May 15, 2009
VOLUME 26 NO.05

THE MAGAZINE FOR MUSICAL INSTRUMENT AND SOUND PRODUCT MERCHANDISERS

 
 

   
 

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-Table of Contents
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FEATURES
America the Beautiful 2010 has been a good year for American patriotism. And we don’t just mean annual rituals such as the Fourth of July.
Not Doubting Thomas
Mendello Retires, Thomas Named Fender CEO
Former Guitar Center CEO Larry Thomas has a new gig: CEO at Fender Musical Instruments Corporation.
The ‘Spin’ on the DJ Market Whether your store carries a full line of DJ products, just a few or none at all, it’s hard to dispute that these products have carved a major indentation in the MI marketplace.
Music City Mystery Summer NAMM had many highlights, but attendance dropped 4 percent compared to last year. The future of the show is a topic on many minds.
The Canadians’ Club Changes galore took place at this year’s installment of the MIAC show in Toronto. The date changed to May. The location changed. Why were the adjustments made? Did the alterations work?
Floyd Rose Sued Geoffrey McCabe, an inventor and guitarist, has sued Floyd Rose Guitars and distributor Davitt & Hanser Music for patent infringement.
Pay It Forward! You’ve heard enough bad news. We take a look at the fantastic things happening in MI today.
-‘MIM is the Word The Musical Instrument Museum opened in Phoenix to a lot of fanfare. Rebecca Apodaca, an expert on antique instruments, gives you a rundown of the latest thing to hit MI.
-‘Loud and Clear Pro audio products continue to sell. We get the scoop from four top manufacturers.
-‘Open Door’ Policy NAMM makes a big change by allowing member-invited guests on the last day of Summer NAMM.
-Musikmesse A-107K! Attendance at Musikmesse and Pro Light + Sound dipped slightly, but optimism was up.
-It’s in the Cards ! You need to have PCI DSS-compliant terminals to handle credit card transactions by July 1. What are we talking about? Don’t worry, we’ll explain.
-Unplugged Acoustic guitar sales grew dramatically in 2009 and the beginning of 2010. Is this the beginning of a new trend?
-Head of the Class! We shine the spotlight on many of the new companies that launched at NAMM.
-Musicorp Mourns Mike Murphy We honor the sale rep’s life that ended way too soon.
-Is a New Healthcare Plan Just Snake Oil? We take a thorough look at how a new public healthcare plan can affect you and your employees. ?
-Bonanza! Behringer Buys Bosch Brands Behringer’s parent company added the Midas and Klark Teknik brands to its stable.
-The Stars Will Come Out…This Weekend We highlight a few of the celebrity appearances at NAMM.
-What A Long Strange Trip It’s Been!!! We reminisce as we close out the first decade of the new millennium. It was a tough 10 years for many. How about for the music industry though? What’s ahead?
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It’s Voting Time! Here are your nominees for the 24th annual Music & Sound Awards.
-Here We Come to Save the Day!!We provide a plethora of accessories that manufacturers assure you will provide excellent margins.
-For Those Who Make Lesser Publicized Instruments, We Salute You!!For the first time, we pay tribute to instruments and products that get little press coverage. We provide a well-deserved spotlight for these products!

-The Latest, Industry, Dealers, People and Product Buzz and Showcases.

COLUMNS
-The Music & Sound Independent Retailer: We bring back our popular Independent Retailer Round-table. Providing four pages worth of answers are Gordy Wilcher & Lisa Kirkwood.
-Five Minutes With: We lend our ears to Marty Garcia, Founder and CEO of Future Sonics.
-MI Spy: Spy makes a visit to New York City to check out stores in both downtown and midtown. Service has to be good to win over discerning New Yorkers, right? We’ll find out.
-Dan the Man: Dan Ferrisi, with the help of occasional strategically placed SAT vocabulary words, discusses the prospect that the industry may have lost luster since a promising and upbeat January NAMM show.
-Birth of a Product Two former PRS veterans combined forces to found Knaggs Guitars. The story behind the Maryland- based company, which debuted a line of products at Musikmesse.
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Sales Guru: Sales persistence pays off. Just ask Gene Fresco
-Veddatorial: Dan Vedda provides a can’t-be-missed Summer NAMM synopsis.


FORMIDABLE FEMALES

-Kathy How:Now here’s a story you don’t hear connected to MI every day. A woman who grew up in Cape Town, South Africa, studied medicine and later moved to England.
-Sarah Heil:We’ve all heard the stories about people beginning in the mailroom and later becoming the CEO of a major corporation. Those people are rare, but it does happen.
-Sue Avant is a trailblazer. She’s also someone who
has varied interests. And she is, indeed, formidable.

