26th Annual Fifty Dealer Fifty State Review & Forecast

“The recession hit us pretty hard, as it did everyone else,” says Marc Forman of Albuquerque’s Marc’s Guitar Center and, while the assessment hardly qualifies as “breaking news,” Foreman’s statement pretty much sums up, in succinct manner, the overall shared experience of the past few years in the world of American MI retail.

So, are things getting better? Have we already turned the corner with respect to this mess? Since the summer months, various pundits and experts have been reporting that early indicators point to an end to our country’s economic tailspin. In September Federal Reserve chairman Ben Bernake said that, “From a technical perspective, the recession is very likely over at this point.”

Reassuring words, to be sure, but does that evaluation ring true with music retailers? “My outlook for 2010 is positive because I believe we have already bottomed out,” states Magnolia Music Center’s (Gulfport, Miss.) Tony Strong and that cautious optimism is shared by many we spoke with while compiling this year’s 50 Dealer 50 State Report. However there are plenty who see all such analysis as being only so much smoke and mirrors: “No recovery,” declares Joe Kane of Stafford, Virginia’s Bang Music. “It’s up to us to recreate our business and operate with the available resources… I expect that the new economy will be one of consumer spending that is more in line with actual family income than in the past 20 years. The false economy of credit card debt and home equity debt is over.”

Predictions are, of course, merely educated guesswork and only time will tell how things pan out in the coming months. As Front Porch Music’s (Bakersfield, Calif.) Artie Niesen puts it, whatever your own, personal take on the immediate future, “Always hope for the best!”

ALABAMA
Greenbrier Music Shop
Anniston
Wayne Brown, owner

2008 vs. 2009:
Sales were way off from 2008 — probably as much as 40 percent.

Highlights and lows of 2009:
Repair service was way up. It seems a lot of people were getting their instruments fixed instead of buying new ones. Low-end acoustic sales were good, but the higher end products didn’t do as well. My recording studio was down, but our teaching department stayed booked all summer. Service has made a comeback. People are shocked and very happy when you offer to take care of a problem on the spot with no hassle. I do a lot of guitar repairs while they wait. This is the best way to compete with mail-order.

Concerns:
We have had some companies close in my area with a lot of lost jobs. I hear a lot of people growing tired of mail-order. They want to touch it and hear it before they spend their money.

Outlook for 2010:
I am fully stocked up for the holiday season and I am approaching 2010 with hopes that it will be better than 2009. The first three months of the year are usually my strongest months so I plan on being ready. I have some major repairs already scheduled into January.

Product of the Year:
Alvarez acoustics and Boss pedals.

ALASKA
The Music Man
Anchorage
Al Green, manager

2008 vs. 2009:
Fairly flat

Highlights and lows of 2009:
Native Flutes have been a consistent and fun growth area for us for the last two years. Our summer band program has been a nice part of our outreach for the past several years catering to middle school and high school age students. This year we added a beginning band program in addition to our jazz and concert band classes. Our combo staff has been running an “Alaska School of Rock,” having their students perform in a local club.

Concerns:
I’m concerned about how to improve what we do, and freight, which is always a concern in Alaska.

Outlook for 2010:
We have a new storage and lesson facility next to the store, and I’m hoping to expand our educational offerings this next summer. I’m positive about the next year. Guitar sales are picking up again, and we just had a successful school rental season. Staff is stable and reliable.

Product of the Year:
Yamaha band instruments.

ARIZONA
Atomic Guitar Works
Peoria
Harry Howard & Tim Mulqueeny, owners

2008 vs. 2009:
2008 was strong, but towards the end of the year people became very careful with how they were spending their disposable income. This has carried over into 2009. Although this can be looked at as a bad thing, we have taken this as an opportunity to focus on the most profitable segments of our operation.

Highlights and lows of 2009:
The year started off with a bang with us launching our guitar line at the Winter NAMM show. There we were concentrating on making the transition from a “Factory Direct” operation to establishing a dealer network.

We have changed our retail operation significantly. We have stopped selling amplifiers and effects pedals. We are concentrating more on parts and accessories sales while boosting the service side of our operation. Although we have maintained the number of repair tickets, we have noticed that people are spending less per instrument. We offer a handmade, American guitar starting at $895. The hardest part has been conveying the value and quality of our guitars to the retailers. We understand they can buy two imports to each one of ours. The difference is that we offer service beyond the sale. If a retailer has a problem they need to know that their customer is taken care of and they can concentrate on their operation.

Concerns:
The attrition of small music stores in our market this last year has been massive. The three closest retail shops to us shut down in May 2009. Some of these stores have been in business for 17 or more years. This is directly related to the lack of music programs in the public school system. With the cancelation of these programs, it has greatly decreased the demand for lessons and band rentals from retail stores. Kids are the future of all music-based industries, local and abroad. I’m sure it is this way across the country, and we should all be very concerned.

Outlook for 2010:
Things will pick up in 2010. We will continue to focus on streamlining production while increasing distribution of our guitar line. We are committed to retaining our lessons and band programs we have in place.

Product of the Year:
Atomic Guitars Standard model

ARKANSAS
Red River Music Company
Heber Springs
Rick Gardner, owner

2008 vs. 2009:
2009 has been disappointing to say the least.

Highlights and lows of 2009:
The year started great; sales were double the previous year through the first quarter, then the recession hit. My local customer base changed their buying habits, willing to spend up to $200 to $250 but nothing more. We also experienced a flood in May, losing about $60k in inventory, lost sales, and other equipment.

Concerns:
Recovery and survival, finding product to sell with decent margins and no buyins.

Outlook for 2010:
Our area has historically run six months behind the national economy. I am hoping for a better economy in 2010, but realistically I am hoping to hold ground. I am investing in low-end stock that will sell with a decent margin and trying to keep stock levels down.

Product of the Year:
Samick Gold Rush D-1 guitar.

CALIFORNIA
Front Porch Music
Bakersfield
Artie Niesen, owner

2008 vs. 2009:
2008 was pretty much a struggle and 2009 hasn’t been much of one.

We had three independent stores close in our area in 2009, which helped our business.

Highlights and lows of 2009:
The highlight of our year was staying around in this economy.

Concerns:
The thing that concerns me the most is unemployment and the rapid destruction of the middle class in America

Outlook for 2010:
Always hope for the best!

Product of the Year:
Behringer P.A.gear.

