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31st Annual Fifty Dealer/Fifty State Review & Forecast

MMR • Special Report • December 6, 2014

ALABAMA

Guitars and More

Gardendale

Dustin Honeycutt, president

2014 vs. 2013? We’ve had an increase of 50 percent.

Hot new product line? PRS, Takamine, Peavey and Blackstar.

Technological advances? Facebook and Instagram have been great marketing tools.

Suppliers selling direct to consumers? People purchase what we, the seller, tell them is the best buy. If the product is not in my store, I'm going to sell them something comparable by another manufacturer, guaranteed.

Product of the year? Alvarez

ALASKA

Pro Music

Fairbanks

Craig Smith, president

2014 vs. 2013? It’s been even.

Hot new product line? There have been none.

Technological advances? Technology has demanded more hours from our workforce in recent years.

Suppliers selling direct to consumers? The job of the manufacturer is to: first, make the product; second is to keep the product in stock and warehouse the item; third is to ship the product when we place an order. If these three steps are done at all times, then I can understand them trying to take on our job. I have never seen a manufacturer be able to complete all three steps all of the time.

Product of the year? Fender CD-60CE Sunburst.

 

ARIZONA

Instrumental Music Center

Tuscon

Leslie Faltin, co-owner

2014 vs. 2013? Comparing to the same time period last year, 2014 is up about 10 percent.

Hot new product line? This year, we became a QSC dealer. We were so impressed with how the speakers sound and the innovative new mixers that we decided we had to carry the line.

Technological advances? Online channels have allowed us to be much more in touch with our customers. Using Instagram, Facebook, and Pinterest, we are able to remind customers that we are the best place for their next purchase. Email marketing (Constant Contact) has been very successful, and much less expensive than using snail mail. Google AdWords allow us to pinpoint our customer with geography, keywords, et cetera and has saved us thousands of dollars compared to Yellow Books. Even our eBay listings have driven customers to our store.

Suppliers selling direct to consumers? I think it sucks to compete with your supplier. Music stores vote with their dollars just as consumers do, and I know most would choose to not do business with those companies. There are no irreplaceable vendors. Suppliers who choose to compete with their dealers will lose their dealer base. I also believe this strategy is shortsighted. All of these suppliers built their empires, fortunes, and reputation from brick and mortar stores. 

 

ARKANSAS

McFarland Music Co., DBA Sigler Music

Fort Smith

Randy McFarland, owner

2014 vs. 2013? I sold the wholesale division of my business in May, so it is a little hard to make a year-to-year comparison. In general, I think that business is up around four percent.

Hot new product line? Nothing new.

Technological advances? We use Facebook, Twitter, and Instagram on a daily basis to promote the store.

Suppliers selling direct to consumers? I don’t like it at all. Manufacturers, such as Fender, built their reputation on the backs of independent music stores. However, I see this as just another of many challenges that have faced small business through the years. Stores that end up being successful will find a way to adapt.

Product of the year? XSPRO snakes.

 

CALIFORNIA

Bellflower Music Center

Bellflower

Robert Conrad, employee

2014 vs. 2013? 2014 has been much better. We attribute this mostly to school bids that we’ve acquired.

Hot new product line? There are no new brands that have stood out.

Technological advances? We’ve increased our web presence with social media sites such as Facebook, interacting with customers more and more through email and cell phones, and using smartphones as an aid in pricing used and vintage gear.

Suppliers selling direct to consumers? It shouldn’t affect us since we offer competitive prices and so many services beyond just retail sales, such as repairs on instruments, and rent-to-own programs for new and used instruments.

Product of the year? Band and orchestra rentals have made up a huge part of this year’s business.

 

COLORADO

Miller Music

Longmont

Seth T. J. Miller, owner

2014 vs. 2013? 2014 is shaping up to be the year we remember as turning the corner out of the recession. At present ,our overall sales are up 8.2 percent, and this is due in no small part to larger purchases and higher end items moving in the third quarter. As a store, overall our gross income is up 17.9 percent.

Hot new product line? New additions in 2014 were primarily service-based additions, such as our electrical engineer we brought on who specializes in repairing musical equipment, and expanding our private lesson program. Our hot items that continued to trend for us this year were the Casio Privia PX-150, Peace Vulcanian DP-105N, Kala's Makala MK-T Tenor Ukulele, and Conn Selmer's La Vox II Intermediate Alto Sax.

Technological advances? Every computer in the store is linked through our POS and Google Docs allowing updates to accounts and the notes for accounts to happen simultaneously from any workstation in the store, which has been a great help. The ability to tether our land-line phones to our cell phones allowing us to answer the phone even when no one is at the store and even when the store is closed seems to be capturing more leads than an interactive voice mail would.

Suppliers selling direct to consumers? I feel this is a difficult path to try and traverse from any manufacturer's position, and if done incorrectly would cause irreparable damage to their relationships with brick-and-mortar stores. I can certainly understand the manufacturer wanting to offer consumers the latest, custom, over-the- top, high-end product that we, as stores, may be reluctant to purchase these last few years. I would have serious reservation about maintaining relationships with any manufacturer that began competing with me for end user  purchases. I would much rather see them develop a win-win program such as Conn-Selmer does with their “Build a Bach” websites. Even if customers build their Bach directly from Conn, they will credit the dealer geographically closest to the shipping address of the instrument.

Product of the year? Kala Soprano Dolphin ukulele. 

 

CONNECTICUT

The Music Shop

Southington

Scott Mulrooney, manager

 

2014 vs. 2013? 2014 is running about even with 2013. 

Hot new product line? New items that have done well for us have been the ukes by Kahuna. The price-point is very attractive and the colors appeal to kids. After a cooling off, ukes have made a strong comeback.

