Originally Posted by Manothemtns
I've had a Reverb shop for seven years and closely follow consumer markets for contemporary new, used, and vintage guitar sales. In the third quarter of 2016 the market began to flip from strong, well established retail-type pricing to a huge drop in pricing across all segments, electric, acoustic, new, and used with the exception of vintage guitars. Japanese collectors have cleared the isles on that chunk of Americana. Chicago Music Exchange owns Reverb and attempts to operate the site as a truly separate entity but, what began as a fun member- based buying and selling forum predominantly for individual players, collectors, and a community comprised primarily of musicians has morphed into a place for larger guitar shops and wholesale retailers to advertise their complete inventories free of charge at the expense of the very community that got Reverb off the ground in the first place. Interestingly, while allowing bigger online retailers to list entire inventories for free (Music 1,2,3, Musician's Friend, and Sam Ash) Reverb does not provide advertising space for Guitar Center. I believe this is because Reverb has grown to a point so huge (as has it's parent company, now the largest combined brick and mortar and online guitar "shop" in the world) that they view Guitar Center as its primary competitor. While the area of global economics fascinates me, my little Reverb shop has gone from being a fun and, believe it or not, profitable experience, to something I seldom anymore spend my time on. The reason is because I can't compete with a saturated market. Secondary guitar sales (including thousands of impulse buys from Guitar Center) have literally flooded Reverb to the point of complete market saturation. Subsequently, prices almost across the board have plummeted and Reverb has become a buyer's market...with every Tom, Dick, and Harry advertising their wares combined with providing de facto entry for large retail chains...again, all but Guitar Center who's primary market is in guitars that sit in closets, unplayed, for years until they are (seemingly) unleashed en masse on Reverb, GBase, and eBay. All of this has led to Reverb being antithetical to its own mission statement and charter as written back, I believe, in 2010. To paraphrase loosely "...where individual musicians and guitarists can come together in a forum that charges less than eBay and share a far cooler overall buying and selling experience..."; anyway, something akin to that type of language. Like a runaway train, Reverb couldn't now slow down and reassess itself even if it, as a company, wanted to. These changes have impacted people everywhere, in every facet of the music retail industry, from small brick and mortar operations that have been family run and in business for fifty years to luthiers attempting to launch their own luthieries, to buyers, sellers, and traders alike. There's simply not enough room for everyone to play in the same sandbox anymore. But there is something that can be done about it.
I wonder how many of you on AGF have noticed these pernicious changes and their impact on guitar retail shops located in Everywhere, USA and even abroad. Shops are closing their doors forever because they simply can't compete with online guitar sales. Some of the larger stores have bridged the gap and seem to be doing fine because they've bolstered their "in-house" sales with ample internet sales but, still, the margins are very small affording only companies with a decent amount of staying power to make what is nothing short of a mind boggling shift in their business paradigms. The rest of our country's street corner guitar and Main Street music stores are failing, with more falling victim to change...change that came summarily so fast most were simply unprepared for it...certainly not on its present scale.
I suppose I'm writing this so that the next time you're on Reverb or in a Guitar Center you think twice about the purchase you're about to make. Sure, some of these little stores are of little consequence in the grand scheme of things but, when donning your special "See Reality More Clearly" glasses, go into that little music store and look around. Is there not something in there that you could buy to help out that struggling retailer? Chances are his or her staff's collective knowledge will blow your typical Guitar Center child "salesperson" out of the water and you'll share communion together in talking guitars. However you look at it, knowledge is always a good thing. Why not be willing to pay the extra 5% to 15%, depending, to have a harmonious buying experience while leaving your anonymous self behind to watchover your computer? Our nation's economy relies on better judgement and making "informed" and wise purchases. Who do you want as your neighbor, the "Hey, dude" sales child from Guitar Center or the extremely gifted guitarist who's cobbling together a living as a highly knowledgeable and altogether great guy sales rep for Guitar Shop #12345 by day and gigging at your favorite watering hole by night?
It's time to make a stand a spread business revenue out in a way that helps many and not just the few. It has become a matter of principal.
So, I'd like to hear some of your points of view. I signed-on to AGF because I did my homework and found it to be what I believe is the best, most informed forum out there. I'd love to hear that others feel as strongly about helping out small business owners while starving the corporate giant's at least to a point where regulation need not be the only answer...gosh forbid.
|