The choice of timing in forming the company was not opportune, occurring just days before the infamous and most unfortunate 911 incident in New York City. As with many industries, and other facets of our economy, many in the music industry experienced misfortune and considerable upheaval after this event. The dynamics in the industry began an immediate change thereafter, as consumers became considerably more cash conservative and value oriented as a result of the fears that followed, and the constant strain of uncertain employment. While people did not necessarily want to give up their desires for new musical products, they became considerably more conscious of the price, and the value received for the dollar spent.

Many of the music dealers at the time concentrated on the established brand names. After 9/11 individuals considerably tightened their wallet, and shopped what purchases they made much heavier, making much greater use of alternative channels of retail to save money, such as catalogs and the internet. The strain on dealer profits and the shear ability to stay in business became a daily challenge, and remains so. Naturally, music dealers also began to search for alternatives, and saw a need to quickly find product for their store that had the price/value relationship being sought out by their customers, and that at the same time would be of aid to their own efforts to make a fair profit, and therefore remain in business.

The market dynamics just mentioned have been the guiding light in the design, development and pricing of the Ventura product line, as well as the general approach we have taken to the marketplace. In terms of features, styling, and cosmetic appeal, Ventura musical products are significantly more then what is commonly available at similar price points. Additionally, the level of playability is beyond what is expected, and notable, as is the durability and consumer appeal of the product.

The independent music retailer network is the hallmark of our national distribution, with the product not being offered to the national chains, catalogs, or non-music channels of retail. The result is dealers having a desirable product in their stores possessing the price/value relationship their customers are searching for, and at the same time being able to satisfy their fair profit needs without having to bow to the relentless pricing pressures of national advertising and low margin retailing channels.

As a result, and we hear this often from our dealers, this is the one line they have in their store where they surely are able to give their customers an excellent deal, and yet reach their own profit objectives at the same time. If you are an independent music retailer, but not yet a Ventura retailer, we invite you to inquire into joining our network, and take a significant step forward in building a fair profit back into your retail operation again.

We realize that what we have described is not new to any of you, most of you living it in the trenches daily. But if you are not a Ventura dealer, what is new is the potential of the Ventura product line, and how much it can aid you in surviving the great battle.