The Squeaky Horn

The high trump card assigning A Company in every everywhereview The squealing saddle horn is a tuneful promoter neutering line of descent which specialized in nearly(prenominal) major and minor heartens for band and orchestra puppets. Over the past ten stratum, The squeaky schnoz has established a great node relationship with the medi guy ropeion professionals from all everyplace the country, and has been ope estimated in a relatively little competitive environment as in that location were no many similar stores in the town.However, as the cutting store surmount means desex opened crossways the town recently, the high-pitched schnoz go ab divulge a pack pressure on pitifulering the equipment casualty for minor fixates in competing with the new price that the Best performer Repair offers for the similar run. Eugene Decker, one(a) of the terzetto owners of The Squeaky Horn, was trying to figure out the reason for losing $50745 in their planne d loot from the actual operating issuances, with the information that the store has been going finished signifi female genitaliat changes in spite of appearance the year.In coordinate to explain the change in net, it is necessary to birth a untroubled understanding of the tuneful actor hole industry from both macroeconomic and microeconomic aspects initiative. Industry Background Macroeconomic digest Canadian gross domestic product has been showing an profit trend from 2001 to 2010 as showed in cecal appendage 1, even though between 2008 and 2009, gross domestic product had a negative increment rate of 2. 8%, the 3. 3% of improver in gross domestic product at 2010 pull up the figure once again to make an boilers suit increase trend. Because of the signifi heapt increase in gross domestic product over the past decade, consumers discombobulate much silver spend on cheer and education.Thus, more people unravel to go to watch art shows and subscribe to to play tuneful cats-paws. If looking at accessory 2, the first chart shows clear that the add up out sign of the zodiac spends more money in entertainment outside mob office in 2003 than 1998. For example, people spend $20 more on put to deathing arts on mean(a) per year. It implies that an increasing topic of people will go take c be to a concert, which stimulates acters to turn back a point condition of their legal shaftates for soften performances. The practice of medicineal nstrument invigorate industry therefore, attracts more revivify jobs and technicians in order to satisfy the increasing inquire on musical instrument holiday resorts. The mediocre Canadian music technicians recompense is $48,000, which is $9,000 higher than the other instrument freshen up technicians as showed in the Appendix 3. Beside the facts that music technicians needs spend a lot of time work on the music desexualise certificate in order to perform their jobs, $9,000 struggle i n net makes the musical technician jobs more winning than others. As a result, the musical instrument repair industry is competitive.At the last, the industry is in addition affected by re counters studies. According to a cross-sectional field of Canadian school children, E. Glenn Schellenberg (2006) as referred in Appendix 4, kids who play musical instrument perform recrudesce in both cognitive tasks and familiar intelligence tests. thitherfore, more p atomic number 18nts would like to defecate their kids learn one of the musical instruments in order to explore the kids IQ potential. As a result, the musical instruments repair business is much more prosperous than before. Microeconomic Analysis The musical instrument repair industry is competitive.As a pure repair store, The Squeaky Horn faces opposition not only when in its own town, but similarly crossways the province. Because musical instruments are fragile, long quad travel increases the possibility of instrument breaking, music professionals prefer to have their instruments repaired in the local anesthetic area. Therefore, there are not so many competitions outside the province. Since a lot of musical instruments retailers and individualist music technicians to a fault provide the similar serve, the overall competition The Squeaky Horn is facing is heavy.Appendix 5 offers 3 of the most popular musical instrument repairs store in Ontario. The first two stores specialized in difference instruments repairs (guitar and violin) the last one is basically back repairs and restorations for all instruments. Appendix 5 in like manner shows the instrument repair price that another(prenominal) store in the industry offers. The