Fred Bramante was a pioneer in this regard. His ability to instill a high-level of service and customer satisfaction amongst his team and his many stores was a credit to his creativity and drive. I’ve known Fred and his family for many years and he truly believes in the value of talking to customers one-on-one. He certainly had a positive effect on me and how I train my staff to provide customer satisfaction.
So why did this happen? A big reason is the internet. I know, I know, the internet is a great thing – it really is. But I believe that that the “big” manufacturers didn’t think this one through when the selling of musical instruments and supplies started on the internet. They simply saw the internet as an additional sales channel. They didn’t realize that it would severely supplant much of the walk-in business from small independent music dealers like Daddy’s. Fred cited as much in a Nov 5 statement he made to the Boston Globe regarding the closing of all Daddy’s stores. Could Daddy’s have gotten on the internet bandwagon selling their wares over the internet a lot sooner? Maybe. But that’s not what they were built on anyway. Think about it. There’s no personal interaction on the internet. It is merely a way to shop for price when it comes to commodity products like strings and boxed tech products. Doesn’t really matter where you purchase from right?

Before the internet purchasing craze began, the difference was that you could get the same set of strings, for example, at two different music stores but you went into the Independent community music store because you knew the people who worked there, you looked forward to browsing around, you had fun looking at the gear and you maybe struck up a conversation with one of the sales guys and he might have told you for example, “I use those strings too but you ought to try brand X, they feel great and the tone is slightly different…..” See the subtle difference? Shopping in our world today has really changed. The internet is a great tool and very convenient for buying certain products but we must balance that with common sense. If we don’t we will lose “music stores” altogether.

“Wait a second,”you say. “ I do want to go into a music store sometimes and play the guitars, listen and compare amps or check out other equipment in person and ask questions.” Okay, that’s fair. So do I. So how do we as an industry provide enough protection for the Independent music store to exist alongside the internet and the big box chains?

This is what Optek is doing to navigate the difficult distribution waters:

1.            Restrict internet sales. Our Independent music dealers (the dealers that are carrying the Fretlight and sign-up to carry the Fretlight) agree to not sell the Fretlight guitar over the internet. I understand this won’t work for a string manufacturer but for guitars its imperative. They are all different across brands. Who really doesn’t want to touch, hold and play them before purchase? This policy further protects the store from an internet only dealer simply winning the price war – possible over a state line i.e., no tax and free shipping.

2.            Be the Internet store for all dealers. Optek is the only place on the internet that you can purchase a Fretlight guitar today. For any internet sale we make to a customer that is within a specified distance of one of our dealers, that dealer shares in that sale. Furthermore, we provide that customer a “free shipping, in-store pickup option” so as to get our customers into that dealer. The dealer gets a new customer walking into their store for which they can provide further service and support and really begin a relationship. We know Fretlight gets people into guitar and once hooked on how fun playing guitar is, that customer will buy music gear and accessories for life.

3.            Eliminate MAP pricing. I never understood MAP (minimum advertised price) from a customers standpoint. It’s confusing and really just a ploy to make the store look good. “Reg $99 but purchase at our low price of $79”  I’m not talking about something on SALE, I’m referring to the List price and the purchase price. The music industry, especially guitar manufacturers use this technique with their dealers a lot. I don’t believe in it. It confuses customers and it prompts them to shop price rather than value. Apple doesn’t do that. You can purchase an iPod anywhere in the world and it’s the same price! Stop with the game playing and sell the value, not the perceived discount. Specific knowledge about an array of products has to be worth something. Lets stop the dumb-ing down of the music dealer – knowledge has value.

So far with our new dealer effort, this strategy is working great. We have partner dealers instead of outlets. Granted, the Fretlight lends itself to this model because our customers are full of questions once they see the guitar and our dealers are prepared to provide this service and value.

It’s really a shame that the Northeast music community lost Daddy’s music stores.  If we’re going to lose stores like Daddy’s and the manufacturers aren’t going to be creative in protecting the small independent music dealer then why do we really need the “other” giant music chain? Why not simply sell all music gear at best Buy or Costco? Or why not simply have everything sold through the internet?

J Rusty Shaffer

CEO

Optek Music Systems, Inc.