Technological advances? We continue to move more and more toward online retail sales, marketing to our customers via social media, and we are starting to apply newer technologies to run our day-to-day operations.

Suppliers selling direct to consumers? I believe we will see more and more major players decide to venture into direct-to-consumer sales. As customers become more reliant on the  Internet to provide their goods and services, it only follows that manufacturers will reach the customers directly.

Product of the year? Ibanez AW Acoustics.

 

DELAWARE

Music & Arts

Middletown

Justin Lombardi, store manager

2014 vs. 2013? This location was formerly known as Middletown Music. As of October 2014, Music & Arts has been in this location. Middletown Music was well liked in the area for more than a decade; we intend to keep up the tradition of excellence.

Hot new product line? We have a really great affordable student instrument line called Verve. It’s a great option for customers who don’t want to rent or spend an arm and a leg for an instrument.

Technological advances? Our educational team relies heavily on technology to allow them to efficiently and more quickly manage school accounts/orders. Having these capabilities are imperative – it’s the way of the world.

Suppliers selling direct to consumers? MI suppliers selling direct to their customers is a unique idea. Many musicians prefer to touch and play their instrument before making a purchase, so our stores become a huge compliment to our online channel and vice versa.

Product of the year? Our product of the year would have to be music lessons. As a company, we just hit 28,000 students. It’s unbelievable.

 

FLORIDA

Music Go Round

Lakeland

Eric Stehle, owner

2014 vs. 2013? We are up 58 percent.

Hot new product line? Toca Latin Percussion Instruments. However, our store primarily buys, trades, and sells used gear.

Technological advances? We've seen an increase in our online sales and more retail interaction on our social media sites.

Suppliers selling direct to consumers? They are hurting the retail brick-and-mortar businesses that made them successful to begin with.

Product of the year? Dean, Luna, and ddrum from Armadillo.

 

GEORGIA

Rock Bottom Music/Karow Sound

Augusta

Jonathan Karow, owner

2014 vs. 2013? After more than a decade, Rock Bottom Music made a major move in late 2013 from downtown Augusta, Georgia to a 5,000 square-foot location with better parking, a loading dock, nine lesson rooms, a waiting lounge, and two bathrooms. 

Hot new product line?  We are proud to have picked up the full line of Peavey products, Mackie sound systems, and we have expanded on our private label, Karow Sound products, including popular speakers, drum sticks, guitar picks, and straps. All Karow Sound products are manufactured to our specifications in the U.S. & Canada.  

Technological advances? We have a large Facebook following that requires a full-time position. We are also able to continue our eBay sales directly from an iPad or quality mobile phone. Rock Bottom Music has been an eBay Power Seller since the year 2000. 

Suppliers selling direct to consumers? It is disheartening because Rock Bottom Music has spent many years helping establish many of these brands in our community. We have seen a large decrease in American made instruments that we otherwise used to sell on a regular basis.

Product of the year? Peavey Teenage Mutant Ninja Turtle Children’s drum kits. U.S.-made Karow Sound guitar picks and drum sticks. Kyser Capos. Fast Fret.

 

HAWAII

Goodguys Music and Sound

Honolulu

Bryan Aoyagi, partner

2014 vs. 2013? Business in 2014 has been slightly down as compared to 2013.

Hot new product line? We haven't taken on any new lines, since our business hasn't been growing. We have dedicated our resources to supporting our existing vendors. We have, however, put more emphasis on growing our accessory offerings.

Technological advances? We have been concentrating more effort into our website and delving more into the social media arena. We have added an employee who will be dedicating a good portion of his time to that end.

Suppliers selling direct to consumers? I think the prospect of major suppliers selling direct is a very dangerous, double-edged sword. While they may increase their accessibility to a number of customers, they may also lose a lot of their support from existing dealers. It will be very difficult to support a dealer with inventory and service when a customer can buy the same products at the same prices from the manufacturer's website. 

Product of the year? Being in Hawaii, we have been at the forefront of the ukulele explosion. Ukulele sales have been our mainstay for a number of years and will hopefully continue to grow.

 

IDAHO

Dorsey Music

Nampa and Boise

Derek Wheeler, manager

2014 vs. 2013? Business is up this year.

Hot new product line? Jody Jazz mouthpieces and Coda bows have been the clear winners among our new lines.

Technological advances? We have expanded and taken some chances with our social media presence and online retail side, but have not seen noticeable effects as of yet.

Suppliers selling direct to consumers? We are not supportive of the prospect. We dropped Mesa Boogie for this very reason. Customers would come and test out the high dollar amp then order it online to get "factory fresh" newer than the one I had in a box (one to show, one to go). We are a Fender dealer, which will be selling direct soon. This will change little of the stock I carry. I will continue to support them because they have supported me, the dealer. I applaud suppliers who use Shopatron and similar services where the local dealer gets a small reward for stocking and shipping stocked, extra merchandise.

Product of the year? I have to give a nod to three lines: Cannonball saxophones, Casio Privia digital pianos, and Peavey Composer ukuleles.

 

ILLINOIS

Exeter Music

Fairview Heights

Alec Exeter, owner/president

2014 vs. 2013? Sales have been down, but services and lessons have been way up.

Hot new product line? To be honest, we've largely scaled down our product lines. Retail has been under-performing.

Technological advances? We've set up an online webstore that's performed quite well.  Internet sales have been a major point of growth in the retail side of our business.

Suppliers selling direct to consumers? Absolutely horrible. This is going to be very damaging to local retailers. This is one of the primary reasons we've shifted to a more "services" driven business model.

Product of the year? Music lessons.

 

INDIANA

The Guitar Infirmary

Auburn

Jeff Kempf, owner

2014 vs. 2013? 2014 has not been bad. I did move locations and kept my same numbers for the first and second quarters. The third has been down a bit, but the fourth quarter is going strong.

