#31
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In this country (and perhaps yours too) Gateway's business model was unique. Bear with me while I explain. It was crafted to take advantage of a peculiarity of the computer trade: unlike most other items, inflation works in reverse. It's less so these days, but in the 1990s you would see massive price drops even within a single year. Bigger drops that most people appreciated because a typical new system might drop from $2500 to $2400 over the course of a year, but the configuration would have changed substantially - twice as much RAM, bigger hard drive, better quality monitor, and so on. Imagine seeing the price of a D-28 go from $2000 to $1900 over a year - but in December, what you actually get is a D-45! It was like that, year after year. For retailers, it was catch-22. The more stock you had on hand, the faster you lost money - but if you didn't carry stock, you didn't have a business! You had to be really smart about what you ordered and how many parts you kept in stock. Retailers used to get that balance wrong and go out of business regularly. The computer trade was a great business to be in if you could get it right though. Then - I think this was about 1995 or '97 - up popped this Gateway outfit advertising really, really cheap systems, and not rubbish, decent stuff. They were retailing computers for less than the cost of the parts. Way less. Sure, they'd have a pretty good volume-buy discount, but their pricing made no sense at all, and was impossible to compete with. The secret was this: they only sold direct, and the consumer had to pay cash in advance and wait I think it was 45 or 90 days before delivery. (I forget exactly how long, quite a long time though.) Gateway not only had the use of the customer's money free of charge for many weeks (which with interest rates what they were in the 1990s was quite a bonus), but they could sell computers in June for September prices - i.e., quite a lot less. By the time Gateway actually delivered a system, any other retailer could match the price, and most of us could beat it without much trouble. But by then, Gateway would be quoting on stuff another three months ahead. As a business we did OK during that difficult time, but a few of our competitors fell by the wayside, and Gateway grew at an incredible rate. However, unknown to anyone outside the company, even given the time-shifting trick, their prices were still below their average costs. One day a major component supplier pulled the pin and said "no more credit until you pay for some of your previous CPU orders". All the others did the same, of course. Overnight the whole enterprise came crashing down. Thousands and thousands of consumers who had paid cash up front were left with nothing. All the deposit money had been spent, and I don't think even the trade creditors got paid for their motherboards and hard drives and RAM. I remember one bloke who had been to see us for a quote but opted to buy two systems for his small business from Gateway. He came back in shortly after the collapse ... with nothing. He'd paid $3500 each for two systems, that's $7000 up front, and didn't get anything at all. Could I build him a computer after all? I felt so sorry for him that I did it at my cost. I think most people would have done the same. Now I've been pondering an X10-7 these last few weeks, and yes, when I saw the pay-in-advance-and-wait thing on the Emerald website, I immediately remembered Gateway. I do not think for one moment that Emerald is likely to be another Gateway. They strike me as an ethical and well-run business. (Compare with Gateway, which was always a bit too good to be true.) Nevertheless, you do have to pay in advance and trust that the company will still be around to fill your order when the time comes. I'm fine with that at my stage of life: if the worst came to the worst I could wear a loss and buy something else instead. But if you are at a different stage of life, a stage where you have to save up for a long time to afford your dream guitar, the risk that you might pay up front and have a company collapse is a real one and has to be considered. If the scenario worries you, simply buy one of the in-stock-now models.
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Tacoma Thunderhawk baritone, spruce & maple. Maton SRS60C, cedar & Queensland Maple. Maton Messiah 808, spruce & rosewood. Cole Clark Angel 3, Huon Pine & silkwood. Cole Clark Fat Lady 2 12-string, Bunya & Blackwood. |
#32
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Good thing, because I bought a Gateway in the mid 1990s. PC magazine rated the computer I bought as the fastest out there..... ...that lasted 3 months and then it wasn't the fastest. Now I bought an Emerald X30 "best CF guitar out there" ...well its still good. I have had it for about a month. I wish I could compare it to a Ryan Cathedral.
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1966 Fender Mustang 2005 Takamine TF341DLX 2006 Hamer Artist Korina P90 2008 Taylor 814CE 2020 Emerald X-30 |
#33
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For the record, my comparison of Emerald and Gateway was in regard to the cost of setting up Sales Outlets (as in the original post here) - NOT making a comparison of they way each does/did business.
