We created a program that offers Yamaha’s quality instruments to consumers at a competitive price, while rent-to-own dealers get a healthy profit margin and delivery to multiple locations
Tom Murphy, Motivated Marketing, Inc.

Tom Murphy of motivated Marketing jams on a Yamaha EG112 electric guitar at the recent TRIB Buying Show in Dallas, Texas. Murphy is accompanied by tradeshow visitors on a Yamaha DGX505 digital piano and DD55 digital drums. Ray Hykoski, National Account Sales Manager for Yamaha’s Consumer Products Division looks on.

When Tom Murphy, a 20 year veteran of the RTO industry and president of Motivated Marketing, Inc., saw Yamaha at the 2003 CES (Consumer Electronics Show) in Las Vegas, he had a brainstorm, “Yamaha musical instruments could be a huge hit in the rent-to-own industry.” So he approached Yamaha with a business plan.

Yamaha, which has nearly six times the sales of its closest musical instrument competitor, was eager to jump in. “Yamaha not only manufactures instruments that professional musicians use on a daily basis, we also create many products aimed at hobbyists, beginners and aspiring musicians— core groups in the rent-to-own category,” said Ray Hykoski, National Account Sales Manager for Yamaha’s Consumer Products Division.

Yamaha and Murphy set to work tailoring the product lineup to the RTO environment. “The first step,” said Murphy, “was to create a program that offers Yamaha’s quality instruments to consumers at competitive prices while dealers get a healthy profit margin and delivery to multiple locations.”

Yamaha keyboard packages include benches and stands. Acoustic and electric guitar packages feature a starter kit with strings, picks, case, tuner, lesson book and stand. Both keyboard and guitar packages also include an exclusive instructional DVD. Similar bundles sell exceptionally well at major retailers nationwide.

Ernie Lewallen, president of UHR Rents in Cincinnati, Ohio, is excited about the prospect of Yamaha products entering the category.

Ernie Lewallen, president of UHR Rents in Cincinnati, is excited about the prospect of Yamaha products entering the category, “I think musical instruments are the next great addition to the rent-to-own product lineup. They are sure to bring new customers to your store and build relationships that will last for years.”

Yamaha and Motivated Marketing designed dealer programs aimed at creating exceptional profitability and quick inventory turnover. Additionally, they established a prepaid freight program that provides shipping to multiple locations with no minimum order quantity after the initial order.

“We have a quick ship program that can send one unit anywhere in the U.S.,” exclaims Murphy. “Strong brand awareness, quality products and competitive price points make this a solid product line for anybody looking to increase rentals. Plus, all of the products are backed by a one year over-the-counter exchange warranty making it very easy for an RTO dealer to manage.”

Not only has Yamaha been at the forefront of musical instrument manufacturing, Yamaha music schools have educated over 4 million children and adults around the world over the last 50 years. That experience can be seen directly in the products; the EZ150AD learning keyboard has keys that light up to show the beginner how to play music instantly. Similarly, two electric guitars feature lighted frets to jump-start novices.

“As the largest manufacturer of musical instruments with almost 120 years of experience, we know the music business and we have brought that knowledge to the rental purchase industry. We have shown many RTO dealers how they can be successful renting musical instruments,” said Hykoski.

Motivated Marketing, Inc. is the exclusive sales and marketing company for Yamaha musical products in the RTO industry. They can be reached toll-free at (800) 386-8774.