The Whole World's Goin' Crazy
(Slade, 1972) . . . By Director Wayne Hall
(Slade, 1972) . . . By Director Wayne Hall
September 29, 2008
The new Business Development (BD) guy was very excited. He had a plan . . .
At the table were the Music Programmer, along with the Managers of Customer Relations, Finance and Sales.
“Have I got a great idea for taking this business to the next level . . .” he said, strutting confidently about the room.
(Here we go . . ., thought the Music Programmer)
“What we do is get our music programming people to source a bunch of low cost music libraries over the net. I’ve already had a scout around and there are plenty of them . . . ambient and instrumental stuff that can operate as “filler” for offices, service centres, showrooms and so on. You know, stuff like the old elevator music people use to listen to.”
“But don’t want to listen to any more.” The Music Programmer wasn’t liking where this was headed.
“Let me finish . . . Anyway, we purchase these libraries for a one-off fee, throw them together and wham!, we have a serious, low cost background music program - maybe a few of them - that we can put out on subscription for half the cost of our competitors . . . and still make a decent profit.”
“But that flies completely in the face of our music programming values . . . for a start, most of these tracks will be crap!” The Music Programmer was starting to feel quite uncomfortable now.
“Oh come on, hardly anyone in a service centre, foyer or elevator even listens to the music . . . it’s just there! So long as it’s ambient and passable, it’ll do the job. And anyway, it’s the accountants that make the decisions on music services in business these days - cutting costs and so on - so if it’s offered at half the price, it’ll sell for sure. And I just had a sensational thought! If we buy music that isn’t registered with the associations or track-able to artists, we can sell it as copyright free, so we won’t have to pay dubbing fees . . . and our clients won’t have to pay public performance fees . . . you know, that APRA and PPCA stuff that scares the hell out of everyone. Man, this just keeps getting better . . .!”
“Better for who?” The music programmer was now exasperated. “So now we’re not even supporting the artists?”
“Look, in these tough times we have to look after ourselves.” (The BDM thought to himself . . . some people just don’t want to take money when it’s handed to them on a plate . . .!)
“Hmmm,” said the Finance Head. She’d been around a while and seen it all. “The few times in the past when we’ve run with a product that hasn’t stacked up, the late and bad debts have escalated. Contrary to what you’ve just said, people do seem to listen to the music . . .”
(the Music Programmer looked at the Finance Manager with new-found admiration. She’s alright, he thought)
“Oh boy . . . am I glad you mentioned that!” The BD guy was on a roll now. “What we do is sell off our subscription contracts in full to a collections company at a discount. With our great credit record we’ll get an A1 deal. They pay us out for the contract in advance (he locked eyes with the finance person) and they collect the debt. What could be better?
The CR Manager leaned forward. “So the client will be getting calls from a collections company asking for payment while we make the Customer Relations calls?”
“Well yes, but what’s wrong with that? People are used to that these days.”
“I know they are used to it . . . but do they like it? The disconnection between the two worries me, because our approach has always been that the two are in fact totally linked. It’s important that the CR person can respond to client issues and adjust value if and where necessary. We call it caring.”
“Caring sshmaring.” The Business Development guy was becoming a little frustrated now. “We’ve got to move with the times . . .”
The Head of Sales sipped on his water, ready to speak. (Here we go . . . thought the Music Programmer. Money, money, money . . .)
“Right. So let me summarise your proposal. We package up what are effectively a set of substandard music programs into a low-end subscription offering. We take this product to a part of the market that places little value on music . . . namely price-sensitive decision makers who don’t care about the fundamentals of what our programs to date have stood for. Then we sell off the responsibility for the debt - and effectively the service - to a 3rd party for five years. Is that it ….?”
(Whoah . . .! Nicely put, thought the Music Programmer)
“Well, some may put it that way,” said the BD guy. “This is a chance to make some serious profit . . .” He looked again imploringly at the Finance Head. “And anyway, we can carry on maintaining our service standards for all of our other programs. You gotta admit, it’s a great idea . . .”
“It is a great idea,” said the Finance Head.
(Oh no! thought the Music Programmer . . . we’ve lost her.)
“It’s a great idea for making money from a deal that is aimed at making money. But it is not a great idea for sustaining the long term viability of a business committed to creating exceptional music programs . . . of attracting exceptional people to a culture of service excellence . . . and maintaining the link between the quality of the product and the customer’s satisfaction. Sure, it might have a honeymoon period, but the irony of early success is that it will corrupt everyone in the business - from the salesperson to the music programmer to the accounts person - as they lose the connection - the relationship - with the customer, and gravitate to mediocrity. It’s our customers that we learn so much from.
