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Author Topic: Guitar Center and financing woes thread  (Read 20401 times)

Riley Casey

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Guitar Center and financing woes thread
« on: April 05, 2014, 12:47:47 PM »

There was a thread here recently about the trashing of the Guitar Center as a business with quite a few responses but my forum searches turn up squat so I'm dropping this in a new thread.  If someone with better search skills than I can find that thread please move this or link to it.

An article on the demise of Guitar Center by someone with some background in the financial analysis needed to understand it all.  He has a rather dire view of it.

http://www.ericgarland.co/2014/03/29/parasite-economy/

Steve M Smith

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Re: Guitar Center and financing woes thread
« Reply #1 on: April 05, 2014, 01:18:15 PM »

I see a lot of references to Guitar Center on this forum.  Is this a national chain of shops?  Over here, Guitar Centre is just a generic term for a guitar shop.


Steve.
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John Roberts {JR}

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Re: Guitar Center and financing woes thread
« Reply #2 on: April 05, 2014, 02:15:47 PM »

http://soundforums.net/basement/9652-guitar-center-doomed.html
Perhaps you're looking for this one.

JR

PS: Yes GC is a national MI products chain in the US,  currently struggling with unfavorable market trends and too much debt on their balance sheet (like many countries.).
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Tim McCulloch

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Re: Guitar Center and financing woes thread
« Reply #3 on: April 05, 2014, 02:48:15 PM »

Riley, I think the thread you're looking for is at SFN.
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"If you're passing on your way, from Palm Springs to L.A., Give a wave to good ol' Dave, Say hello to progress and goodbye to the Moonlight Motor Inn." - Steve Spurgin, Moonlight Motor Inn

Bob Leonard

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Re: Guitar Center and financing woes thread
« Reply #4 on: April 05, 2014, 03:52:18 PM »

I've been following this and the ramifications are much broader than many think. Being the largest of the big box retailers would seem to be a bragging point, but the problem lies in the overhead used to run these stores. There really isn't much markup on 90% of stuff sold at these places, and not a lot of people run to GC for a $30,000 Gibson. So until they can learn how to reduce the costs of all those hands on, free shipping, special items, and blowouts they'll have problems. Also be aware that MF is affiliated with GC, which = more overhead. And the biggest problem will be now that the premier products can't be found in 99% of the Mom&Pops every time a large box goes tit's up, so does the costs for these premium instruments.

Years ago M&P used to be able to handle the stocking costs levied by Gibson, Fender, etc.. Today M&P can't afford the 1/4 mil investment yearly so they abandon the line. When they abandon the line they also abandon the low cost goods the manufacture has to offer, such as Squire and Epiphone. You can't have one without the other.
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Riley Casey

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Re: Guitar Center and financing woes thread
« Reply #5 on: April 05, 2014, 04:47:22 PM »

Tis indeed, thanks JR.  Just another senior moment I suppose.  :-[

http://soundforums.net/basement/9652-guitar-center-doomed.html
Perhaps you're looking for this one.

JR


Gus Housen

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Re: Guitar Center and financing woes thread
« Reply #6 on: April 05, 2014, 05:07:59 PM »

Years ago the stocking costs were worth it, when you had exclusive territory, and internet sales were nil.
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Cailen Waddell

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Re: Guitar Center and financing woes thread
« Reply #7 on: April 05, 2014, 11:46:04 PM »

I have found that it is a rare day the GC will beat the prices I can get from the mom and pop vendors I have spent years working with, and spending with. 

Perhaps that's not the point of the this thread, perhaps it is...
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Bob Leonard

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Re: Guitar Center and financing woes thread
« Reply #8 on: April 05, 2014, 11:54:28 PM »

I wish that were the case in Boston Cailen. Go to an M&P and the price is either higher, the don't carry the line, or it's a special order.
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BOSTON STRONG........
Proud Vietnam Veteran

I did a gig for Otis Elevator once. Like every job, it had it's ups and downs.

Cailen Waddell

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Re: Guitar Center and financing woes thread
« Reply #9 on: April 06, 2014, 12:08:28 AM »

Bob - ill say that all of the mom and pops I work with aren't local to me (though one is in town), I work with about 3 vendors for sound, 3 for lighting...   But I also suppose that down south our real estate is cheaper and there is less overhead.  None of the vendors I work with have show rooms.  If I want a demo, they call the rep and I get it fedexed to me...  It's both less and more convenient. I can spend my time with a piece of gear but I have to really plan on what I want...

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ProSoundWeb Community

Re: Guitar Center and financing woes thread
« Reply #9 on: April 06, 2014, 12:08:28 AM »


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