Since the company’s launch in 1966, Peavey Electronics Corporation has grown to be a household name among musicians for its musical instruments and professional audio equipment.
Although founder Hartley Peavey could have easily rested on his laurels with a stronghold in that segment of the music and sound industry, this spirited entrepreneur continued to expand the Meridian, Mississippi-based company. Through four decades of growth, he’s maintained the practices and philosophies of a small, familyowned corporation.
Nearly five years ago, the company purchased New Jersey-based Crest Audio, helping cement Peavey’s standing as a major player in the pro audio business, including the fixed installation market, which is dominated by churches.
Peavey explains the move into the pro audio installation market by saying, “We’re doing it because it’s possible.” With Peavey behind the wheel as CEO and chairman and Mary Peavey as president, the company now has five affiliates: Architectural Acoustics by Peavey, Crest Audio, MediaMatrix, Peavey Europe and PVDJ serve virtually every area of the music and sound industry.
Peavey employs more than 1,500 people, with headquarters in Mississippi, England and Brazil. The company holds more than 100 patents, but, as Peavey says, “The fat lady hasn’t sung as far as Peavey’s concerned.”
Peavey products can be found in churches ranging from the 7,000-seat Prestonwood Baptist Church in Texas (which is outfitted with a MediaMatrix system) to hundreds of smaller houses of worship across the country – many of which rely on Peavey powered mixers.
To better meet the specialized audio needs of modern churches, Peavey recently released the Sanctuary Series of products. While this line, which includes the S- 14 and S-14P 12-channel mixers for under $1,800, is the first specifically targeted at the religious market, it is only part of Peavey’s long-standing dedication to church sound.
CPM: Can we begin with a history of how you started Peavey more than 38 years ago?
Peavey: I had the good fortune of growing up in a very musical part of the world. My dad was a music retailer. He was a member of the old school, a product of the Depression. He was a very hard worker, and he insisted that I go to work in his music store as soon as I was able. Back in 1956, this thing called rock ‘n’ roll had just hit, and I decided I wanted to be a guitar player. To make a long story short, I begged him for a guitar, which he wouldn’t give me, and, in desperation, I threw together some old pieces that I found in the trash can and I made my own guitar. Then I asked him for a pick-up and he again told me no. So I made one.
I said, “Dad, I’ve got a guitar put together and I’ve got a pick-up. Would you give me an amplifier?” He said, “You learn to play that guitar and I’ll think about giving you one.”
Necessity is the mother of invention. I made my first amplifier in December 1957.
It really wasn’t very good. I made a lot of mistakes. But it was big and it was loud. And a guy that I know that was a guitar player said, “I’ll show you some rock ‘n’ roll licks if you make me one of those.” So I did. And he did.
I spent the next eight years trying to play guitar — very unsuccessfully. I should also mention: when I was a kid, I took every shop course I could get. I used to win all the science fairs. I was a good carpenter.
When I was in college, I got into music groups. I was with these bands, and every time I’d build all the gear they needed, they’d kick me out. By the third time that happened, I figured my career as a rock star was extremely limited. I had to look in the mirror and be honest with myself. I said, “You’re not going to be a rock star. What are you going to do with your life?” I had to examine what I was good at. I love music and I love musicians. If I couldn’t play music, I felt like I could build music and sound equipment.
In life, you don’t always get what you want. But what do you do with what you get? The secret of Peavey starts with this realization.
CPM: What, in your opinion, differentiates Peavey from other companies?
Peavey: In the early sixties, music just exploded. Until that time, the music and sound business was owned by families. [In the sixties,] conglomerates bought into the music business; prices doubled, and quality went down the drain. When I graduated college in 1965, which is when I started the company, I said, “I can do it as well or better, and I can do it for a lot less money.” I started out with that simple premise. I’ve never wanted to make the most profit. I wanted to build gear that’s as good as you can buy, but I wanted to charge fair and reasonable prices. Peavey is a family-owned company. That’s a big difference. There’s a guy named Peavey that actually cares.
CPM: What are some of the goals you’ve set out for Peavey?
Peavey: My commitment is to be the best. Not the biggest. Not the most profitable. But the best.
CPM: How has Peavey evolved over the years?