“And as for packaging up “crap”, as our good Music Programmer has called it, and selling it off to 3rd parties in order to make a buck, haven’t we seen enough of how this approach plays out recently? The world’s economy is teetering on the brink because of it. Eventually cutting corners and willingly selling underperforming product comes home to roost, and I’d like to think that we’re a little better than that . . . that our responsibility stretches outside of simply making a profit for our business.”
The Business Development guy still didn’t get it.
The Music Programmer had fallen in love . . .
Jukebox Code
Just in case you hadn’t noticed it, if you are in the jukebox business, please make a point of understanding the requirements of the recently introduced Jukebox Code of Conduct, which are laid out in this month’s newsletter. As with anything in our newsletters, don’t hesitate to contact us if you have any questions.
Wayne Hall
Director
For more SBA Business News Articles, click here.
- "Having been a SBA customer since the first Radioactivity, Commercial Cutz & BPM, I have been extremely happy with the service provided. Keep up the great work. I, like the rest of your customers, greatly appreciate all the effort everybody at SBA puts into producing these quality products." - Serge - DJ:Plus! Entertainment
- "We approached SBA Music with very specific brief. We knew we wanted an unusual mix of music genres and throughout the day we wanted moods and tempos to change. SBA Music was effective in dissecting our brief, seeking to understand our business and translating it to the quirky audio atmosphere we now have, that reflects our brand and delights our customers."
- Melanie Schwarz, TS 14+ - "SBA is a fantastic avenue for exposure of your artists, not only does it get your song added to many playlists but they also have the facility to get your video played and they are a very professional outfit. "
- Russell Thomas, Kaos Management - "SBA's highly organised programming team is always on top of the game when it comes to supporting local indie artists, giving them the attention and exposure they deserve. It's refreshing to see a company that REALLY does make music their business. "
- Tim West, The Right Profile - "Music is a critical component of store atmosphere and plays a significant role in the purchase decision-making process. "
– Michael Morrison, Monash University - "One of the best things about working with SBA is the roll out system we have in place… all we have to do is notify them of a new site, and they take care of the rest. It's too easy. "
- Carlos Antonius, Nando's Australia Marketing Director - "SBA are not just our music supplier. Their capacity to work with us to deliver an in-store music strategy that went above and beyond our initial requirements means we now view them as an integral part of our team."
- Paul Montalto, National Communications & Promotions Manager, Target - "Our no. 1 priority was to implement a music strategy that reinforced our brand and created an atmosphere that was distinct to Gloria Jeans. SBA's on-going commitment to this process has been outstanding. In addition, they've worked with us on a number of initiatives that have continued to add value & develop our brand. "
- Elizabeth West, Gloria Jean's Coffees, Group Marketing Manager - "SBA are always in there working as a partner to assist us. They understand the market and like to get our take on things, which is important. "
- Dennis McGrath, Amarda Operations - "We've been subscribing to SBA Music for years. The monthly chart program is always spot on and the theme programs include all the timeless, must-have tracks that punters want to hear... The programs end up paying for themselves. "
- Erwin Boot, Automatic Music - "SBA's CD's takes the guess work out of song selection… if it's on their CD's it will pack the dance floor. "
- DJ Guru - "For us, SBA are a one stop shop. The music solution we've put in place has addressed all our needs as bar and restaurant operators. We have the right music playing at the right time, at the right levels… in all key areas of our venues. It fills the gap and provides the right atmosphere for our venues. "
- Jeremy Milner, Bavarian Bier Cafes - "We choose SBA for its diversity and up to the minute track listings" - Rock-On Mobile DJ Services
- “SBA’s Launching Pad Initiative is a fantastic way to bring new bands to a new audience…don’t get left behind.”
- Tim West, The Right Profile - "SBA are always prompt and always have the music I need"
- DJ Bodz - "SBA has taken the pain out of running an effective and reliable source of music for our stores. Their flexibility and knowledge help us create the right atmosphere for our customers every time."
- Robert Marsden, IT Manager – Zarraffa’s Coffee - "The team at SBA are not just passionate about music – they are also passionate about offering ideas for improving and building business. It’s apparent that we are more than a client to them - we’re a partner."
- Brian Freeman, General Manager - Torch Media - "SBA’s support for our business goes much further then the supply of music programs. In addition to working with us to ensure our player is secure, they provided invaluable feedback about our product’s features, the market and licensing considerations… and continue to do so."
- Ray Miller - RDR Juke Boxes