The Captain’s Blog

We’ve recently cut a deal (soon to be announced in a press release) with Mega-Stage in Montreal Canada. GearSource.com will exclusively represent their stages in the USA, and will help to promote their name through marketing on our site.

This is a big deal for a number of reasons. First, Mega-Stage is a hardcore competitor to StageLine who have been the front runner in that market for a long time. In fact, in the Eastern Canadian Market, these two fight like cats and dogs. It’s a very competitive industry we’ve learned.

Additionally, as a whole, the Mobile Staging market is growing very rapidly. Not only are these stages much easier to erect, they also don’t require the same permitting in many tough staging markets (Miami Beach comes to mind).

We’ve done a great deal of research, and Mega-Stage not only compete on price, but in quality - they offer product over and above that being offered by Stageline and others.

Following is a shot of one of Mega’s largest offerings, the behemoth 70 X 52 which hardly even looks like a Mobile stage.

Mega-Stage 70 X 52 Mobile Stage

Well, I’ve been hinting for a while that Rental-Source is being redesigned, and re-branded. The new site, Production Loop is expected to launch on 9/1/08.

We (my partner Henry and I) are THRILLED about the new site for a number of reasons. 1 - it’s going to be cheaper for companies to list their inventory! Our goal is that everyone on earth can afford to get their gear up for the world to see.

Secondly, there are a TON of really cool Social Networking aspects to this new site. By clicking into a Rental company, you will be able to see the manufacturers they’re “Looped” to - along with a ton of info about the company, their recent events, and more.

Similarly, when you go to a manufacturer, and click on a particular product - you will be able to “Loop” in to Dealers and Rental Providers for that product. Find anything fast is going to be our goal.

Be sure to come back and check out the site. You can also go to the current holding page at www.ProductionLoop.com and sign up to be notified as things progress.

This site should be able to change the way people locate inventory, other people, rental companies, etc. I hope you will support it as much as you have Rental-Source!

Marcel

Obviously, it’s fun to watch companies buy other companies, and create huge conglomerates - but at the same time, it often just doesn’t make sense to me.

Don’t get me wrong, I love the guys at High End. If anyone deserves a payout, it’s Lowell and Richard (yeah, bob too I guess…) because it’s them who had the foresight and energy to build a highly respected brand. Along the way - sure, they’ve made mistakes - but in the end, they’ve not managed to hurt a successful brand name.

However… $55 million?? I have always heard that most offers were in the mid 20’s (and some less..) then all of a sudden someone comes in at double, or triple that amount. I am certain this had everything to do with a horrible dollar, and healthy Euro. The price is heavily discounted when you look at it that way. I just don’t understand the math though - but that’s just me.

The only problem is - the money isn’t going to those who deserve it most. The big winner on this deal is Generation Partners, who converted loans to equity and ended up owning a majority. Not sure what percentage the founders will receive, but I am sure it’s enough to put a smile on each of their faces after all of the vultures have taken their cuts.

Congrats guys - and please, send any future buyers over here. I’d love an over-payment myself!!

This week, one of my companies - LED Source made an interesting more to establish a “Referral Program” for friends of mine, my partner, and really - anyone who works in the company.

We created a deal whereby a friend can purchase LED Replacement fixtures for use in his / her home replacing the Incandescents. In addition to the MASSIVE electric savings (approximately 80-90%) my “friend” will be buying these fixtures at our cost. In return, all we ask is that they sign a simple sheet stating that the friend will show these lights to their visitors, and will try to explain the benefit. Then - they can hand their visitor a Discount card - that will entitle them to a discount on the same fixtures from LED Source.

When their visitor makes a purchase, we will automatically credit our friend’s account for $5 / lamp purchased. In the end, the goal is to AT LEAST cover the cost of the friend’s initial lamp retrofit.

Cool idea huh?

Marcel

I survived yet another Vegas tradeshow, this time, Lightfair 2008. Had a whole bunch of fun, and oh yeah, got a little work done as well.

The biggest thing I realized was that LED source really do represent the best of the best in the LED world. At this show, our manufacturers were the guys showing all of the coolest stuff.

Color Kinetics with the new Color Reach (a wash light capable of lighting a 400ft tower) showed well. The Color Reach represents a new level of LED wash light. No one else has even attempted to do something this big. CK will own the market on this one, at least for a little while. We’re told it’ll ship in October. You can be sure that LED Source will be all over that unit.

