Hey, Mr. DJ – Put a Record On…

For a market segment so driven by technological innovation, it’s no surprise that the feedback we received from this month’s survey about Lighting & DJ retail sales was… well, kinda all over the place, really. While more than half of the 400 stores we reached out to (51.2%) carry equipment from both categories, roughly the same percentage (53.3%) report that such sales only account for less than ten percent of overall business.

Given the dominance of hip-hop, EDM, and dance music on the charts, one might reasonably ask how that could be. The answer could, again, lie in the technology behind the gear, itself. As Diane Stecher of St. Louis’ Alobar’s Incorporated notes, “The DJ Market has been slowly decreasing. Controllers, Turntables, CD Players are no longer used or wanted. If it fits in a backpack, then that is what they want to DJ with.”

One thing that seems clear, with respect to Lighting, is: if it’s not LED, it’s not happening. While many expressed that sentiment, perhaps Biddeford Maine’s Nick Noiseux of Nick’s Midtown Music put it best when asked about trends in Lighting: “LED LED LED!”

These are rapidly evolving product categories, with fickle and savvy end-users – read on to learn what dealers have to say about the Lighting & DJ markets in 2015…

Does your store sell DJ & Lighting equipment?

Yes, we carry both: 51.2%
No, we sell neither: 43.5%
Yes, but only DJ gear: 1%
Yes, but only Lighting equipment: 4.4%

“DJ and Lighting have presented challenges for both retail and rental. For DJ gear, the margin is pathetic. An additional problem is that DJ gear dramatically changes every six months, so it becomes impossible to stock as a department. On a positive note, we sell a lot of cables and adapters to DJs, simply because old standby’s like Radio Shack no longer carry many of the connectors that professionals need. Lighting gear can be profitable, and we dabble in it. However it is very difficult to rent, because the less expensive stuff is not built well enough for renting to the public! The margin is also not very good.”

Anthony Mantova
Mantova’s Two Street Music
Eureka, Calif.

“We have not actively sold these products for over 5 years. We are considering some basic lighting packages – now all LED – for our school & some church customers. Packages only. We have no plans to re-enter the DJ product business.”

Russ Beacock
Beacock Music
Vancouver, Wash.

Compared to this time in 2014, sales of DJ equipment in your store is:

Up: 28.6%
Down: 21.4%
Level: 50%

Compared to this time in 2014, sales of Lighting equipment is:

Up: 33.3%
Down: 13.3%
Level: 53.3%

What percentage of your overall business does DJ/Lighting represent?

Less than 10 percent: 53.3%
11-25 percent: 32.3%
26-50 percent: 6.7%
51-75 percent: 1%
More than 75 percent: 6.7%

Are DJ sales (controllers, turntables, or otherwise) effective leads to tie-in sales of related gear?

Yes: 53.3%
No: 46.7%

“If you don’t sell DJ equipment, you lose the opportunity to sell all the other essentials: lighting, cables, wireless and wired mics, cases.”

Randy White
Washington Music Center
Wheaton, Md.

If “yes,” what product categories:

Live Sound/Performance (PAs, headphones, mics, etc.): 71.4%
Recording/Production (samplers, plug-ins, etc.): 28.6%

What larger trends have you been noticing with respect to the Lighting and DJ market?

“Moving Heads and lower pricing.”

James Barrios
Monstervision Music LLC
Madison Heights, Mich.

“DJ Companies are purchasing more lighting to give an overall package to their clients.  They are wanting brighter and cheaper – an all-in-one fixture. The DJ Market has been slowly decreasing.  Controllers, Turntables, CD Players are no longer used or wanted. If it fits in a backpack, then that is what they want to DJ with.”

Diane Stecher
Alobar’s Incorporated
St. Louis, Mo.

“As more churches/houses of worship are incorporating video they are including lighting in their sanctuary.”

Mike Guillot
Mississippi Music Inc.
Hattiesburg, Miss.

“LED LED LED!”

Nick Noiseux
Nick’s Midtown Music
Biddeford, Maine

“So many more manufacturers these days.”

James L. Burke III
Blues City Music
Rossville, Tenn.

“Less lighting and more pyrotechnics. Remote locations…”

Roger Matthies
Roger’s Music Emporium
Ovid, Mich.

“More software based controllers. LED has replaced almost all other light sources. Dual moving head lights are big.”

Don Williams
Q Systems Music & Sound
Hobbs, N.M.

“We can’t keep up with the challenging DJ category.  The wildly changing demand coupled with the insanely small profit margins is a barrier for most brick-and-mortar stores.  There are few manufacturers willing to share actual profit on DJ gear.”

Anthony Mantova
Mantova’s Two Street Music
Eureka, Calif.

“It’s all about controllers. What is the next disruptive innovation? The market is a little stale at the moment.”

Juan J.C. Faxas
Guitar Center
Westlake Village, Calif.