MI Suppliers and Retailers on the State of MI in Metro NYC
New York City – it’s legacy is undeniable, allure hypnotic, and it remains an unmatched force in popular culture on a global scale. The setting for some of the most storied clubs, shows, conservatories, and musical performances in history, “The City” used to also lay claim to the most legendary names in MI retail. One block on 48th street, in particular, was one famous for stores catering to musicians of all varieties – “Music Row.”
The same pattern of closure due to increased rents and gentrification that doomed Music Row has played out throughout the metro NYC area at an alarming rate lately. However, with nearly 19 million residents in the region, including and outside of the five boroughs – many of whom are musicians and other creative types looking to make their mark – somebody local has to figure out how make and sell instruments and gear without migrating too terribly far away.
We spoke with a handful of metro NYC MI suppliers and retailers to get the scoop on what it takes to make it in 2021.
Brenden Cohen, D’Angelico Guitars of America, Manhattan, NYC
What are the upsides to running an MI supplier operation out of NYC?
Well first, New York is the greatest city in the world. But in particular for our industry, it’s a central location for live music, a guaranteed tour/press stop for the world’s greatest musicians, and the city offers endless creative inspiration. D’Angelico product design has been heavily influenced by iconic NYC architecture, history, art and culture. And Supro, though originally a Chicago-based brand, also makes use of the Art Deco aesthetic found across NYC. We’re also lucky to be neighbors with incredibly talented session musicians who endorse our products and help us make educational content, and we’re able to host customers from around the world in our Manhattan showroom. In New York, we feel like we’re plugged into the center of it all – our finger always on the pulse. We don’t take that position for granted.
Downsides?
There are no downsides. There are always logistical challenges in New York due to its congestion and cost. But we’re very lucky to have taken shape as a modern company, where our staff and operations locations can be spread across the country (and the world), which has allowed us to significantly offset the burden of having our headquarters in NYC.
How has the NYC region changed during your time based in the city and how do you expect things to evolve in the coming years?
NYC is bursting with energy – always has been. Even when the world shifted to an unprecedented focus on online presence, it still felt like there was a tangible reason to be physically present in New York. There are fewer guitar shops here than there were decades ago, but music culture is as strong as ever. And with the pandemic, a lot of people had the audacity to say New York was dead. But what can’t be described unless you’re here to see it is the level of enthusiasm with which people want to participate in this place. As New York has started re-opening, people have been storming the doors to get involved again. Shows are sold out, artists are making tons of new material, and people are relieved just to be able to collaborate again. In the coming years, the city will ebb and flow as it always does, but I believe it will always be a cultural center and an incredible place to make, see, and be involved in music.
Howie Statland, Rivington Guitars, Manhattan, NYC
What are the upsides to running an MI retail operation out of NYC?
NYC is the greatest city in the world. It is full of interesting, smart, eccentric people and you never know who you are gonna meet or what is gonna happen. Also people come here from all over the world so that is great for business! The excitement of the city is contagious.
Downsides?
Downsides are mainly the expense of rent and all the other expenses that go along with running a business in NYC. Also I’d like to see more birds and bees and trees sometimes.
How has the NYC region changed during your time based in the city and how do you expect things to evolve in the coming years?
NYC has changed greatly. Rents have increased. The neighborhoods have gentrified. The same area where we opened up in 1998, where there were drug dealers and I got held up at gunpoint back in the 1990s is now some of the hottest in real estate in the city. It’s like what happened to SOHO in the 1980s. Up until COVID happened, it was gentrification overdrive. I think COVID slowed that down now.
John D’Addario III, D’Addario & Co., Long Island, N.Y. (Satellite office in Brooklyn, NYC)
What are the upsides to running an MI supplier operation out of NYC?
First, I should point out that the majority of our manufacturing, distribution and offices are East of NYC, on Long Island. That being said, there are a number of advantages in terms of our proximity to NYC. Considering the fact that the NYC region is considered a melting pot of different cultures, it enables us to staff a highly diverse workforce with incredibly different backgrounds and perspectives. This is particularly important for the global business we maintain. Additionally, our proximity to NYC and all the ad agencies in Manhattan and Brooklyn, enables us to recruit highly creative, marketing talent. Finally, running an operation near NYC also provides us with amazing opportunities to engage highly influential artists that either live in the area or regularly travel through NY.
