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THE LAST WORD IN MI PRO BY DENNIS DRUMM, MANAGING DIRECTOR, JHS
In an ultra-competitive market, companies need to make hard decisions about volume and margin. Is your business focused enough to make the tough calls?….
business environment? It doesn’t. Successful business needs clear strategy, vision and contingency plans for when the wind changes. Attempting to rely on cooperation from competitors in anything is ultimately akin to building a house on sand. The best opportunities are created, planned and then well executed, with the best-prepared businesses taking advantage of raw, unexpected opportunism, and seizing the moment. Businesses make choices between volume and margin, and
O
in an über competitive market, the old adage, ‘Turnover is vanity, profit is sanity’ is arguably never truer. As individual consumers, we all expect to shop around and
get the absolute best price on what we want to buy, yet it’s deemed acceptable to pursue activity which removes the same opportunity from consumers buying musical products we sell. Even Governments have found to their cost, markets are virtually impossible to manipulate, so why bother. Successful businesses pursue their vision and the tactic of focusing on the ‘margin basket’; the best blend achievable of slower moving, high margin lines, fast moving lower margin lines, and all points in between, but with a keen eye on offering the really fast moving, in-demand products. With attention to the essential KPI’s of overall headline numbers, GP and costs, the figure at the bottom right hand
The international monthly magazine for music instrument professional and everyone in the MI business
MI Pro has a monthly circulation of well over 6,000. It is distributed in the UK and internationally to MI retailers, industry professionals and carefully selected pro audio executives and resellers.
Editor Ronnie Dungan
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Associate Editor Lisa Carter
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Editor at Large Gary Cooper
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Staff Writer Adam Savage
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intentmedia.co.uk
Advertising Manager Darrell Carter
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Account Manager Jodie Holdway
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Designer Claire Brocklesby
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Production Executive Rosie McKeown
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Marketing & Circulation Lindsay Banham
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Publisher Stuart Dinsey
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KAY, let’s take the bull by the horns. Pricing. Can’t talk about it. That was easy. Instead, I’ll pose the question: where does altruism fit in to a competitive
corner of the balance sheet will, in a well-managed business, be in the black, even if the contribution from in-demand, high turnover, lower margin products sometimes feel emotionally uncomfortable. How does JHS contribute to its customer’s businesses? With transparent pricing and offers, an honest policy of making what’s available to one, available to all. Every business should know what it needs to do to pursue its commercial agenda, and we believe that with level playing field pricing, great products, extensive promotional support, persistent multi-channel advertising, strong point of sale material, high stocks and industry leading terms, our offer to all trade customers is fair, open, above board and exceptionally supportive. It’s a challenge when one’s competitors at distribution level,
quite rightly, vigorously pursue their own agendas, which is interesting occasionally with shared lines, (the competition benefits our customers though), retail buying groups and multiples circumvent ‘traditional’ distribution models and create their own brands, generic goods are offered factory direct at very modest quantities, and all participants are naturally looking to the best outcome for their business. Kind of precludes altruism and cooperation, eh? Times are
tough, they’ll get tougher, and then they’ll get better. Adversity equals opportunity. Lions eat antelopes. So be a Lion. Know your purpose, your business and your competitors. Examine your strengths and weaknesses. Plan to succeed. But don’t rely on anyone else to achieve YOUR goals.
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© Intent Media 2011 No part of this publication may be reproduced in any form or by any means without prior permission of the copyright owners. Printed by The Manson Group, AL3 6PZ
ISSN 1750-4198
Enquiries to: MI Pro, Intent Media, Saxon House 6a St. Andrew Street, Hertford SG14 1JA.
Copyright © 2011 Intent Media Printed by The Manson Group, AL3 6PZ
82 July 2011
Tel: 01992 535646 (Editorial) Tel: 01992 535647 (Advertising) Fax: 01992 535648
NEXT MONTH AUGUST
Next
month’s issue of MI Pro will feature a full report on the MI Retail Conference & Expo, plus a look at the school
MI Retail Conference & Expo
Wednesday June 29th 2011 The Brewery, Chiswell Street, London EC1 An event
IN ASSOCIATION WITH
instrument rental market; a focus on mixers plus a preview of the big Earl’s Court pro-audio and lighting event PLASA. Plus all the usual News, Events, Appointments, New Gear, Retail News and Mystery Shopper.
www.mi-pro.co.uk
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