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Gibson ‘running out of time — rapidly’

Discussion in 'Bad Dog Cafe' started by bluesky1963, Feb 13, 2018.

  1. luckett

    luckett Friend of Leo's

    Jun 14, 2011
    .
    You should have suggested that he install robot tuners on all the guitars. You would have been instantly promoted to VP of Product Development.
     
    2blue2, Bruxist, drlucky and 7 others like this.

  2. warrent

    warrent Tele-Meister Silver Supporter

    483
    Sep 15, 2009
    toronto
    That sucks, it reminds me of the old saying: the tall tree gets cut down first. I wonder though if your staff had backed you up as they should have if Henry would have fired all of you.
     
    telemnemonics likes this.

  3. Boomhauer

    Boomhauer Friend of Leo's

    Aug 18, 2013
    Michigan
    There's still a very good reason that shops stock all sorts of "tone" bits...my LGS (the shop I used to work in) has their own brands of pots, caps, and wire that they use for repairs; they have a full selection of Seymour Duncan pickups; and all the Tusq, titanium, brass, and steel that you can imagine. They wove a few tales about how anything you (as a player) do to a guitar will ruin the tone, and that the only person qualified to work on your guitar was their (Fender and Feiten certified) guitar tech. Straight up, guitars aren't rocket science. They also pushed the idea that the shape of an electric guitar alters the tone by changing how the sound "reverberates" through the body (they pushed that one HARD). And, while they didn't push the idea that a Squier Affinity could be made the same as a Am. Std., they did acknowledge that you could get 90% of the way there (taking it back to their tech being the only soul qualified to make changes in a guitar, and it usually wasn't worth the labor cost; you're better off buying a $1,000 guitar than you are buying a $200 and putting $800 worth of their labor into it).

    What shocked me was seeing the wholesale cost versus the selling price. In actual dollars, a $200 Squier made them more money than a $1400 Am. Std. Wholesale, the Squier was purchased for right around $80, netting them $120. The Am. Std. was purchased for $1300, netting the shop only $100.

    But, that was just Fender. I know the owner (of the shop), as well as most of the staff, preferred Gibson. Unfortunately, Gibson's shop policies dictated that you needed to devote a HUGE amount of store space to Gibson, you weren't allowed to carry certain amounts of other brands, and you had to guarantee a huge amount of sales per year. That's undoubtedly a factor in why Gibson has been declining: They're relegating themselves to high-volume sellers, and preventing the small mom-n-pops from carrying their wares.
     
    drlucky, SecretSquirrel and warrent like this.

  4. TheGoodTexan

    TheGoodTexan Doctor of Teleocity

    Apr 28, 2003
    Nashville, TN
    Yes.

    He is the most confusingly narcissistic and irrational person I've ever met in my entire life. He's just odd to me. He is not concerned with relationships at all. Even back then he was known to have made people cry in meetings.
     

  5. TheGoodTexan

    TheGoodTexan Doctor of Teleocity

    Apr 28, 2003
    Nashville, TN
    This was my experience, when I was on the sales staff at Gibson. Example: Guitar Shop A was a guitar shop only. They stocked Epiphones and Gibsons. They did not sell drums at all. But they have a customer come in and want to order a Gibson Custom Shop Les Paul... complete custom order. They call to get a quote and are told they can only become a Custom Shop dealer if they also order a certain number of the Gibson-owned Slingerland drum line. Just so happens that Gibson has too much inventory on Slingerland drums... and use that as a way to get rid of them.. make dealers order them as a prerequisite before they can get to the Custom Shop.

    Nevermind the fact that this store does not sell drums.
     

  6. Mr. Lumbergh

    Mr. Lumbergh Poster Extraordinaire

    Jun 13, 2013
    Initech, Inc.
    Bye Henry. Sell it to someone who actually cares, walk away, and don't look back.
     
    JayFreddy and awasson like this.

  7. Censport

    Censport Tele-Meister

    474
    Oct 1, 2010
    Nashville/東京
    Similarly, from the Gibson page on Corner Music's (a long-time Nashville store) website:


    Corner Music is an authorized Gibson Dealer—and we’re proud of it!

    We have dozens of great-looking Gibsons waiting for you to come in and play. But because we’re not a mega-store and Gibson Certified Online Dealer, we’re not allowed to post photos of our current Gibson inventory here—only used instruments. Weird technicality … we don’t make the rules.

    But we still have plenty of gorgeous Gibson guitars here. Stop by our store. You can also call anytime to learn more about our current stock of Gibson electric guitars. So do it. Do it now.


    You wouldn't be talking about the Valley Arts store on Church Street, would ya?
     

  8. TheGoodTexan

    TheGoodTexan Doctor of Teleocity

    Apr 28, 2003
    Nashville, TN
    No. It was a fictitional store, based on my every day experience.

    The Valley Arts store that you speak of was actually owned directly by Gibson.
     

  9. Censport

    Censport Tele-Meister

    474
    Oct 1, 2010
    Nashville/東京
    It's only an opinion, but mine is different from yours.

    I bought a '79 Les Paul new. Followed that with a used '81 Gold Top. Now have an '05 Standard that I bought new. The '05 totally blows away the Norlin Gibsons, in sound, feel, and build quality.

