IndieHQ / Article Detail

August 21st, 2006

Interview with Tim Hinsley of Lumberjack Mordam Music Group

Those of you that keep up with IndieHQ know that from time to time, I mention Lumberjack Mordam Music Group. In early 2005, Lumberjack did the unthinkable and merged with Mordam Distribution. This was quite possibly one of the biggest things to have happened in independent music and everyone had an opinion on how the merger would go. I actually went to the label meetings in Las Vegas and sat in on a number of panels which included the plans the newly formed Lumberjack Mordam Music Group had in store. I must admit that I was impressed. A lot has happened in the year and a half since sitting in on those panels and unfortunately, there has been a fair share of bad news. A number of labels have since left. Labels like Jade Tree, Death Wish, AF Records, G.S.L., Level Plane, 31G, Ace Fu, Load, Facedown, File 13, and others left and entred into new distribution deals with distributors like Red, Red Eye, Touch and Go/ADA, and Caroline. The good news is that LMMG are forging ahead and continuing to be add up and coming indie labels. I hope the best for them and the independent ideals they represent.

I was recently contacted by Tim Hinsley, president and COO at LMMG, regarding my posts on IndieHQ. He thanked me for the press, good or bad, regarding Lumberjack. I took this as an opportunity to put together an interview with Tim and he was more than kind enough to put together well thought-out answers for my many queries. I highly recommend you read this interview whether you are an indie band, smaller label, or just a curious music fan. Tim has a lot of interesting things to say about indie distribution, the CD format, and getting picked up for distribution. Thanks Tim and LMMG!

IndieHQ: Please give me your name and what you do at Lumberjack Mordam. How long have you worked at LMMG?
Tim - Tim Hinsley. President and COO. LMMG. I started on March 1 (press release is on the LMMG site).

IndieHQ: Where did you work before starting at Lumberjack?
Tim - I was a Koch for 4 years.

IndieHQ: A lot has happened since the merger with Mordam. Labels have left, new labels have joined, how do you feel things are going at Lumberjack Mordam?
Tim - Things are going well. We have finished the consolidation of the companies and have the right staff in the right places. We are excited about the labels that are here and are working very hard to hep them grow and thrive.

IndieHQ: A complaint that I have heard from a few of the labels that left LMMG was that their sales decreased since the merger. Do you think this has more to do with the state of the marketplace? It seems that the merger occurred coincidentally with the continued decrease in sales overall.
Tim - I wasn’t here at the Time of the consolidation, but, as you know, there has been a considerable downturn in the industry overall in the last couple of years. A lot of our labels are experiencing sales increases this year, so it is cyclical.

IndieHQ: At one Time, Lumberjack had labels like Hydrahead, Ferret, and Trustkill while Mordam had labels like Jade Tree, Kill Rock Stars, and Polyvinyl. It seems that as labels get bigger, the bigger distributors (RED, ADA, etc) come along and swoop up these labels. What things are Lumberjack doing to keep their roster of labels?
Tim - We want our labels to have success, even when they leave. We are proud of the fact that we have been the launching pad for so many great labels, and we want to continue to find and develop the next labels that make it big. We have had some success in keeping our bigger labels and we continue to add services to keep them here.

IndieHQ: What advantages can labels expect when signing to Lumberjack Mordam?
Tim - The number one advantage is knowledge. We handle only a few dozen labels in select genres, so that gives us a unique position in the distribution community. Our staff is very passionate about the labels we represent and we are always looking for ways to help them develop their acts and their catalog. We are also very flexible, as we can deal with large labels with diverse catalogs or the kid that is selling records out of their parents garage. That flexibility is what makes us different from everyone else out there.

IndieHQ: As digital music sales continue to increase and brick and mortar sales continue to decrease, what can a distributor expect to offer a label in the future?
Tim - It is important to have a partner that understands the digital realm as it becomes a larger percentage of sales. You have to be able to marry the physical and the digital (and in our case, the international) to make sure that everyone can get your records. Physical sales are not going away anyTime soon, so it is important that you use the digital market to help the physical and vice versa. Having a distributor that can do both is crucial in developing artists and growing your label.

IndieHQ: It seems that the most successful labels are able to get their records into accounts like Best Buy and Target. How can smaller labels get into these accounts?
Tim - You have to be careful. It is not all that difficult to get into those accounts, but it is expensive and the returns can be very high. I caution all labels against pushing records into those accounts, as these are not places that do well with developing artists or deep catalog. They are hit houses. And you have to make sure when you get a record in these accounts that you have the sell through support (usually radio and video play). That being said, when you have a “hit”, these accounts are crucial and they have always been supportive of our bigger records.

IndieHQ: I recently read that over 900 mom and pop record stores have shut down over the past couple of years. That coupled with the fact that Tower is again having financial difficulties, how do you think this affects CD sales?
Tim - It certainly doesn’t help. A lot of the indy stores that still remain are having very good years. We have been focused on the top indy stores to pick up the slack from Tower in their markets. We also have been implementing a lot of different sales and marketing plans at the indies, as well as online retailers such as Interpunk, Smartpunk and Amazon. The Transworld family of stores have also been very helpful in trying new things for our types of records and we have seen growth in accounts such as Hastings, Borders and Baker and Taylor. The fact that some retailers have gone out of business or are having difficulites doesn’t change the fact that people still love music. You just have to be creative in the ways you get the music to them.

IndieHQ: Although mom and pop stores are dying, there are a handful of accounts who have adapted and are doing well. What things do you think indie stores should do to succeed?
Tim - I think there is already a template for indy stores to survive. Just walk into a Newbury, Amoeba, Waterloo, Homer’s, Record and Tape Trader, etc. These stores know what their customers are looking for and they give it them. That is the key.

IndieHQ: As a label and a small distributor, it seems that labels are paying more money in marketing than ever and are selling fewer records than ever. What advice do you give labels for getting their records into accounts and actually getting music fans to purchase those records?
Tim - There are some necessary evils in dealing with some stores. That is the cost of doing business unfortunately. The real key is developing your label and bands, building a fan base and making a demand for your records. Keep your bands on tour, build mailing lists, do viral on myspace, develop a core fanbase. Word of mouth is still the best way to sell records, especially at the indy level.

IndieHQ: The average retail price for CDs is around $13/$14, do you think this is too high? And do you think it is Time that labels/distributors bring their retail prices down?
Tim - We rarely have a record with a list over $13. I don’t think that is too high. It would be very difficult to bring the price below that for most labels, considering the cost of just getting a record to stores (not including marketing and promotion). People will not balk at that price if it is a good record from a band they really like. The key is good music and a good fan base that wants to hear it.

IndieHQ: Any advice for smaller labels aspiring to ink a deal with Lumberjack Mordam?
Tim - We get A LOT of inquiries and we bring on very few labels. The key is what I said above: develop the fan base, make good records, keep your bands on tour, do some marketing. We don’t have a set of guidelines or bars of entry. We are just looking for great labels to represent.

IndieHQ: Anything else you would like to add?
Tim - It is crucial that people keep starting bands and labels to get the music out there. Don’t believe everything that you read. The music industry is alive and kicking, it is just going through some changes. There will always be fans and there will always be people buying music. How that happens in the future is really not relevant. It is a great Time to be an indy (which I have been all my life) so keep doing what you love.

• 
• 
• 
• 
• 
• 

Written by Virgil Dickerson