Elderly Instruments Elderly Instruments Type Private Founded East Lansing, Michigan, United States Founder(s) Stan Werbin Sharon McInturff Headquarters 42°44′46″N 84°33′8″W / 42.74611°N 84.55222°W / 42.74611; -84.55222Coordinates: 42°44′46″N 84°33′8″W / 42.74611°N 84.55222°W / 42.74611; -84.55222 Lansing, Michigan Industry Musical instruments Record distribution Services Musical instrument repair Revenue $17 million (2007) [1] Owner(s) Stan Werbin Employees 85 (2008)[2] Website Elderly.com Elderly Instruments is a musical instru- ment retailer in Lansing, Michigan, United States, with a reputation as a "megastore",[3] a repair shop and a locus for folk music[4] in- cluding bluegrass and "twang". Specializing in fretted instruments, including acoustic and electric guitars, banjos, mandolins, and ukuleles, Elderly maintains a selection of odd or rare instruments. Elderly is known as the premier repair shop for fretted instruments, as one of the larger vintage instrument deal- ers in the United States, and as a major deal- er of Martin guitars in particular. Industry publications, music retail trade, and bluegrass music journals have featured articles about the Elderly repair staff. The company also provides consignment services for rare and vintage instruments. Since its founding in 1972, Elderly has undergone two major expansions: into mail order in 1975 and then into Internet sales in the 1990s. In 2005 it was the subject of a lawsuit by Gibson Guitar Corporation concerning trademark in- fringement. Today it is recognized interna- tionally for its services and products;[5] its mail order and Internet business account for 65–70 percent of its total revenue. Elderly grossed $12 million in 1999[6] and by 2007 was grossing $17 million annually.[1] In addition to retail and repair services, Elderly Instruments is noted as a center of local music culture for bluegrass and "twang" music. Elderly Instruments operates a whole- sale record distribution business, Sidestreet Distributing, in the lower level of its complex, serving more than 300 small retail businesses. History The exterior of Elderly Instruments In 1969, New York City native Stan Werbin moved to Ann Arbor, Michigan to attend graduate school. He took his banjo and guitar with him and immediately developed his in- terest in folk music. Werbin participated in a lively local music scene that included collab- orations and "open mic nights" at local ven- ues. It was through those experiences that Werbin developed his appreciation for the variety of instruments the musicians were playing, as well as the various types of music that fall under the folk music genre.[7] When Werbin finished graduate school, he looked for business opportunities and From Wikipedia, the free encyclopedia Elderly Instruments 1 decided to use his knowledge of used guitars. He searched for vintage instruments to buy at low prices, particularly those made before World War II; Werbin then sold the instru- ments after repairing and restoring them.[2] Although he initially tried to open his busi- ness in Ann Arbor, Werbin eventually decided to avoid operating there due to the high num- ber of other musical instrument dealers.[8] In 1972, Werbin and Sharon McInturff, his col- lege friend and business partner, leased re- tail space in East Lansing, Michigan for $60 a month in a building that also housed the Michigan Youth Politics Institute, a non-profit organization dedicated to encouraging young adults to vote. With $500 of capital, the two began advertising locally.[9] Werbin and McInturff took the "Elderly" name from a 1971 classified ad they saw, in which the seller marketed his Gibson Les Paul as a "nice, elderly instrument".[10] Elderly Instruments expanded during the following years. Shortly after the 1972 Un- ited States Presidential election, the Michigan Youth Politics Institute moved out of the space across the hall, and Elderly took over the entire basement of the building.[2] In 1975, it expanded into the mail order busi- ness.[11] By 1982, Elderly Instruments had about 25 employees but little available space, and so in the following year the owners bought an Independent Order of Odd Fellows building in Lansing, Michigan. After it was renovated for retail use, the company moved into it in January 1984, and in 1986 Werbin bought out McInturff to become the sole owner. In 1994, Elderly expanded again by buying adjacent building space that had once been a post office and a National Cash Re- gister Company building.[2] Around the same time, it began taking merchandise orders over its new web site.[12] The company does not, however, sell merchandise through on- line auction sites such as eBay, unlike many other independent musical instrument retail- ers.[5] Werbin notes that entering the Inter- net business was not much of a challenge for Elderly, as the staff was already experienced at taking and shipping orders for customers throughout the world.