Hot new product line? I picked up Marshall and Eden late last year and they have helped as a "cool factor" when people walk in the store. I have sold the DSL line well, and as always, Washburn is always a strong seller.

Technological advances? Reverb.com; it was sent from the heavens.

Suppliers selling direct to consumers? That is going to hurt, no two ways about it. The small guys (me) are already having trouble competing with the  Internet and GC. If the consumer has one more outlet to get things from Fender, Gibson, Marshall, et cetera, that would make life just that much harder to pay the bills at the end of the month.

Product of the year? The Marshall DSL40, hands down.

 

IOWA

The Guitar Farm

New London

Greg Malott, owner

2014 vs. 2013? Sales were down in the first quarter but have improved in the second and third quarters and we’re still planning on beating FY2013 for 2014 total sales.

Hot new product line? Loar Guitars, Oscar Schmidt guitars, and Line 6 amplifiers and guitars.

Technological advances? I have utilized a new website this year and we are reaching more customers and sales. I continue to use Facebook as my social network tool.

Suppliers selling direct to consumers? I find that it doesn't have as much of an impact on me, as I am a used/vintage dealer with new lines that are limited, due to volume/sales. I do have some that ship direct from my orders, and that is helpful with online sales and saves time and shipping costs.

Product of the year? The hottest lines I carry are Martin strings, Ducks Deluxe strings, and accessories. But Snark tuners would be my "product of the year," with strong sales. Used and vintage guitar sales have been very strong and a few of my new lines, Kona and Blueridge, are good.

 

KANSAS

Funky Munky Music

Shawnee

Parker Daniels, manager

2014 vs. 2013? 2014 has been good to our business – mostly through some changes we've made to adapt to our customers needs with product selection, services, and with our school rentals.

Hot new product line? We've taken on a bunch of different brands this year to respond to the needs of our customers. We've had great luck with brands such as Earthquaker Devices, Strymon, Mackie PA, Cole Clark, and ESP/LTD.

Technological advances? Technology has given us great avenues to expand our business for sales, promotions, marketing, et cetera. Even to the small extent to which we've exploited these avenues, we're already seeing a big difference.

Suppliers selling direct to consumers? I don't understand the benefit to the end user. A lot of people still don't want to trust shipping and indirect contact with their instrument suppliers. It’s not a better price for the e-d user, and it isn't any more convenient because it’s possible to order all their products from trusted users online or in a store and get better service. It’s a pretty clear money grab situation.

Product of the year? Ludwig Breakbeat drum kits. Those things are incredible!

 

KENTUCKY

Willis Music Company

Florence

Paul Finke, vice president of sales

2014 vs. 2013? 2014 has been very strong for us, especially since June. We have concentrated on pianos and band for several years now, and both have started to pay huge dividends for us this year.

Hot new product line? Yamaha B&O was new to us the fourth quarter of last year, and I feel that has been our biggest winner so far in 2014. We've also expanded our partnership with Mapex, and that has been a good thing for this year.

Technological advances? Every day, more and more people use social media as their means of communication and information gathering source. 

Suppliers selling direct to consumers? I still find it hard to believe that with some incredible websites out there representing branded product to just about every American in an amazing way, plus some incredible brick-and-mortar dealers (though not available to every American, admittedly), that manufacturers feel compelled to sell direct in response to meeting the customers’ demand for a better experience. American economics have always squeezed out the middle when feasible to enhance profits and. to me, that's what's happening here.

Product of the year? Yamaha B&O.

 

LOUISIANA

Slidell MusicCo

Slidell

Michael Romano, owner

2014 vs. 2013? We are three percent better.

Hot new product line? Epiphone is new for us this year, and it’s replaced Fender and doing better.

Suppliers selling direct to consumers? It sucks! It’s going to hurt small MI stores.

Product of the year? The Crown XTI 1002.

 

MAINE

K2 Music Store

Camden

Harvey Curtis, owner

2014 vs. 2013? We are up compared to last year’s figures ,so far.

Hot new product line? We have been successfully experiencing life after Fender! ESP electrics and Yamaha acoustics are new to us this year, and we have been very pleased with the products and turns of the instruments.

Technological advances? Facebook is certainly a big part of allowing our customers a real-time update of new and used items arriving daily. Reverb has become an excellent way to move used, consignment, and outdated product. The number of items that interact with iOS and Android products is amazing.

Suppliers selling direct to consumers? Honestly, we will have to just wait and see. With the requirements that some suppliers have been saddling shops with, I would hope they would at least relax the commitment of inventory needed to carry their products. It is bad enough as an independent to compete with big box and online, but to compete with the supplier, as well….

Product of the year? For a third year in a row, ukuleles

 

MARYLAND

Chuck Levin’s Washington Music Center

Wheaton

Adam Levin, owner

2014 vs. 2013? With the loss of my father, VP Robert Levin, at the end of last year, it’s been a trying year for all of us at Chuck’s, but it’s also come with some exciting developments and improvements that put us in a great position for 2015.

Hot new product line? Skyline effects pedals, Dunnett Drums, KAT Drums, GoPro Cameras.

Technological advances? We just launched our new website on October 4 of this year. It has been a huge undertaking, but we are absolutely thrilled with the result.

Suppliers selling direct to consumers? It will be interesting to see how this plays out. A lot of the service that we provide is educating the customer, assisting after the sale, et cetera. I’m not sure that manufacturers are prepared to shoulder the burden of customer service. We shall see.

Product of the year? AKG microphones, Electro-Voice speakers, Samson Expedition Bluetooth speakers, Buffet BC2512F clarinet, Shure GLXD wireless, Zoom H4n, Snark SN-2, Yamaha keyboards.

