More trouble in the music business

[twilightsong]

I had lunch with a friend of mine who has his own boutique electronic drum company (see link below) and he’s excited that he squeezed into a booth at the last minute for next week’s NAMM show. But he related sobering news to me about the retail MI biz.

It seems things are starting to go the way things went with WalMart. Because of our insatiable appetite for material things, the manufacturers are starting to have a presence in stores not normally associated with MI: WalMart, Circuit City, even Aldi’s (which is essentially a discount grocery store). So far, this has amounted mostly to entry-level guitar paks and accessories, like strings, but it is starting to hurt the dealers, who are already having trouble competing with the big chains (GC, Sam Ash, etc), but it’s also starting to hurt them too. Very similar scenario to what has happened to other locally-owned businesses like hardware stores because of the lo price point WalMart offers, but which comes at the expense of their suppliers (which are increasingly becoming overseas suppliers to drive the costs even lower).

A similar forecast was made about the New and Used car industry a few years back but some effective lobbying put a halt to that.

This trend is now coupled with the MAP trend. MAP is “Manufacturers Advertised Price” and it basically means that a retailer cannot advertise a price lower than this, which is set by the manufacturer (they can sell it for less, they just can’t advertise it). My friend was telling me that even this once sacrosanct policy is being waived more and more by the manufacturers for big chains like WalMart if they agree to buy in volume, hurting the dealers even further.

On the surface, it all seems like a good deal for we the buyers, but it’s the long-term consequences that are being ignored. I don’t want to see the 2 or 3 long time local dealers in my area go bust because of Korg or Yamaha’s greed. The dealers are in an uproar, and it’s going to be discussed at length this week in Anaheim.

What’s it going to end up being? One HUGE store where I can buy cat food, a Fender guitar, and a new Ford all in one stop? A store that we all will be working for as checkout clerks?

Here’s that link

http://www.retpercussion.us/
_________________
doug hazelrigg
TOONS
Hamer Studio Artist electric guitar, Crate V32 Palomino amp, Gibson JC200 acoustic, Yamaha Maple series drums, Hamer bass, Neumann and Rode mic's, UA610 and Grace 201 pre's

[Lord Snarebottom]

This is the most basic problem with capitalism. How do you infuse a sense of responsibility into people who only care about money?

[phild05]

Man, this is not cool at all. Gonna love auditioning a Strat in the frozen food section aren't we?
I've noticed, this last 12 months particularly, where you see this "You won't find this product cheaper,
anywhere. If you do, we'll match it" thing. Well no we won't cos it's standardised everywhere you go
Soulless music shops are not that common, they certainly will be if this crap takes off. Where's the
shoparound for the lowest price gone? I went online to get a new sound card the other day and managed
to save 31p (50 cents approx). I only managed that because I chose the cheapest way of shipping the
thing, I'm expecting a mangled mess to turn up on my doorstep in the next few days
_________________
Minimal Cheese Now in virtual cheddar flavour.
Download
iTunes

[twilightsong]

[chams]

Vote with your wallet.
I'm surrounded by 'WalMarts' but I've never been in one...
Shop locally, and keep the local shop.
_________________
C5/Wavelab 6
Win XP pro SP2
No problems

[twilightsong]

We've made a deal with the devil, or at least the baser aspects of our nature.

To satiate our desire for more, more, more, we must get the lowest price or we won't be able to cram all those goods on our credit cards. Along with this, the retailers want to meet and then tweak that burgeoning demand, so the competition becomes cutthroat. In turn, the lowest cost must be procured, and usually that means strong-arming the supplires, who in turn must relocate to China with its cheap labor to meet the cost demands. Good jobs are lost. For exmaple, I don't think there is a single domestic manufacturer of TV sets anymore. This gradually lowers our standards of living; to try and maintain the lifestyle we've become accustomed to, we put even more on our credit cards. And the huge, fragile house of cards keeps getting higher and higher.

One day, it's gonna all come crashing down

So what we end up with is:

>a lot of cheap and cheaply made goods that don't bring fulfillment anyway
>a lousy job as a floor-walker at Circuit City since our TV apliance business went bust because couldn't compete with WalMart
>more of our wealth going to somewhere else
>more debt

ALL so we could save 13% or so on the price of a new TV. It's a viscious cycle
_________________
doug hazelrigg
TOONS
Hamer Studio Artist electric guitar, Crate V32 Palomino amp, Gibson JC200 acoustic, Yamaha Maple series drums, Hamer bass, Neumann and Rode mic's, UA610 and Grace 201 pre's

[twilightsong]

Then "we the People", the Guv'ment, in order to satisfy the demands of every ridiculous interest group and to grease the skids of the election cycle by getting as much pork as possible to one's district, must spend WAY beyond its means, and anymore that means going to China, hat in hand, and borrowing what we don't have from them -- from COMMUNISTS!!!

