eCoMMeRCe FAQS FoR MUSIC ReTAIleRS - Pro

business & mar k eting
eCommerce FAQs
For Music Retailers
B y D av i d H a ll,
Vice P re s i de n t S a le s a n d Mar ket i ng, Pro- Act i ve Websi t es
Whether you’re considering starting up
online visitors and conversions. A well
an eCommerce Web site, currently selling
planned search engine optimization (SEO)
online or wanting to expand your Internet
and online marketing strategy will usually be
presence, you’ll most likely encounter some
enough to get your store noticed. Focus on
challenging questions. Most center on three
getting customers to come back.
main topics: the business of eCommerce,
Question: Should I buy inventor y, or
store content and design, or Web site maruse vendors who drop-ship orders?
keting.
Answer: When first starting out, consider
This article focuses on a few of the
most common questions asked by
dealers. Please feel free to e-mail your
questions and I’ll be happy to share my
point of view.
Question: What are the first things
to consider when starting up an online business?
Answer: Look at your business and
concentrate on what makes you different
from your competitors. Whether it’s a
unique service or range of specialty products, focus on that niche and position it
to sell online. Be sure that the products
and services you select can easily be
sold online. It doesn’t make sense to sell
something for a low price that weighs
100lb. The numbers won’t make sense to
David Hall with Julie Rankin of Jackrabbit Music and
a consumer, and he or she will bail on the Walzak of Pro-Active Websites
process.
The products you sell online should have
using vendors who drop-ship orders on your
a high value-to-weight ratio (i.e., a $100 item
behalf. These relationships have a number of
that weighs only six pounds). Make sure
advantages over stocking your own inventhat you do your research and find out how
tory. It’s difficult to purchase and warehouse
many other dealers offer the same products.
inventory. Plus, the added expenses of shipOffer your customers a better value, or have
ping, tracking and managing orders could
the ability to provide your products in some
require extra employees.
unique way. Perhaps you can bundle items
Finding vendors who will drop-ship your
together. This is how you find and develop a
orders takes away these burdens and can
niche product or service.
save you time and money. Most reliable
Question: What is the biggest chaldrop-ship vendors will use your shipping
lenge in starting up a successful online
labels or send the packages with no brandbusiness?
ing of their own, so your customers will not
Answer: The most challenging aspect of
know the difference when receiving orders.
starting and running an online store is getThere are a few disadvantages to using a
ting customers to know who you are, what
drop-ship vendor. Some offer lower profit
you offer and how to find you. In addition to
margins and there usually is a small fee
providing the best mix of products and creatfor each shipment. It’s important to coning a user-friendly shopping environment,
sider that you are not managing the entire
you’ll spend a great deal of time working on
customer-service experience. You have to
ways to drive traffic to your Web site and
take a leap of faith in these relationships and
keep people coming back.
rely upon the vendor to live up to its responFocus your efforts on making your store
sibilities. Clarify who is responsible for every
visible to potential buyers. This means
phase of processing the order and customer
employing tactics that are proven to increase
support after the sale.
58
Stocking your own inventory gives you
control over the order process and customer
experience. Weigh your options, look at the
pros and cons of each, and figure out which
way works best for you. Sometimes, it’s a
combination of both.
Question: What are the differences
between online storefronts and selling
on eBay?
Answer: Online storefronts are generally more secure than auction sites
are, and the credit card transaction fees
are lower than what sellers have to pay
on eBay. Just about anyone can sell
on eBay, and many sellers do not own
legitimate businesses. Although eBay
does a great job policing the customer
experience with its feedback and Buyer
Protection Programs, the risk is higher
than is associated with buying from a
true retailer.
Use auction sites like eBay as part of
your overall strategy. If you rely solely
upon third-party auction-type sites
(eBay, craigslist, Auctiva) to sell your
products, you might encounter more
Bill
down time, less flexibility and run the
risk of experiencing huge losses. This
is especially true if there are major policy
changes to their selling guidelines and fees,
or if they simply shut down the service
altogether.
Question: Can I write articles about
my products or ser vices and use them
on my Web site?
Answer: Yes. Posting articles on your
Web site might help your efforts to rank
higher within search engines. They are always looking for content that is related to the
products and services you are selling. Well
written content and high quality articles will
help to establish trust and credibility in the
eyes of your customers. Focus on information that is deemed helpful or valuable.
Question: How will selling online
change in the future? How can I remain
current?
Answer: One of the best ways to ensure
success selling online is to be able to identify
trends and develop educated guesses with
respect to where the music market is headed
in the future. As shopping online for music
(continued on page 34)
march 2012
L atest
The Music Group’s
Limited Warranty Program
Bothell WA-based The Music Group has upgraded the limited warranty program covering Behringer and Bugera products. Customers
can now extend the warranty to three years for products sold in countries served by The Music Group-operated service centers by registering their purchase online. A $20 million investment in manufacturing
automation last year, with an increased engineering team exceeding
250 people, has allowed The Music Group’s brands to accelerate the
development of new products, while increasing quality and reliability.
The Music Group employs ISO-recognized quality management
and test systems, including high-voltage tests, salt-water corrosion
tests, humidity chambers, drop tests, optical inspection scanners, x-ray
inspection and accelerated component life-cycle tests. The company
maintains a comprehensive agency safety laboratory and radiated
electro-magnetic emissions chamber, with the requisite measurement
instruments. Even though safety testing is not mandated in several
jurisdictions, the company voluntarily tests and certifies all applicable
products to UL, as well as other international standards.