 

MASSACHUSETTS

Union Music

Worcester

Carl Kamp, president

2014 vs. 2013? We are up five percent.

Hot new product line? We do not have any.

Technological advances? We use Facebook and we are working on others.

Suppliers selling direct to consumers? It’s a little scary, but we hope to sell more online, too.

Product of the year? Casio PX150.

 

MICHIGAN

Motor City Guitar

Waterford

Marty and Melissa Minui, owners

2014 vs. 2013? Thankfully, we are up.

Hot new product line? We took on Suhr guitars and amps, Friedman amps, Aguilar bass amps, Bondi and Guitarsystems pedals.

Technological advances? We purchased a new POS system a few years ago that has improved our reordering process a ton. It takes a lot of work up-front, but it enables you to place larger orders more often and keep necessary items in stock much more consistently. Social media has proven to be a great way of communicating with our customers; we need to do more of it.

Suppliers selling direct to consumers? I think they should be careful what they wish for. If I was a manufacturer, I'd rather have 70 percent of a bigger pie than 100 percent of one that's half the size. The fact is, there will always be customers in this industry who wouldn't even consider buying a guitar or amp without trying it first. I don't know why a manufacturer would want to go into competition with their own dealers who make it possible for their customers to try their products out.

Product of the year? I would say the new Cobalt strings from Ernie Ball and NYXL strings from D'Addario. Those guys have created innovative products that tons of people love, and created a whole new market for themselves in the process.

 

MINNESOTA

Music Go Round Roseville

Roseville

Frank Tilotta, president/CEO

2014 vs. 2013? 2014 has been an exceptional year. Music Go Round Roseville is a full-line music retailer and we experienced tremendous growth in all categories this year.

Hot new product line? We have recently invested in new home recording and project studio components. Recording equipment has become so much more accessible and affordable and we have been able to quickly grow this market.

Technological advances? The biggest tech-enabled impact we notice is that technology has really sped up all aspects of the retail environment. 

Suppliers selling direct to consumers? I believe what we are seeing in MI is inevitable. The modern consumer is smart and technologically savvy. It is the next logical step. As big box in-store sales decrease, the suppliers can "cut out the middle person" with relatively low overhead and distribution points. Although, I believe that brick and mortar stores have an important role for their community, and will continue to thrive as long as they differentiate themselves from the online alternatives.

Product of the year? We have seen a noticeable spike in our technology based products, such as keyboards and synthesizers, as well as continued growth in low wattage guitar combo amplifiers.

 

MISSISSIPPI

Morrison Brothers Music

Ridgeland

Mike Morrison, co-owner

2014 vs. 2013? To date, overall store business for 2014 is down a bit from 2013.

Hot new product line? We’ve had a very good band instrument season, thanks in part to the addition of Tempest brass instruments. Mesa Boogie has also been a positive for 2014.

Suppliers selling direct to consumers? Direct sells to end users by suppliers appears to be a desperation move. Long term, it does not bode well for the supplier.

Product of the year? Presonus StudioLive.

 

MISSOURI

Ernie Williamson Music

Joplin

Eli Chambers, manager

2014 vs. 2013? 2014 has been a really fun and exciting year for us! We completed construction of our brand-new building in March of this year, so we've really enjoyed the extra space. We've seen a huge increase to the lesson program.

Hot new product line? We picked up Eastman guitars and mandolins this year and have been really pleased with them. They are fantastic, affordable handmade instruments that easily compete with guitars that cost twice as much.

Technological advances? We are one of five store locations so, for us, Google integration has been key to our business. We use Google mail, calendars, and Google sheets to share information and ideas quickly between stores. We also developed our own Android-based inventory control program that can run on a tablet and allows us to share and coordinate our resources easily and efficiently.

Suppliers selling direct to consumers? Obviously nobody wants competition from his or her own supplier. It really seems like a shortsighted money-grab. I think it always going to be hard for an online retailer to compete with the service, and heart of a brick and mortar store. There's a pretty strong emotional exchange that happens when you pick up and play a really great guitar.

 

MONTANA

Music Villa

Bozeman

Ross Ridenour, manager

2014 vs. 2013? Compared to 2013, we have realized considerable growth in sales, largely due to our progressive web presence and product mix.

Hot new product line? Acoustic guitars, as a whole, have been really strong, with a focus on high-end acoustic guitars.

Technological advances? We changed our POS system in 2013, which has allowed us to have up-to-date financials, purchase orders (pending and back ordered), along with lesson scheduling and billing. Social media is a growing part of day-to-day business, and is a great resource that is used not only for promotional purposes, but to build a relationship with clients and create a community featuring local bands, events, and a unique mix of store related news.

Suppliers selling direct to consumers? I feel that the biggest hurdle that suppliers selling direct will need to tackle is customer service. Things that are generally taken for granted, such as an instrument being professionally setup, general customer service, the importance and convenience of accessories; these are all things that will keep customers loyal to store fronts.

Product of the year? don’t really have a product of the year but a combined effort of web presence, social media, lessons program and customer service.

 

NEBRASKA

Roots Music Shop

Lincoln

Ryan Larsen, owner

2014 vs. 2013? Business has grown at a decent rate, but we are going into our second year, so the continual increase has been expected.

Hot new product line? No, we carry mostly used instruments.

Technological advances? We are relatively new, so our POS system hasn't changed much yet. We are trying to follow the latest trends of social media, and implement the things we feel are relevant to our industry and clientele.

Suppliers selling direct to consumers? Some people will embrace the model and others will still want the in-store, test-it-out-and-play experience. The MI suppliers who can offer the most and for the lowest price will obviously have the biggest advantage.