average major repair (overhaul and refinish) is priced over $ three hundred for band instruments (trumpet, trombone and horn) compare to The Squeaky Horn, which shows that The Squeaky Horn is cost efficient.The Squeaky Horn has various providers for musical instruments parts . Appendix 6 provides all the musical instruments manufacturers across Canada, and over half of the suppliers are from Ontario. Various supplier choices make The Squeaky Horn a price maker, which allow it to lower the repair price to attract more clients. The Squeaky Horn has guests all over the country. The customer line spreads from the music professionals to amateur players, from orchestra to individual household.Since the store has been operated for more than 10 years, a lot of old customers prefer to have their instrument repaired there because of the already-established reputation. In addition, because of the musical instrument repairs need very peculiar(prenominal) skills, and technicians normally needs to obtain current music degree and musical instrument repair certificate in order to perform their jobs, it is relatively hard to constrain a musical instrument repair technicians than others. As a result, the musical instrument repairs industry has a barrier to entry. The re are not so many substitutes for musical instrument repairs.Since musical instruments is considered to be expensive goods, and most individuals and families can only offered one piece of the musical instrument (ex. piano), periodic repair and examination induce the most popular method to keep a peak condition of their instruments. Unless the price of music instruments become so affordable that an average music player can offer to pay a new one when they lay out problems with the instruments, or the support hand market become so popular that the selling price of the instrument are enough for getting a new one, people will foil on instrument repair.If comparing The Squeaky Horns operating result with the maintenance and repair industrys average (Appendix 7), we will find that The Squeaky Horns actual tax tax income of $664,170 is almost as twice as much of the industry average of $334,900. However, the occur actual expense is $354,070 higher (calculation is provided at the e nd of Appendix 7), which results the overall profit fall below the industry average of $28,100 in 2008. Therefore, The Squeaky Horn is an peremptory industry leader in revenue sector, but did not do intumesce in maintaining high profitability through expenditure control. Appendix 1 GDP and step-upBetween 2001 and 2010, GDP for all industries in the Canadian economy increased from $1,041 billion to $1,234 billion. In each year of the period, GDP maturement has been positive with the exception of 2009 in which we axiom a decline for the Canadian economy. The conf apply yearly ripening rate of GDP between 2001 and 2010 measured 1. 7%. glaring Domestic Product (GDP) and GDP Growth 2001-2010 Canadian Economy (NAICS 11-91) GDP suppuration in 2001 and 2002 was much slower, with annual growth evaluate below the 10 year compound annual rate. However, in 2003, annual GDP growth slipped to 2. 1, corresponding with a down-turn in the United States economy.GDP growth rates went on to r ebound and remained steady roughly 2% and 3% until 2008, when a globose recession trimmed annual GDP growth to 0. 6% falling again in 2009 to an all time low of 2. 8%. In 2010, we begin to becharm another rebound with the GDP growth increasing to 3. 3%. ejaculate Statistics Canada, http//www. ic. gc. ca/eic/site/cis-sic. nsf/eng/h_00013. hypertext mark-up language Appendix 2 Consumer Demand for Entertainment Services foreign the Home In recent years, Canadians have spent more on entertainment. For their homes, get hold of has risen for such(prenominal) goods as home entertainment systems and computers.Expenditures on these services comprised 0. 44% of the average households overall spending work out in 2003, up from 0. 41% in 1998. This shift in preferences and growth in incomes, population and prices caused the consumer market for entertainment services to expand from $2. 3 billion in 1998 to $3. 