-Mary Ann Giorgio It sure sounds like a great job to cover soap operas like Days of our Lives and speak to celebrities on a daily basis. But MXL’s Mary Ann Giorgio was never comfortable in that industry. She sure is comfortable at MXL Microphones though.
-Fusion Bags For the first time, we feature multiple people in this column. We look at the genesis and growth of the all-women founded business, Fusion Bags.
-Linda Arink is one of the very few female executives at a DJ company. Learn how she became involved and why she hopes we won’t even need to have a column about top industry females in the future.
-Debbe Stephenson stumbled upon MI shortly after college, but is sure glad she did. She’s now president and COO of Pro Co Sound.
-• Mary Peavey
-• Jennifer Tabor
-• Tarina Dunwoodie
-• Stacey Montgomery-Clark.
-• Cathy Duncan
-• Bee Bantug
-• Dale Krevens
-• Melanie Ripley
-• Susan Grund
-• Toby Nady
-• Shawna von Behren.
-• Berenice Chauvet
-• Sue Kincade
-• Tish Ciravolo
-• Vikki Hayward
-• Roxana Ramirez
-• Susan Lipp


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FORMIDABLE FEMALES
Susan Grund
[May 2009 - Page 1]

She has sung in parts of the U.S. and Canada, and even jammed with the Beach Boys, but for Susan Grund there’s nowhere she’d rather be than at Grundorf Corporation.

“Starting this business from the ground up and then seeing how far we’ve come, that’s probably the most challenging thing and the most rewarding thing,” said Grund. “It has been so gradual that I don’t always realize the impact of day-to-day decisions until much later. It looks like one huge leap but it has taken 25 years to make that leap, so it’s been very gradual.”

The company’s humble beginnings date back to 1984. Grund started the company with her husband, Frank, who she met as the singer in a band. During downtime between gigs, the couple spent their time building PA cabinets and cases, a pastime spurred on by Frank’s lifelong interest in music and sound.

“He was interested in all the dynamics of audio and learned a lot about the mixing of audio when we were in the band: the exchange between amplifiers and mixing consoles and processing and PA cabinets, how that all interacted. It’s way more technical than I can talk about,” Grund said with a laugh.

As their designs caught on, first friends and then local music stores started asking for the gear. In a turn of events Grund describes as “magic,” the Grunds decided to form a business that combined Frank’s passion for technology with Susan’s passion for music.

“It’s really cool that, having a passion for music—not only listening, but playing and singing—I can have a job that allows me to reach out to other people with similar interests,” said Grund. “Most of our dealers have been a musician at some point in their life. So you have this common bond with your customers. Even though you may be doing something different as your career, it all comes back to your passion for music and it’s just all very interesting.”

Training Day
Having been there from the get-go, Grund’s duties at the company have certainly grown and changed over the company’s 25-year history. “I helped some with the production at the beginning. Then I did all of the office-type work,” she explained. This arrangement has helped to keep things running smoothly in what is often the difficult dynamic of working with your spouse. “It kind of evolved that he had the product development and production skills and I had the office and financial skills. We split things that way and that’s how it stays split most of the time.”
That dynamic also comes in handy when bringing a woman’s touch to her husband’s sometimes runaway passion. “When he talks technical to people, sometimes I have to bring him down to Earth and say, ‘Frank, they don’t have a clue what you’re talking about,’” Grund said, laughing.

One of the biggest challenges Grund has found over the years is keeping up with the tasks associated with her job. She handles purchasing, sales and marketing, clerical functions and a bevy of other departments, but Grund is the first to admit she came to the job with no relevant training.

“I’ve learned it all by just doing,” she said, “going to a lot of seminars and training sessions, a lot of meetings with bankers and accountants and consultants. If I need to know something, I find a way to learn it. Everything is always changing so you can’t ever stop learning,” Grund continued, adding that she’s seen many changes in the industry over the years, especially in the last 10.

“The whole music store thing has changed—the way people do business, the Internet coming in. The way businesses consolidate and grow is going to continue to change how business is done. The way manufacturing is outsourced is going to continue to change the way business is done,” she said. “It’s always going to change and you just have to be up for the challenge every time. So we just have to keep a positive outlook and look at challenges as learning experiences rather than being defeated by them.”

One change she sees as positive is a move among retailers into the contracting and installation market. “We’re excited to see music dealerships—basically talking about the independent dealers—diversifying their business, finding other revenue sources while maintaining their retail storefronts,” said Grund. “We feel that is where we can best serve the independent dealers. It’ll be a very good fit for us. We are seeing a lot of growth in those markets.”

Sharing is Caring
In addition to working closely with her dealers, Grund is proud of Grundorf’s ability to maintain its bond with its employees, despite great success and growth over the years.

“We try to keep it like a family-owned business rather than the corporate type of vibe. We find that most people seem to be happier in that type of an environment,” said Grund. “We try to involve them with the passion of music and get them excited about things going on in the industry. Our doors are always open and we relate to all the employees every day, I still, go out in the shop and say ‘hello’ to all the factory workers.”

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