Product of the year? Accessories.

 

NEVADA 

J&E Guitars
 
Las Vegas
 
Jess Gago, co-owner, manager

2014 vs. 2013? 2014 has been a great year compared to 2013 for the most part. 

Hot new product line? We’ve picked up quite a few this year: Collings, National Reso-phonic, McPherson, Nash, and Mesa Boo-gie Amplifiers. 

Technological advances? We think social media has definitely made a huge impact on our business.  We can now send a customer anywhere in the world a photo or a video of an instrument, in real time! Amazing! Our POS system has also made things much easier to manage. 

Suppliers selling direct to consumers? I believe that this is just corporate greed at its best. We, the dealers, have put these companies on the map over the years. Now they’re turning their backs on us out of sheer greed. In turn, they will lose all support from independent dealers.

Product of the year? Strymon effects.

 

NEW HAMPSHIRE

Ear Craft Music

Dover

J. Scott Sutherland, sales, marketing and music instruction

2014 vs. 2013? 2014 has been an interesting year for our company. We have diversified the way we sell our inventory by using outside websites to help drive traffic to our store and online business. We remain optimistic that Q4 will be a better period for sales and help us finish out the year on a strong note.

Hot new product line? In 2014, Ear Craft Music began carrying Paul Reed Smith SE and S2 guitars. Our customers have shown a lot of interest in these guitars as a step-up instrument over the basic starter and they make a great alternative option for the Gibson and Fender crowd that we rely on for much of our business. We also added Mesa Boogie to the store line up this fall.

Technological advances? We have been using our website more and more, as well as constantly keeping our social media subscribers in the loop with Facebook, Twitter, and even a bit of YouTube. Our customers like to communicate with us through a variety of channels and we try to keep our eyes and ears open for all of that.

Suppliers selling direct to consumers? The rumor mill regarding certain companies offering direct sales via their websites has certainly influenced our purchasing decisions this year. The door is always open and the phone call will always be welcome with these companies, but it is a factor in deciding which companies will receive the lion’s share of our orders.

Product of the year? Taylor Guitars continue to be strong sellers. Taylor does a great job supporting the independent dealers, with great marketing and special events. Out of all the Taylor Guitars we sell, the GS Mini remains one of our top items.

 

NEW JERSEY

Russo Asbury Park

Asbury Park

Scott Engel, operator

2014 vs. 2013? We saw strong growth from 2013 to 2014. We moved the store to a larger facility and were able to satisfy more customers.

Hot new product line? We have grown steadily with our legacy brands and added a couple of new ones this year including C&C Drums, Caroline Guitar and Emerson Custom and many more.

Technological advances? We have been a technology-heavy company since I started working here. We are continuing to use as much of our POS system as possible in efforts to pull as much usable data as we can.

Suppliers selling direct to consumers? Our brick-and-mortar division has competed successfully with  Internet stores since their beginning. You're always going to have people who would rather click and buy than have a conversation, but they're not our customers. They become our customers when those instruments need a setup right out of the box or a warranty solution. One more  Internet store isn't going to hurt us, especially if they're the only  Internet outlet that is sticking to MAP instead of passing out 15 percent off coupons for every sale.

Product of the year? This seems to been a real Fender-heavy year for us. 

 

NEW MEXICO

Grandma’s Music & Sound

Alburquerque

Micky Patten, owner

2014 vs. 2013? Definitely better. New Mexico isn’t fully recovered, but it’s moving in the right direction.

Hot new product line? Mostly the same brands, but lots of good new models from Taylor, Gibson, Martin, and Behringer.

Technological advances? Some customers have come back to us after lousy experiences buying online.

Suppliers selling direct to consumers? It’s not against the law. Go for it.

Product of the year? The Behringer X-3.

 

NEW YORK

Rogue Music

New York

Dick Michaels, president

2014 vs. 2013? 2014 has shaped up as slightly better a year for us than 2013. We are a fairly unique music store, in that we specialize in used gear, and have done so for 31 years. The business of used gear for stores has been in decline since the advent of eBay. There are very few of us still around. I suspect we are doing a bit better now because of the renewed interest in analog gear, and the fact that that type of gear is pretty hands on, therefore difficult to buy with confidence on eBay. Also, our web presence is well established and we continue to find new customers all over the globe.

Hot new product line? In the past year we added Dave Smith, and Critter & Guitari. Both these companies go well along side our specialty of analog gear. We continue to sell Moog and Elektron products with great success for the same reason.

Technological advances? Obviously the ability for sellers to reach buyers without the need for a middleman, like ourselves, has hurt us badly. Craigslist and eBay are responsible for turning our business upside down. However, we use both platforms, ourselves, to sell gear and find new customers. Our website is very popular all over the world and our Facebook page attracts a lot of attention.

Suppliers selling direct to consumers? A lot of manufacturers already use direct marketing and surely the number will increase. But they are hampered by their own MAP rules. Every product has its MAP price and the companies have to abide by their own rules in this regard. While we can't advertise below MAP, a potential buyer has the option of asking us for our "best" price, and in almost all cases, our "best" price is below MAP. There is no platform for this negotiation with the manufacturers. For now this is not a tendency that worries us.

Product of the year? The Roland Integra7. 

 

NORTH CAROLINA

Jackson’s Music Store

Winston-Salem

Mari-Jo Dryden, president

2014 vs. 2013? Fortunately, we were up.

Hot new product line? We took on Cordoba guitars and have had great success with them. We do a lot of teaching at Jackson’s and the teachers highly recommend them to our students.

Technological advances? More computer-based products have caused us to focus on more sales training. We sell more computer-based recording gear than stand alone units. We have also put a great emphasis on our website. We have added Twitter, Instagram, Facebook, et cetera. We are going live with  Internet sales on our site in the near future.