LLF, now Cree Lighting Solutions, showed their new 24″ Panel. This product will easily replace 24″ X 48″ Fluorescents. It’s bright, looks great, and will ship in a couple of months. LED Source already have several on spec.

A new line for LED Source is Renaissance Lighting. Their new 4″ RGB Downlight is about the coolest recessed downlight on the market. It offers very smooth color blending, and dimming - plus total uniformity in appearance (no Red, Green and Blue LEDs). Control options include a Dial, Bluetooth and even Crestron. LED source has the units in stock, so feel free to request a sample, pricing, etc.

Elation and Acclaim were at the show displaying several new products in their Architectural and Entertainment ranges. More on that later.

Other highlights at the show included another LED Source offering, Nexxus with their new PAR 30 Replacement lamp - offering 95 Lumens per watt in a very small, lightweight (and BRIGHT) package. Otherwise, it was more of the same. 100s of Asian manufacturers displaying products that appeared to be the same, plus a ton of Street lights. I guess that one makes a whole lotta sense considering the energy savings - however, not a market that interests me a bunch.

Stay tuned for more later. Ciao for now.

Marcel

I will be spending the next couple of days combing through the latest architectural lighting technology with my LED Source Partner - Gavin Cooper. As always, we’re looking at the latest product from the biggies, but also - we’re looking for that one little product our clients are looking for. We’ve got meetings setup with a couple of new lines we’re starting to represent as well.

Watch for more information over the next few days. I’ll update you on my thoughts for latest product, company news, and more. Standby.

Marcel

Actually, It’s SOOOOO much more than just a facelift. Rental-Source.com is undergoing total reconstructive surgery. We hope to show you the NEW site within about 90 days. I can assure you, it’ll blow you away. Think Facebook meets Google meets Rental-Source - and then some.

When we re-launch this site August 1st, you might not even recognize it. New Look, Features, Pricing (in fact, most things we charged for before are now FREE) and even… an entirely new NAME!

Check back here often for an official launch on an entirely new concept in promoting your gear, your business, or maybe even YOURSELF!

Standby….

I’ve always been a small company guy. I’ve either worked in them, or I’ve owned them. In my entire 20+ year career, I’ve never worked in a large company - with Martin and High End being the largest (at the time both were in the 400 person range). Even then - they were too large for my liking. Any time a company needs a board of directors, and the dreaded HR Department, I am outta there. To me - some companies likely “need” HR Departments - and that’s only because they’ve got to manage the level of BS, Rhetoric and Corporate red tape being produced. I’ve found that the people who find there way into the HR Department to complain are generally the ones who should then be chased out of the company. Much like the old days of elementary school - the kids who always ran to the principals office trying to get me in trouble for something… well - maybe sometimes I deserved it… 

I am sure there are cases where legitimate abuse or harassment is taking place, however, more often it’s simply a person who wants to climb the corporate ladder of middle management the easiest way possible without actually producing anything. These are the ones spending most of the time making people write policies to protect themselves, then staffing HR Departments to further protect themselves, then - when everything goes terribly wrong, they end up hiring attorneys to protect themselves again. 

So, what is it they’re protecting themselves from? Is it the people who are doing wrong or is it the people who are blowing the whistle? I think the answer is clear. Remove the vehicle, and you’ll remove the whistle blowers. If someone is truly abusing a staff member, that staff member should have access to senior management - who will be managers! They’ll analyze the situation, and make a decision that’s best for their company. It’s not my position as a business owner to create this wonderful fluffy environment. If I treat my people well (which I do) then I will have them around me for many years. If I don’t they will move on.

I’ve got a horrible story to tell you and the inspiration for this particular blog entry. My brother in-law (from now on lets call him Ken) is someone I’ve known pretty much since birth and he’s a great guy. Ken is a very old fashioned, hard working, good to the core kinda guy. He has been with my sister for 40 years now, and they’re great together. Ken is so committed that he’s been at his job for 31 years! In the past 31 years, I’ve gone trough Elementary, Jr High, High School, my first band, my first job - and about 10 jobs since then. I’ve never thought of myself as someone who could stay at one job 10 years, let alone 31 years. 