McCabe Outlines
Amended Complaint
In the July 2010 issue of The Music & Sound Retailer, we published
a story noting that Geoffrey Lee McCabe filed a suit against Floyd D.
Rose; Floyd Rose Marketing, Inc.; distributor Davitt & Hanser Music
Co.; and manufacturer Ping Well Industrial Co., Ltd. in the United
States District Court for the Southern District of California, alleging willful infringement of McCabe’s five patents by the Floyd Rose
Speedloader tremolos and guitars, false marking and unfair competition. Last January, McCabe filed a First Amended Complaint, adding
manufacturer Schaller Electronic GmbH and AP Global Enterprises Inc.
as defendants. On October 31, McCabe filed a Second Amended Complaint, adding a claim of false advertising and adding Rose’s law firm,
Lerner, David, Littenberg, Krumholz and Mentlik LLP (Lerner, David),
as a defendant to his claim of unfair competition.
McCabe’s allegations, the merits of which The Retailer has no opinion
about, are that, beginning in 1987, Floyd D. Rose; Lerner, David; and
AP Global Enterprises, Inc., embarked on an unfair campaign of allegedly compelling manufacturers, distributors and/or competitors, including co-Defendants Davitt & Hanser Music Co., Ping Well Industrial Co.,
Ltd., and Schaller Electronic GmbH, to do several things.
These include the following allegations: taking a license to, and paying royalties for, allegedly invalid and unenforceable claims of Rose’s
‘236 patent and ‘461 patent related to the Original Floyd Rose tremolo;
taking a license to, and paying royalties for, other allegedly invalid Rose
patents; taking a license to, and paying royalties for; purported trade
dress rights of Rose that allegedly didn’t exist; marking tremolo products with allegedly expired and/or invalid and unenforceable patents
for decades; allegedly violating contractual obligations and/or ethical
duties; engaging in alleged acts of unfair competition and false advertising; purportedly engaging in deception; and restraining trade in alleged
violation of United States antitrust laws, in addition to failing to compensate McCabe for alleged infringement of his five patents.
According to McCabe, two have already been deemed valid, enforceable and infringed by the Investigative Staff of the U.S. International
Trade Commission. One, McCabe said, has been vindicated as valid upon
reexamination by the United States Patent & Trademark Office. McCabe
is making further allegations against attorneys from Lerner, David.
34
Shine the light
(continued from page 54)
a better guitar. “We have an
obligation to give our customers
the best possible gear for the
money they have to spend,” he
stressed. Corner Music makes
sure all microphones, amps and
subwoofers are wired and ready
to try out. A customer can do an
immediate comparison between
brands and models right on the
spot. “We are a hands-on store,”
he confirmed.
Garris has served on NAMM
committees and as a member of
The Alliance of Independent Music Merchants. He participates in
NAMM seminars at both shows,
as well as InfoComm to learn
more about sound installations;
he also attends the AES show.
Crazy Customer Support
Each store has moments with
customers that make us all shake
our heads. Garris remembers
a sale of a digital piano to a
customer who complained that,
after she got it home, it played
out of tune. She said, “It’s awful!
It’s terrible! It keeps going, ‘wah
wah, wah wah’.” He thought for
a moment (about air pulsations
in relation to sound) and asked
her, “Do you have a ceiling fan on
over the piano?” She responded,
“Why, yes!” He said, “Then turn it
off.” She exclaimed with amazement, “It’s in tune!”
business & marketing
(continued from page 58)
gear and accessories becomes
more common and popular
among musicians, we will naturally see more competition. Focus
your efforts on niche items and
services to sell; devise unique
ways to market them.
Many people like shopping
online because it is more convenient and allows more time to
shop, compare prices and read
product reviews. It will be imperative for brick-and-mortar stores
to keep up with current changes
or they might face having to shut
down their storefronts due to stiff
online competition.
Always remember that not only
will brick-and-mortar merchants
have to keep up to stay competi-
tive, but online merchants will,
too. Brick-and-mortar stores will
always have the advantage of
being able to have direct, one-onone interaction with their customers. Use this unique edge to listen to feedback from customers
and take action to monitor your
Web site design, hot products and
innovative marketing trends to
attract and keep customers.
David Hall is Vice President Sales & Marketing for Pro-Active
Websites. The company specializes
in Web development for dealers
and eNetwork building for distributors within the music products
industry. Feel free to e-mail your
questions and comments to dhall@
pro-activewebsites.com.
five minutes with
(continued from page 49)
a lot of guys are now suffering
because of it.
The Retailer: There must be
challenges, too, with having
such a strong name in the
industr y and among dealers.
There must be pressure never
to slip in any way.
Godin: Well, we work harder.
Since 10 years ago, it’s amazing
how much harder we work. We
change our technologies. We invest more in design and research
than ever before. The success
didn’t come by itself. Now, I have
my two sons, who have taken the
company over. It gives me a lot of
energy, just to be helping them.
The Retailer: What does the
future hold for Godin? Do you
foresee any major changes or
shifts in terms of products,
market segments, business relationships or company strategy?
What can we expect to see?
Godin: I don’t really want to
say, because I don’t want to give
all the secrets to my competitors.
But, one thing is, we’re not going
to sit on what we’re doing now.
We have to go with the flow…
with what’s coming. Look, the
planet is so small now with communication and with the Internet,
we have to be able to change
our strategy. We have to be able
to change our way of promoting
products and attracting consumers. It’s a totally different game
from what it was 10 years ago.
And that’s why we fight every day
to be up to date.
march 2012