Suppliers selling direct to consumers? We don’t like it! Not only would they be (and in some cases already are) taking their dealers for granted, but also there is a serious possibility of prices and margins being driven even lower.

Product of the year? We don’t really have a Product of the Year.

 

NORTH DAKOTA

Stringbean Music

Bismark

Phil Feser, owner

2014 vs. 2013? 2014 is on track with 2013 as far a sales go, but margins are tighter, especially in pro audio. 

Hot new product line? Paul Reed Smith guitars have become a very strong brand for us in 2014. With the addition of acoustics, basses and amps (both USA made and import) to its lineup in the last few years, they have become more of a “full line” vendor for us. This, coupled with their commitment to high quality, good margins, high visibility and a strong independent dealers network, has made them a good seller for us.

Technological advances? Technology is continuing to affect the pro audio market the most. Digital mixers and powered speakers have made the new and used analog market (mixers, power amps, rack gear, passive speakers) a tough sell, and they take up a lot of real estate and capital on top of it. Also notable in 2014 is that a good social media post (Facebook) has better results than a lot of mainstream advertising (radio, TV, newspaper,) and it’s free.

Suppliers selling direct to consumers? Vendors selling directly to the end user is a slippery slope for both for the vendor and the customer, especially in the guitar market. Whether it’s set-up issues, neck issues, shipping damage or the customer just not understanding some of the features of the product, I predict a lot of returns. And that’s never profitable for the vendor, and will probably turn that customer off from that brand in the future.

Product of the year? The Electro-Harmonix B9 Organ Machine pedal.

 

OHIO

Woodsy’s Music, Audio, Video

Kent and Medina

Paul Braden, president

2014 vs. 2013? Overall, pretty similar. Combo sales continue to be flat with maybe some modest growth, mostly in accessories, and acoustic instruments continuing to outperform electrics. Our band and orchestra department has experienced very nice growth for us and continued their success this year. We also have done well with schools, houses of worship and our lesson program.

Hot new product line? Toward the end of the year, we brought in product from Orange and Ashdown and we think those will be nice additions for us in the combo department. 

Technological advances? Well, we are stocking 8 or 10 different SKUs of iPad and tablet holders, if that tells you anything. The most important mic stand accessory is no longer the beverage holder! The newest digital mixers are becoming more affordable and accessible all the time, and you have computer, tablet and phone control over everything from guitar pedals to entire PA systems. In many conversations you have to ask some different questions. You need to understand the customers' current technology as well as their comfort level with new technology. Also, MMR contacted us about this article through our Facebook page, so there you go!

Suppliers selling direct to consumers? A “buy” button on a manufacturer’s site does not have to be a bad thing. If it's used to drive traffic to the nearest stocking dealer, we have no problem with that. If it becomes an actual direct-to-consumer situation and the manufacturer you are trying to support has, in effect, become another online competitor, you have to ask yourself, “Do we want to continue to support this manufacturer?” Frankly, a much larger concern for us is sales tax, and when will these types of web sites be required to collect it? We can handle competition, but let's at least level that part playing field.

Product of the year? Combo: Earthquaker Devices guitar pedals; Band & Orchestra: Rafael Navarro mouthpieces; Accessories: Ernie Ball Cobalt strings.

 

OKLAHOMA

John Michael’s Music

Muskogee

Raegan Michelle Medeiros, events and promotions

2014 vs. 2013? 2014 has been down for us some.

Hot new product line? Mooer Pedals have been doing pretty well. They are at a good price point with good margin. 

Technological advances? The amount of customers that feel comfortable calling or texting (especially texting) your cell phone with questions about business has grown from a call in an emergency situation to a call for a regular occurrence… even during store hours. We also have customers who Facebook message us on the weekend or at night about different products or questions. It is a great way to build a more personal relationship because customers feel like you are always accessible.

Suppliers selling direct to consumers? It will ultimately hurt the retailer. However, I think there could be some repercussions for the supplier as well. The retailer will become more and more of a showplace to come in and test something before going direct and saving sales the tax. With fewer inventory turns I think it could possibly result in fewer dealers for that vendor or fewer stores in the market as a whole. For the vendor, out of sight is out of mind. The fewer outlets you have showing or being excited about your products, the fewer products you will ultimately sell. However, with the offset being they are selling at MAP from their own cost it might be a moot point.  

Product of the year? JBL EON 615 Powered 15” with Bluetooth.

 

OREGON

Wally’s Music Shop

Oregon City

Steve Bond, president

2014 vs. 2013? We are almost exactly at the same point as we were a year ago, maybe down 1one percent.

Hot new product line? A large percentage of our business is in used and vintage instruments. While we do carry new instruments, we do not have any models that are new to us this past year.

Technological advances? The biggest change has been in the response from our website. The effect from this grows each year.

Suppliers selling direct to consumers? I think this is a very large threat to most retail stores. We have placed a major focus of our business on repairs and vintage instruments so that it will not have as much effect on us as it might on stores with a different business plan. On a whole, I believe this is a very dangerous path for MI suppliers to go down.

Product of the year? No one item stands out.

 

PENNSYLVANIA

Menchey Music Service

Reading

James Benn, branch manager

2014 vs. 2013? We have seen marked growth in 2014, especially within services segments such as instrument rentals, repair services and music lessons. The Reading branch is entering its third year in 2015 and we are very excited to see continued growth in the branch in these areas as well as total sales and gross profit. Overall as a company, we are pleased with our growth and expansion as we reach new markets in the Northeast region.

