#91
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Each guitar center has milions of dollars worth of inventory inside it...
Not to mention a ton of stores that were built in the last 15 years that were financed - not paid cash... So yeah... It wouldn't surprise me to find out that there is a lot of debt... The thing I have started looking at with investments is how bloated is their corporate office vs their operational locations... The bloat in the corporate offices is the #1 destroyer of cash flow... And it's the #1 thing I see with companies that underperform in their sector.. As exectivies tend to "feather bed" the place with more expensive executives..... For instance - one of the companies I invest in (a non-music company) has been criticized by pundits over the last year or two for not having sufficient cash flow for the amount of sales they generate (which is significant)... What was their answer? They created an office of Cash Flow Management at Corporate to more closely track cash flow such and such and so and so... I was absolutely flabbergasted - sold my investment in them (like apparently everybody else is as well...). Great idea guys - solve a cash flow problem by adding another few million $$$$ worth of executive overhead and accountants who make and sell NOTHING except soak up more cash flow.. And thus it goes... |
#92
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What a bunch of malarky
Guitar centers problems don't stem from lack of young players because of a shift in music tastes and if they really want to point a finger they should look at record houses, they have much more influences on today's market then lack of guitar hero's.
We have seen many really good players who just don't seem to get record producers/exec's who want to forward their career's as we know its a lot easier to get a few into a studio and synthesis music then actually having real players in the studio playing the music or on the stage and at the end of the day that is partly our fault also. After all was it not us for the last 50 years that bought the music and folks just kept buying instead of saying yeah I don't want to hear auto tuned voices or synthesis guitar or even keyboard or anything not played by a musician. We know that great guitarists have filled stadiums in the past but realistically how many concert venues ( except for the super names ) fill a venue that can hold 100,000 these days sorry but I haven't seen any for some time now and lets face it the super names well we are all getting older and its harder for many just to play one concert these days. As consumers we have a bigger influence on what gets bought and who we listen to and frankly how many players here try to get our younger folks playing, I've done my part all of my four grand kids are involved in music and I have passed all of my music down to them to carry forward. Oh and just one more thing does guitar center really need 25,000 square feet of space and who knows how many stores and as Wade mentioned in Alaska do the really need to build in a place where the population is say what of less then 750,000 and a lot of them never probably get into a Guitar center ever so maybe they should look at how they shouldn't keep trying to grow. Well thats my thought after 50+ years of music. ship |
#93
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One thing that might save both Gibson and the Guitar Center would be if Kanye West starts playing guitar. It might cheer him up and get rid of that scowl on his face.
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#94
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IMHO: I think U answered your own question
__________________
To the thinking man, this world is a comedy, and to the feeling man, it is a tragedy |
#95
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I think it is kind of a three way "whammy" effect on the makers. In part, it may be the guitar makers way of padding their bottom line after being savaged by all the heavy heavy retail discounting that has been going on, and increasing in it's intensity over the last 15 years or so.
Now all the discounting has hit the retail market, the sellers, even harder than the manufacturers...which has been a kind of "death by your own sword" situation within the retail vendors world...but, the discounting has hit the makers as well, as they have had to be more competitive in their pricing, with the exception of Gibson...but that's because of "Henry J" and his mind boggling marketing ideas. So I suspect that the makers are raising prices in part to offset some, but not much, higher costs for materials...especially time and human effort spent on all the Cites documentation flow chain for so affected materials...and labor, although with all the increased use of automation, I don't think that is a super big issue. I think the US makers have suffered significantly as well, due to the huge advances in quality, and retail market acceptance of all the Pac-Rim guitar makers and their products, and how cheaply, they bring these very high quality products to market...and also now, how well they market them to the public. So my guess is that US makers are trying to pad their wholesale margins to make up for loss of market share, and loss of margin due to discounting effects. As the retail market has become much much more price competitive, so to, I believe, has the wholesale market...especially for the big factory makers, Martin, Taylor, Gibson, and the larger boutique makers. duff Be A Player...Not A Polisher Last edited by Acousticado; 03-25-2018 at 10:12 AM. |
#96
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Sorry if he has been mentioned already,but Julian Lage is a 30 year old guitarist who bears listening to. Picked up his father's guitar(sort of) at age 4 or so, and has been wowing us since.Check him out on youtube on both acoustic and Telecaster. They're out there!
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#97
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Although musical tastes may be changing I think Guitar Center's problems reveal more about the burden of debt and how that debt can adversely impact not only the bottom line but the ability of a business to survive.
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Steve |
#98
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Quote:
duff Be A Player...Not A Polisher |