COMPANY PROFILE
U.S. Music
Aims For The
“Perfect Experience”
With a revamped product line and
major investments in distribution
technology, the source for
Washburn guitars and Marshall
amps is poised for growth
n advanced guitar factory in suburban Chicago
and an expansive 165,000-square-foot distribution center in
Mississippi are the most visible indications of the aggressive
new stance at U.S. Music Corp, the maker of Washburn,
Parker, Oscar Schmidt, and Jay Turser guitars and Randall
amps; and the U.S. distributor of Marshall amps and Warwick,
Framus, and Hagstrom guitars. Complementing the investment
in plant and equipment is a newly minted attitude that pervades
the restructured company. President Barry Ryan and Vice
President of Sales and Marketing Gil Soucy have vowed to
transform U.S. Music into an industry leader in product value
and retailer service, and they have energized their staff in a
focused pursuit of those goals. Enthusiasm runs high at the
company’s new headquarters in Buffalo Grove, Illinois, but
Ryan and Soucy recognize that lofty mission statements and
gung ho employees alone are not enough to win the allegiance
of instinctively skeptical retailers. That’s why they have spent
the past two years systematically upgrading product lines,
service capabilities, and marketing. As retailers begin preparing for the important fourth quarter, they will be ready.
The pair contends that the broad-based overhaul has resulted
in a better company in every respect, well suited to address the
needs of a competitive market. At the heart of this renewal is
a revamped product line that Soucy describes as “the best in
company history.” The U.S. Music portfolio includes guitars
and amps that address every segment of the market. The flagship Washburn brand includes a complete range of acoustic
and electric guitars (the electrics still have a big upside);
Randall amps are a favorite of heavy metal players; the innovative Parker composite guitar occupies a unique niche; and
Marshall Amplification is one of the most iconic brands in
rock ’n’ roll. Other distributed and owned-brand products
MUSIC TRADES JULY 2012
The U.S. Music Team: Chris Walker, director of marketing; Gil Soucy, vice president of sales and marketing, and Barry Ryan,
president, at the company’s new headquarters outside of Chicago.
include a re-issue of the classic Swedish Hagstrom guitar; the
high-value Jay Turser guitar line; the Oscar Schmidt line of
ukes, folk and educational instruments; Warwick bass guitars
and amps as well as Eden Bass Amplification (recently sold to
Marshall Amplification); Natal Drums (owned by Marshall);
and QuikLok and Profile stands and accessories. These product lines are not exactly new: Washburn is celebrating its
130th anniversary in 2013, Marshall turned 50 this year, and
Parker made its debut in 1993. What is new is an array of
products that consistently include unique design features,
uncommon value, or a combination of both.
Soucy’s vision is based on years of firsthand retail experience; he got his start as a teenager sweeping floors in a local
music store to pay for a guitar and never left the industry. Over
time he has come to see that the difference between good
products and exceptional products boils down to a lot of small
details. “The top-selling instruments have always had meaningful features, readily apparent value, and great quality,” he
explains. “When I was in retail, there were some guitars I
always showed because the neck felt better, or the pickups
were hotter, or they came into the store perfectly set up. I
knew they would satisfy the customer.”
Soucy notes the “detail-oriented” approach to product development is embodied in the Washburn WD10S dreadnought.
There are hundreds of dreadnoughts available for sale, and at
first glance, they all look pretty much alike. What distinguishes the WD10S, according to Soucy, is a potent feature set, and
superior production quality. The guitar boasts a solid spruce
top, mahogany back and sides, and rosewood fingerboard—
high quality materials typically associated with the finest guitars—yet sells (or streets) for under $300. Quarter-sawn
spruce scalloped bracing, another feature found on high-end
instruments, provides added volume and tone quality.
Rounding out the package on the WD10S, a mother-of-pearl
inlay on the headstock gives extra visual appeal to catch the
customer’s eye. To give retailers additional confidence, every
97
COMPANY PROFILE
THE BROAD U.S. MUSIC PRODUCT LINEUP
High-quality materials
and thoughtful design
details make Washburn
acoustics an exceptional value.
High-profile artist models such as the Paul
Stanley Signature set
Washburn electrics
apart in a crowded
market.
Randall amps are a favorite of
heavy metal players including
Metallica’s Kirk Hammett.
