Examining The Value Proposition Of Accessories, Bags And Cases
With 2014 quickly drawing to a close, independent music store owners across the country are looking for ways to increase their bottom line not only for this year, but also for the ones ahead. And although fluctuations in the economy might affect a customer’s decision to buy new instruments or other large-ticket items, accessory products are proving to be a reliable source of income for store owners, making such products a key part of meeting those end-of-year profitability goals.
“Instruments remain the major part of the industry, but you can’t count on big-ticket sales every day,” said James Hennessey, President and Founder of On-Stage Stands. “Accessories, on the other hand, have been selling every day for the 35 years we’ve been in business. They allow up-selling, they make bundling possible and, when marketed correctly, they sell themselves.”
The Music & Sound Retailer spoke with four companies representing a wide range of accessory products, including stands, cases, cables and more. All of them reported optimism for the market and strong numbers to back up that positivity.
Scott Davies, Director of Arriba Products LLC, the parent company of Arriba Cases, estimated that the bag and case industry is growing at a rate of 30 percent per year. “The soft-side bags and cases market is growing tremendously as consumers are becoming aware of the low cost to protect their gear, and keep it clean and ready for the next show, gig, job, etc. Bags and cases are a low-cost insurance plan, so to speak,” said Davies. “Arriba Cases is keeping up with the demand by stepping up production every three months to meet the growth.”
Stephen Flynn, Sales and Marketing Manager for GWW Group Inc. and Ameritage Carrying Cases, has also seen a fair amount of growth at his company. He estimates that his sales figures have grown by approximately 20 percent over the last several years. “From 2008 to 2012, we saw a huge hit in the music industry,” he said. “But, over the last few years, I would say we are really excited to see the upward trend from the biggest retailers all the way down to the smaller ones.”
Working Hard For The Money
A major factor that is fueling this growth is the economy. Although consumer confidence and buying power have made great strides since the low points of 2007, 2008 and 2009, some cautiousness does remain.
[maxbutton id=”18″]