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TRANSCRIPT
E 1 D M US IC308 EAST COLLEGE AVENUE, APPLETON WI 549
TEL. 920.734. 1 969 FAx . 9207342 1MI..
Mardi 22,20M
Steinway & Sons109 W. 57th St.New York, NY 10019Atten: Henry Z. Steinway
Dear Henry,
After reading the Music Trades and seeing your picture about twodozen times, I figured it was about time I wrote you. We met 44 yearsago and I was so impressed. Quite an experience for a 41 year old"hick" from Wisconsin!
The enclosed picture is my favorite. You guided me through the factoryand put me up at the Barbizon Plaza, near the Hall.
I remember a few years ago your sister (?) Chapin sent her son toLawrence University and John called me to watch over him. I alsoremember your 50th at the Drake in Chicago.
I am now in my 20th year of retirement and come to the store everymorning. I speak of you to our sales force many times. Thanks for thememories, I hope you are amused with the enclosures.
;SPeter HeidHEID MUSIC COMPANYAPPLETON, WISCONSIN
1 164
aV't Nec'wJ
1-1,A Avg 41
r- AM
FIFTIETH STEINWAY SALES COURSE -Front row seated, I. to r. Charles G. Steinway,Frank Walsh, Hans Krusa, Roman de Majewski, Mrs. Amelia Maxwell, Henry Z. Stein-way, R. Gregory Durham, Robert W. Johnson, Frederick Steinway, Edwin B. Orcutt.Second row, I. to r.-Howard Cushing, George B. Williams, Theodore D. Steinway.Albert Keifer, Gene Tupper, Richard Cox, William Wood, Richard Forbes, PhillipMartin, Henry Mellen, John McLaren, John H. Steinway. Third row, I. to r.-L. L.Moore, David W. Thompson, William Bradford, James Dyer, Wayne Taddey, Gordon
Steinway Conducts50th Yearly Sales Course
Steinway & Sons conducted its 50thyearly sales course August 28th to 31st attheir headquarters office, Steinway Place,Long Island City 5. N. Y. Forty-two deal-ers and salesmen attended from all partsof the country.
The purpose of this course was a thoroughindoctrination in the manufacturing andpromotion techniques of "Steinway-theStandard Piano of the World." throughexplanatory talks by the head of each de-partment of Steinway & Sons. A two-daytour of the factory afforded th? visitorsan opoprtunity to gain first-hand knowledgeand to acquaint themselves personally withthe intricate details of the craftsmanship.technique. and workmansh.p that go intothe making of a Steinway p,ano.
:n explanation of ad verri^inetheir uses was preserved b..
/ q5
f>i
Netzow, Hertzel Tigel, Louis Mv_aughlin, J. Mallory Forbes, Robert G. Johnsen. Fourthrow, I. to r.-R. P. Schmitt, Roger L. Lee, Norman Barnhart, Fred Esler, NormanTaylor, Fred Myers, Leroy Brandimore, Russell Kurth, Charles Garfield, William V.Mulvey. Fifth row, I. to r.--Douglas Hokanson, Roger Hall, Johan H. Mostert, CarletonStewart, Jr., Hans Schmidt, Dennis Mayhew, Peter Heid, Stan Larson, Geo. Beasley, Jr.John Harris, Cy Montanaro, Richard E. Sward.
way; a summary of the operation of theConcert and Artist Department by FrederickSteinway; as well as sales promotion ma-terial by R. W. Freimuth, Charles G.Steinway, and Howard Cushing. Prof.Hans Krusa of the New York University,School of Retailing. supplied valuable re-tailing information. The culmination of thecourse was "graduation" on the eveningof August 31st at a dinner held at theNew York Athletic Club by Henry Z.Steinway. president of Steinway & Sons.
THE America' s Leading Retailers Ranked By Sa
1 UYRank2MD 1999
36 38 LEO'S PRO AUDIO (WA SPTTZER Musk)
37 36 HAMMELL MUSIC INC.
38 37 KARNES MUSIC
39 40 ELDERLY INSTRUMENTS
40 49 COLTON PIANO
41 39 LENTINE MUSIC
42 42 RIEMAN MUSIC, INC.
43 45 SKIP'S MUSIC, INC.