Downsides?
One of the more significant downsides to our location, just outside of NYC, is that there are very few manufacturing businesses in the area, making for a very shallow technical talent pool for positions such as mechanical, electrical, chemical, industrial and acoustical engineers. Additionally, with the NYC region being one of the most expensive in the country, we face a very daunting challenge to remain a globally competitive manufacturer. So much so, we have a team of dozens of Lean/Continuous Improvement employees that relentlessly pursue quality, process and cost improvements, coupled with our commitment to reinvest between $5-10M in our factories annually.
How has the NYC region changed during your time based in the city and how do you expect things to evolve in the coming years?
Among the many changes in the NYC region we have experienced has been the migration of NY residents to less costly areas of the country, considering the mounting taxes and cost of living in general. That being said, since the onset of the pandemic, we have and continue to see a noticeable migration of individuals and families outside of NYC and to Long Island, increasing the talent pool we can pull from. And finally, putting aside the Pandemic related disruptions, we have seen an incredible transformation of Brooklyn, with many young professionals and ad agencies setting themselves up there. So much so, we now maintain a creative office in Brooklyn which houses the majority of our Marketing team.
Sammy Ash, Sam Ash Music, Manhattan, NYC (other Metro NYC locations)
What are the upsides to running an MI retail operation out of NYC?
The upsides? The traffic and tourism, it’s a bit off, but coming back. Sales of high-end instruments have returned with a vengeance. Its New York – everyone shops here at least once in their life. GC closing its 44th St. location has had a positive impact as well.
Downsides?
Staff has to come from outside the City since the average apartment is now well over $1,000,000. There’s no parking on the streets and paid parking is an average of $45 a day. Every language is spoken, but not necessarily by my staff. They do a great job, but certain languages [present challenges].
How has the NYC region changed during your time based in the city and how do you expect things to evolve in the coming years?
Since we did a similar interview last, we were still on 48th Street – six stores on one block, on two different sides of the street: a manager’s (and the head of security’s) nightmare. Our new Flagship on 33rd Street has it all, including having Macy’s and the Empire State Building only a block or two away. Right now we have been fighting with the city to remove the storage of materials that are in front of the store. Because of that, we are now invisible to drive-by traffic in both directions. That has been the biggest business killer and started pre-COVID.
Matt Umanov, Matt Umanov Guitars, Manhattan, NYC
What are the upsides to running an MI retail operation out of NYC?
If you’re in Manhattan, which my store was for 48 years, you’ve got many residents who can afford leisure-time products such as musical instruments, plus you’ve got the 60 million “visitors” annually to NYC (official estimate from the Mayor’s office), and they’re all out there shopping. This also holds true for certain areas of the outer boroughs that have become destinations for tourists. All of this, of course, has been greatly affected by the pandemic, but we are very noticeably well on our way back.
Downsides?
You never have a free minute, no matter how good and how big your staff is. Unless, of course, you force yourself to have a little downtime every so often – highly recommended.
How has the NYC region changed during your time based in the city and how do you expect things to evolve in the coming years?
NYC has never stopped growing and evolving in its scope for the 412 years since the Dutch first settled here. No idea how things might change in upcoming years; If I did, I’d have played the stock market instead of running a guitar store, which for me was a heck of a lot more fun and far less nerve-wracking.
Phil Unger, Flute Center of New York, Manhattan, NY
What are the upsides to running an MI retail operation out of NYC?
We love to say that you never know who you are going to run into at the Flute Center, and it’s true! Flutists from all over the world visit NYC, whether to perform or just for fun. Our steady stream of international visitors allows us to host recitals, masterclasses, and an interview series featuring the most esteemed flutists of our time. Not to mention the local flutists of NYC! We are lucky to have a team of resident flutists who are talented performers and teachers in their own regard – I don’t think we could assemble this team anywhere else in the world.
Downsides?