My dear ol' departed Mother lived a couple miles from the Gateway complex in North Sioux City, SD. I had a couple friends who worked for Gateway. I thought it was a bad business decision to set up Sales Outlets around the country (as Gateway did) where people could come look at and get hands on computers, but then had to order them... a sales outlet that didn't have sales??? Seemed like a huge waste of money to me. I have bought 3 guitars from Emerald, and they are GREAT to deal with. Good customer service and forthright in their business dealings. I was ABSOLUTELY NOT comparing the business models of these two companies, only the idea of wasteful, money-sucking sales outlets (which Emerald does NOT do, and for good reason). Emerald is doing the smart thing with their business model on a premium product that the vast majority of the public has no concept of or need for... but, if you are an acoustic guitar player, you are missing out if you haven't checked out the Emerald offerings. For full disclosure, I never bought a Gateway computer.
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Some CF, some wood. |
#34
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For the record, Captain Jim, I did not suggest that you did.
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Tacoma Thunderhawk baritone, spruce & maple. Maton SRS60C, cedar & Queensland Maple. Maton Messiah 808, spruce & rosewood. Cole Clark Angel 3, Huon Pine & silkwood. Cole Clark Fat Lady 2 12-string, Bunya & Blackwood. |
#35
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How about a new start up carbon fiber guitar company that's based in North America, has tons of custom options, is led by a creative brilliant person who makes guitars that look great, play great and sound great, is funded by some very wealthy donor who loves carbon fiber guitars, and this new company places their guitars in lots of stores.
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When I was 5 years old, my mother always told me that happiness was the key to life. When I went to school they asked me what I wanted to be when I grew up. I wrote down, “happy.” They told me I didn’t understand the assignment, and I told them they didn’t understand life. —John Lennon |
#36
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1966 Fender Mustang 2005 Takamine TF341DLX 2006 Hamer Artist Korina P90 2008 Taylor 814CE 2020 Emerald X-30 |
#37
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Not me. Maybe you?
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When I was 5 years old, my mother always told me that happiness was the key to life. When I went to school they asked me what I wanted to be when I grew up. I wrote down, “happy.” They told me I didn’t understand the assignment, and I told them they didn’t understand life. —John Lennon |
#38
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or you...
We need a materials Engineer, Money, Acoustic engineer, Money, a strong business person, Money, a test musician(s), Money, and a name. The name is THE most important parameter. Everything will happen once we have a name. It has to be simple yet catchy. How about this.... "CREPUSCULAR" The Crepuscular Guitar Company or CGC for short
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1966 Fender Mustang 2005 Takamine TF341DLX 2006 Hamer Artist Korina P90 2008 Taylor 814CE 2020 Emerald X-30 |
#39
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Quote:
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When I was 5 years old, my mother always told me that happiness was the key to life. When I went to school they asked me what I wanted to be when I grew up. I wrote down, “happy.” They told me I didn’t understand the assignment, and I told them they didn’t understand life. —John Lennon |
#40
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I can't believe you looked up the meaning of the word. I just tried to use the weirdest sounding word I could come up with.
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1966 Fender Mustang 2005 Takamine TF341DLX 2006 Hamer Artist Korina P90 2008 Taylor 814CE 2020 Emerald X-30 |
#41
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Didn't need to look up the word, because I am a "creative briliant person."
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When I was 5 years old, my mother always told me that happiness was the key to life. When I went to school they asked me what I wanted to be when I grew up. I wrote down, “happy.” They told me I didn’t understand the assignment, and I told them they didn’t understand life. —John Lennon |
#42
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Here’s a Crepuscule for y’all to duet on whilst advertising your new line of CF’s:
Solo guitar https://youtu.be/ilgt0Df_3Bg Original composer with some kind of sax player https://youtu.be/FQLwvJUSa7k |
#43
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Lots of things get sold without the ability to try them first.
I'd like to test drive a new Ford Bronco, but there are 180,000 orders already for a car that doesn't even exist yet. Emerald's model appears to be working for them.
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Larrivee OM-03RE; O-01 Martin D-35; Guild F-212; Tacoma Roadking Breedlove American Series C20/SR Rainsong SFTA-FLE; WS3000; CH-PA Taylor GA3-12, Guild F-212 https://markhorning.bandcamp.com/music |
#44
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FWIW I've seen a couple on the streets of Charlottesville...
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Emerald X20 Emerald X20-12 Fender Robert Cray Stratocaster Martin D18 Ambertone Martin 000-15sm |
#45
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AZliberty, I wouldn't buy a car without test driving it first. To each their own.
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When I was 5 years old, my mother always told me that happiness was the key to life. When I went to school they asked me what I wanted to be when I grew up. I wrote down, “happy.” They told me I didn’t understand the assignment, and I told them they didn’t understand life. —John Lennon |