If he is the January issue of Music Inc. —
future, music education is in seri- excellent, as always — and I
ous trouble. noticed the mention of our
There were so many untruths stores. Really? Brooks, Ga.-based print dealer
‘how can you
in the article and so much mis- I don’t think this young Prima Music under the listing
information that I don’t know hold him up man has a clue what a real music of select Black Friday campaigns
where to begin. Did you visit store is about. To Mr. Nguyen, it’s on page 16.
as the future
his website and see all the cheap not about serving the customer. It is very exciting to see our
Chinese-made violins? Most of of school It’s about taking their money — company mentioned, and I want-
his instruments are unplayable lots of their money. ed to thank you for including us.
music retail?
and need several hundreds of dol- P.S. I have always loved Music We had a great year in 2010,
lars in repairs before a student if he is the Inc. I learn so much from each and we are off to a fast start this
can play one. issue, but not this one. It’s going year. I hope 2011 is a very pros-
future, music
Nguyen wants unsuspecting in the garbage can. perous one for Music Inc.
parents to buy these instruments education Dixie Huthmaker Thanks for all you do for our
instead of renting. Has he ever Huthmaker Violins industry.
is in serious Duluth, Ga.
heard of rent-to-purchase pro- Bobby Mitchell
grams? Does he know that a trouble.’ Prima Music
Brooks, Ga.
student can go through several GAMA President
— Dixie huthmaker
sizes of violins? Oh wait, he Says Farewell EDiToR’S NoTE: MUSic iNc.
wants those unsuspecting par- music store websites and brick- Having just completed my ENcoURAGES lETTERS AND
RESPoNSES To iTS SToRiES.
ents to keeping buying those and-mortar stores. What he is three-year term as presi-
E-MAil lETTERS To
cheap violins, which they will advocating is hurting all of us. dent of Guitar and Accessories
[email protected]; oR
never be able to sell when they And he doesn’t seem to believe Marketing Association (GAMA),
WRiTE To 102 N. HAVEN RD.
need to move up. that online sites are huge com- I would like to take this oppor- ElMHURST, il 60126; 630-941-2030;
Nguyen is undercutting other petition to brick-and-mortar tunity to thank Music Inc. for fAX: [phone].
10 I MUSIC INC. I MAY 2011