44 48 HED Music
45 44 AMERICAN MUSIC
46 50 FLORIDA PIANO
ESTIMATED REVENUES EMPLOYEES STORE% FRONTS
2000 Change 1999 2000 1999 2000 1999
$14,310,000 8% $13,250,000
$14,092,000 -4% $14,680,000 w
$13,750,000 2% $13,500,000
$13,500,000 5% $12,900,000
$13,284,000 23% $ 10,800,000
49
57
49
70
70
78
5 7
5 5
1
6
1
6
$13,000,000 0% $13,000,000 75- 55 3 3
$12,900,000 3% $12.500,000 95 83 6 8
$12,050,000 4% $11,562,000 72 74 2 2
$11,782,011 8% $10,939,657 70, 66` 4 5
$11,500,000 -4% $12,000,000 48 48 4 4
$11,400,000 9%, $10,450,000 32 35 7 7
47 AT SUMMERHAYS MUSIC $11,170,000 1%
48 51 SAIED MUSIC COMPANY $10,967,000 7%
49 60 BACH TO ROCK MUSIC SCHOOL INC. $10,500,000 17%
50 62 RUSSO MUSIC CENTER $10,275,000 14%
51 72 GREENE MUSIC $10,187,227 23%
52 98 PIANO'GALLERY $10,100,000 8%
53 53 STRArr MUSIC $9,879,000 1 %
54 56 HALE PIANO & ORGAN $9,758,196 6%
55 57 MUSIC123 .coM $9,500,000 4%
56 59 WARD-BRODT MUSIC MALL $9,500,000 5%
57 80 ALTO MUSIC $9 ,480,000 20%
58 54 Music LOFT $9,450,000 -3%
59 73 OREN MUSIC INC. $9,430,000 15%
60 46 BALDWIN PWNO 8, ORGAN $9,400,000 -15%
61 58 PROSSER PIANO & ORGAN $9,365,000 5%
$11,100,000 60 75 4 4
$10,250,000 60 60 6 6
$9,000,000 20 20 3 3
$8,977,500 25 23 1 1
$8,250,000 20 20 2 2 '•
$9,350,000 35 17 3 3
$9,735,000 '58 55 2 2
$9,226.257 27. 41 3 3
$9,150,000 ; ' . 4O 50 -:-,-.-, 2 3
$9,071,000 70 70 1 1
$7,900,000 30 30 3 3
$9,700,000 38 37 7 7
$8,200,000 20 - 20 6 5
$11,124,000 • 30 49 11 15
$8,887,000 62 60 7 6
C'f CC 0tswu- LU. , , .„ -M, UU- to zI)r nnn R°/ SR R17 17 1 r,
HENRYZ. STEINWAY109 WEST 57th STREETNEW YORK, N.Y. 1009
Peter HeidReid Music co.Appeton, WI308 East College Ave.54911
Dear Pete -
Very good to hear from you, and I still have acouple of years on you. Retired in 1980 - that was the bigparty in the Drake hotel, arranged by Peter Perez and DickGigax - with violins, lovely floral center pieces, and speechby dear old Paul Murphy that was a masterpiece of Irish witand wisdom. Wish I had a recording of it.
The original of the picture of our sales course,I gave to the LaGuardia and Wa=?,ner Archive in Long IslandCity. Near our factory. Along, with a lot of old Steinwaydocuments, company history, deeds, and God know what all.
One of my favourite mgyents at Anaheim this yearwas when Polly and I decided to have lunch (buffet) outsideThe Hall in wh=it I guess is usually a parking lot, and we satdown at an empty few seats at a table n1ar a lovely blondwho turned out to be your new Granddaughter in law. Paul andall the others were at an adjoining table.
Very best to you -
Z,3 M by 03
O1^- nw -\h1-t -
Heid Music Named Wisconsin sTop Family Business
HEID MUSIC of Appleton,Wisconsin, was the GrandAward Winner of the
Wisconsin Family Business
of the Year Award in the
medium business category(50-99 employees). Ten fami-
ly businesses were honored in
the first annual awards ban-quet held May 6 in Madison,Wisconsin. Three Grandawards were given out, alongwith seven special awards.Winners were selected by an
independent panel of judgesfrom nominations submittedby the companies. The awardprogram is sponsored by
Held Music 's main store in Appleton , Wisconsin.
Madison-based business consultants Dewitt Ross & Stevens in MilwaukeeSmith & Gesteland; Green Bay's and Madison.Associated Bank; and the law firm of The panel stated, "The sheer nature of
The world over the BEST, play Simply the BetaDynasty USA provides quality percussion instruments for the world's leading drum corps andmarching bands. If you are looking for success then you want Dynasty USA.