COLORADO
Allegro Music
Parker
Joe Wilkinson, co-owner

2008 vs. 2009:
Overall sales are down about 10 percent, but our student base has stayed strong.

Highlights and lows of 2009:
Our strong student base, great teachers, our 11th anniversary party, and back to school season were the highlights. The economy and sluggish turnaround were low points.

Concerns:
Reasonable expectations of creditors.

Outlook 2010:
2010 should be better than 2009, recitals and plans for events are shaping up.

Product of the Year:
Fender Stratocaster.

CONNECTICUT
The Music Shop
Southington
Scott “Spidey” Mulrooney, manager

2008 vs. 2009:
2009 was down from the first eight months compared to 2008. September and October 2009 beat expectations. I’m cautiously optimistic about the fourth quarter and holiday sales figures.

Highlights and lows of 2009:
Peavey Vypyr 15. Our lesson program continues to gain ground and we built four new studios to keep up with demand. The low has been dwindling foot traffic – the slowest I’ve seen in 25 years. There’s also tight credit with vendors.

Concerns:
I’m a little concerned with the sustainability of small retail merchants vs. big box, the Internet, or price clubs. Each year on Black Friday we piece together a collage composed of sales circulars from the previous day’s newspaper. The number of giant retailers who jump on the holiday instrument bandwagon is almost laughable. To survive you must offer lessons, rentals, and repairs; guitar, amp, and drum sales alone won’t cut it.

Outlook 2010:
I will feel optimistic once the housing and jobs situation is corrected. I think we will have a strong third and fourth quarter for 2010.

Product of the Year:
The Peavey Vypyr 15.

DELAWARE
Seaford Music
Seaford
David Herring, owner

2008 vs. 2009:
Although our sales were down about five percent for the same period last year, we’ve actually been able to increase our net income. The current economic conditions have caused us to take a closer look at our buying habits, and we’ve tried to focus more on selling existing inventory rather than being totally reactive to all the new products that come along. By reducing our expenses and paying closer attention to inventory levels, we’ve been able to minimize the stress of this economic slump.

Highlights and lows of 2009:
The highlight for the year had to be our ability to adapt to the changing conditions that came from the tough economic times. By learning to use our strength in customer service we were able to keep the store running smoothly, support our loyal customer base, and recruit a few new ones. Unfortunately, the lows were the folks in my area, who supported our business, lost jobs and income.The lack of discretionary funds among most of the residents in this area has had a big impact on most of the local retailers.

Concerns:
Although a few of the vendors I deal with have realized the situation, many are still holding firm on their old commitments that were in place when times were a lot better. I am concerned that those vendors who don’t relax their buying level requirements will cause us to drop lines or be much more selective in what we carry. When buying, I now look harder at deals and see how flexible the vendors are with stocking or buying requirements. I am concerned about my ability to properly support lines that I have been loyal to, if some give-and-take doesn’t occur from the manufacturers or distributors.

Outlook for 2010:
I feel like we are getting ready to see a swing in the right direction. I have witnessed what looks like the beginnings of a grass roots movement to take back this country despite whatever obstacles the temporary residents in Washington D.C. can throw in the way. If we can afford to keep our employees working, they can afford to support themselves. I’m hopeful that government regulation won’t kill the small independent business in this country.

Product of the Year:
Rapco/Horizon cables and Paul Reed Smith guitars.

FLORIDA
Seminole Music & Sound
Seminole
John Spinelli, manager

2008 vs. 2009:
2008 was tough and 2009 was even tougher.

Highlights and lows of 2009:
The highlights where that we had to re-evaluate ourselves and cut non-productive practices in many areas, define our core value to our customers, business and self. The lows were accepting that business has changed and changes had to be made.

Concerns:
We’re hoping that everyone has been learning from the times we’re experiencing, this includes ourselves, the consumer and especially the larger vendors. As for our store, we’ve made some positive changes and our customers have appreciated them. The customers are hopefully finding out that things aren’t always so bad and music is a great plus for themselves and their children at times like this. As for the vendors, there are a lot of vendors heavily tied into the big box stores and if things turn for the worst it could get pretty ugly. I hope vendors are planning ahead and won’t try to choke the independent dealer if things start to get worse. Let’s just hope we won’t have to tread that water.

Outlook 2010:
2009 was tough because we didn’t know where we were headed, in 2010 we should have a pretty good handle on things because of ‘09. The planning and restructuring of our business should maintain us through the ups and downs of 2010 and beyond.

GEORGIA
Stephens’ Music Company, Inc.
Calhoun
Shane West, president

2008 vs. 2009:
We have had a much better year in 2009 than 2008.

Highlights and lows of 2009:
Lows were our local economy. Job loss in our area is a big concern just like most of the country.

The highlight is the fact that we are growing in hard times. We look to finish the year up and we are working hard to keep growning. We have worked extremely hard to simply keep the doors open and we want to motivate our staff to keep doing the things that are working in our favor.

Concerns:
Unemployment. Our area has been hit hard and we hope that our customers, present and future will prosper so that we can continue to serve them.

Outlook 2010:
2010 is going to be our best year ever. We relocated in 2008 and our new location is drawing more traffic. We do more lessons than ever and we are reaching out beyond our previous market.

Product of the Year:
Nothing stands out immediately.

HAWAII
Easy Music Center
Honolulu
Peter Dods, president

2008 vs. 2009:
We have been slightly up for most of 2009. It has been a tougher year for posting large sale increases, but we have more than held our ground. While each customer seems to be spending less, we are dealing with a lot more foot traffic than we did a year ago. The net result is we seem to be working a bit harder for the same amount of sales. It is energizing to see the store so busy all the time though. We rarely get lulls anymore. It is hectic in here at times, but we will take that over a ghost town any day of the week. I’ve actually had to increase my staffing to accommodate for the increase in foot traffic over the past year. The sales guys just don’t have time to stock the way they used to. I hired a full time receiver and helper in the store recently in addition to my inventory manager. I’ve noticed that it is a lot easier to sign up as a new dealer with vendors these days. When they might have had a larger buy-in or said no before, they are telling me yes all the time now. it pays to have some capital to play with during tough times. We have signed up new vendors aggressively this year.

Highlights and lows of 2009:
We put on more clinics, performances, and promotional events this year than we have in the history of the store. We launched a new blogger format Web site where my guys can post new product pictures and videos direct from their iPhones. We remained steady and busy when it seemed like the world was about to end. I was able to be a guest speaker at the SNAMM SOTIA. We built two new lessons rooms and renovated our acoustic guitar room. We added a lot of new vendors to our lineup.

