As is tradition at this point, I gratefully cede this space in our year-end issue to the folks who truly know what’s going on in MI retail – the dealers, themselves:
Business continued to remain steady and strong for 2023 as schools continued their purchases and spent down their stimulus funds and in-person activities have returned back to the way it was before COVID. Repair technicians are in demand and we all need them to keep things humming along. Consumer discretionary income is coming under fire with the economy slowing down a bit and stimulus dollars wrapping up. The addition of student loan payments in October will further reduce discretionary spending, but education continues to remain strong. – Ryan West, West Music
The overall whole has been positive. Rentals are up, sales are up, but margins remain tight. “Supply chain” issues with the major manufacturers present an ongoing issue that requires now over a year of pre-planning orders in order to have inventory. The supply chain issues with some manufacturers/suppliers do not look to be improving, but actually are getting worse. Being able to forecast for inventory over a year in advance is going to be hard for most of the industry to adapt to. – Charles Kessler, Kessler & Sons Music
Inflation and increased consumer pricing on everyday life items is constant and frustrating. – Chris White, White House of Music
Combo was down this year, B&O up, digital pianos flat, pianos down. Supply chain is still a mess for many suppliers. – Dave Krogan, Frank Rieman Music, Inc.
2023 has performed as expected – certain areas of our business are growing, other departments have leveled off. Overall, we’re pleased with our results, both on the balance sheet and in our customer reviews and support. With a continued shift to online rentals and e-commerce in general, we need to find alternative ways to differentiate ourselves from our competitors. We’ve been successful in this differentiation in the past when meeting with customers face to face, but without that personal interaction, we are compelled to adopt new tactics and strategies to stay “top of mind” with our customers. – Jonathan Breen, The Music Shoppe, Inc.
We are having a solid year over the prior year, but down in certain areas. We have to stay engaged in our communities to educate about the importance of the value that music-making plays. Inflation is concerning. We must continue to develop our team members and recruit talent to support our customers and community. We are targeting for growth [in 2024]. – DeDe Heid, Heid Music
Overall 2023 sales were up some from 2022. Interest rates, poor customer/consumer credit, the 2024 election, supply chain still having problems, and constant dealer and consumer price increases [are all concerns]. It’s the mid to late ‘70s all over again… I do expect an increase of sales in 2024. – Randy Collins, Collins Music Center
2023 was very robust, especially in the school band market. Many types of slow-downs cause “knee jerk reactions” that ignore the long-term. That concerns me the most. Direct vendor to consumer trends probably fall into this category. In 2024, we expect an increase in sales, overall, yes, but very slightly. – Paul Finke, Willis Music
“2022 was a very strong year with schools fully opening after the pandemic. 2023 is coming in very close to 2022. Rising interest rates are a concern.” – Mathew Schirado, Eckroth Music Co.
