A little known company in Michigan is the true power be

[erickamikaze]

A little known company in Michigan is the true power behind retail music sales

Posted on Sun, Dec. 28, 2003

Music industry dances to Michigan firm's tune

Associated Press

TROY, Mich. - A little-known company in a nondescript office park hold a big influence over the international music industry.

Few people this suburban Detroit community know what Handleman Co. does, let alone realize the impact it has on retailers, major record companies and musicians ranging from Kid Rock to Toby Keith to Luciano Pavarotti.

Handleman plays a key role in determining what music sellers such as Kmart and Wal-Mart stock on their shelves and which ones are banished to the bargain bin, The Detroit News reported Sunday.

"If you know music at all, you know what Handleman does. Mick Jagger knows what Handleman does," said Geoff Mayfield, director of charts and a senior analyst for Billboard magazine.

Handleman's business is deceptively simple. Retailers pay the Troy-based company to manage their music departments, keeping them supplied with best-selling titles.

In all, Handleman services more than 4,000 stores on three continents. With more consumers turning to mass merchants to buy music, Handleman-managed stores sold 11 percent of all music in the United States this year.

That is why 3 Doors Down, Brian McKnight and other artists make special stops at Handleman's offices. It's not uncommon for employees to be treated to performances by the Goo Goo Dolls, or receive e-mails from the members of Brooks & Dunn.

Handleman officials say their jobs offer many perks. But when it comes to deciding who's hot and who's not, they rely on company data to decide what to stock.

"We get to meet our fair share of these guys and gals, some of whom are really, really good people, and some that you hope don't meet your daughter," said Handleman President Gerardo "Gerry" Lopez.

"We don't pass judgment on the music. If you like rap, bless you. If you like classical, bless you. All I want to know is where you shop so I can get it to you," Lopez said. "We let the consumer decide with their dollars, which ultimately is the most important vote."

So while Lopez might have Alan Jackson in his home stereo, his personal feelings don't effect what he does in the office. It's his two-inch thick binder of Excel spreadsheets updated daily that tells him how many CDs to order, where to ship them and when to pull them off the shelves.

"Our biggest challenge is knowing when to step on the accelerator and at the same time knowing when to step off," Lopez said. "Because doing it at the wrong time has implications for the artist, for our customers and for us. It's very volatile. Records can be here and gone in no time at all. And it's tough to predict. But we get paid to figure that out."

It seems strange that an area known for cars and manufacturing could also be home to a company like Handleman, which earned a record $1.35 billion in annual sales in fiscal 2003, which ended May 3.

Its headquarters has been in the Detroit area for more than 65 years, and it has no plans of moving to Los Angeles or New York. Rather, Handleman executives are happy to work in relative isolation.

http://www.fortwayne.com/mld/newssentinel/business/7585932.htm

[lolahotass]

RIGHT ON :rock:

[marick]

this is EXACTLY why the music industry is shit and why the people (or should i say sheep) in the general public are so shallow and close minded musicaly. because they let others decide what they should and shouldn't listen to, what is popular and what is not and what is good/bad and what is not insted of experimenting and then making up their own minds. it's a very sad state of affairs!