Don;t feel sorry for loacl brick and mortar stores. Not all of them are struggling. The smart ones know what to carry and more importantly............. what NOT to.
And Thats why we don't carry any Pro Level Workstations and only one Tyros 3 and no PA2x or PA800's but we do carry lots of and sell MOTL Arrangers...!

Yes the Internet is a good place to buy and Big wow save the TAX!!! LOL. But expect to see and touch the product for the first time and Pay dearly to return it negating and tax savings.

In choosing product selection wisely, Online sales are not all that harmful to MI. Where MI used to make 50%-60% profit, the margins are half that now. Ya think thats THATS why Best Buy is is going into the MI business?.

Way higher margins than TVs and PCs. (Frank knows)

The store I work has over a million net in inventory and everything down to the pick holders are PAID for. No flooring of Grand Pianos or anyone's products, No bank loans. Thats the way to stay successful in times like these. Zero debt,no financing and we dropped Gibson a few years ago after (25 years) not willing to be a "profitable warehouse" for their requirements and other manufacturers who believe they are selling the Holy Grail. Gibson lost 80% of their independents, I'm sure it was part of their "new" business plan under Henry. They are calling but no one is picking up the phone.

We lost nothing in revenue, Replaced them easily. OF all musicians, Pro keyboard players are the worst in local demonstrators and on line buyers. We tried selling the TOTL Workstations and Arrangers, They were demoed a lot but did not sell. We did not reorder, Guitar players tend to buy what they play (especially the high dollar stuff). Piano, DJ, Home studio and local PA buyers want local support from people who can teach them how to use the gear or a place to go to get a blown amp or speaker handled now for tonights gig.

Especially being a store that is open 12 hours a day 7 days a week and closes 2 days a year because we are a two level store in a MAll anchored by JC Pennys, Neiman,and Sears, The additional rent negates the need for an advertising budget everyone knows who we are,where we are and what we sell in town and those who come from out of town.

We sell and stock primarily MOTL arrangers because the people who buy them tend to NEED support and a place to go to have their questions answered and free lessons on how to use them,therefore are less inclined to buy online to save $100 tax.

We are paid an inconsequential 2.5 -5% "commission" on serial number item and don't hire kids for little money. Our youngest employee is over 35 (which makes medical costs higher for the owner but pays itself back in zero in house shrinkage and commitment and work ethic) most of the three non family members who work here have other income and come to "work" because they ENJOY it.

All That benefits the customer in that we can and will turn over anyone to some who knows more about playing a particular instrument or item without worrying about commission loss. We hire people that can DEMO ANYTHING in the store and specialize in a few areas that are not afraid to call on another sales guy for help on a product they don't play or know as well. What are they going to lose? $7 on a $300 bass? LOL

We have 9 employees two of us work 30 hours a week by choice,one works 20. There are no managers, no targets, no processes. We ALL manage our specialty. We know the break even point and have complete flexibility in pricing, no running to the boss for "approval," no targets, and with all this, the owner is hugely successful and still works 10 hour days in his late 60's. Go figure. No Internet sales presence. That requires another full time person and a warehouse.

The owner who has had a few stores for 35 years is happy with just one now the way things are. I have never worked for a better human being. I worked for a major Corp for years early in life and never received a couple thousand dollar Christmas bonus,working part time, at a friggin music store!! just because the "boss" likes to share his profits. We go the extra mile because we like THE WAY HE DOES BUSINESS.We are all musicians and know the business of BUYING. We understand the customers.


Hire kids pay them nothing for the "privilege " of working for you and there you you go. Guitar Center. Independents can compete with the Internet. Just have to be cash and carry and hire good people who care about the business because they care about the owner and are passionate about music or some aspect of it.

The margins are good because Best Buy is getting into MI and the margins although 1/2 of what the were are before the Internet deluge and MAP pricing are still far higher then TVs and computers,

When places like GC cannot stay healthy in a MAP environment owning an Internet store, you know the margins are still good for those who can pay as they go and stay away from credit to operate their businesses. Remember MAP is ONLY an Advertising price. Dealers can sell a Tyros or Korg PA2x for $2800 or less if they want to, We can but we don't need to. We can afford to wait for a buyer who needs the support and sell something else with higher margins, in the meantime.

So why carry the Tyros at all? Because I sell 90% of the PSR900s off a Tyros Demo. Go from $4000 to $1700 using the same styles and sounds, then explaining what the additional $2300 buys them in the T3 and the PSr s900 is a slam dunk.


[This message has been edited by Kingfrog (edited 02-08-2009).]