Re: Brook Mays Chapter 11


While I agree that it is frustrating that the mega stores don't usually
carry a good selection of high-end doodads, as a long time retailer, I
understand business is all about turns per year. Every square foot of
retail space has to generate X amount of dollars per year. And it is
easier to turn 10 El Cheapo doodads than 1 high dollar unit. The pricey
item might sit on the wall for a month or two or three. While the low
dollar units might sell 3 or 4 at a better per unit profit. Obviously,
in a very large market, a high end item may sell a little faster, but
it will almost always be outstripped by the more general consumer
oriented item.
As an example, I live in a town or 280,000 or so. When I decided to
look for some Eden stuff, I had to drive 150 miles to the "big city".
Why? Because none of the local stores sold Eden or anything comparable.
When I asked the owner of the big independent in town why, he said that
no one had ever even asked about Eden. He sent me to a store in the
metropolis that carried the Eden line in stock. Did he miss a sale?
Yes.. Did it make or brake his gross sales for the year? No.. For the
one Eden I might have bought from him, he had probably sold 20 Hartkes
or Ampegs or Fenders. Same goes for strings and accessories. How many
sets of Nano Webs would he sell compared to Ernie Balls? (Ernie's
Balls?)
John and others are right that it is frustrating not to be able to just
walk into a store and find what you want on the shelf. But some of us
long time players have become pretty particular in our old age, while
the younger or less experienced among us haven't been around long
enough to care about all the eccentricities of a particular string
gauge or brand. I have found that if you ask your retailer to add a
particular item to his inventory he will normally oblige if it is at
all possible. Sometimes though there are factors that you may not
consider. For instance, he may not be able to order just two or three
sets of a particular string. He may have to order three dozen. If he
has to buy in large amounts and you're the only player in town that
uses those then this puts him in a no win situation unless you are
willing to really stock up on strings. He doesn't want you to get
pissed and he doesn't want to sit on a bunch of merchandise that will
not turn.
G.C. and all other mega chains are actually doing their best to cater
to their particular clientele. If they could move 30 Ken Smiths a year,
they would be hanging all over the walls. But they CAN move 30 MIJ
Jazzes and they know it. The square foot or so that one bass takes up
turns 30 to 1. Which equals more profit. Not just because of the 30
sales, but also because of the extra discount Fender gives them if they
can buy 30 at a time instead in one at a time. In my opinion, this,
more than anything else, is what is killing small business in America.
Bulk discounts are a vicious circle. If you sell more, you can buy
more. If you buy more, you get a deeper discount. If you pass the
discount on to your customers, you will sell more.. ect. Most small
shops just don't have the capital to compete with this pricing
structure. My best example was when I was in the retail auto parts
business. We carried AC oil filters and the average price was around
$3.50 to $5.00 for the more popular ones. Customers would get
discouraged at the price because Wall Mart was selling the exact same
filter for $1.99.. We were buying a couple of hundred cases of filters
per year while Wall Mart was buying tens of thousands of cases per
year. Who do you think got the better deal?
It sucks, folks.. But it can be beaten. We have a local, private owner
music store that can compete with G.C. because the owner is willing and
able to buy in bulk on a lot of inventory. Also he is a shrewd
businessman. I overheard him browbeating the Gibson rep one day because
of the prices on Epi guitars. He apparently got the deal he wanted.
I have resigned myself to knowing that if I want to buy something high
end, I need to plan that road trip to San Antonio. It's just life..
One last comment one a very long rant:

I have to admit I have not had to hard a time dealing with the local
G.C.. If I go in already armed with as much info as I can get off the
net and a price in mind, they usually accommodate me. Example: I just
bought a Crown TXI 2000 for $589.00 plus tax. The cheapest I found on
the net was $650.00.. By the way, it is designed and made in the USA
for anyone who cares.
Thanks!
Cc

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