Contending with all the doom and gloom in the news was a low. We had/have to remind ourselves daily that we can stay ahead of the rest of the economy. We kept our heads down and plowed ahead this year. It is hard to get too depressed when you have customers beating down your door.

Concerns:
The longterm sustainability of the planet concerns me most.

Outlook 2010:
Spending seems to be picking back up, but I think that is because people who already had money are starting to spend it again. What we are missing is the part of the market that doesn’t have a job anymore, or is afraid to lose their job soon. It is nice that we backed away from the precipice we were on though, but it is going to take a larger increase in consumer demand and confidence before tourism increases in Hawaii and companies start hiring again. I think people are still feeling cautious about the economy. I hope that we can stay ahead of the curve here at Easy Music Center, but I am not predicting a great rebound for the American economy as a whole. It may very well be years of slow to zero growth ahead.

Product of the Year:
Yamaha Acoustics.

IDAHO
Welch Music
Twin Falls
Randy Welch, president

2008 vs. 2009:
Sales for both 2008 and 2009 were below our best year of 2007. However, the result of reducing inventory, short term debt, and operating expenses as much as possible, has produced better gross margins in 2009 than we achieved in 2008.

Highlights and lows of 2009:
Highlights? We’re still looking for some.

Concerns:
It appears to me that many people are becoming more and more demanding and dependent on government to solve problems in their lives. The conflict between those who support less government control and those who support greater government control has produced an ugly division in this nation. I don’t see the conflict going away any time soon.

Outlook 2010:
I’m trying to be optimistic about the year 2010. We are going forward and trying our best to offer products our customers want and provide service they don’t expect. I’m confident that by doing we give ourselves the greatest opportunity to be successful.

Product of the Year:
Yamaha Clavinova.

ILLINOIS
Samuel Music
Effingham
Bruce Bannister, president

2008 vs. 2009:
We were just about two percent up in sales with a very slight margin increase as well. Based on what the economy did in the last few months of the year, we were pretty happy with those results.

Highlights and lows of 2009:
Being a full line dealer we are used to one particular product category or segment being down while another may be up, and 2009 was certainly no exception. Toward the latter part of the year we saw drops in higher price points like everyone else. I think we were very fortunate because we focus a lot on getting people started in music. So when the economy tanked and people were looking for family activities that could take place at home, that part of our business picked up. Guitars, drums, band instruments, acoustic, and digital pianos all exceeded 2008 because of a fairly substantial increase in the number of units we sold.

Concerns:
Stability! There are so many variables now – the global economy, the banking system, healthcare, you can go on and on – that you simply don’t know what curve will be thrown at you next. The biggest concern I have is that we remain flexible enough and have the forward thinking and energy required to adapt to whatever comes at us.

Outlook 2010:
Our entire staff is probably working harder than ever. So, although it has not been easy, 2009 has been pretty good. Recently we are even seeing more of the higher end purchasers returning to the market. If the holiday season comes through for us, we expect to be slightly ahead again this year. And that will make us all happy.

Product of the Year:
Yamaha acoustic guitars.

INDIANA
W.H. Paige & Co., Inc.
Indianapolis
Mark Goff, president

2008 vs. 2009:
We ended 2008 on a very positive note, and so far 2009 is up about five percent. So, our business is moving in the right direction.

Highlights and lows of 2009:
The highlight of 2009 has to be the attitude and performance of our staff in implementing a disciplined plan to achieve bottom-line growth this year in spite of the challenging economic circumstances around us.

Concerns:
With things going so well, I’m concerned that we will be tempted to let down the discipline that has delivered such positive results.

Outlook 2010:
We expect to carry a positive momentum into 2010 and continue to improve our customer satisfaction, employee satisfaction, and financial performance.

IOWA
Uncle Ike’s Music
Dubuque
Kevin Hedley, owner

2008 vs. 2009:
We are up over 10percent, although most all of the gains have been with online sales, an area that we are still learning our way in. In-store sales have been right on course with 2008. We carry a large selection for our store size, which presents a whole set of problems.

Highlights and lows of 2009:
Locally we had a great start to the year with IBM announcing 1300 new jobs here in Dubuque. The effect has been an overall positive attitude in the town. In-store as I mentioned, we are starting to understand the online business, so that has brought some nice sales our way. We have been very fortunate; the lows are mostly just us trying to learn how to polish up our act. I look at other industries along with some of the big box stores and admire the organization and systems that give people a warm confident feeling about doing business there.We sometimes seem a bit slocky in the way we operate so that can get you down.

Concerns:
The race to the lowest price on nearly every item concerns me. So you’re left on your own when it comes to margins. You have to fight for every point, watch every item, negotiate for free freight, take the quick pay discounts, maybe wait and buy in larger shipments, anything to add on a few extra GP points. We carry a large selection for our store size, which presents a whole set of problems from extra insurance costs to outdated stock. Merchandising can be a challenge.

Outlook 2010:
We should be fine in the next few years. We have been around for more than 20 years, and our store is fairly established. Not that things can’t change and change quickly, but we work hard every day so they don’t. We have some great people on staff right now. Probably the best we have ever had. So that helps tremendously.

Product of the Year:
Ibanez products.

KANSAS
Senseney Music, Inc.
Wichita
Lori Supinie, president

2008 vs. 2009:
The first three quarters of 2008 were great for us, but you could definitely see signs of a slow down by the fourth quarter. 2009 has been down five to 10 percent in most product categories

Highlights and lows of 2009:
We’ve just completed a great back-to-school season – our beginner band and orchestra rental numbers are almost equal to what we did last year, which was a strong year. This was somewhat unexpected, but very encouraging. Our education (lesson) department has remained very strong this year, as well. Piano sales and step-up instrument sales are off over last year. School bids instruments, and sales to schools of print music and accessories are also down due to decreases or uncertainty in school budgets.

Concerns:
Keeping the “cash pump” pumping! Keeping expenses in line with revenue levels and keeping inventory turning.

Outlook 2010:
I’m expecting 2010 to be like 2009 – maybe some growth in the second half of the year. I don’t think anybody has a clear picture on this, though.

Product of the Year:
Zoom digital recorders.