The unique composite
Parker guitar offers
exceptional playability
and tonal versatility.
Marshall amps are a rock ’n’
roll icon and arguably the
world’s most widely played
amps.
WD10S receives a thorough inspection prior to shipment, so
that it arrives in perfect playing condition. Assembling this
value packed product required tough negotiations with factories around the world, creative materials sourcing, and a
tremendous amount of time and effort. However, Soucy concludes, “It’s the only way to stand out in a crowded market.”
The same discipline has been applied to every other product
offered under the U.S. Music umbrella. Parker’s original composite-bodied “Fly” guitar delivered an appealing combination of light weight, extraordinary playability—thanks to
stainless steel frets—and musical versatility. However, an
unconventional body shape appealed to a smaller-than-desired
niche of potential buyers. The newly introduced Maxx Fly
model offers the same musical advantages of the original, but
Distinctive features, compelling value,
or a combination of the two.
German-made Warwick Re-issues of classic
basses set the stanHagstrom models comdard for quality.
bine retro appeal with
contemporary features.
Oscar Schmidt offers ukes,
autoharps, and high-value
guitars, filling numerous market niches.
Built in Britain, using exquisite
woods, Natal drums set a
high standard for quality.
with a more traditional, though still streamlined, body shape.
Soucy describes it as “bringing the benefits of a pioneering
design to a broader audience.”
Randall amps, on the heels of its 40th anniversary, is poised
to introduce a completely new array of heads designed to
solidify its appeal among heavy metal players. Working closely with Metallica’s Kirk Hammett and other top flight artists,
Soucy says, “We’ve come up with a high-end head with unbelievable tone that will provide a halo for the rest of the product line.” In short order, a broader array of popularly priced
models will follow.
The Jay Turser brand offers a line of conventionally styled
acoustic and electric guitars at entry-level prices. What distinguishes them is their “bang for the buck” quotient. U.S. Music
COMPANY PROFILE
To produce custom Washburn electrics and the unique composite Parker guitar, U.S. music’s plant combines automated woodworking with skilled hand finishing. Plans call for increasing production over the coming year.
sales reps routinely tell dealers: “Order
three, and if you can find a better sounding, better playing guitar at the price,
just send them back.” To date, returns
have been all but nonexistent and reorders are strong.
Although U.S. Music is the distributor
for Marshall amps, Ryan says “we treat
it as if we own the brand and we make
an extra effort to create a separation
from our other amp brands. This way
we approach the sale of Marshall amps
to the marketplace as though it is our
only brand. We have created the
Marshall USA division that includes a
dedicated group of people to oversee
brand development, marketing and
sales.” Over the past year, the Marshall
USA team has collaborated with
Marshall UK to develop a redesigned
amp line that Ryan says “offers the tone
and performance Marshall is famous for
but with a more logical array of models
and pricing.” The new products will be
unveiled by calendar year end, and in
his words, “will have a very positive
impact, not just in the U.S. but worldwide.” The Marshall USA division also
includes Eden Amps and Natal Drums.
Although this diverse array of products
addresses nearly every playing style and
price point, Soucy says they share some
important common traits. He points out,
“There are no me-too products between
our family of brands. The product offering for each brand has distinct and readily apparent benefits, and every product
represents a compelling value.”
Ryan began his career as a CPA and
later moved into corporate management
and operations, where he mastered the
business fundamentals of sales, marketing, and efficient logistics—moving
products quickly and efficiently from
factories to retail shelves. He served as
chief financial officer for Huffy
Corporation, President of Huffy
Bicycles, and then the leader of Wilson
“There are no me-too
products. Each brand has
distinct and readily apparent benefits, and every
product represents a compelling value.”
Golf clubs worldwide. He subsequently
became involved with a private equity
group, which resulted in his becoming
an investor and CEO of an automotive
aftermarket parts supplier sold via catalog and online. After the successful sale
of the parts business he began his
involvement with U.S. Music at the
start of 2008.
Soucy has spent his entire business
career in the m.i. industry—first as a performer, and later working on both sides
of the sales counter as vice president of
E.U. Wurlitzer’s Boston area stores and
as head of U.S. sales for Behringer.
