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Author Topic: Guitar Center and financing woes thread  (Read 3426 times)

John Roberts {JR}

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Re: Guitar Center and financing woes thread
« Reply #40 on: May 05, 2014, 09:36:52 am »

My family owns a M&P store in Merrillville IN.  My father started the business with a partner 33 years ago.  In 1999 my father bought the partner out.  In 2007 (I think) GC moved in 2 miles from us.  We seem to have a good working relationship with the local GC.  They send people to us for repairs and we send them people that need something we don't have right now.  In 2007 we had 5 music stores in the area.  We are now down to two.  The other store that exists besides us does a few installs and lessons. 

As for our business.  Its booming, we have a lesson program, rentals, service for electronics and guitars, installations, and of course retail.  We picked our lines based on the lines that GC doest have.  And even the line we share they carry the lower end of them.  We concentrate on service and installations.  And the fact that my father learned long ago that guitars don't make you money.  PA sales and installations do.  I have been on the commercial side of the business for 13 years now.  My father is looking to retire within the next 5 years.  I plan on keeping the same basic business model.  Which is:

Sell at MAPP or better
Service everything we sell
Free rental program for purchases from us if items are being repaired
We are married to our installs
Know our products

If GC does really fold then I will get my pick and string sales back.  Great the guys I love to hate.  Buy 2 guitar picks form me and chew my ear for 2 hours telling me how great your les paul is and how it sounds like no other.  But got to keep everyone happy.  Wish me luck...
Sounds like you got the strategy figured out. The big chains generally will not compete with rentals or instal business. Lessons are a good traffic builder. I shared similar observations with Peavey dealers over ten years ago. The smart ones were already doing one or more, some are gone now.

I wouldn't completely dismiss the picks and strings, accessories are generally high margin business. 

JR
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Jonathan Johnson

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Re: Guitar Center and financing woes thread
« Reply #41 on: May 05, 2014, 04:24:26 pm »

...and this rumour about GC going under is all over the web and several friends of mine are now afraid to buy at GC and this had caused the store near me to be empty of customers...

Perhaps your friends are afraid that they won't be able to get good service and advice if GC goes under. Where ARE they buying from? If it's from an M&P, they'll still be able to get service and advice, providing the M&P stays in business. If they are buying from the Internet, good luck on the service and advice.

If you value service and advice, don't buy from the Internet then bug the B&M store folks without supporting them financially. Otherwise they won't be there in the future, either. Consider the value of that advice and the convenience of a neighborhood store with knowledgeable staff; it probably is worth the 10% or so difference in price when compared to the Internet.
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Jeff Bankston

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Re: Guitar Center and financing woes thread
« Reply #42 on: May 05, 2014, 05:29:41 pm »

Perhaps your friends are afraid that they won't be able to get good service and advice if GC goes under. Where ARE they buying from? If it's from an M&P, they'll still be able to get service and advice, providing the M&P stays in business. If they are buying from the Internet, good luck on the service and advice.

If you value service and advice, don't buy from the Internet then bug the B&M store folks without supporting them financially. Otherwise they won't be there in the future, either. Consider the value of that advice and the convenience of a neighborhood store with knowledgeable staff; it probably is worth the 10% or so difference in price when compared to the Internet.
i buy from who ever has what i want and that includes > Jammin Jersey(used instruments and PA) , GC , Pro Drum(exelent indepemdent shop) , ebay , US Speaker. all my drums, and amps havent ben made in years so i have to buy them used. i usually buy cymbals , guitars , mics , sticks , thrones , mixers , snakes , cable , etc. etc new and that means GC or the internet if GC or Pro Drum doesnt sell the brand. i prefer to buy in a store just in case i get a defective product or it gets damaged in shipping. GC and Pro Drum will special order anything i want if its from a vendor they buy from. also the shipping on some items is higer then the tax on some instore items.
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Bill Schnake

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Re: Guitar Center and financing woes thread
« Reply #43 on: May 05, 2014, 10:48:48 pm »

My family owns a M&P store in Merrillville IN.  My father started the business with a partner 33 years ago.  In 1999 my father bought the partner out.  In 2007 (I think) GC moved in 2 miles from us.  We seem to have a good working relationship with the local GC.  They send people to us for repairs and we send them people that need something we don't have right now.  In 2007 we had 5 music stores in the area.  We are now down to two.  The other store that exists besides us does a few installs and lessons. 

As for our business.  Its booming, we have a lesson program, rentals, service for electronics and guitars, installations, and of course retail.  We picked our lines based on the lines that GC doest have.  And even the line we share they carry the lower end of them.  We concentrate on service and installations.  And the fact that my father learned long ago that guitars don't make you money.  PA sales and installations do.  I have been on the commercial side of the business for 13 years now.  My father is looking to retire within the next 5 years.  I plan on keeping the same basic business model.  Which is:

Sell at MAPP or better
Service everything we sell
Free rental program for purchases from us if items are being repaired
We are married to our installs
Know our products


Brian, I was at your store a couple of weeks ago, you really are just 4 short hours from my house.  Anyway, your family has a wonderful business and I wish you and them nothing but success and smooth sailing.  BTW: your dad is much to young to retire in 5 years.

Bill  ;)
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Bill Schnake

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Brian Wynn

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Re: Guitar Center and financing woes thread
« Reply #44 on: May 06, 2014, 12:20:01 am »

Brian, I was at your store a couple of weeks ago, you really are just 4 short hours from my house.  Anyway, your family has a wonderful business and I wish you and them nothing but success and smooth sailing.  BTW: your dad is much to young to retire in 5 years.

Bill  ;)

Thanks Bill.  I will let my dad know.
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