KENTUCKY
Bizianes Music
Louisville
John Bizianes, co-owner

2008 vs. 2009:
Our business was down from the previous year. We are a mom and pop music store. My parents opened the business in 1965. Many stores have come and gone. What has sustained our business through the retail downturn has been our teaching studios and recording studio. When we saw the retail decline on the horizon, we chose to move toward education and recording – elements that can’t be purchased on the Internet or mail-order. We thought about going the direction of being a mail-order retailer but, frankly, there’s not much fun in that. No personal relationships – just pushing boxes for low margins. No thanks.

Highlights and lows of 2009:
Not much new in the way of new product innovation. I guess the R and D budgets of manufacturers have taken a hit with the recession. The highlight of our business has been the way our family has been able to weather the storm of the economy and even become closer as a result. Being in a family business has its challenges, but we are stronger than we have ever been.

Concerns:
What concerns me most is legislation that will hurt small businesses. Health care over-regulation and big government will make it difficult to stay profitable in the near future.

Outlook 2010:
I am anticipating big things for 2010. We are ramping up for bigger sessions and more business with the recording studio. I’m hoping that we will experience growth there

Product of the Year:
Kurzweil.

LOUISIANA
Shreveport Music Co.
Shreveport
Don Teach, president

2008 vs. 2009:
Overall business has been down, but I have great hopes for a better ending. Guitar sales have been about the same for both years in the high end models and the low end models. The middle has really slowed down. The low end guitars are much better today than they were ten years ago. Acoustic piano sales for us have slowed to a trickle with electric piano sales staying steady. One of the biggest markets for acoustic pianos in our area were churches. Now churches are using electronic keyboards for their services.

Highlights and lows of 2009:
2009 started off great and then it slowed in the summer. In our area there was a big economic boost with the discovery of natural gas. There was a rush by the gas companies to lease land that resulted in many churches and land owners gaining instant money to spend. The biggest rush was in the first couple of months of 2009. In August the gas companies had leased all they wanted to lease and the price of gas had dropped so the big rush was over which was the low of the year.

Concerns:
Lack of young musicians or first time musicians seem to be declining. We still have plenty of students but this summer we had lots of vacancies in the lesson program for the first time in several years. The age of our student population seems to be young adults and teenagers.

Outlook 2010:
Hopeful. We feel that sound systems sales will be good in 2010 as that is the one department that gains every year. We hope to expand our sales in sound systems. Small systems are our specialty.

Product of the Year:
Yamaha sound systems.

MAINE
Midtown Music
Biddeford
Nick Noiseux, president

2008 vs. 2009:
After the price of gas hit $4 per gallon in June of 2008, our numbers dropped 30 – 40 percent. The numbers are still down but we’ve discovered ways to cut our overhead. We continue to be hopeful and continue to look for ways to improve our services and sales.

Highlights and lows of 2009:
The personal highlight for me was when, upon talking to a customer about his lessons, he exclaimed, “I can’t wait to come back!” That brought the revelation to me that we need to cultivate that emotion in all of our customers and serve them to bring that end. Corporate highlights for 2009 were finding manufacturers and suppliers eager to sell and not be as greedy with their minimums. Our low for 2009 was when we had a sewer line check valve break just when the city pump timers turned on and pumped thousands of gallons of sewer water into our store. It shut us down for eight days and cost $50,000 in clean-up and repair costs. That customer who exclaimed, ‘I can’t wait to come back’ was in the store that day when the sewer line blew and helped us bail for an hour and a half.

Concerns:
Marketing.

We’ve got to find the most effective ways. Finding the time to dedicate to this end is very hard for me. It’s so important, and there is so much for us to do, but sometimes we just don’t know where to begin.

Outlook 2010:
Great question! We needed to be asked that! Thank you! Aside from trying to figure out how we’re going to pay for Christmas and survive the winter, I think we have got to move forward step by step to get the word out. We offer everything everyone else offers at competitive prices, and we love to serve. Loving our customers is what we’ll do. That means putting them first, even if we have to send them to a competitor. As long as we serve, I believe they’ll always want to come back!

Product of the Year:
Anything Peavey.

MARYLAND
Bender Music
Elkton
Kathryn Bender-Jones, owner

2008 vs. 2009:
2009 has been a tougher year for sales, but our customers are loyal and wonderful. They take music seriously so our lesson programs have increased. Our customers always send their family and friends. Over the years they have seen we already have the products they want and our prices marked as low as or lower than Guitar Center, Musicians Friend, and all the box stores. If there is ever a doubt, we simply go online and look it up to find that 90 percent of the time we are matching or beating the competition. We continue to grow the Bender School of Music with ten private studios, 23 teachers, and over 300 students.

Highlights and lows of 2009:
Our two biggest highlights were, at the request of our customers, adding Paul Reed Smith Guitars in the spring and C.F. Martin Guitars this October. We are so excited that we were able to partner with these wonderful companies and look forward to a long successful relationship. Our lows have to include the hardships our customers are facing with the shut down of several large companies in Maryland and Delaware and seeing some of our students leave the music program due to overall financial burden.

Concerns:
Our economy and government policies that go against small businesses like ours.

Outlook 2010:
I believe we will continue with a tough economy. Music is necessary for good living, and we will be here for our customers to share in their hopes and dreams through music.

Product of the Year:
All Takamine Guitars.

MASSACHUSETTS
Guitar Stop
Cambridge
Jeanne Oster, proprietor

2008 vs. 2009:
Overall my business is down approximately eight percent from last year. It seems like things are turning around.

Highlights and lows of 2009:
The customers seemed to be getting more optimistic as the year has been progressing. As opposed to last year, when people seem to be getting more pessimistic as the year progressed.

Concerns:
I am mainly concerned with maintaining my student base for lessons and providing quality merchandise and service for my customers.

Outlook for 2010:
I have a positive outlook for 2010. I think that business will be better next year as our overall economy improves.

Product of the Year:
Fender brands.

MICHIGAN
Mid-Michigan Music
Midland/Bay City
Rick Allen, CEO

2008 vs. 2009:
Obviously the collapse of our economy in 2009 affected everyone especially those in the retail world.

Highlights and lows of 2009:
I am a land lord for two other businesses which helps subsidize my income and helps with the cost for the real estate I use for my own retail business. This enabled me to weather the storm that we all had to deal with for the last year. We have a large brick and mortar presence and do a lot of lessons, audio repair, instrument repair, and sound installations for schools and churches. We sell on eBay and have a Web site where we are selling products out the back door every evening to customers all over the world. I feel that my employees deserve all of the credit for making my operation a success; I have people that share a sense of ownership in what they do. This is one of the most important things I look for when I hire.