    Also bought a '92 Flying V used, and it was my main guitar for about 5 years. Wouldn't play any of my others. Now I'm considering a 2016 Flying V "Pro T". Oh, and an ES-333 if I can find one in natural instead of cherry or faded brown. I hope they're not lemons.
     

  10. Censport

    Censport Tele-Meister

    474
    Oct 1, 2010
    Nashville/東京
    Okay, gotcha.

    Yeah, I forgot they owned that. With the skyrocketing prices of Nashville real estate, that property should be worth a few mil.
     

  11. TheGoodTexan

    TheGoodTexan Doctor of Teleocity

    Apr 28, 2003
    Nashville, TN
    Isn't there a condo complex on that property now? I think so... but can’t remember.
     

  12. 3-Chord-Genius

    3-Chord-Genius Friend of Leo's

    Apr 3, 2015
    Winchester, VA
    If they ever do go away, they'll be back better than ever.

    Gretsch.
     
    JayFreddy, kubiakl and Boomhauer like this.

  13. Censport

    Censport Tele-Meister

    474
    Oct 1, 2010
    Nashville/東京
    There are condos all over downtown now, but I drove past the old store recently, and it was still there.

    Hewgley's - where I worked back in the 80's - is long gone, however. It's been a parking lot for several years.
     
    TheGoodTexan likes this.

  14. drmmrr55

    drmmrr55 TDPRI Member

    Age:
    62
    70
    Aug 20, 2017
    Federal Way, Washington
    All valid points, but Gibson is not failing because of QC issues, they still make some very nice guitars, sure there are more bad ones getting out than should be, but the business failing has nothing to do with their guitar business. In fact, Gibson guitar is only a small part of their holdings. It's bad investments, and management of the company as a whole that's their downfall. I got one of the 2016 "blowout" Firebird V Traditional, and it's a top notch quality instrument. One of my nicest guitars, they weren't "blowing them out" to generate interest in the product, a failing company will do anything, (including sell at a loss) to generate cash flow for their investors. One of the last ditch efforts of a dying entity.
     
    3-Chord-Genius likes this.

  15. TwangyWhammy

    TwangyWhammy Tele-Afflicted

    Jan 10, 2014
    Under the DownUnder
    Wow...

    I wonder if bad management and bad marketing people will rewrite this chapter in their company's history and blame it on something else other than themselves?
     

  16. rze99

    rze99 Friend of Leo's Silver Supporter

    Feb 26, 2014
    South London UK
    Appalling. I just wish it was him that was going to be financially worse off but as we tend to see in these cases, the big men have the big payoff contracts .
     

  17. radiocaster

    radiocaster Friend of Leo's

    Aug 18, 2015
    europe
    Why would they use a Chinese name for a Korean guitar?

    These are look like they are from one of the factories that makes Chibsons, but they changed the headstock and cutaway bout to something more original. Could be nicer than an Epiphone.
     

  18. viking

    viking Friend of Leo's

    Age:
    52
    Jan 23, 2007
    Denmark
    In threads like these , US wages are always mentioned , when compared to production in other parts of the world. The company I work for have production plants all over the globe. I get the results every week for all of them, number of workers on a production line are more or less equal on all of them , the wages off course differ between countries. Cost of wages per produced tonne , is only slightly higher in the US compared to Poland , one of the cheapest places to produce in all of Europe.
    The US plant have higher potential because its newer and bigger , but they dont perform like they should.
    Once they get their ish together , they will be cheaper than Poland !
     

  19. Nick Fanis

    Nick Fanis Friend of Leo's Ad Free Member

    Mar 3, 2003
    Athens-GREECE
    Exactly.

    Of course NOBODY wants to UNDERSTAND this....or even the fact that the actual GUITAR section of Gibson is a VERY healthy department with extremely good sales.

    So even if the company is restructured (it will certainly be) the GUITAR section will certainly continue its operation under new management and ownership...

    But again....sorry for the interuption and REALITY check...

    Please folks continue your Gibson bashing and the endless rambling on "how awfull are Gibson guitars and how much better $40 LP copies from Indonesia are " :D
     

  20. Octorfunk

    Octorfunk Tele-Meister

    220
    Jan 20, 2014
    Midwest
    I'm admittedly fairly business-ignorant, but how can you take an iconic American brand name that tons of people want to buy and drive it into the ground?

    If you have a product that doesn't need much PR or innovation, how can there be that much room for "poor business decisions?"

    I mean, no one is expecting Gibson to innovate and come out with brand new designs, it would seem that all they need to do is continue making LP's & 335's. They're not into amps or pedals either, so no one is expecting them to unveil brand new designs every year at NAMM.

    It would seem that "mis-management" is an understatement if they're actually losing money.

    Or maybe it's just that hard to do an all "Made in the USA" business these days, seeing as up until a couple months ago the corporate tax rate was 35%. Who knows, seems like people are more than willing to pay for the Gibson name no matter what the cost.

    Who knows.
     

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