Dynasty USA High Percussion AwardsBlue Devils , DCI 3rd Place • Boston Crusaders , DCI 6th Place • Syracuse Brigadiers , Drum Corps
Associates • Riverside Community College , WGI Independent World • Winston Churchill High School,
WGI Scholastic World • North Coast Academy, WGI Independent Open • Southern Aurora , Drum Corps
United Kingdom • Juba] , Drum Corps Europe • Yokohama Scouts , Drum Corps Japan • Kaetsu High
School , Budokan Championships, Japan • Marching Band Bontang Pupuk Kaltim, Indonesia • Blue Lions,
Drum Corps France
DEG Music Products , Inc. • P.O . Box 968Lake Geneva, Wisconsin 53147 • www.degmusic.com
Heid's business draws creative peopleto its work force and to buy its products.Flourishing under the enthusiasm ofthese artistic people and the guidance ofthe family, Heid Music of Appleton hasforged a legacy.'
Scott Braucht, a partner at Smith &
Gesteland and an award presenter, com-mented, "Family businesses produce ahigh percentage of our nation's gross
domestic product, but the impact thatthey have on our society goes muchdeeper. They anchor their communities,provide jobs, support charities, and leadby example. We wanted to acknowl-edge those contributions with theseawards."Grand awards were given in three size
categories: large (100+ employees),medium (50-99), and small (under 50).Special awards were given by the
judges for companies excelling in aparticular area.
Heid Music was founded in 1948. Withlocations in Appleton, Green Bay, andWisconsin Rapids, it is a full-servicemusical source for band and orchestrainstruments, acoustic and digital pianos,keyboards, age-appropriate music edu-cation from birth to adult, print music,repair, guitars, amps, drums, and acces-sories.
COOPER MUSICOPENS WELLNESS CENTERCooper Music's Music and WellnessProgram for senior adults has beenintroduced to residents of Roswell,Georgia, with the opening of its newestcenter.Cooper Music, the exclusive dealer for
Lowrey home organs in the Atlanta
62 MUSIC TRADES JUNE 2004
lJ NAMM PRESENTS
'C IF I COULD
if
Cher, 1989•®
Ah, if only you could turn back time . But wait , you won 't have to if you pre -register for your FREE NAMM SummerSession Badges by Friday, June 11. After that , they're $25... each.
For the past 12 years, the NAMM Summer Session has been a huge hit with exhibitors and attendees alike-andthis year's show is sure to top the charts once again! It's a casual blending of business and pleasure, where the slowerpace is ideal for taking in all the exhibits , catching some great NAMM U sessions and enjoying exciting after-hoursevents. From the biggest, baddest Pre-Show Party we've ever thrown to the inspiring annual Gospel Music PancakeBreakfast , sponsored by First National Merchant Solutions and the Gospel Music Association, the 2004 Summer Sessionis a "must-attend" for music products professionals ready to "gear up" for success! Visit nammsummersession.com toregister and purchase discounted tickets to this year's Gospel Music Pancake Breakfast.
N 1 nS ^mER5E55/ON
July 23-25, 2004 • Nashville, TN
A Sure Hit!
JULY 23-25 , 2004JJ NASHVILLE , TENNESSEE
Feature
Meet The NewT
•
hairn14 1 llea, 1111,"- -- is
]?a uI HeldSecond -generation Appleton , Wisconsin , retailer views hisprimary role as fostering vigorous and open debate withinthe association . "No one knows what the next big idea willbe," he explains.
In a wide-ranging conversation on what makes for retailsuccess in small markets, Paul Heid keeps returning tothe fulfillment of two critical needs. First is the need tocontinually reinvent the business. "You have to concen-trate on the things you do well and get out of businesses
that don't make sense anymore," hestresses. Second is the need for flaw-less customer service. "If you're in asmall market, you don't have thatmany customers to begin with, so youcan't afford to lose a single one," headds. During his 38-year career atAppleton, Wisconsin-based HeidMusic, Heid has built a thriving three-store retail operation by faithfullyadhering to these principles. He hasjettisoned product lines that no longerfit with Heid Music's marketing strat-egy, such as phonograph records,church organs, and music software.He has also ingrained in the compa-ny's 72 employees that making cus-tomers happy is priority number one.This month Heid becomes chairman
of NAMM, the International MusicProducts Association, succeedingSteve West, of West Music inCoralville, Iowa. Although the chal-lenges of running NAMM have littlein common with managing Heid's
n
Heid takes over at a time when NAMM's industry status hasnever been higher. The association's Anaheim and Nashvilletrade shows remain vibrant; NAMM-sponsored programs thatemphasize the correlation between making music and educa-tional achievement are lauded by retailers and suppliers alike;
and emerging web-based marketinginitiatives promise to convey the"make your own music" message to abroader audience. With the associa-tion running so smoothly, he stateswith characteristic modesty, "My firstgoal is not to break anything." He'sparticularly sensitive to the status ofthe trade shows, adding, "Most tradeshows have not done well in the post-9/I1 world. NAMM has been anexception. Our job is to do everythingwe can to keep the shows healthy."Heid's outwardly conservative
stance reflects more of a managementstyle than an aversion to tamperingwith the status quo. After serving aterm on the NAMM board and the lastsix years on the NAMM executivecommittee, he feels the association'sbest initiatives come from unlikelyplaces and that the job of the chair-man is to nurture good ideas ratherthan issue sweeping proclamations.This point of view was cemented
NAMM CHAIRMAN Paul Heid is president ofHeid Music in Appleton, Wisconsin, a full-lineretailer founded by his father in 1948.
