PMC Sound: Palen Music expands commercial division

PMC Sound moved May 31 to a new 2,500-square-foot office and warehouse location in Ozark.

PMC Sound, a division of Palen Music, installs permanent sound systems in venues ranging from churches to stadiums and rents equipment for temporary venues. It began in 1993.

The new location is at 1008 W. Farmer, Ste. H. Its previous location was in the basement of the firm's Springfield store at 1560 E. Raynell St.

"Your hands are really tied when you're in a retail store and you're doing industrial/commercial work like we are," said Bill Fischbach, marketing director for the company. He views the move as necessary for expansion.

"We feel that the growth potential of PMC Sound is bigger than the whole company combined."

Company-wide growth has been 20-30 percent over the last five years, said Danny Palen, owner.

Since Palen Music Company opened in 1963, its "cash cow" has been its horn rental business, Fischbach said.

Sound growth

For the fiscal year ending June 30, PMC Sound had about $1 million in business, said Tom Hosick, company director. Palen Music's divisions are band, education, operations, marketing and purchasing, retail sales, and PMC's design/install and production/ rental areas.

"The budget this year is going to be in around $1.7 million," Hosick said of PMC Sound.

Over the last four months, PMC has invested $250,000 in rental equipment handle sound requirements for larger venues, Fischbach said. "We're targeting fairs, festivals, concert halls (and) outdoor amphitheater venues."

PMC Sound accounts for about 20 percent of Palen Music's total revenues, Fischbach said. Instrument rental provides 40 percent of their business, retail sales are 30 percent, and instrument repair and lessons make up 10 percent.

The company employs about 50 people in four locations, said Garth Showalter, division manager for PMC Sound. His division recently hired two people, bringing its roster to seven full-time employees.

In addition to its Springfield and Ozark locations, Palen Music has a 3,000 square-foot store in Columbia it purchased in 2000, and another 1,000 square-foot location in Moberly it acquired in May, 2001, called Smith Music, Showalter said.

Looking ahead

The company is aggressively searching for more stores, particularly existing family-owned shops in rural areas, Fischbach said. He has scouted locations in Fayetteville and Bentonville, Ark., Wichita, Kan., and various sites in Missouri as possible targets. "We buy them inexpensively, take them to the next level, juice them up, spruce them up."

Said Hosick: "It's legitimate to assume by the end of next year (2003) we'll have four more music stores."