I'm looking for advice from DanO, George, or other retailers.

I'm the trustee for the widow of a long-time friend, who owned Carl's Music in Lexington, Kentucky. the store is the primary asset for the widow. We have just found out that Guitar Center is opening A strore in a local mall before Christmas.

Sales volume has gone continuously down since Carl's death. The widow gets a salary, which is far less than the rent on the Store property. A daughter runs the store, and she has chased off over half the business in the last three years.

Specifically...what is the immediate threat, other than additional competition? Are prices better than Musician's Friend, which seems to be the benchmark retail point around here?

We need to make a decision to try to sell, close the doors hire new managemewnt, etc. It's sad, because Carl built the premier store in the area by strength of personality, honesty and total dedication.


What can you tell me about GC?

Thanks,


Russ

I would not want to be a single mom-and-pop store without some specific differentiation near a new GC. GC will dazzle the consumer with a big-box music store. They go for the larger mass market music sales. Lots of guitars including those higher margin items that are the dreams of middle-aged baby boomers with disposable income. I think that GC will successfully canabilize any music retailer that is in close proximity of it.

We had a similar situation here in my city, a small independant music store was doing well because of the owners knowledge and personal attention to his customers. Guitar center and Daddy's Junky music both big box stores moved into town but the little store still flourished. If you stood in the store for a couple of days you would see every working musician in town. Guys would drive across town just to visit and shoot the....... and pick up what ever they needed big or small. Ask questions seek advice.....

Well the owner retired and sold out and the store, although owned by a man that has three stores altogether, is not the same.
He has to hire from the same pool of young local musicians as GC and DJ.
The point is once the owner left and took his personal knowledge and service with him the store has changed and now we go wherever is closest.

Musicians friend owns Guitar center so the prices and selection are almost identical.
The only difference is if you order at MF there is no sales tax (8 1/4 %), and alot of times free shipping if over a certain amount.

[This message has been edited by mikeathome1 (edited 09-11-2006).]

Management is the key to success in small music store operations. There are two near me, both do extremely well, and both have owner/managers who spend every waking hour in the store to assist customers. One, however, offers outstanding service, a full repair facility for all instruments, and they also have an incredible rental program for the local school system. The combination of attributes has made them very successful.

Good Luck,

Gary

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Travlin' Easy

Sounds like the daughter is already the demise of the business, with or without GC.

zuki

Hey..........send the daughter to GC to work and that'll solve all problems

Guitar Center and Sam Ash moved into the Cleveland, Ohio area about 5 years ago. Prior to that, there were a number of local music stores that sold keyboards, guitars, drums and audio equipment. They were good stores that had knowledgeble sales people and provided good service. Most of those stores have closed and the remaining ones are struggling to stay open. They cannot compete with GC and Sam Ash in the amount of inventory, prices, advertising, return policy, etc. GC and Sam Ash killed the competition.

The family owned stores had product specialists on staff that were trained by keyboard and other product companies. They could demonstrate products and offer support after you purchased an item. At the local guitar center, you are lucky if the keyboard salesman can show you how to turn the keyboard on. If you ask any questions regarding functions, they do not have a clue what you are talking about.

Let me chime in here. I am a small mom and pop store that has survived these many years (36) but I am finding it more difficult the past few years.
What I've found is that if you just try to compete with a GC or Sam Ash and sell the same stuff and offer the same low quality service, you absolutely won't survive.
Marty Albertson, the CEO of Guitar Center has a daughter who played on a soccer team I coached about 10 years ago. I still remember what Marty's advise was to me. "Keep offering the service you offer, teach private lessons (they don't) and find areas we don't excel in and you will be fine". All these years later, I have to tend to agree with him. I would have been out of here a long time ago if it weren't for me getting heavy into arranger high end products, middle eastern keyboards, guitar brands not sold at Guitar Center and Sam Ash, such as Godin and Seagull Canadian guitars and never offering less than my all in customer service.
About 6 years ago, Sam Ash opened about 2 miles west of my store and Guitar Center was about 6 miles East of my store. Since then, another Guitar Center opened about 2 miles North of my store. Every day I hear parents and more mature customers (over 30) tell me how much they dislike shopping in those stores and yet I know that this is the future of our music business. Only when and if consumers rise up and say "I mad as hell and I'm not going to take this anymore" will stores like mine prosper.
I've said this before and I'll say it again....Without help and sales from people like the Synthzone crowd, stores like mine would be gone. It is getting harder and harder. I can tell by the fewer new products coming into the market that there seems to be a lull throughout the United States. I hope we see new products coming out soon to drive the market.


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George Kaye
Kaye's Music Scene
Reseda, California
818-881-5566
www.kayesmusicscene.com

Thanks, folks...there is no GC in this area, so I didn't know how to advise my client/friends.

Sadly, it looks like, without Carl, the best thing to advise is to close the doors. Carl had been my friend/business partner/instrument supplier since he started the store in 1963. I bought my first equipment (60 Strat and 59 Bassman-still have them) when he was an employee of the store he eventually owned.I was in Junior High.

Suspect that George Kaye is a lot like Carl was in terms of customer service, knowledge of customers needs and drive. Carl was also a touring big band trumpet player before he came off the road and settled down

that's hard to find, these days. andthat's why I plan on being a Geroge Kaye customer.


Russ