Concerns:
I had concerns for those who run their businesses on debt. I have some very close friends that are no longer in business because they were floor planning their merchandise and could not keep up with the monthly payments they had.

Outlook 2010:
I see things getting better for the music industry and expect 2010 to be better for us in Midland/Bay City. We have a few large companies in our community that are making plans to open up new manufacturing facilities in the next couple of years. I am very thankful to be in this community.

MINNESOTA
Sarlettes Music
Morris
Del & Carlene Sarlette, owners

2008 vs. 2009:
2009 is a little down from 2008, but not as bad as we feared.

Highlights and lows of 2009:
Band rentals were somewhat lower than last year, but step-up sales and repairs continue to do well.

Concerns:
Student-level instrument rentals and sales will probably dip due to economy plus shrinking school enrollments and budgets. We’re losing a few school music teachers in the area due to budget cuts, and that is, of course, reflected in band programs.

Outlook 2010:
Schools won’t fare any better next year in this area, some worse, but music parents are very supportive of their kids, which should translate into continued participation in band programs and piano lessons. I do instrument repair, so when the economy dictates more horns coming out of the closet, I can still keep the cash flow going. Most piano teachers in the area have waiting lists, so piano methods and related literature will continue to do well. Our local college, the University of Minnesota, has a very strong music department, so that always bodes well for us.

Product of the Year:
Faber Piano Adventures piano method.

MISSISSIPPI
Magnolia Music Center
Gulfport
Tony Strong, owner

2008 vs. 2009:
2008 was on par until October, and then the bottom dropped out. We had an average last quarter. 2009 has been a tough year with the summer being as tough as we can remember. Things have seemed to have picked up here in the last quarter, and we are optimistic for Christmas.

Highlights and lows of 2009:
Our pro audio contracting division was very steady with large church installs making up for slower traffic in the stores.

Concerns:
I am concerned about the unemployment rate. If America can get back to work the economy will fix it self.

Outlook 2010:
My outlook for 2010 is positive because I believe we have already bottomed out.

Product of the Year:
Taylor 200 Series guitars.

MISSOURI
Lacefield Music
St. Louis
Steve Lacefield, vice president

2008 vs. 2009:
Unit-wise, Lacefield Music is even. Margin wise we are even. Dollar wise we are down. People are still buying but spending less. 2008 was the best year in Lacefield Music’s 13 year history. In 2009 we reduced expenses without eliminating any staff. Our goal was to increase our level of service, so we worked hard to bring our expenses down. We actually added a staff member.

Highlights and lows of 2009:
Highs were our Lowrey Magic recreational music classes. The Lowrey program keeps customers coming through the door and gets them excited about their products. Lows were the inconsistencies in promotions. We had great success with the Roland E-80 promo. High-end grands have gone cold.

Concerns:
The mindset of the consumer. All the average person hears is negative news on television, the Internet, and in the papers. The consumer has already tightened their belt.

Outlook 2010:
Cautiously optimistic. We have reduced overhead and expenses. We have maintained advertising and promotions. Our people work hard in the store and outside the store.

Product of the Year:
Kawai CP series digital pianos.

MONTANA
Outlaw Music Inc.
Missoula
Sam Catalona, owner

2008 vs. 2009:
2009 was very good sales were up by 15 percent for the year.

Highlights and lows of 2009:
We specialize in guitars and amps. This year Gibson, Fender, and PRS sales were very strong, while pro audio was our low point.

Concerns:
Consumer perception of the economy in the Northwest, which I hope remains steady and good.

Outlook 2010:
I predict continued growth due to the addition of PRS, Vox, Line6, and Fender amps to our line up.

Product of the Year:
Gibson.

NEBRASKA
Columbus Music
Columbus
Mike Moser, owner

2008 vs. 2009:
2008 was a good year, so it was hard to top, due to the economy. 2009 has seen some months better and some worse than 2008. Strong fourth quarter sales could make the difference in beating last year. We have seen some encouraging sales spurts beginning in September.

Highlights and lows of 2009:
April and July are always the slowest months of the year. Acoustic guitars from $200 to $500 have sold well.

Concerns:
Having everyone collect sales tax on mail-order and internet sales to make a level playing field.

Outlook 2010:
I’m planning for a good year. I pPlan to continue to update our look on the sales floor and Web site.

Product of the Year:
Peavey Vypyr amps.

NEVADA
Kessler & Sons Music
Las Vegas
Chuck Kessler, president

2008 vs. 2009:
Overall, our business was pretty even. We saw an increase in our local business. The one area where sales were weaker was high ticket sales.

Highlights and lows of 2009:
The highlight of our year was the success of our private label Kessler Custom instruments. The low of the year was the high end sales. We are finding that customers are looking more for the best value rather than just the best. This is one of the reasons why our private label instruments have been such a good item for us. They offer customers the value that they are looking for. There were other brands/items that saw an uptick in sales numbers, and they too were items that we considered to be better value instruments. A great example of this is the Classical Strings brand of orchestral string instruments. They have been absolutely wonderful instruments at a great value.

Concerns:
My concern is the Las Vegas’ local economy and housing market. The Las Vegas housing market was one of the hardest hit. There is a very high foreclosure rate, and the general local economy is weaker with a very high unemployment rate.

Outlook 2010:
Overall good. Even with our weaker local economy, our local business was up over 2008. We work hard to offer our customers the best values that they can find locally, whether it is on instruments, repairs, rentals or reeds. Customers are shopping more for the best value than ever before. So rather than just visiting the closest store, they are willing to take the time to find the best value and are more willing to drive a little further if it means even a small savings.

Product of the Year:
Kessler Custom line of saxophones & the Classical Strings brand string instruments.

NEW HAMPSHIRE
Rockingham Music Supply
Derry
Craig O’Leary, owner

2008 vs. 2009:
We are having a better year this year than 2008.

Highlights and lows of 2009:
The highlights for 2009 were not losing any students, and are rental business was up. We were able to branch out into new school districts and make new contacts. As far as lows go, I don’t see as much impulse buying.

Concerns:
I think my biggest concern is the economy. If people are not working they can’t pay for the band instrument rental or that extra money for lessons.

Outlook 2010:
I really believe that 2010 is going to be a good year for us. We are going to build on what we have been doing and have a few really good ideas we been throwing around for a while that we will implement.