Wisconsin retail business, he feels that the same principles ofbusiness reinvention and customer service will serve him wellas he assumes the helm of the industry's largest trade associa-tion.
early in his first term as a NAMM director. "I was luckyenough to be on the board when Karl Bruhn initially floatedthe idea of spending some money to fund research on theeffects of music and the brain," he recalls. "After some initial
164 MUSIC TRADES JULY 2003
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NAMM Chairman Paul Heid
HEADQUARTERED IN APPLETON, WISCONSIN ( above) , Heid Music operatesadditional stores in Green Bay and Wisconsin Rapids.
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166MUSIC TRADES JULY 2003
skepticism, the board voted for the pro-
posal, but no one had any idea that hisinitiative would be the equivalent of akid joining a major league baseball teamright out of high school and hitting ahome run at his first at bat."One of the things we do as well as
anyone at Heid Music is education," hestates. "We have a Musik Garten pro-gram for pre-school kids, a YamahaMusic School, and private lessons.Thousands of kids come through ourstores every week, and our classes rou-
tinely fill up without any advertising.Part of it's because of word-of-mouthand the fact that we offer a good prod-uct. But a lot of people are therebecause they've read that music is goodfor you and it helps you to learn. Otherretailers have had the same experience,and it's primarily because of industry-generated information." His conclu-sion? "If you want to do something pos-itive at NAMM, you have to keep anopen mind, keep looking at differentideas, and create an atmosphere wherepeople feel free to suggest all kinds ofstuff. None of us know what the next
big idea will be,"
Like a legion of other retailers, PaulHeid was born into the music industr ,His father Peter Heid originally hadaspirations to become a classical clar-inetist and even funded a trip to Europein the late '30s by playing professional-ly. But after a four-year stint playing in
the Army Field Artillery Band duringWorld War II, he returned to his nativeAppleton and opened Heid Music in1948. Within the first year of operation,his friend Buck Jensen joined him as apartner in the business.
Fresh out of Marquette University in1965, Paul joined the family business atan annual salary of $4,800. He had justmarried his wife, Carol, had a new babyon the way, and Heid Music seemed likehis best career option. "I guess I justeased into it," he jokes. "It was neverreally part of a long-term plan."With Peter Heid managing the piano
and organ department and Buck Jensencalling on the local school programs,Paul initially gravitated toward thestore's guitar and amp department."That was after the Beatles hit, the gui-tar business was taking off, and as a 23-year old, I found that it was a placewhere I could make a niche for myself,"
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NAMM Chairman Paul Heid
"One of the best things I've gotten out of NASMD andNAMM is the opportunity to meet people. The trade showhas been incredibly important to me because it's allowedme to get face-to-face with people instead of relying on thefiltered information you tend to get from districtmanagers."
showrooms and repair facilities.These days Paul describes Heid Music
as three separate businesses operating
under the same roof. The keyboard busi-
ness sells pianos and electronic key-
boards. The school business serves
schools throughout central Wisconsin
and rents approximately 3,000 horns a
year. The combo business sells guitars,
amps, sound systems, and percussion to
local musicians. While there is limited
overlap of customers in each of the three
businesses, Paul explains that the diver-
sity gives his company added stability.