So, anyway, a couple of weeks ago, my brother-in-law’s employer - Veritas who is a large Geophysical company based in Calgary Canada, brings in a new hot shot HR girl. She goes out of her way to set up a meeting with Ken so she can prove her middle management worth to her boss - who is likely ALSO an un-necessary cog in the profit making wheel of business. Trust me - I know the type. Before I started Gearsource, I was forced to sit in on some meetings with our new VP of Human Resources - and while listening to her, all I could think of was “And we’re paying you how much”. I hate to pick on these people as a whole, but frankly - they’re in place to cause problems, and play god. When did this happen? Weren’t HR departments supposed to create benefits packages, and great work incentives, or incentive plans for their companies resources? When did they retire into a role of writing and enforcing stupid policy? Annnnyway… I digress. So, Ken accepts his meeting with this new HR person. Why not? Although it would likely be a waste of his time, why wouldn’t he at least listen to what she had to say. So she comes into his office on a very busy day, and acts like she’s his best friend, while proceeding to say “what can HR do to help make your department more productive”… now, once again - i’ve been around a while - and I’ve heard the very same line. I’ve given MUCH less diplomatic answers than Ken did - and never had a problem. On this day though, someone seemed to have ulterior motives. She had every intention this and every day of stirring something up, and using the huge company book of policy to somehow further her career. So, Ken basically responded, in a polite way, that the best thing that HR could do would be to leave the department alone. She tried to dig a little further, but Ken was quite busy, and asked that the meeting end. She obliged. 

The next thing Ken knows, this woman has lodged a Harassment complaint against him stating that Ken wounded her morale and made it very difficult for her to do her job… UN-BE-LIEV-ABLE!!! When this all went down, Ken felt like he might have a heart attack. He could not believe that after 31 years of slaving, and losing sleep over this company, and treating people VERY well, he was being accused of ANYTHING let alone Harassment, and to be honest, I find it pretty hard to believe myself. 

You have to first understand who this person is. Ken is the quietest, nicest guy you could meet. He is not A type at all. He doesn’t stress over things, he’s very quiet - and does not walk around his office shouting and waving his arms. Ken has been through 100 management changes at Veritas, and has seen it all - yet, he’s continued working his butt off for the company. He works nights, weekends, and whatever it takes to get it done. At one point a couple of years ago, Ken had many months of Vacation built up - because he always refused to take vacations since it would (in his mind) hurt the company if he were to do so. 

So now, the company has sided with this woman, and Ken has been told that he must take Anger Management training, and visit a Harassment seminar. It’s all on the company dime of course, because while we’re at it - we need to waste a whole lot of company money because this woman’s feelings were hurt when she couldn’t change the world. Does this make any sense to you? 

When the story hit me yesterday, I was blown away. I asked if Ken has spoken to his bosses or anyone else, and the answer was “No, he’s been given a gag order”. Again, lets look at the crime. He told the person “HR can help my department by leaving it alone”… THAT’S IT! He didn’t curse, yell, or otherwise berate this woman. She wanted to be a hero, and in this case, her heroics were not required - so she turned the companies weapons against it’s longest standing and hardest working employee. Does this sound right? The HR person should have been reprimanded for harassing HIM instead of being rewarded for being ridiculous. This story would bother me to no end whether it happened to a family member, friend, or complete unknown. I HATE corporate crap. I hate when bureaucracy grabs hold of a good, profitable company of productive, happy people and reduces them to a vanilla flavored pack of zombies who produce very little, but behave exactly as the company manual says they should. Believe me - I would take a group of edgy, misbehaving, CREATIVE people any day of the week. If you want to turn your company into a complete loser, follow the lead of great businesses like Veritas, and demoralize your greatest assets by treating them exactly this way. 

Done for now…

Marcel

PS: Following is a “Vision and Values” statement taken directly off of Veritas’ website…

• We strive to excel and have a passion for what we do
• We recognize and reward individual commitment and performance
• We believe teamwork is our driving force and value global diversity
• We seek and provide opportunities for personal development and professional advancement

For years, it’s been rumored that Digital Lighting would pretty much signal the end to automated lighting as we know it. Well, that hasn’t happened yet. Sure, major inroads have been made, primarily as a result of the efforts of High End and their Digital Lighting range, the DL1, DL2, and now DL3 fixtures

The problem with these digital lights (aside from cost) has always been that they were expensive, especially considering the rack of computers you needed to drag along to operate them. That was resolved with the DL2, but the cost remains an issue.

Secondly, and equally important - is the lack of real useful output. I am talking output that can compete with other moving lights in a typical show. Sure, with more video being incorporated into shows, it’s less of an issue, and video is huge - however - it’s still an issue when you consider the MASS APPEAL or Movement towards these moving video lights. Robe also a light - the Digispot 5000DT - that falls into the same category as the DL2 / DL3. It’s essentially a moving video projector with some slick added software - at a premium price!