Product of the Year:
Vineyard guitar.

NEW MEXICO
Marc’s Guitar Center
Albuquerque
Marc Foman, owner

2008 vs. 2009:
The recession hit us pretty hard, as it did everyone else. We’ve been fortunate in that we’ve always been oriented towards students and semi-professionals. We’ve given over 200,000 lessons over the last 31 years so we get a lot of repeat business, even during slow times.

Highlights and lows of 2009:
2009 has been challenging. We’ve had to watch our inventory levels very closely. We’ve been stocking less and relying on our vendors to fill our orders quickly with few backorders. Fortunately, we’ve had a busy back to school season, considerably better than usual. People are buying more quickly and easily then they have been since the beginning of the recession.

Concerns:
Our main concern is that the major lines have increased their demands on how much product we carry during the worst economy we’ve seen in the last 31 years. We’ve dropped most of them and are actually doing better with off brands that are much more profitable. Thank you big guys.

Outlook 2010:
I think the recession will get better for 2010, although I don’t see us getting back to pre-recession levels for a long time.

Product of the Year:
Samick guitars.

NEW JERSEY
Eighth Street Music
Pennsauken
Randy Segal, vice president

2008 vs. 2009:
Our business was down 15 percent from 2008.

Highlights and lows of 2009:
Many changes within the industry has been the most challenging so far to date for us. We keep things rolling by adjusting to the flow and needs of the economy.

Concerns:
Too many outlets selling traditional MI products that were in the past primarily handling through MI stores only. Our products are becoming too widely distributed, and margins are falling. Many dealers will find it hard to keep there doors open and support their customers as needed.

Outlook 2010:
I see things slowly picking up and hope for the best for our industry, especially with all the recent law suits and inquiry’s into MI selling practices.

NEW YORK
Dick’s Country Store & Music Oasis
Churubusco
Tony LaClair, manager

2008 vs. 2009:
2008 and 2009 have been rather steady, most recently purchases have been up, and higher priced items are starting to move a little better.

Highlights and lows of 2009:
Our highlight was adding 2000 Square feet onto our store, but I would also say that many companies in the industry changing their buy in policies to suit the economic conditions, making it easier for us to carry their products.

One of the lows would be a couple of companies continuing to make it difficult for small businesses to sell their product and of course losing Les Paul.

Concerns:
What concerns us the most is that people will consider musical instruments a luxury, and sacrifice them in an uncertain economy. Another concern is the trend of some companies to cater to the big box stores, under the false assumption that musicians don’t care about customer service, and knowledgeable staff.

Outlook 2010:
The outlook for 2010 is positive. We see a trend of more spending in our region, and enjoy the more proactive approach the industry seems to be taking to promote their products, and get the word out.

Product of the Year:
VOX VT series amplifiers.

NORTH CAROLINA
Burrage Music Company
Raleigh
Deedy Neville, president

2008 vs. 2009:
The last half of 2009 seems to be slowly coming around. Customers seem to be spending more for back to school and for their own enjoyment.

Highlights and lows of 2009:
There seemed to be more students renting instruments and starting piano lessons this fall. School budgets have really been cut, and any money the music programs can get has to be through fundraising activities. Sales were down the first half of the year.

Concerns:
Competition from the Internet makes it difficult to maintain our numbers.

Outlook 2010:
We hope for improvement in school budgets and a better economic outlook for all of us.

Product of the Year:
Print music — movie and Broadway songs

NORTH DAKOTA
Kenny’s Music
Grand Forks
Kenny Holweger, owner

2008 vs. 2009:
2009 was pretty much level with 2008.

Highlights and lows of 2009:
We did well with some of our higher end amps, acoustics, and a lot of accessories. I also saw an increase in repairs on used equipment. Because of mail-order and the Internet, electronic sales were down.

Concerns:
One of my concerns would be box stores getting into musical instruments.

Outlook for 2010:
I have been in business since 1982 and have seen ups and downs before. It seems that people always go back where they get good service. So I look for 2010 to turn around.

Product of the Year:
Line 6.

OHIO
Blue Eagle Music
Athens
Frank McDermott, owner

2008 vs. 2009:
2009 was up slightly – around 5% over 2008. Instrument sales were down a bit, but sales of accessories led the increase.

Highlights and lows of 2009:
Highlights: Considering the general state of the economy, a small amount of growth is a good thing. We also managed to increase our inventory 5-10 percent over the last year. Nothing comes to mind on the low side.

Concerns:
We have a disproportionately large population of musicians for such a small town. My main concern is to keep them supplied with everything they need to keep our diverse music scene moving smoothly.

Outlook 2010:
I see no reason why 2010 shouldn’t be at least as good as this year. The state of the economy at large doesn’t seem to be reflected in our little niche. We’re plunging boldly forward!

Product of the Year:
Recording King Guitars.

OKLAHOMA
OKC Music and Sound
Oklahoma City
Robin Venters, owner

2008 vs. 2009:
Just opened in October or 2008. So 2009 was much better. After a year open, we are just now starting to break even.

Highlights and lows of 2009:
Highs would be Peavey, Collings Guitars, and Kala Ukuleles.

Concerns:
Suppliers maintaining brand equity, by avoiding poor distribution practices.

Outlook 2010:
Very optimistic.

Product of the Year:
Kala Ukuleles.

OREGON
Music Makers
Bend
Dan McClung, owner

2008 vs. 2009:
We are down 20 percent from 2008.

Highlights and lows of 2009:
Lows: no more inventory flooring. What highlights?

Concerns:
The trend for quality manufacturers that used to support independent dealers to believe that it is in their longterm interest to make their products not only available everywhere online and in the big box music stores, but now even at Best Buy or Bed Bath & Beyond. My concern for the independents is that eventually there won’t be any. My concern for the customer is low quality decision making environment and purchasing experience leading to fewer repeat or expanded purchases.

Outlook 2010:
It’s the year of decision for me: either keep doing what I love – providing a quality, personable, hands-on, and educational experience, building long term relationships with our local music community, or go ahead and acknowledge that the musical instrument industry has in general become a shipping and receiving industry at which time I’ll move on.

Product of the Year:
Eastman guitars and mandolins.

PENNSYLVANIA
Market Street Music
Mechanicsburg
Jimmie Johansen, owner

2008 vs. 2009:
The first half of the year we were slightly ahead of 2008, but August, Sept and October of this year we have only half the sales we had in 2008.