Hot new product line? The addition of the Tama Drums brand has been successful and helped to vary our product offerings within the percussion category, and the Ampeg and Blackstar brands have been welcome additions to our current guitar and bass amplifier lineups. The new Yamaha StagePas “i” PA systems have also been popular with players who gig regularly, as have the Fender Modern Player Series electric guitars.

Technological advances? We have done a lot to streamline our POS procedures over the past few years and this has helped in numerous ways. Repair turnaround times have been lessened, and communication between branches and departments has also been improved. We continue to look at technology as an opportunity that can really improve our business and customer reach. Within the past two years we have also introduced our social media channels, primarily Facebook and Twitter, and these pages are growing our online presence. We have a lot of fun with these accounts, and our followers do, too!

Suppliers selling direct to consumers? Ultimately, it is great for a customer as it adds another source to find goods in a very convenient way. Of course, sometimes service can be sacrificed at the expense of convenience, but not always. We have even seen indirect business from customers that need help or service with something they have purchased online. I look at it in the sense that online sales activity can lead to threats as well as opportunities for traditional brick-and-mortar retailers. Luckily, we’ve seen and dealt with these trends for some time and offer services that most MI suppliers cannot offer when just selling products online. Yet, while on the topic, we’ve been sure to grow our online services to be able to stay ahead of the curve.

Product of the year? Yamaha Arius and Clavinova lines.

 

RHODE ISLAND

Wakefield Music Co.

Wakefield

Dennis Costa, Owner

2014 vs. 2013? We are up quite a bit for the first time in a few years.

Hot new product line? Not this year.

Technological advances? We’ve created a Facebook page and a blog. We will also be initiating a current online inventory page on our website very soon and hope to be selling more online.

Suppliers selling direct to consumers? It will further damage the livelihood of the small independent dealers. It’s sad that we are losing a lot of the first-time buyers. We do continue to focus on lessons, repairs, print music, and community events which helps to bring in traffic and make life more interesting.

Product of the year? Kala ukuleles and ukes in general.

 

SOUTH CAROLINA

Fox House Music

Charleston

Mitch Petersen, operations manager

2014 vs. 2013? Business is slower, by 13 percent.

Hot new product line? New Yamaha Hybrid pianos, and the Behringer X32 digital mixers. 

Technological advances? Our two main business dealings are in pianos/ keyboards, and pro audio/visual installation. Technology has affected both on a very large scale. It has become absolutely necessary to have at least one “tech savvy” person on staff. It is not just about selling musical gear any longer. Now, it is about knowing your stuff so that you can present complex technology to your customers in a way that makes it seem simple, so that they are not afraid to purchase these technical products.

Suppliers selling direct to consumers? They are only hurting themselves. Dealers, especially small respectable local businesses, will inevitably drop the product lines that choose to go this route, eventually. In our experience, people are much more likely to buy something if they can get an in-person demo first. If these brands are dropped, and there is no storefront to come and look at the products, I think sales will suffer greatly for those brands.

Product of the year? Allen organs.

 

SOUTH DAKOTA

Sioux Falls Music

Sioux Falls

Don Saxton, co-owner

2014 vs. 2013? In-store business was about the same. Outside sales, mostly from churches, was up a little from last year.

Hot new product line? We really haven't added any new lines this year, but we are stocking more Americana type instruments, such as banjos and resophonic guitars.

Technological advances? We are using Facebook a lot more to reach customers. It's interesting which posts "go viral.” Any public service type of post, such as passing of local musicians, gets shared by a lot of people.

Suppliers selling direct to consumers? I believe they will find that music stores are not willing to be their showroom, and will drop these suppliers. There have been numerous articles about larger stores doing this already. Musicians like to fondle instruments. I hate to see our industry moving in this direction.

Product of the year? Acoustic guitars, especially the nicer guitars, continue to be a good seller for us. Mid- to high-mid priced drums also do well for us. We have a very good drum tech working here, so all of our drum sets leave here sounding good. The Evans upgrade pack for new drum sets helps.

 

TENNESSEE

Yarbrough’s Music

Memphis

Davis Yarbrough, operations manager

2014 vs. 2013? Business has generally been up this year over last year.

Hot new product line? We have had a great amount of success with the Takamine guitar line we started carrying again in the summer of 2013. And in the audio world, we have had tremendous success with the EV ZLX line of powered speakers.

Technological advances? We are still pretty old-school when it comes to technology. We have a website and Facebook presence, but it is not as strong as we would like.

Suppliers selling direct to consumers? It is kind of distressing for mom-and-pop shops that MI suppliers are starting to sell direct. We already have enough competition with the big box stores and online retailers.

Product of the year? The Behringer X32.

 

TEXAS

Music & Arts

Humble

Brian Parks, store manager

2014 vs. 2013? We opened our doors in Humble (and Tomball) Texas back in August of this year. While we can’t make a comparison to last year, we know these locations will be successful in the Texas market. Hot new product line? We presented our Giardinelli line during the Back to School season. 

Technological advances? Over the last year, we’ve focused on building our digital presence. We’ve enhanced our e-commerce website for our general consumers and established a more unique educator portal on the site. We’ve also implemented new social media channels such as Vimeo and Pinterest. Having a digital presence that works well is imperative – it’s the way of the world.

Suppliers selling direct to consumers? The great thing about having both an e-commerce platform and brick and mortar stores is we can allow budding musicians the opportunity to either buy directly online or come to a local store to physically try out an instrument.

Product of the year? When the soundtrack for the Disney movie Frozen came out, we saw the sheet music and songbooks fly off the shelf. Once we get the Taylor Swift CD and music in our stores, it will probably be the same effect.

 

UTAH

Boothe Brothers Music Corp

SpanishFork

Steven Boothe, president

2014 vs. 2013? We have been up in sales so far in 2014. This is in part because of new brands we have brought into the store.

