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Author Topic: GC terminates relationship with Behringer  (Read 1582 times)

Tom Young

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GC terminates relationship with Behringer
« on: May 20, 2014, 05:46:52 pm »

Posted without comment.

Dated today (20May2014) at:

http://www.musicincmag.com/News/2014/140519/140519_GC.html

"On May 16, Guitar Center terminated its relationship with Behringer. According to Guitar Center sources, “the decision was made by Guitar Center executive leadership based on Behringer’s revision to unreasonable business terms late last year and a continuous history of attempting to force unfavorable changes into agreements.”

“Decisions like this are never made easily,” a Guitar Center spokesperson said. “There are rare occasions where the integrity of the relationships and agreements we make with vendors are challenged, despite the potential impact to the bottom line or overall sales. We can’t speak for anyone else in the industry, but we’d had enough of watching Behringer try to do business this way. It’s not the way we like to work with people and it’s not productive. They made some questionable choices that put us into a position to develop a contingency plan. As we re-evaluated that plan several weeks ago, we found that it would allow us to build better relationships with other vendor partners in the category. When Plan B starts to make this much business sense, it became clear we didn’t need to tolerate this anymore. We’re focused on where we can succeed in partnership with our new vendors and we’re excited about the future.”
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John Roberts {JR}

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Re: GC terminates relationship with Behringer
« Reply #1 on: May 20, 2014, 06:10:24 pm »

From a distance it appears GC is playing the weak hand here...

GC can probably cover the majority of commodity products, but X-32 will be hard to duplicate easily, but who knows how profitable that was for them.

Interesting times.

JR
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Tom Roche

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Re: GC terminates relationship with Behringer
« Reply #2 on: May 20, 2014, 08:58:01 pm »

From a distance it appears GC is playing the weak hand here...

GC can probably cover the majority of commodity products, but X-32 will be hard to duplicate easily, but who knows how profitable that was for them.

Interesting times.

JR

Interesting times, indeed!  I think GC will be okay for now.  Not being able to sell the X32 and other low-cost digital mixer offerings from Behringer might be felt, though suspect the mark-up is realitively small.  The termination will also affect Musician's Friend's sales.
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Richard Turner

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Re: GC terminates relationship with Behringer
« Reply #3 on: May 21, 2014, 11:22:10 pm »

Interesting times, indeed!  I think GC will be okay for now.  Not being able to sell the X32 and other low-cost digital mixer offerings from Behringer might be felt, though suspect the mark-up is realitively small.  The termination will also affect Musician's Friend's sales.

 just looked, only thing behringer on musicians friend is what appears to be store floor stock beinf sold as used, no full warranty mint stuff at 12% off street price, not much discount to forgo warranty on B brand..
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Jamin Lynch

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Re: GC terminates relationship with Behringer
« Reply #4 on: May 23, 2014, 09:43:36 am »

From what I've read, it appears Guitar Center didn't like the terms of Berhingers' credit hold and dropped the line. If true, I don't blame Berhinger.

You might get put on credit hold if you have bad credit.
« Last Edit: May 23, 2014, 09:46:02 am by Jamin Lynch »
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James A. Griffin

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Re: GC terminates relationship with Behringer
« Reply #5 on: June 02, 2014, 09:03:56 pm »

From what I've read, it appears Guitar Center didn't like the terms of Berhingers' credit hold and dropped the line. If true, I don't blame Berhinger.

You might get put on credit hold if you have bad credit.

I gotta think GC needed Behringer more than Behringer neeeded GC.    No one needs a client who doesn't pay as agreed
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