Press


Cool Guitar Shop was recently featured in The Music & Sound Retailer, the musical instrument industry's premier magazine, responding to their questions about how tariffs and recessions can affect the industry. The full article text from the October 2019 issue, pages 51-53, is below these images.

 

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In what ways are tariffs hurting your business? Are you concerned about tariffs moving forward?

"Tariffs are annoying little things that all of us would probably like to never deal with at all. However, when doing retail of international products, you're likely to come across them at some point, resulting in charges to you when the products arrive at the port of entry.

The best way to address tariffs is to find out in advance what the tariff rate is likely to be on your imported products, and make sure that your margins are still good when including these added costs. Manufacturers should be aware of these costs, and adjust their wholesale prices accordingly, so it's still a good deal for both parties. Our manufacturers have been really good about compensating for tariffs."

– Rod Moore, Cool Guitar Shop


Many economists predict a recession by the end of 2020, with many more predicting a recession by the end of 2021. Do you expect we will see a recession? If so, what measures have you taken or will take to protect your business?

"I find recessions incredibly difficult to accurately predict, given all of the good and bad information out there. I have been hearing that the next 'big one' is right around the corner, for as long as I can remember, but it's not here yet.

Unfortunately, if a bad recession were to happen, we are largely in the hobby/entertainment industry. In other words, most consumers do not have to have (right now) what we offer, so a recession will temporarily slow this industry as much as any.

One way to make your business more recession-proof might be to focus more of your products and marketing to consumers that have to have your products anyway. An example would be professional/touring musicians and school band students. These groups are still likely to need our products more than most people during a slowed economy.

Let's all hope that we don't have to get into recession mode any time soon. It is good to always be prepared though. I suppose that if the really big [recession] does arrive, I'll open an online survival gear store too!"

– Rod Moore, Cool Guitar Shop