[11] He also notes that, with its mail order and Internet business ac- counting for 65–70 percent of its total reven- ue,[2] Elderly would have experienced limited growth in Lansing had it not expanded into those markets.[2] The company operates in around 35,000 ft² (3,300 m²) of space, and is one of the largest vintage instruments deal- ers in the United States.[12] Elderly Instruments has become known due to its attention to folk music niche mar- kets (Eddie Collins of Bluegrass Now re- marked "The roots of what today has become perhaps the world’s most well known music store for acoustic instruments can be traced directly to the folk music boom of the 1960s."),[7] its reputation as a repair shop,[11] its selection of vintage instru- ments,[10] and its position as a major Martin guitar dealer.[5] Gibson Guitar Corpora- tion lawsuit In June 2005, Gibson Guitar Corporation filed a cease and desist order and an accompany- ing lawsuit against Elderly Instruments. The complaint alleged that Elderly was selling a banjo on its web site marketed as a "Gibson copy" and that the phrase constituted a trademark infringement. Despite Elderly’s claim of having addressed the issue by chan- ging the phrase first to "Famous Maker Copy" and then to "Classic Bluegrass Banjo Copy," Gibson persisted with the complaint and asked for unspecified damages.[13] Gib- son later issued a press release stating that the lawsuit had been settled.[14] In the same year, Gibson severed its con- tract with Elderly as a retailer of Gibson products, citing a contract stipulation that re- tailers should not carry any competing brands of banjos and mandolins. Elderly had been one of nine retailers selling the special- ized Gibson Bluegrass line of banjos and mandolins, although it also carried other brands. Werbin attempted to rectify the situ- ation by offering a dedicated area of the store for Gibson products, but Gibson pro- ceeded with the action. As a result, Elderly does not offer new Gibson products for sale. The incident was well-publicized in the media and discussed at length in consumer for- ums.[13] Instrument sales In 2007, Elderly sold more than 16,000 in- struments.[15] The company is a dealer of Martin guitars,[5] as well as other main- stream brands such as Guild, Ovation, and Fender. It sells used Gibson instruments, but From Wikipedia, the free encyclopedia Elderly Instruments 2 A section of the Elderly showroom offering acoustic and archtop electric guitars not new models as a result of the Gibson law- suit. Although the bulk of its business comes from guitar sales, the company carries a range of other instruments, such as banjos, ukuleles, mandolins, accordions, concertinas, bouzoukis, sitars, musical saws, and African thumb pianos.[10] Some of the rarer instru- ments are purchased as collectibles. Elderly is an exclusive retailer of "LunchBox-A- LeLes", ukuleles made from various tin lunch box designs.[16] The journal Bluegrass Unlim- ited has noted Elderly Instruments for carry- ing "elite" brands of instruments, such as Paul Duff mandolins, Huss & Dalton acoustic guitars, Stelling banjos, and Nash electric guitars. Elderly was once one of only two American retailers for Apitius Mandolins, now only sold directly.[17] As part of its con- signment business, Elderly sells "collections" of instruments that sometimes have rich his- tories. In September 2006, it placed the Dopyera family’s personal collection of reson- ator instruments up for sale, including some of the Dobro and National brands.[18] The Dopyera family was responsible for founding those companies and innovating the resonat- or instrument trade.[19] Elderly Instruments carries a number of Martin guitars, including valuable vintage models. In interviews, Werbin frequently mentions Martins made before World War II as especially desirable and "memorable" pieces of the Elderly Instruments inventory. The guitars are sought after by musicians from the bluegrass and other genres. Werbin purchases some of the more valuable or in- teresting instruments for his personal collec- tion, and has lent them to museums as tem- porary exhibits.[20] Periodicals for the bluegrass genre such as Bluegrass Canada and Bluegrass Now have featured stories about Elderly and its selection of bluegrass instruments and repair services.[7][20] Elderly employees maintain connections with the bluegrass industry by attending trade shows such as the Interna- tional Bluegrass Association Trade Show in Louisville, Kentucky. At these shows, Elderly showcases typical bluegrass instruments, such as banjos, guitars, mandolins, fiddles and resophonic guitars, to musicians and businesspeople.[20] Elderly Instruments staff members have set up organizations such as the "Friends of Bluegrass" to support local bluegrass musicians.