Just down the road from the Memphis outpost of certain MI retail giant, Geoff Albert’s independent Revolve Guitars does a brisk business. Since opening in 2012, Albert’s shop has sold a great assortment of acoustics, electrics, and amplifiers. But a major factor in his success has been the little things – accessories. It’s even hidden in the name.
“I have a DBA name of Revolve Guitar & Music Shop, but the real name of the company is Revolve Musical Instruments and Accessories,” says Albert. “It’s always been deliberate, even when I was creating the business plan for the shop. It’s a big part of the business.”
Accessory and guitar sales have gone hand in hand ever since the first broken E string, and low-cost merchandise has always been a surefire way to secure add-on revenue and repeat business. But as markets slowed over the last five years, retailers have leaned perhaps more than ever on low-ticket items like strings and guitar tuners to keep customers coming back. In turn, the MI scene has been rewarded by a rush of new product development and an increased interest in merchandising from suppliers across the board.
LET’S GET SMALL
While sales have stagnated in many sectors, Ernie Ball’s Brian Ball points to accessories as proof that plenty of people are still spending money on music.
“I don’t think people are playing less guitar,” he says. “If anything, there are more and more macro drivers like YouTube nowadays that are really pushing people to play. The small accessory goods have been a great business for retailers and manufacturers.” Ball also points to a tendency toward innovation (more later) as another reason accessories can maintain a fresh presence on shelves.
“As a music products retailer, media and accessory sales are the lifeblood of customer traffic, sales, and profits,” says Alfred Music vice president of sales Antonio Ferranti. Many shops would agree. While a vintage axe looks great in the window, it’s often the string racks and pick displays that get visited the most. “Many times, accessories and replenishing accessories are the reason a customer comes into a store in the first place.”
Hal Leonard Corp., the print music giant who has recently made moves into everything from keychain lights to Line 6 amplifiers, echoes the idea that accessories are an indispensable revenue stream. “Along with print, accessories still carry the best margins and have become even more integral to any retailer’s success,” says senior sales and marketing manager Brad Smith. “These items are traffic and revenue builders. Every consumer walking in the door is a target for accessories.”
It doesn’t stop at the bread and butter stuff like cables and straps. Smith says gifts, novelty items, and reference materials are picking up. Why? Consider it a question of financial immediacy. “We can all dream of owning that legendary instrument one day, but meanwhile I’ll buy a book about it or a calendar,” he says.
MAXIMIZE YOUR MERCHANDISE
That consumer attitude speaks to the key strength of accessories – they’re relatively easy to sell. That said, there are a few techniques that can boost your numbers in this department. Albert says his approach to accessories at Revolve involves a mix of wide variety, smart pricing, and an accessible display.
“There’s an old idea in retail that we talk about called ‘removing barriers to buying,’” he says. “That barrier may just be a simple question – ‘Can I see that?’ ‘How much is that?’ Try to eliminate as many barriers as you can. If you do those things, you’ll sell more.”
Leaving lots of small items out on the floor understandably makes any owner nervous – what’s to stop shoppers from sneaking out with a couple freebies? Albert says to envision the big picture. “Say you sell five times more of those products and maybe lose a piece or two. You have to look at the bottom line there.”
Revolve tends to stock as many choices as possible in different departments (Albert says he carries more varieties of accessories than the local Guitar Center), though some categories are better served by a less-is-more approach. He tries to carry all types of capos, for example, but says that his customers are less picky about more utilitarian products like tuners.
As for pricing? Simple. He just checks leading online prices. “I’m very specific about trying to beat the competition,” he says. “I don’t charge people extra for the pleasure of shopping at a small store. People eventually see that mine are half the price of the local competition, so next time they need anything they’ll think twice about going back there.”