Highlights and lows of 2009:
Grandma spending over $1,000 on her granddaughter who is one of our students. It was after hours, and I was in the store doing paperwork and let them in to look around. The low is we really thought the Gong would sell by now [laughs].

Concerns:
In these tough economic times, people think of music lessons as a luxury when they should be a necessity. Rock Band 2 is not a music lesson.

Outlook 2010:
I want to to increase our student base with the Christmas sales.

Product of the Year:
Vox VT series amps.

RHODE ISLAND
Robert’s Musical Instruments
West Warwick
Terri Viveiros, president

2008 vs. 2009:
So far for 2009, revenues are up from 2008, which was up from 2007. Some of our teachers have seen some attrition due to the economy, but in-store traffic and purchases have stayed healthy.

Highlights and lows of 2009:
We were happy to see people’s commitment to making music. With the economy so questionable, we didn’t have a good sense for what would happen this year. Many of our customers made music a priority and bought the things they needed. Whew!! As a low point, we saw a long standing Rhode Island music store have to close its doors. Our store will see more business because of this, but it was sad to see. Most Rhode Island musicians, ourselves included, had worked with that store over the years. It was also a reminder of how fragile business can be and how diligent and determined my husband Rob and I need to be as the owners.

Concerns:
Rhode Island is suffering right now. Our unemployment rate is 13.8 percent, and from the state down to the local schools, most budgets are looking at major deficits for 2010. I hope that some of the creative tax ideas, revenue ideas, and business boosters that the state government is exploring will come to fruition. I don’t know how many more cuts the school music programs can handle. Verbally, everyone seems to support music in the schools. Let’s hope they can financially continue to do so. In store, my biggest concern is a rise in expenses. From healthcare costs to the electric bill, I expect costs to rise significantly going into next year. We’ve got to make sure we have the business to support that.

Outlook 2010:
I’m optimistic. Every day we see new customers come through our doors. We’re seeing an increase, not just in our core customers (the families with middle and high school age kids), but also with local professionals and recreational music makers ages 45 and up. We have to be diligent. I think if we can stay focused, only act on good growth opportunities, and watch expenses then 2010 will be a good year. It better be; we’ll be celebrating the 10th anniversary of us buying the business.

Product of the Year:
Yamaha’s 82Z saxophone.

SOUTH CAROLINA
The Music Store
Columbia
John D. Futch, Jr. and Bobbie J. Futch

2008 vs. 2009:
It was not too bad. It could have been better. The overall economy caused people to tighten their belts and put food on the table.

Highlights and lows of 2009:
The highlights were businesses and individuals who could afford musical equipment and who have saved for the future. The people who were saving for college and the downturn in the economy caused them to be extremely aware of spending habits. The upside of the business is that there seems to be some light at end of the tunnel, whether it is from higher end guitars and equipment to medium priced equipment.

Concerns:
Manufacturers continue to mass produce their product whereas the product could become less and less important. It could be that the product could become less important, or no longer exist.

Outlook 2010:
I believe the market is rebounding and beginning to become stronger, but if all of the products are sold everywhere and not protected by local music dealers, we will all continue see shrinking profit margins.

SOUTH DAKOTA
Batchelder’s Plummer Piano and Organ Co.
Rapid City
Matt Batchelder, owner

2008 vs. 2009:
2009 is showing to be about 10 percent slower than 2008. The economy in South Dakota started normal in the first and second quarters, but then started to slide in the beginning of the third quarter with the fourth quarter continuing the trend. The band and orchestra department followed the same decline as our piano and organ business. Our rentals were down slightly as were purchases of band and orchestra instruments. Those that did sell, followed the piano market and were low margin or of lesser quality.

Highlights and lows of 2009:
Our celebration of our store’s 50th Anniversary was the highlight. The low was definitely the decline of the South Dakota economy in the second half.

Concerns:
What concerns us most is the vendors not keeping the margins high enough for brick and mortar businesses to compete. When MAP is set there is a trend to make MAP just a few points over online pricing. These prices make it difficult for music stores to compete. Now major manufactures are starting to put sites up and setting the price there and making its dealer accept those prices. These practices are going to be the demise of the local music store and the decline in the music industry as a whole.

Outlook for 2010:
Our store’s outlook for 2010 is a shift to more institutional selling than consumer. The consumer continues to be more educated (which is a good thing) and will try the instrument in the store, then purchase it online at a “mega-site.” I believe that if the manufacturers don’t regain the pricing control, then we will continue to lose market share to those companies.

Product of the Year:
Casio Privia line.

TENNESSE
Paradise Music
Clinton
Bryan C. Loy, owner

2008 vs. 2009:
We were down a bit from 2008.

Highlights and lows of 2009:
High point for the year was discovering and joining the IMSO. Even after 24 years in music retail, I have learned plenty from my fellow members, and I am learning more about how to survive as a dealer every day. The low this year would be overall flat sales.

Concerns:
The continuing race to the bottom on prices and the lack of a level playing field when dealing with manufactures concerns me. At some point, we all have got to say enough is enough: if I can’t buy it from you at the same price everybody else gets, then I will go elsewhere.

Outlook 2010:
It’s going to be better. It’s time this sluggish economy turned itself around; we’ve all been down long enough.

Product of the Year:
Crafter Guitars.

TEXAS
Arbor Music
Magnolia
Eric Williams, owner

2008 vs. 2009:
In some ways it was better. We have added teachers to our teaching studios, so that part is growing. I think sales are even up a bit due to the fact that we are a young store and we are growing. We are located in a suburb of Houston and there are lots of kids who want to learn how to play music. We added some teaching rooms to our store in 2008 and that has paid off.

Highlights and lows of 2009:
Beginning with the low, our guitar sales came to a screeching halt in the spring of 2009. The highlight is that we have a great teaching staff, and our reputation as a place to learn to play is growing. And our accessory and sheet music sales grew. Accessory sales out-paced instrument sales. We are selling more strings, picks, cables, and things that have a good margin. So, instead of buying more guitars, I am stocking more accessories and sheet music. Being a teacher I have an affinity for sheet music anyway.

Concerns:
At the risk of being politically incorrect, I am concerned that if the “Cap and Trade” bill passes it will further destroy the economy, especially here. My customers work in oil and energy related industries. It will drive up energy costs and hurt business and consumers. Also, with the national debt, we are about to be taxed out of what is left of discretionary income, which will hurt a retail business even more but that probably won’t happen until after next year. On the other side of the coin, I do think that a lot people will keep sending their kids to music lessons until they are down to their last penny because music is important them.

