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Austin goes all out for NAMM: Austin got high marks as a fabulous trade show venue, but attendance levels barely made a passing grade. Nevertheless, the industry still seems committed to a summer show. The only question, where to have it.

Article Excerpt
Addressing The State Of The Industry NAMM Panel Shed Light On Emerging Trends & Looming Challenges

AS VALUABLE SERVICE to an industry in transition, NAMM sponsored two forums that helped provide clarity. The second-annual State of the Industry Address, led by NAMM President and CEO Joe Lamond, addressed specific challenges and solutions facing the music products industry. Facilitated by NAMM CEO Joe Lamond, it featured one-on-one discussions with six industry leaders: Rick Drumm of J. D'Addario & Co., Inc., Bill Reim of Hoshino USA, Mathias von Heydekampf of Telex Communications and Sterling Ball of Ernie Ball Music Man. Participating retailers included Jim Rupp of Columbus Pro Percussion, Aaron Soriero of Music Matters and Dan Marshall of Marshall Music Co.

"The way people shop in this country and around the world has changed for ever," said Lamond in his opening remarks. "I challenge us as an industry to find the solution to how we can take care of the millions and millions of customers who want to make music." One of the solutions to emerge from the conversation was to steer clear of a race to the bottom in price. "Don't be afraid to demo a $3,000 to $5,000 sound system because you think your customer will run out of the store, accusing you of highway robbery, never to shop at your store again," said von Heydekampf. "Educate your customer about quality audio equipment. The problem with selling $99 mixers and $20 microphones is that it's not good for you[r profitability], and it's not good for your customers. The money that they save, they'll just go spend somewhere else--on skiing equipment or Starbucks coffee." Echoing the same sentiments, Dan Marshall added, "Our experience in the school music market is that if you make the case for a quality product, customers will respond. The only reason people buy cheap stuff is because they don't know any better."

Sterling Ball cited poor quality instruments in the mass merchant channel as a serious impediment to industry growth. "When you offer up an unplayable guitar at Best Buy, you're guaranteeing that it will end up in a closet or...

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