Peavey: I’m doing this because nobody’s ever done it before. I truly believe that we are all given opportunities, and it’s a test as to what we do with them. For reasons that I don’t understand, I was given a very unique opportunity. And you know what I’m doing with it? As much as I can. The technology’s there.
I never in my wildest dreams thought we could accomplish what we’ve accomplished. It’s amazing how far we’ve come. And instead of resting on our laurels, or trying to recreate the glories of the past, we’re focusing on the future. We’ve got lots more to offer.
CPM: What are some of the challenges you face in taking Peavey into the next stage of its growth?
Peavey: The thing that drives my business – and always has driven my business – is a rising level of expectations. Back when I was first driving, I was perfectly content to have an AM radio in my car. Nobody listens to AM anymore; everybody listens to FM.
Now they want CDs. Now the latest craze is satellite radio. The sound system in most people’s cars, today, is better than the sound system in their homes. That’s what’s fueling the rising level of expectation. When you go to a concert, you’re not going to sit there and listen to something that’s all muffled and lousy, are you? And when you go to the movies, you want to hear it. And when you go to church, you want to hear it.
CPM: What are your thoughts on the religious market, in terms of growth potential?
Peavey: This whole business of rising levels of expectations – if you look around you, it’s everywhere. It’s in high definition television. It’s in high-level audio. It’s carrying over into modern churches.
People are sitting there and listening to the pastor and the choir and it becomes a physical experience. It’s like going to a concert. It’s not just: get up and sing the same old psalm and read the same old passages and say the same old things. More and more churches are using a multimedia presentation. More and more churches are going live on either radio or television.
CPM: What are some of the main initiatives you’ve launched, or are in the process of launching?
Peavey: I’m very excited about a new project we are introducing in January 2004. It’s a whole range of products specifically designed for churches. To the best of my knowledge, no one has ever done this before. It’s called the Sanctuary Series.
There are so many simple little things in churches that manufacturers don’t pay attention to. For instance, every pastor has a lavalier microphone. When they walk over to the pulpit, it’s a wired microphone.
When you have a wired mic and a lavalier, you’re getting cancellation. Virtually 100 percent of modern churches have this problem. Our Sanctuary Series mixers have automatic mic mixing. So you eliminate cancellation right off the bat. It is a big problem, especially if the mics are out of phase with each other, as is often the case. We wouldn’t know about that if we weren’t actively involved with problem solving. We are not selling equipment just to sell equipment. We’re selling solutions to problems.
CPM: How else will you address the religious market over the next several years?
Peavey: In terms of commitment, you would probably find it hard to find a company that has done as much for churches, and church audio, as Peavey. This is not something we started yesterday. We’ve been doing education for about 27 years. In our headquarters here in Meridian, we have three classrooms; the largest seats 227 people.
We’ve been working with Kent Morris, a clinician [and sound engineer and consultant] who travels all over the country. We sponsor Kent to do seminars on church sound, to train educational directors, music directors, and pastors.
A problem that a lot of churches have is [volunteers.] They’ll have some guy in the congregation that may be retired from the phone company. So people say, “You know electronics! Sit down and run the mixer!” He’s not going to tell them he doesn’t know. But the truth is, in a great number of situations, he really doesn’t know.
CPM: Can you tell us about the church lease program offered by PV Finance (PVF)?
Peavey: Remember when I told you we sold solutions? That’s part of the solution. I’ve never seen a church that didn’t need gear. A lot of times, they can’t afford what they need. I’ve given away a ton of stuff, but I don’t have infinite resources. All of us want things that we can’t afford, so sometimes we have to lease it.
The program provides flexible terms and is designed to meet the needs of churches. If you listen, your customers will tell you what they want. It’s all based on listening.
CPM: What differentiates the church market from other clients?
Peavey: Ten years ago, I would have given you a much more succinct answer. Today, there is a convergence. Ten or 15 years ago, you wouldn’t think about finding a drum kit in a house of worship. But there is a convergence now in the church market. Church services are relying on all kinds of multimedia, all different styles of music. It’s not just a vocal phenomenon. Pipe organs are still popular, but we’re seeing other instruments.
There used to be a huge difference between the church and other markets, but that’s not so anymore. The two fields are converging more every month. We’re seeing lighting, we’re seeing video. People are used to being entertained, at the movies, at concerts, at home with television, and in church. That’s a reality. It is a part of life. We, as human beings in America, have rising expectations.