Through these work experiences Soucy
developed an intimate understanding of
musicians and the retailers who serve
them. Bringing these diverse backgrounds together, the pair has redesigned
U.S. Music to create a company “that’s
easier to do business with,” says Ryan.
Two years ago, a high-tech distribution
center was strategically opened in
Mississippi, just over the border from
Memphis, to speed deliveries to retailers and to minimize freight costs. It’s no
coincidence that the facility is not far
from the country’s largest Federal
Express shipping hub. Back in Chicago,
the U.S. Music sales team has been
cross-trained to take incoming orders
and handle service issues, all in an
effort to give dealers faster replies to all
their questions. Ryan, who fixates on
timely order fulfillment, explains that
the distribution center gets orders out
faster and more reliably “so dealers can
effectively run their businesses with
less invested in inventory.” For Soucy,
the restructured sales department
addresses a major concern that he had
when he was in retail. “Speed is important on a sales floor, and I always wanted to be able to reach someone who
could quickly resolve issues with a
definitive answer. Not ‘I’ll get back to
you’ or ‘I’ll check with my manager,’”
he explains. “With our new organiza-
COMPANY PROFILE
tion, we can provide the kind of quick
response retailers need.”
In addition to providing prompt delivery and a crack sales team, U.S. Music
has adopted what Ryan calls a “dealer
friendly” stance. Operating on the principle that company success depends on
dealer success, he explains that they are
willing to “do whatever it takes to make
it work with our products.”
An important component of this
“whatever it takes” mindset is a
stepped-up grass roots marketing program. At the Wilson golf division, Ryan
dramatically increased sales with an
aggressive campaign of store clinics.
Today, he’s finding success with a similar approach at U.S. Music. Bassist Stu
Hamm has been appearing regularly at
dealerships to conduct Washburn clinics. Guitar virtuoso Adrian Belew has
been making the circuit promoting
Parker guitars, and the Warwick bass
team has hit the road promoting the
Warwick product lines. Later in the
year, as the new amps begin shipping,
the Marshall USA team will go on a
lengthy clinic tour. The clinics will create store traffic and customer excitement that should lead to more immediate sales. However, they will also pay
long-term benefits, according to Soucy,
“firing up the store sales staff and building their confidence.”
U.S. Music’s grass roots marketing is
complemented by a stepped up artist
relations
campaign.
Longtime
Washburn endorser Nuno Bettencourt
who is currently touring with Rihanna,
All U.S. Music products receive thorough inspections prior to shipment to
ensure they arrive in perfect playing
condition.
recently introduced a new Washburn N7
signature guitar on American Idol as
millions of viewers watched. The inimitable Paul Stanley of KISS is also
working closely with the company to
introduce an exciting new signature guitar line. Together, the two artists have
helped burnish the Washburn brand.
U.S. Music was acquired in 2009 by
JAM Industries, the largest M.I. distributor in Canada. Through its Erickson,
Coast, and Erickson Pro divisions, JAM
represents JBL, Korg, Pearl, and dozens
of other top brands. The company got
its start 40 years ago when Marty
Golden quit his family music store,
loaded a station wagon with products,
and began signing up dealer customers
across Canada. As a retailer, he had
watched with a combination of disgust
and disbelief as sales reps continuously
used threats to cajole him to buy more.
“I’ll pull the line from you,” or “I’ll
open up the dealer next door” if you
don’t buy more, defined the marketing
approach of most of his suppliers. He
reasoned that a distributor that replaced
the tough talk with solid sales and marketing assistance would be rewarded
with more business. Forty years later,
his initial insight has been confirmed
many times over. He proudly points out
that on a per-capita-basis, JAM outsells
almost all other distributors in the
world, a fact he attributes to a welltuned marketing program.
JAM distributes the U.S. Music product lines in Canada, but has also served
as something of an operational model.
Like Golden, Ryan aims to win market
share by out-servicing the competition.
For the retailer, it means delivering
readily saleable products, backed by a
seamless order and delivery process and
a MAP policy that ensures a solid profit. For the end-user, it translates into
high-quality, trouble-free instruments
that help them realize their musical
ambitions. Soucy adds, “If we can
deliver a perfect experience at every
point in the transaction, we’ve got a
great opportunity ahead.”
www.usmusiccorp.com