Outlook 2010:
I don’t think 2010 will get any better, but we will make it through by tightening our belt and focusing on our strong points. Not having a lot of debt is the best way to ride out a recession. And I will take the advice of the champion bull rider, who once explained what he does to prepare for the gate to open, “Get a firm grip and a far away look.”

Product of the Year:
IMT 500 clip-on tuners.

UTAH
Park City Music
Park City
Dr. Fredric Cook, owner

2008 vs. 2009:
2008 and 2009 have not been good years since the recession began at the end of 2007. We have struggled to maintain our clientele, especially since much of our business is competing with the internet.

Highlights and lows of 2009:
Our only highlight was the beginning of school in August and September. However, the local school district discontinued the fifth grade music programs, so we have several band and orchestra instruments unrented, which reduces our income substantially, actually cutting it in half. So with the highs come the lows.

Concerns:
The economy and the devaluation of the dollar, which will skyrocket our inventory costs, as much of our guitar inventory comes from China.

Outlook 2010:
We are hopeful, and yet, cautious, not to overspend on inventory. Our rental program should pickup in the Fall, as the students will begin their sixth grade music programs.

Product of the Year:
Indiana guitars.

VERMONT
Advance Music
Burlington
Jeff Wheel, general manager

2008 vs. 2009:
We are down roughly 10 percent from 2008.

Highlights and lows of 2009:
Despite a faltering economy, we’ve maintained a good level of activity. High end sales in most categories are down, acoustics continue to sell well as do electrics and drums. Our audio/visual installation department and lesson program have helped counter the decline in retail sales. Taylor guitar sales remain strong, we have taken on Yamaha guitars, PA, and drums, which are doing well.

Concerns:
We are concerned with increasing operational costs such as health care, insurance, and utilities. Most of our accessory vendors have relocated, increasing delivery time, so we need to be more accurate in anticipating our needs.

Outlook 2010:
We are cautiously optimistic with regards to 2010. We continue to examine all departments and focus our energies on customer service and the more viable profit centers. We’re excited by the new Bose compact PA systems and Yamaha products.

Product of the Year:
Taylor guitars.

VIRGINIA
Bang Music
Stafford
Joe Kane, president

2008 vs. 2009:
2008 started well and ended down. 2009 has been down all year. A few bright spots like the band rental season were encouraging. I am not expecting more than an average month totals for November and December. We have been repositioning ourselves for the new low income levels.

Highlights and lows of 2009:
Band season was the only high sales area. We experienced losses in all other categories.

Concerns:
The second round of bank and corporate failures worries me. There is no way to tell how many companies can be absorbed into the bail out companies. Without real jobs in construction and disposable goods sales, we cannot expect to put five percent of the American people back to work anytime soon.

Outlook 2010:
No recovery. It’s up to us to recreate our business and operate with the available resources. The common wisdom is that 2010 will be tough as well. I am looking for the third quarter to stabilize and settle into a level of business that we can count on. I expect that the new economy will be one of consumer spending that is more in line with actual family income than in the past 20 years. The false economy of credit card debt and home equity debt is over.

Product of the Year:
Our lessons.

WASHINGTON
Moore Brothers Music
Sammamish
Scott & Troy Moore, owners

2008 vs. 2009:
Exactly the same.

Highlights and lows of 2009:
The highlight was our five year anniversary concert in front of our store featuring instructor and student bands. We gave away thousands dollars in swag and donations from other local businesses. We had a one-day sale that was extremely successful. One gentleman heard the music from the grocery store across the street, saw the tent, and spent over $1,000 in our store that day. He never knew we were here before. We heard over and over all day: “You should do this every year.” The low was watching the other stores in our strip mall close and lay vacant. Two spaces have been vacant all year. One restaurant was replaced within six months. Last week, the restaurant next door closed, and we’ve seen a dramatic drop in walk-in traffic.

Concerns:
Maintaining our student base. We haven’t seen any growth in student counts this year. After our remodel in 2008, we added capacity for another 100 students per week, though never hit above our peak counts prior to the remodel. Now we’re adding to the types of instruments taught.

Outlook 2010:
Very positive. We have spent all year building our e-commerce Web site and finally made it available to the public this month. In 2010, we will focus our attention on improving the site, promoting the site, and increasing our products offered online.

Product of the Year:
Taylor guitars.

WEST VIRGINIA
Showtime Music
Bridgeport
Harry Gillum, president

2008 vs. 2009:
2008 was our record year, so we had some pretty big numbers to go up against. 2009 is flat and somewhat off from 2008, but has been more like 2006-2007.

Highlights and lows of 2009:
West Virginia has faired better than most other states during these tough times. The continued growth of Independent Music Store Owners (IMSO) organization has been a tremendous plus. The lows for 2009 have been seeing the cut back of purchases of high ticket items and the national slow down of piano sales.

Concerns:
I am concerned about there being fewer new, young musicians entering the entry level market. They are our seeds of tomorrow.

Outlook 2010:
I feel we will see a continued slow down through the first three quarters of 2010.

Product of the Year:
Peavey viper 75.

WISCONSIN
Steve G’s Music Connection
North Prairie
Steve Gunther, owner

2008 vs. 2009:
Seems 2009 possibly on the up turn for the better!

Highlights and lows of 2009:
The highlights were better band and orchestra rentals, improved music lessons, and guitar setups were way up this year. Internet sales were good too. The economy is still tight, and sales still need to improve.

Concerns:
I am hoping that things keep getting better, that music stays in the schools, and to get people interested in adding music to their lives.

Outlook 2010:
I hope it will be better. Keeping music fun, getting everyone excited to play (and keep playing) a musical instrument, and personalized service are key.

Product of the Year:
Samick guitars.

WYOMING
The Hill Music
Casper
Dan A. Hill, president

2008 vs. 2009:
We are down about three percent. 2008 was a record year for us.

Highlights and lows of 2009:
Rental income was up, but piano sales were down significantly

Concerns:
Wyoming is usually several years behind the trend for the rest of the nation. We have just now begun to feel the effects of the economic downturn. Our legislature funds school on a bi-annul, and the funding will be on a smaller scale for 2010 – 2011.

Outlook 2010:
A more conservative spending populous will put us at a flat growth rate.

Product of the Year:
Yamaha professional and step-up band instruments.