Expanded Services, Expanded Revenue

Many NAMM members are finding this extra revenue by expanding their services to include pro audio, lighting, installations, equipment rentals, live sound equipment, event hosting or management.

This crossover into expanded services is creating for them a more stable revenue stream year-round and helping them reach new target markets that are also invested in music making.

NAMM talked with two music retailers who have expanded into new divisions and are experiencing great returns.

West Music

Ryan West, Senior Vice President for West Music Company in Iowa and Illinois, decided to add live sound recording and software products as well as classroom furniture and equipment to their already wide variety of music industry (MI) products.

“As a school music dealer, we are calling on schools every week,” West stated. “Being able to support our schools’ needs beyond the band and orchestra room to the auditorium, cafeteria, or theater has been a great way to be their one-stop shop.”

West Music has been very successful in their expanded offerings, becoming the “go-to” music store for schools in the area to rely on. Their website is easy to navigate and they often offer discounts and free shipping.

“The reason we expanded was because we want to be the local solution for all of our customers’ needs,” West stated. “We feel that products need to be complimented with exceptional service to make sure customers get the best possible experience.”

Expanding into new product categories is no small feat. Not only do your product offerings need to expand, but your team does too, including investing in team training and customer service solutions online and in store.

“It’s all about having the right people on your team,” West continued. “If you’re thinking of expanding into a new product or service category, you need to have the right people on board. When we expand into new areas, we always make sure have a clear strategic goal, a plan to achieve that goal, and the right people to ensure our success.”

Blues Angel Music

Stephen Olsen, General Manager at Blues Angel Music in Pensacola, Florida has a very simple answer as to why they decided to add rentals, lessons, repairs and pro audio installations to their already large inventory of instruments and accessories.

“In this industry, the competition for business is fierce.  If we do not set ourselves apart from the competition, we will likely fall by the wayside.”

After 20 years in business and voted “Best of the Bay” as well as a NAMM Top 100 Dealer six years running, Blues Angel has been successful because customers can find anything they are looking for all in one spot. They strive to be the Gulf Coast’s “go-to” spot for aspiring musicians and gigging professionals and have trained staff to answer the hard questions.

“The fact that Blues Angel Music has such a diverse offering is the primary reason we are still in business,” said Olsen. “Over the past two years, there have been times when the pro audio install division or some other division has supported the entire company while all other sales and services were slow.”

These expanded offerings have allowed Blues Angel to serve their customers at a higher level and also reach new demographics and target audiences.

“We’ve increased our revenue, expanded our customer base, and extended our reach far beyond that of your average music store,” Olsen continued. “However, the greatest benefit we have experienced has been the security that comes with being able to balance out the numbers by pulling from one department to make up for another.  The more departments, the more secure, in my opinion.”

The Crossroads at NAMM

NAMM understands the need for expansion and growth, which is why The NAMM Campus is expanding by 20 percent this year, offering more space for pro audio, lighting, software and live sound exhibitors as well as thousands of MI products.  

The new products retailers will see this year offer solutions for their own expansions.  The addition of hundreds of new educational sessions through partnerships with the Audio Engineering Society (AES), Entertainment Services and Technology Association (ESTA) and several industry leaders, will help retailers can get more equipped with the right information to expand outside of their traditional business models.  

“The NAMM show has it all,” explains West. “The crossroads enable us as business owners, buyers, and sales and support staff to see where the market is growing and evolving and how we can participate at every level. We take the time to meet with our current suppliers to see what they have in the works, and are always looking for the new business models and providers so that we can be part of the latest things that are happening in the industry.”

Olsen also agrees that NAMM is where he gets business done for the year and learns about new industry trends.

“The NAMM show is one of the greatest resources available to retailers. It gives dealers and vendors the opportunity to conduct business in a way that would otherwise be impossible.  Whether from the NAMM U sessions or from the product demonstrations, there are always more lessons to be learned.”

To ensure your business is ready for 2018, register for The NAMM Show, January 25-28.