The next wave of fixtures is starting to hit. This wave suggests you can “blend” a full on concert light like a MAC2000 or VL3000 - with a digital spot such as the High End DL’s. Two such lights have been making their rounds on the tradeshow and promo circuit. First came the Barco DML1200 (very original Digital Moving Light 1200). I saw the demo at LDI last year - and although the demo itself was less than impressive, reading between the lines - the fixture showed promise. It is a 10k video projector combined with a 1200W moving light. There are all sorts of lamps to accomplish this - and you can “morph” between a standard light and video. Pretty cool - but VERY expensive (I’ve heard $35k) when you consider a “rig” would include at least a dozen or more… Next comes a light from our Italian friends at SGM. The Digital 1500 (wow - another really original name…) claims to combine a 28k lumen moving light and 10.5k lumen video projector in one Attractive Package - Definitely more attractive than the Barco that looks a bit like a Volvo on a yoke. I haven’t seen it yet, but this SGM fixture looks very interesting indeed. It seems to have only a single 1200w lamp vs the multi-lamp assembly in the Barco - and doesn’t have any specialty lamps as required in other digital units (projectors on yokes). This thing shows all sorts of promise, but until I see it - and find out a price - I will have to hold my final judgement.

Although we’re seeing a lot of new gear coming in this genre - I don’t see “conventional moving lights” going away any time soon. If you figure Lumens Per Dollar, these lights are not good options. What small rental company can afford a rig of 24 Barcos for a typical One Off? This was what Barco suggested in their demo “Look - you can make twice as much money from your investment - because you can rent it when people need a video light, or even just a light”… sure - I’m gonna put $35k fixtures out on a local rock show at $175 each… not likely. 

Well, it’s been fairly common knowledge for years, but I will go ahead and give you this breakthrough information now anyway… You ready for this?? Prepare yourself… Audio is a MUCH larger industry that Lighting.Sure, everyone knows that - right? Well, then why are there 10 or 12 companies online focused on the sell of used Lighting, but only a couple of “real” companies promoting used Audio?Part of the explanation is that Audio companies have used ebay a lot more than lighting companies have. As I’ve said 100 times, ebay is NOT the best place to buy gear! Sure, if you need a deal on an iPod or 1976 Skil saw, ebay is great. For $50,000 audio consoles I really don’t see the match.  Once again, people will say “but on ebay, I am not paying the commission I have to pay you to sell”. Well, I’ve been over this - but briefly, let me respond. Ebay fees are not what they used to be!! Add it up - for a self serve sale, you are paying them more than you’re paying us!! AND - we will almost always get you a higher price! Not to mention, when you sell something on ebay, you’re taking all the emails, questions, shipping quotes, etc - on your own. Anyway, lets just say that dealing with a professional organization who are 100% focused on promoting and selling your gear is a better way to do it. GearSource have actually sold audio quite successfully for several years now. Sure - we haven’t had the quantity of listings that some other sites have, but It is my belief (based on some knowledge) that we’re actually out-selling them! That being said, we’ve now made a decision to make a huge investment in our infrastructure to  expand our audio business, and really - provide the pro-audio world with the very best solution for buying or selling their inventory. This investment already includes the appointment of an audio division director. Shaun Robinson has been in the GearSource family for just over a year. His background is similar to many people in our industry. He started as a DJ, then couldn’t afford to keep up with the latest gear, so he went to work for his supplier, Guitar Center. Because Shaun was always a gear guy, he picked up on the latest technology immediately, and really got to know the gear. He also gravitated to his core clientele - the club market. Shaun did very well selling into the club market for several years while working with GC Pro, guitar center’s Pro / Install division. Shaun will be taking on a whole new level of challenges here at GearSource while leading the new Audio Group. His focus will be on building our core audio clientele and vendor base, but also feeding information to our Web Team who will continue improving our web technology for our users. The idea has always been to build the site that people want. For audio, that may involve some special requirements. Shaun will also focus on improving the quality of used gear available to people and improving our pricing on that gear. By the end of 2008, our goal is to increase used audio sales to 50% of our overall sales. That in itself will make us the largest online seller of used audio in the world!  Over the next year, we will develop the group around Shaun, and will continue improving our site, our model, and our team to increase our audio biz with Shaun at the helm. To reach Shaun Robinson, you can call (561)296-9554 or email shaun@gearsource.com.