VISIONARY - Music Inc. Magazine
VISIONARY - Music Inc. Magazine
VISIONARY - Music Inc. Magazine
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{PROGUITARSHOP}<br />
As with a traditional brick-and-mortar<br />
retailer, educated, skilled employees are essential<br />
to ProGuitarShop’s model. “And if<br />
you want them to be really good at what<br />
they do, you have to pay for it,” Miller said.<br />
ProGuitarShop’s 16 full-time employees have<br />
duties ranging from video production, warehouse<br />
management, graphic design, Web<br />
development, and sales and marketing. The<br />
company handles all of its own graphic design,<br />
Web development and video production<br />
in-house. And, as Miller pointed out, the<br />
cost of this adds up.<br />
“There is a misconception that it’s more<br />
expensive to do local retail, and it isn’t,” he<br />
said. “Your average-size brick-and-mortars<br />
don’t have to have a warehouse manager,<br />
incoming and outgoing freight coordinators,<br />
and shipping personnel. Credit card<br />
processing online is almost double what it<br />
is when a card is present.”<br />
There are other hidden costs, too. Pro-<br />
GuitarShop constantly upgrades its servers,<br />
computer hardware and software. To put<br />
it in perspective, Miller said, “Hosting our<br />
website costs as much as the rent for the<br />
downtown store, and we are in the highest<br />
rent district in Portland.”<br />
ONLINE TO ON-SITE<br />
S o why did ProGuitarShop invest in<br />
a brick-and-mortar presence after so<br />
much success online? According to Miller,<br />
he needed to add a greater sense of legitimacy<br />
to his company.<br />
“Some manufacturers are more concerned<br />
with filling 20 guitar hooks on<br />
the wall than they are with us shipping<br />
20 guitars a day,” Miller said. “[Opening<br />
the Portland store] legitimized what we<br />
do and opens doors.”<br />
It doesn’t hurt that the store is situated<br />
within walking distance of major music<br />
venues. Miller noted that plenty of nationally<br />
recognized acts know ProGuitarShop<br />
and now have the opportunity to stop by<br />
the store, which happens on an almost<br />
weekly basis.<br />
And despite the high cost of running<br />
a brick-and-mortar operation, he said the<br />
Portland store turned a profit within the<br />
first quarter of opening. He attributed it to<br />
location, along with overall product selection<br />
and service.<br />
JULY 2011 I MUSIC INC. I 61
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