"Our departments operate on different
cycles," he notes. "If one is having an
off year, the other two can carry it. "
Operating in small cities like Green
Bay and Appleton gives Paul a different
perspective than retailers in major met-
ropolitan areas. "You have to be clever
and resourceful in small markets," he
explains. "The Appleton Post Crescent
doesn't have the circulation of The New
York Times, so we can't rely on adver-
tising to drive a lot of traffic into the
stores." In the absence of effective
advertising media he has placed an
emphasis on service to build long-term
customer relationships. "We need to
build a relationship with everyone who
walks through out door," he states. "If
they take a lesson, we want them to buy
a piano and start their kids in band or
orchestra, and then buy a guitar ordrumset. We never do a good enoughjob in customer service, but we work atit every day."Paul developed an interest in industry
associations two decades ago afterattending a National Association ofSchool Music Dealers convention. "Iwas running a business my father start-ed, and I thought my experience wasunique," he relates. "Then I met allthese people, like Steve West and BobSaied (Saied Music, Tulsa, Oklahoma)who faced the same situation I did.Sharing insights and ideas with them
was tremendously helpful to me andmade me a better businessman." In1982 Heid was elected NASMD treas-urer and went on to serve as president ofthe association between 1989-91.Paul continues to view interaction
among the members as one of the mostimportant functions of NAMM and allother industry associations. Heexplains, "One of the best things I'vegotten out of NASMD and NAMM isthe opportunity to meet people. Thetrade show has been incredibly impor-tant to me because it's allowed me to getface-to-face with all kinds of peopleinstead of relying on the filtered infor-mation you tend to get from districtmanagers. I can't begin to put a value onthe contacts I've made."At this point in his career, Paul views
his biggest challenge as ensuring an
orderly succession at Heid Music.
"Nothing can end a business faster than
a bad succession plan," he states.
During the past six years serving on the
NAMM executive committee, he has
been grooming other family members to
fill his place. Paul's brother Bob man-
ages the keyboard department, his eld-
est daughter, Kim, is vice-president of
sales, and his son Todd manages the
Green Bay location. Family members
are aided by Gary Reybrock, operationsmanager, and what Paul terms "a group
of extraordinarily talented people."While Paul is away from Held Musicattending to NAMM responsibilities heenvisions a new management teamforming to take his place.Outside of work, Paul is a diehard car
enthusiast who once raced FormulaFords. These days he tools aroundAppleton in a restored 1960 Porschethat he has owned for30 years. "My firstchoice would probably have been tobecome a Grand Prix driver," he con-cedes. "But working at Heid Music hasbeen a pretty close second. I alwaysenjoyed going to work, and I still do."
170 MUSIC TRADES JULY 2003
Feature
THE MAN BEH I ND THE
Guitar BoomJack Westheimer isn't exactly a household name. But as the man who intro-duced America to inexpensive Asian-made guitars, he's surely helped tomake the guitar the world's most popular musical instrument
Histories of the 50-yearascendancy of the guitarfrom "hillbilly" instru-ment to the mainstay0, "popular music typic.-,
cite a number of factors: the folk muboom of the 1950s; the inventive geniof Leo Fender and Les Paul; Bill Haleand the birth of rock 'n' roll; and, omcourse, the Beatles. Overlooked are theefforts of behind-the-scenes players likeJack Westheimer. Although the nameWestheimer doesn't register in the con-sciousness of guitar players, he hasdone as much as any single individual tonurture a booming guitar market. Hiscontribution: high-quality, low-costinstruments from Asia that made theguitar readily accessible to millions ofbeginning players.The guitar market Westheimer con-
fronted in 1958 had two distinct tiers:exquisitely made instruments fromGibson, Fender, and Martin that werepriced out of the reach of beginners, andlow-priced instruments made by Kayand Harmony that, while affordable,were tough to play. At their peak Kayand Harmony collectively producednearly a million instruments a year, yetif you want to know just how difficultthey were to play, consider the fact thatthere is no after-market for the originalHarmony or Kay guitars; the instru-ments are invisible on eBay or any otherused/vintage guitar channel. Againstthis backdrop, Westheimer helped nur-ture a cadre of Japanese, Korean, andeventually Chinese manufacturers whointroduced a line of instruments thatwere simultaneously playable andaffordable.
JACK WESTHEIMER displays one of his Cort Guitars, manufactured in Surabaya,Indonesia. Over a 40-plus-year career, he has helped estblish guitar plants all overthe world.
172 MUSIC TRADES JULY 2003
MR
308 EAS T Cfb L L E G E AVENUE
A P P L E T O N , W I 5 4 9 1 1
IEL. 920 .734.1969 800.236.4343
DIRECT DIAL: 920.83 1 .4990 x 1 30
F A x . 9 2 0. 7 3 4. 2 1 6 4
PETER ( DUKE) HEIDFOUNDING FATHER
M u s I c C o.
MOW life;
him
with fl1t4SiO1..sirr.,^-, 1948
n