2 billion in 2003, an increase of 41%. The chart below shows the household spe nding on entertainment services outside the home in 1998 and 2003, respectively. map 2 at the right shows the average household spending on entertainment services outside the home in both 1998 and 2003. cite Yusu Guo and Don Little, Analytical piece Series, Consumer Demand for Entertainment Services outside the Home. http//publications. gc. ca/Collection/Statcan/63F0002XIE/63F0002XIE2006050. pdf Appendix 3 Comparison of average out medical specialty Technician Salaries and norm Instrument Technicians Salaries The average salary for music technician jobs in Canada, KY is $48,000. Average music technician salaries can vary greatly ascribable to company, location, industry, arrive and benefits. Source http//www. simplyhired. com/a/salary/search/q-Music+Technician/l-CanadaThe average salary for instrument repair technician jobs in Canada, KY is $39,000. Average instrument repair technician salaries can vary greatly due to company, location, industry, experience and benefits. Sour ce http//www. simplyhired. com/a/salary/search/q-instrument+repair+Technician/l-canada Appendix 4 Study of Music and Intelligence Musicians perform better on cognitive tasks A study of 4 to 6-year olds found that musically-trained kids performed better on a test of works memory Other research indicates that musicians perform significantly better on tests of Spatial-temporal skills mathematics ability Reading skills Vocabulary communicative memory Phonemic awareness Musically-trained people perform better on general intelligence tests. In a cross-sectional study of Canadian school children, E. Glenn Schellenberg (2006) found that kids who took music lessons had slightly higher IQs. The make were general, cutting across several distinct intellectual abilities (e. g. , verbal, mathematical, and temporal-spatial). Music lessons were associated with abilities associated with fluid intelligence, such as Working memory perceptual organization Processing speed They were also assoc iated with increased verbal comprehension and better high school grades. These differences remained significant after(prenominal) controlling for a childs age, nonmusical activities, family income, and parents education. Source http//www. parentingscience. com/music-and-intelligence. html Appendix 5 Competitors * Folkway Music Repairs Restorations Fine Fretted Instruments Folkway Music is Canadas premiere acoustic guitar depot. We specialize in the sale, repair and restoration of fine time of origin, new and used guitars, mandolins, and banjos.There are always many vintage Gibson guitars, vintage Martin guitars, vintage Gibson mandolins, and other vintage guitars for sale in the store, as comfortably as a large alternative of new C. F Martin & Co. Guitars, Taylor Guitars, Santa Cruz Guitars, subject Guitars, Larrivee Guitars, and others. C. F. Martin & Co. Authorized Warranty Repair Centre. World-wide shipping. 163 Suffolk Street West, Guelph, Ontario, Canada N1H 2J7 Source http//www. folkwaymusic. com/ * Armenious Violins In our shop class we do any kind of instrument repairs/restorations such as crack repairs, bridge, serious post, fingerboard planning, peg fitting, etc.After all we are violin, viola, and cello makers ourselves. The following are some highlights of instrument related works. Bridge Cutting, enunciate Post , Fingerboard, Nut & Saddle, chisel in/Improve Pegs, Neck Repairs, Bass Bar, ingrained Table Patches, Various Crack repairs and anatomic Corrections, Clean and Polish the Varnish. sides 903 Willowdale Ave, Toronto, Ontario, Canada, M2M 3C2 Source http//www. armenious-violins. com/instrument_services. html * Cosmo Music A Music Instrument Superstore Cosmo Music operates one of the largest and most esteemed instrument repair shops in Canada.Each year hundreds of schools, students and professional musicians trust Cosmo Music to repair their instruments to like-new playing condition. In addition to customer repairs the shop also maintains a dart of well over 10,000 rental instruments which are used by students across Ontario each year. Led by its original technician, Kevin Rohm, the shop now employs 18 technicians and specializes in all types of wind instruments, guitar and electronic repairs. Cosmo Music has do a significant investment in equipment so that its technicians have access to all of the latest and best tools and techniques to service your instrument uickly and properly the first time Location 10 Via Renzo Drive, Richmond Hill ON L4S 0B6 Source http//cosmomusic. ca/contact-us. html Source http//www. heidmusic. com/PDFs/repairs. pdf Appendix 6 Suppliers Source http//www. profilecanada. com/category. cfm? cat=3931_Musical-Instruments Appendix 7 Industry Average Source Statistics Canada, http//www. ic. gc. ca/cis-sic/cis-sic. nsf/IDE/cis-sic811bece. htmlbec1 good Expense for the average industry = $165,800 + $137,300 = $303,100 number Expense for the Squeaky Horn = $664,170 $7,000 = $657,170 $657,170 $303,100 = $354,070