Hot new product line? We have instituted our own store brand of violins, cellos and basses. We have also brought in Anton Krutz violins, cellos and basses. We have brought in Schecter electric guitars and basses, Vox amplifiers, Mooer, and Hotone pedals, as well as Electro-Harmonix pedals. Korg keyboards have also done well for us.

Technological advances? We appreciate all those who create new technology. Technology has made it much easier to do business, and has made many products “must have” items.

Suppliers selling direct to consumers? We don't believe that it is all right for MI suppliers to sell via their own website to end user s. Most of those who are doing this think they are too big to fail. We believe they will fail, for the simple reason that most dealers will drop them, and there will be no showroom for buyers to try out their products before they are purchased.

Product of the year? Teton Guitars.

 

VERMONT

Ellis Music Co.

Bethel

David Ellis, president

2014 vs. 2013? Sales of band instruments are up a little. Rentals are down a little due to smaller school populations. There is always a lot of repair work.

Hot new product line? While we have been a Yamaha band and orchestra dealer for many years we have more recently taken on Yamaha drums, keyboards, and live sound products. They nicely with our school music products.

Technological advances? We have added a website, online shopping cart, and online rental contracts. In some ways it has made things quicker and easier. 

Suppliers selling direct to consumers? I am not happy about it. The line between manufacturers, wholesalers and retailers is becoming more and more blurred. You end up competing with the very companies that want you to sell their product.

Product of the year? Yamaha products.

 

VIRGINIA

Moe’s Music

Virginia Beach

Chuck Moebus, owner/operator

2014 vs. 2013? So far, the first quarter was lame, we had more snow days than a town with a "beach" in the name ever should. But summer and the back to school blitz of rentals, sales and free advice were up for us from last year.

Hot new product line? We have taken on Spear guitars, with their great designs and graphics on popular shapes, and rediscovered Oscar Schmidt, as we went back to stocking the Washburn line last summer. U.S. Music is a fine company with much to offer.

Technological advances? My store is rather old-fashioned, so tech is not a huge interest besides the usual requirements, point of sale, inventory, etc. The iPad is a wonderful device, however!

Suppliers selling direct to consumers? It's a logical idea for major manufacturers to begin to sell their products directly to the public, much the same as Tesla is doing with automobiles, cutting the dealer out of the picture. Some would say that our business model, the retail music store, is a dying business model. I say this is America, and you can succeed at that which you can do well. Solving people's musical problems and helping them become players on some level is an exceptional way to earn a living.

Product of the year? For us, the product of the year is the well-satisfied customer!

 

WASHINGTON

Rosevear’s Music Center

Aberdeen

Don Stone, manager

2014 vs. 2013? 2014 has been fairly similar to 2013 in terms of sales, but we are seeing more people interested in making music than we have in recent years, so that's a good sign.

Hot new product line? This year we did something very different for us and decided to throw caution to the wind, so-to-speak, by bringing in some high-end and boutique guitars to try to entice buyers from a wider area than normal. Instruments from the Gretsch Professional line, Charvel, GJ2, and Tom Anderson Guitar Works, to name a few. 

Technological advances? Social media has certainly had an impact on our business. Consumers are informed about products more now than I think they ever have been, before product has even been released. At the same time, it's been very nice to have wider personal contact with our customers through outlets like Facebook and Twitter.

Suppliers selling direct to consumers? While I can understand (to an extent and from a certain point of view) MI companies looking at selling direct to end users, I can't say I'm all that thrilled with the prospect. 

Product of the year? Tom Anderson guitars.

 

WEST VIRGINIA

Fret’N Fiddle

Saint Albans

Joe Dobbs, owner

2014 vs. 2013? We are about the same as last year.

Hot new product line? No, but we have increased our uke inventory.

Technological advances? We use Facebook more. Since we do a major part of our business buying and selling used instruments, we depend on the information that is on the  Internet.

Suppliers selling direct to consumers? It is more difficult each year for the small dealer. We find that keeping a good teaching staff of eight teachers and being a warranty repair center for Martin Guitar Company gives us some stability.

Product of the year? Used string instruments and amplifiers.

 

WISCONSIN

C Note Music

Wisconsin Rapids

Jamie Cumberland, owner

2014 vs. 2013? We have noticed an increase in many different areas of the store. Band and orchestra sales and rentals have shot through the roof, and we've seen a nice increase in electric guitars. Overall sales have been on a steady increase, due in part to new ownership in 2011.

Hot new product line? Ovation/Applause, G&L guitars, Sierra, and Morgan Monro acoustics are just some of the new brands we are carrying in 2014.

Technological advances? Social media has enabled us to reach a targeted audience via Facebook, eBay, and Craigslist, which wasn't available to us in the past as a sales tool.

Suppliers selling direct to consumers? I think it would be highly detrimental for MI suppliers to be selling to the end user, even going as far as to say that I think it would be the death of the brick-and-mortar store as we know it. 

Product of the year? There's been a nice resurgence in electric guitar sales, and of course acoustics are always strong. But where we've really noticed a substantial increase is in the sales of used gear. It seems people are more apt to save the money and buy their gear used, than to put out for new. We're kind of a little different in that we buy, sell, and trade all musical gear, making us a go-to store if you are looking for used music gear in our area.

 

WYOMING

Rockstar Music Store

Casper

Ryan and Serena Meyer, owner

2014 vs. 2013? Great! We are busier and busier every day.

Hot new product line? Dean Guitars, ddrum, and PDP Drums.

Technological advances? Amazing. We have our website, www.rockstarmusicstore.com, and that has added to our selling capabilities.

Suppliers selling direct to consumers? We don’t like that idea because it limits our ability to sell those products.

Product of the year? Pig Hog cables.

 

 

  

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