Rent and labor expenses are always a concern for businesses based in NYC, and we are no exception. The costs are enormous. We started with about 100 square feet and have gradually increased our office space until now; our current office in Chelsea is 2,600 square feet, and we could easily grow into larger quarters. Even with limited space, we are proud to have one of the largest flute collections in North America.
How has the NYC region changed during your time based in the city and how do you expect things to evolve in the coming years?
NYC has steadily become busier and busier over the course of our time here, excepting, of course, when everything came to a sudden halt in 2020. Since reopening for in-person appointments in May, we have seen a steady influx of clients in the shop. While our strong online and remote sales helped us continue to grow throughout the pandemic, it feels great to have flutists in the shop again! We have seen steady growth every year, and are expecting to continue that trend.
Daniel Shatzkes, Gig Gear LLC, Brooklyn, NYC
What are the upsides to running an MI supplier operation out of NYC?
It’s no secret that New York City is home to an innumerable amount of musicians, DJs, audio pros and other production professionals. Gig Gear manufactures accessories specifically geared towards this demographic, so being in NYC gives us direct access to a very large amount of customers. We can get our products into the hands of people and get direct feedback from real-world use incredibly quickly.
The fast-paced business environment of New York and the people that work here also creates a sense of urgency and people are very much used to wanting to get things done ASAP. It makes for a business environment that can be exhilarating, competitive and fun to be a part of.
Downsides?
Without addressing COVID yet, New York is also known to be quite a high tax state and NYC is most definitely a high tax and expensive city to live and be located in. We definitely have to deal with the higher expenses of doing business in New York. By the same token, my personal opinion is that New York is also not always the most business friendly state or city, although this can fluctuate with the turnover of elected officials, both in the city and at the state level.
Additionally, when sourcing products from overseas in Asia, having to transport product to the East Coast most definitely costs more and takes longer than importing and being able to situate product on the West Coast. There are obviously solutions that can be incorporated by warehousing on the West Coast, but that, too, just becomes an added expense.
How has the NYC region changed during your time based in the city, and how do you expect things to evolve in the coming years?
The live entertainment industry was always one of the big advantages of being located in NYC. When the pandemic shut everything down (not only in NYC, obviously, but everywhere), our customers’ need for our products dropped precipitously. Broadway went dark and venues and stages all around the city have been empty for over a year. It’s put a real chill on our ability to sell to and interact with our customers that are here, especially when quarantining also limited people’s ability to interact on any physical level. It was pretty crazy to see how empty the streets in Manhattan were for so long.
At this point, I have faith that the New York entertainment scene will come back, although it’s unclear how long it will take. Even when Broadway opens back up, there’s no indication yet of how all of the smaller venues – which were part of the fabric of New York City (not just in Manhattan but in all of the boroughs and surrounding areas like Long Island) – fared and if they were able to stay afloat and survive the pandemic lockdowns. Who knows how many are no longer in business and will remain closed indefinitely?
That being said, New York has had to weather many different crises throughout her history. New York has always come back before and I don’t doubt that there is a comeback already underway. Just how long that will take though, still remains to be seen. Either way, Gig Gear will be here for the ups and downs, better or worse.
Andrew Barta, Tech 21 USA, Inc., Clifton, New Jersey
What are the upsides to running an MI supplier operation out of the Metro NYC area?
I purposely chose to have Tech 21 in midtown to be close to the major retailers on 48th Street, like Manny’s, Sam Ash, and Rudy’s. It was great to be able to just pop over there to deliver product and meet with the sales people. There were also several recording studios, so many major artists would be in the neighborhood and it was easy for them to stop by our office. Building relationships has always been very important to us, so being right in the hub of the retail music scene made sense at the time. In the ‘80s and ‘90s, people used to just hang out along on 48th Street hoping to meet or catch a glimpse of their idols.
Downsides?
Space limitations due to high rent, as well as having to unload 18-wheelers on Broadway! We eventually had to move to Jersey (just 13 miles away), because we really needed a loading dock. We were able to get three times the space for one-third the rent.
How has the NYC region changed during your time based in the city and how do you expect things to evolve in the coming years?