A variety of merchandising approaches available for accessories make them a great way for suppliers to interface with consumers. Brian Ball notes that accessories companies are uniquely eager to stand out from the crowd. “For us, there are obviously print ads, social media, PR, and other vehicles you can do directly,” he says. “But at the point of sale, it’s really important to get some visual merchandising going. If you walk into a music store, especially on the accessories side, it’s pretty cluttered. Doing countertop displays and banners are things that we generally focus on.”
Brad Smith notes that for an independent retailer, it’s all about focusing on what makes you different. “Be the place that offers new ideas,” he says. “Have your customers find cool new things in your store. Accessories for mobile devices is a hot topic. Merchandising is critical. Talk to your suppliers about helping out. And have thoughtful selections under $30 pop up all over the store. Make it a pleasant surprise and that contributes to the shopping experience and customer loyalty.”
Of course, some things just seem to sell themselves. Albert keeps a box of Snark tuners right beside the cash register. “I can’t tell you how many we sell just on impulse,” he says. “’What is this? I’ll take one.’ It’s just one of those things.”
ENGAGING CUSTOMERS WITH ADDED VALUE
As the segment continues to thrive, suppliers have worked hard to created new products. These days, they’re not chasing the lowest price tag. Ernie Ball, for example, recently introduced premium string lines like M-Steel and Bronze Acoustic.
Ball notes that Ernie Ball’s product releases aren’t necessarily timed to match any particular market influences. “It’s a constant pursuit of innovation,” he says. “We’ve got some pretty smart competitors out there and if we’re not aggressive and working hard to develop new products, then someone else will.” Ball says that a product’s readiness – not a target date like an upcoming NAMM show – determines its release. “You can only market an average product so well. You’ve got to really develop and fine-tune a product line.”
D’Addario has expanded its footprint in the accessories world with a widescale rebranding shakeup, developing new string products and working to unify their Planet Waves division of products. While growth hasn’t been astronomical, the work is paying off with steady progress.
“Even in the accessory business, things are not growing at the rate they have in the past, but overall we find our business to be pretty solid,” says Brian Vance, D’Addario director of product management. “As long as we continue to invest in innovation and quality, we will continue to grow.” Vance also indicated that, with its efforts at brand unification, D’Addario is attempting to create a stronger customer brand loyalty. “We are striving for people to support our whole brand and join the family across brands and product lines, from strings to picks to reeds to drum sticks and heads. Our goal is for dealers and consumers to trust in our offering, and whether or not it’s perceived as a generic product or not, there’s still trust and a quality proposition.”
Vance also points out that the introduction of more “upscale” accessories offer retailers small everyday chances to do what they do best – make sales. “Our real successes have been with unique, higher-priced accessories that provide real value for the customer through forward-thinking features that improve the musician’s performance in some way.” He says that their Pro Winder is their best-selling product, despite costing several times more than a standard tuning peg winder. Other examples include the Planet Lock straps and the Humidpak.
“You have a step-up opportunity with these kinds of accessories, even though they’re still relatively low dollars. We’re trying to build a story into it so that it makes the conversation engaging for the salesperson and ultimately more profitable for the dealer.”
Korg has owned a large chunk of the tuner business for decades with a variety of products on different levels. U.S. director of guitar brands Brad Piccolo says their success is a matter of preference. “We’ve found that some musicians prefer one of our lightweight, clip-on style tuners, while guitarists who use effect pedals may prefer our Pitchblack pedal tuner.” The company recently released a rack-style tuner – Pitchblack Pro. “With the recent progression of rack-based guitar amplifier modeling technology, many players are moving away from pedal boards and once again adopting the rack tuner as part of their rig. There is now an unprecedented amount of choices for musicians, and we strive to provide a tuning solution for whatever path they choose.”
WORLD OF CHOICES
The same might go for retailers – there have never been more choices. In the end, that’s a good thing, as store owners have the chance to use these small but robust products to create a unique identity for themselves. “Accessories have always been a big part of the retail environment in terms of profit,” says Vance. “We want to continue to be a good partner with our retailers to keep the average sell prices up and retailer margins strong. We want to give them something exciting to talk about so it makes the sale really easy.”