I'M TELLIN' YA, WE'RE IN BIG BIG TROUBLE
_________________
doug hazelrigg
TOONS
Hamer Studio Artist electric guitar, Crate V32 Palomino amp, Gibson JC200 acoustic, Yamaha Maple series drums, Hamer bass, Neumann and Rode mic's, UA610 and Grace 201 pre's

[twilightsong]

AND DON'T EVEN GET ME STARTED ON THE MILITARY-INDUSTRIAL COMPLEX*

HALIBURTON IS THE REAL ENEMY

ALONG WITH ITS FRONTMEN, BUSH AND CHENEY

seems I'm coming around full-circle into Liberalism

naah.... right is right and wrong is wrong



*there's a sign at the entrance to the UN which details how if just the annual outlays for "defense" were applied to solving hunger, the problem would be fixed within a few short years. What is wrong with us? Billions to kill people instead of save them... and in the name of what?
_________________
doug hazelrigg
TOONS
Hamer Studio Artist electric guitar, Crate V32 Palomino amp, Gibson JC200 acoustic, Yamaha Maple series drums, Hamer bass, Neumann and Rode mic's, UA610 and Grace 201 pre's

[Skent]

As I see it, this has already happened with that huge music store that sells many Guitars and has become a Center for for other things musical. I used to work for a small vintage shop that did pretty good business. One of those big music stores opened up a few miles away and we immediately felt the drain. The shop closed. I boycotted the big store for a long time until I realized unfortunately, they had the goods I needed and the little stores didn't. If I have to buy something that I need to see in person before I buy it, I go there. I buy software online.

I was in a Target department store over the holiday and saw they are selling cheap acoustics and electrics with an amp package. That's all those department store will probably sell at least for a while. If you want a "real" instrument, you'll have to go to a music store. Some people don't know the difference between cheap and value. If some one starts out with a cheap instrument and they stick with playing, they'll most likely want to upgrade to a better instrument.
_________________
"If I were not a physicist, I would probably be a musician. I often think in music. I live my daydreams in music. I see my life in terms of music. I get most joy in life out of music." -Albert Einstein

[phild05]

[Lord Snarebottom]

[Paul Woodlock]

[RiffWraith]

I agree with all of the points up there, but keep in mind one thing:

Sam Ash started as ONE store. ONE. Ok, that was a different time, but.....just thought I'd throw that in there.

Cheers.
_________________
Orch/Film Score

[BearHat17]

I,d rather shop where professionals shop, then have some *quiz* little discussion with some 16 year old whos more worried about his zits and if hes hit puberty yet.

I,d spend the extra money knowing I,m getting great service from guys who know what they're talking about.

I cant stand Wal-mart.

[Paul Woodlock]

[twilightsong]

[twilightsong]

[Parrot]

My thoughts on regulation and why we desperately need it.

The Stock Market doesn't have a conscience.

Never has ...never will.

[DoeZer]

[bubba]

Hi Fellas:

As someone once brilliantly said: "Capitalism is the worst form of econimics except for all of the others" Competition is what makes the system work. The problem is the first thing the big operators try to do is eliminate all competition. There has been a disturbing trend going on - deception. Banks, credit companies and now large retailers are using very dirty tricks on customers in order to increase the bottom line. An informed and alert customer is the best weapon against this disturbing trend. The Democrat party needs an issue that translates into votes on election days. This would be a great one. They have a committee looking into this issue. They have discovered some very dirty tactics used by credit card companies and banks. Unfortunately, our elected polititions are just as beholden to the large corporations as the Republicans. I got a sneek-peek at a list of Congressmen affected by the Abramhoff scandal. I was shocked to see just as many Democrats on the list as there were Republicans. When the s h i t hits the fan on this one, perhaps the voting public will take a closer look at how the system works - or doesn't work. S h i t starts at the top and runs downhill. We must first get rid of the liars and thieves that we elect and then go from there.

Peace: bubba
_________________
http://www.jamendo.com/en/album/48239
l

[DoeZer]

[Q]

[slipstream]

[Captain Caveman]

I'm all for it.

Surely the real issue is the MAP and the penalties the manufacturers/distributors impose on retailers if they flout these prices. Not WalMart et al.

It should be the retailers decision what price to advertise and sell at, anything else is retail price maintenance - which is apparently against the law.

Take Steinberg for example - they won't register software bought by an individual in a country other than the one they are resident in. So UK consumers (for example) have to pay 70% more for SX3 than in the US of A. Its not as if the US retailers aren't making a nice mark up on the dollar price either.

Another example... I was quoted £340 for a UAD-1 card from a local store here in Scotland a couple of months back. I bought one for £240 from Thomann in Germany. Should I have "supported" my local store by throwing away £100? Maybe £10, but not £100.

If I had been a bit wiser to the international market in music gear then I would have been able to buy a lot more stuff for my money in the last year.

So bring it on.

[MarkOne]

Guitar Centre. Cubase SX3 $599.99 (£341.79)

Digital Village. Cubase SX3 £499.99 ($877.60)

So fair... Isn't it

(For those who don't know these 2 stores are similar kind of places on opposite sides of the pond
_________________
Me @ soundclick
- - - - -
My Website
- - - - -
Album Blog

[Paul Woodlock]

[MarkOne]

[Captain Caveman]

Remember as well that SX3 can be had in the states for less than $500.

Digital Village in the UK is just about as competitive as a UK retailer can be price wise.

So the price ($500 + 30% for taxes) would be £370 vs £500.

[Paul Woodlock]

[MKP]