[7] Michigan Living magazine noted Elderly’s liberal policy regarding the handling of in- struments, something Werbin attributes to his difficulty shopping for Martin guitars in New York City in the 1960s. The magazine also notes that customers are encouraged to pick up and play any instrument, an unusual policy for a high-end instrument retailer. Im- promptu "jam sessions" are frequent in the store, as customers try out guitars.[15] Repair and appraisals The repair shop occupies about 3,000 ft² (280 m²) of space in the Elderly building.[21] A number of notable guitarists have sent their instruments to Elderly for complete res- toration or other major work such as refinish- ing and refretting.[11] Elderly’s repair depart- ment services other fretted instruments such as banjos, ukuleles, and balalaikas.[9] In February 1996, a feature article in Guit- ar Shop Magazine documented the com- pany’s restoration of a severely damaged Martin J40-M acoustic guitar. The Martin had been in the trunk of an automobile when a semi-trailer truck struck the automobile. Al- most every part of the guitar was damaged: the top, back, sides, fingerboard, and neck block. The worst damage, and the most chal- lenging to repair, was caused by the neck block having punched through the back of the guitar. The owner brought the Martin to Elderly after other repair shops had rejected it as being beyond repair. The technicians at Elderly successfully restored the Martin after a labor-intensive process that included a new Adirondack spruce top.[22] Elderly provides an appraisal service for vintage instruments. It employs five full-time From Wikipedia, the free encyclopedia Elderly Instruments 3 appraisers who use a detailed scale to rate the quality of instruments. Their appraisal services have been noted in media, such as The Music and Sound Retailer, as being among the best in the industry. Customers may either bring instruments directly into the store or send them by mail. Elderly own- er Werbin attributes some of the company’s success and reputation to the quality of the appraisals.[5] Marketing and business model Electric guitar showroom In addition to a printed catalog, Elderly sends lists of available vintage instruments to sub- scribers in the U.S. and several other coun- tries by mail and e-mail. Elderly purchases some of its used instruments from customers and then offers them for sale, while others are offered on consignment. Although larger retailers dominate the Internet market share (Elderly grossed $12 million in 1999, larger retail outlets such as Guitar Center grossed $297 million[6]), Elderly attempts to serve vertical markets by offering specialized or rare items on its web site, such as left- handed guitars.[23] Werbin notes that while discounting products by 40 percent set his business apart from the local competition in the 1970s, out- lets such as Guitar Center now also offer dis- counts. In response to questions about his strategy for competing with larger retailers such as Guitar Center and American Musical Supply, which also operate mail order and In- ternet businesses, Werbin states that he has learned to operate on small margins to stay competitive: "The mom-and-pop businesses that have survived have learned to operate on narrow margins."[6] Other enterprises After opening its first retail space, Elderly began selling hand-picked records supplied by Rounder Records, a small distributor that later grew into an independent record label specializing in roots music. After trying other distributors, Werbin started his own distribu- tion company in 1979, named Old Fogey Dis- tributing. By 1987, Old Fogey was servicing about 300 small retail operations, operating from the basement of Elderly’s Lansing show- room.[24] In 1997, the operation was re- named Sidestreet Distributing. Elderly currently dedicates a section of its retail space to record sales. A full-time pur- chasing manager maintains a comprehensive selection of both mainstream and rare music, much of it in the folk and bluegrass genres; this is due to the belief that customers will become more interested in the music after making an audio purchase and then in turn buy a musical instrument.[7] Elderly also sells instructional books and other material, much of which focuses on folk music and bluegrass genres.[25] The store also offers a music school fo- cused on folk music and related instru- ments.[26] Twang and other folk music Noise, a periodical published by the local newspaper Lansing State Journal, has written that Elderly Instruments is the "epicenter" of an emerging form of American folk music, named "twang", sometimes referred to as "al- ternative country". Several twang bands per- form and record in Lansing, many including at least one Elderly employee. Current and former Elderly employees attribute the twang influence at the store to the proliferation of associated instruments, educational materi- als, and musicians. East Lansing radio station WDBM has been hosting a twang music show since 1995.