Music & Sound Retailer January 2018, Vol 35 No 1

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NAMM ISSUE NAMM ISSUE NAMM ISSUE NAMM ISSUE NAMM ISSUE NAMM ISSUE NAMM ISSUE THE NEWS MAGAZINE FOR MUSIC PRODUC TS RETAILERS

January 2018 Volume 35, No. 1

BE SURE TO WATCH

MI vs Amazon Manufacturers concerned about website’s return policy, as well as counterfeit products

By Brian Berk

Amazon is a 600-pound gorilla. Whether through organic growth, the entry into new industries or via acquisitions, Amazon, which now retails most anything you can think of, as well as being an original TV content powerhouse, has become a true goliath. For its fiscal 2016 (the most recent full year of results available), Amazon achieved a whopping $136 billion in net sales and $2.37 billion in net profits. And these results do not include the acquisition of Whole Foods Market, so expect these numbers to rise significantly. And who’s to say where these numbers will reach should Amazon enter the pharmacy market or other areas? For its most recently reported fiscal third quarter, ended Sept. 30 (the company plans to report on fourth-quarter results in days), Amazon saw net sales increase 34 percent year over year to $43.7 billion, with net profits coming in at $256 million. On the day following this earnings announcement, the company’s NASDAQ National Market’s market capitalization increased by $62 billion in just one day. To put that in perspective, Amazon’s market capitalization rose approximately the entire equivalent value of General Motors in a single session. (continued on page 90)

Pro-Audio Services 101 A guide to starting your own pro-audio installation and rental service Retailer Rebel Visits EarthQuaker: P. 60

By Anthony Vargas

One of the most pressing questions in MI retail — a question that will be asked in countless conversations throughout the Anaheim Convention Center during the upcoming NAMM Show — is “How can a music store compete with online giants like Amazon?” Unfortunately, there is no easy answer to this question. But that doesn’t mean there are no answers. Here at the Music & Sound Retailer, we’ve asked this particular question to retailers, manufacturers and other industry insiders many times throughout the years, and the answers all seem to converge on one central idea: You need to offer your customers what the Amazons of the world can’t. And, when it comes to the realm of pro audio, there is a ton your store can offer that a website can’t. Maybe you’ve already heard all about the bottom-line benefits of pro-audio service offerings and you’re interested in getting into small-scale audio system installs and rentals, but you just don’t know where to begin. With this in mind, we asked music retailers who have had success in the pro-audio market, as well as representatives from pro-audio-focused industry organizations, for some tips on how you can get your own installation and rental business off the ground. For starters, The NAMM Show offers a wealth of educational opportunities for music store owners who (continued on page 54)


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