Aside from COVID, there’s been a steady decline of individual retailers, an influx of big box stores, and growth of the internet. There’s been a big change in the landscape. Sadly, 48th Street doesn’t have a single music store left. We’ve all shifted gears accordingly and business carries on. The biggest loss, to me, is that there’s so little personal interaction. While the internet was already steadily impacting retail stores, COVID really turned the tables. Location, across the board, is now less important than ever. People have become way more comfortable with online shopping and Zooming, which is good and bad. There will be a gradual rebirth, but unlikely it will ever be like it was.
Jeff Williams, The Guitar Center Company, Manhattan, NYC (other Metro NYC locations)
What are the upsides to running an MI retail operation out of NYC?
I think one of the upsides of running a business in New York City is that you’re in one of the world’s artistic hubs, so you have this community of all these different diverse, musicians that you get to service. And you’re obviously a hotspot for travel, outside of COVID of course, to where people travel from all over the world that want to visit here. And so many of them want to come here to buy instruments because we have such a great selection. We get to help service those people and get them what they’re looking for.
Downsides?
There can be some feasibility issues. For instance, much of the U.S. is built around the use of cars, and that includes retail operations. But NYC is more of a pedestrian place. You don’t have parking lots, and you need to kind of plan your visit. If you’re planning on buying an instrument, what are you going to do once you pick up your item, and how do you get it back to either your apartment or your hotel room or get it back to your home base? We try to pick up some of that slack on our end, using a courier service or UPS or other solutions, just so we can get the right piece delivered correctly. We try to go the extra mile when necessary to serve our customers, but sometimes that takes some creative logistics.
How has the NYC region changed during your time based in the city and how do you expect things to evolve in the coming years?
COVID-19 was the biggest change and challenge we’ve faced, and I think it impacted life in NYC, in particular. We had to really pivot and rely on new technologies in order to help service our customers. For example, we had to migrate our students from our in-person lessons program over to online lessons and teach them remotely. And we also relied on our curbside pickup service, where customers could stay socially distanced and pick up their purchase without coming in the store. These were issues dealt with everywhere, but the logistics of social distancing in a place as densely populated as NYC – and as reliant on foot traffic – required some very particular problem solving. As we come out of COVID and the restrictions start lifting and opening up, we are starting to see more traffic in the stores, including international travelers and so on. But our use of technology evolved in a big way last year, and I can see a hybrid of that and the older approach moving forward.
Paul Chu, Hunter Music, Long Island City, New York
What are the upsides to running an MI supplier operation out of the Metro NYC area?
In 1996 we formed Hunter Musical and opened a warehouse in Long Island City. Being outside of Manhattan has allowed us to grow from a small facility 25 years ago to a 9,500 square-foot warehouse, including a 500 square-foot repair facility to ensure that each of our instruments arrives at the dealer in perfect working order.
Downsides?
The rental space is very expensive. Most of our employees come to work using public transportation.
How has the NYC region changed during your time based in the city and how do you expect things to evolve in the coming years?
Things have changed a lot, with fewer MI retailers in the city and many moving further away. We really hope that the city will offer policies and capital to help small businesses in the near future.
David Caldwell, The Caldwell Connection, Queens, NYC
What are the upsides to running an MI retail operation out of NYC?
Where I am, I’m now one of the last independent music stores left in Queens. I’m in Whitestone, so it’s Flushing, basically, and it is probably the most diverse community or population in the world, which brings with it a lot of upsides. I get a lot of interesting people. I’m really good with people and I try to treat each person as an individual.
Downsides?
Well, you know, New York is in a decline. A lot of stores have gone out of business because, even though a lot of people are leaving New York, real estate costs have remained high. Luckily, I had a good landlord 30 years ago. He took a shine to me, so he guaranteed me that I could buy the building – which I did. Unless you own your building, in Queens especially, it’s problematic. Then, on top of the high costs of doing business, you have crime.
How has the NYC region changed during your time based in the city and how do you expect things to evolve in the coming years?
As I was saying, there are fewer independent storefronts these days, due to high real estate costs and taxes. But I still get musicians and students from all walks of life.