[12] Lawrence B. Johnson, music critic for The Detroit News, called Elderly a "folk music mecca" and a megastore that is a haven for folk musicians. In the past it has been one of the chief sponsors of the annual National Folk Festival.[3] From Wikipedia, the free encyclopedia Elderly Instruments 4 References [1] ^ Ballard, Rick (April 9, 2008). "The E- Evolution of Elderly Instruments". Capital Gains. Capital Gains Media. http://capitalgainsmedia.com/features/ musc0214.aspx. Retrieved on 2008-05-26. [2] ^ Leebove, Laura (February 5, 2008). "Now in its 36th year, Elderly Instruments in Lansing still keeps the music going". The State News. http://www.statenews.com/index.php/ article/2008/02/staying_in_tune. Retrieved on 2008-03-05. [3] ^ Johnson, Lawrence B. (1999-08-13). "State’s folk music mecca is in tune with times". The Detroit News. [4] Ratliff, Ben (2008-02-10). "Shared Song, Communal Memory". New York Times. http://www.nytimes.com/2008/02/10/ arts/music/ 10ratli.html?pagewanted=1&_r=1&sq=singing%20festival&st=nyt&scp=1. Retrieved on 2008-03-11. [5] ^ Remson, Adam (June 2002). "Elderly Instruments — The fountain of youth in a vintage guitar store". The Music and Sound Retailer. [6] ^ Girard, Peter (November 1999). "Battle of the band suppliers". Catalog Age 16 (12): 34. [7] ^ Collins, Eddie (June 1998). "Elderly Instruments—They Don’t Make ’Em Like That Any More!". Bluegrass Now. [8] Chapin, Bill (January 6, 2002). "Lansing’s Backstage for Bands: Elderly Instruments celebrates 30 years as creative Mecca for mid-Michigan music scene". Lansing Noise. [9] ^ Wieland, Barbara (2004-05-10). "Store owner strums his way to success in music business". Lansing State Journal. http://www.lsj.com/news/business/ 040510_profile_weekly.html. Retrieved on 2008-03-20. [10]^ Massey, David (October 2001). "Interview with Elderly Instruments President Stan Werbin". Musical Merchandise Review. [11]^ Caswell, Cristine (2004-12-01). "King of String". Greater Lansing Business Monthly. http://findarticles.com/p/ articles/mi_qa5316/is_200412/ ai_n21360511. Retrieved on 2008-05-23. [12]^ Miller, Matthew (June 2004). "Twang Town". Lansing Noise. [13]^ Staff (September 2005). "Elderly music vs. Gibson: leading vintage dealer sued for advertising ’Gibson copy’". Music Trades: 46. [14]Staff (2007-01-03). "Gibson Guitar Resolves Lawsuit Against Elderly Instruments, Inc., of MI". Gibson Guitar Corporation. http://www.gibson.com/ allaccessPress.aspx?aliaspath=/ AllAccess/All%20Access%20Press/ Gibson%20Guitar%20Resolves%20Lawsui. Retrieved on 2008-03-15. [15]^ Branam, Jud (March 1996). "A Heaven for Pickers". Michigan Living. [16]Bogues, Maureen (2007-04-29). "One- Man Band: Eat your lunch and strum it too with Box-A-Lele". San Francisco Chronicle. http://www.sfgate.com/cgi- bin/article.cgi?f=/c/a/2007/04/29/ LVGF3PE7V41.DTL. Retrieved on 2008-03-01. [17]Walker, John M (October 2000). "The High Lonesome Craft". Bluegrass Unlimited 35 (4): 54–57. [18]Staff (2006-09-19). "Elderly Instruments to Sell Rare Dobro Collection". Absolute Michigan. http://www.absolutemichigan.com/dig/ michigan/elderly-instruments-to-sell- rare-dobro-collection/. Retrieved on 2008-03-01. [19]Menaker, Daniel (2002-01-27). "The Twang Thang". The New York Times Magazine: p. 26. [20]^ Buckly, Michael (December 1999). "Elderly Instruments—A Hectic Day". Bluegrass Canada magazine. [21]Staff. "Repair Shop". Elderly Instruments web site. http://elderly.com/repair/ repair_shop.html. Retrieved on 2008-02-28. [22]Chappell, Jon; Pete Prown, Lisa Sharken (February 1996). "Back From the Dead: Learn How to Bring Your Beloved Beater Back to Life". Guitar Shop. [23]Savin, Jerald (2000-05-15). "What Makes Sense in the World of E-Commerce". Los Angeles Business Journal. http://www.thefreelibrary.com/ What+Makes+Sense+in+the+World+of+E- Commerce.-a062386389. Retrieved on 2008-05-23. [24]McCormick, Moira (April 18, 1987). "Something Old, Plenty New At Elderly Instruments". Billboard Magazine. From Wikipedia, the free encyclopedia Elderly Instruments 5 [25] "Elderly Instruments". Michigan State University Museum. http://museum.msu.edu/nff2001/ activities/elderly_instruments/index.html. Retrieved on 2008-03-01. [26]Staff. "Elderly Instruments School of Music". Elderly Instruments web site. http://elderly.com/lessons/. Retrieved on 2008-03-10. External links • Elderly Instruments web site Retrieved from "http://en.wikipedia.org/wiki/Elderly_Instruments" Categories: Companies based in Lansing, Michigan, Music retailers of the United States, Com- panies established in 1972 This page was last modified on 27 March 2009, at 12:14 (UTC). 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