Another “Guitar Center Bankruptcy” Article. How about some speculation

[BillyMays]

For what it's worth, the local GC manager is literally tasked with trying to close down our locally owned music shop. They have a cash reward available to him if they close. I despise that type of chicanery. What's sad, is that it may happen. The owner of Ye Old Music Shoppe is interested in retiring and the area of town he is in, once nice, is now filled with crime. Since the Navy base closed, the community is forcing the criminals/non-productive into a small section of town. Right where they are. Walter Scott was shot across the street from the shopping center the music shop is in, if that tells you anything.

I will say this though, if GC closes, the vacuum will be filled by someone else. Hopefully it would be filled by many, and not a major conglomerate. The vacuum is always filled.

[Jobe]

This has been going on for far too long. GC is carrying so much debt it is unsustainable as a business model. Any attempt to help has failed. Good luck moving forward. The history of your books are unpleasant. It is time to move on and it will affect lots of people. But that vision you had as a growing company did not work. Not even close.

[Peter Z]

Originally Posted by BillyMays

For what it's worth, the local GC manager is literally tasked with trying to close down our locally owned music shop. They have a cash reward available to him if they close.

Disgusting!
Replacing the good with the ugly. But at the end it’s in the hand of the customer.

[Scotso]

Originally Posted by BillyMays

For what it's worth, the local GC manager is literally tasked with trying to close down our locally owned music shop. They have a cash reward available to him if they close.....

Um...any proof of this claim? Kinda sounds like urban myth given the fin'l shape GC is in.

[Neal Pert]

Originally Posted by Scotso

Um...any proof of this claim? Kinda sounds like urban myth given the fin'l shape GC is in.

I have a friend who owns a music store. When GC moved into town, they pulled this-- calling him to get his prices, then undercutting him and telling the customers who came in that they would always get better prices at GC. I hate that company.

[Goat Mick]

We got a new Guitar Center here in East TN right before the pandemic hit. I also have a close relationship with the Mom & Pop in town, as I used to work there in the 80's (actually I never did quit, I just had them stop scheduling me). Anyway our GC seems to be aimed at the beginning and armature player, especially in the acoustic room. The selection of electrics is better, but still not as good as the local Mom & Pop. And this is what I have seen with GC inventory in every one that I have visited. I think there is room for both GC and Mom & Pop's but they need to adapt to compete. The Mom & Pop stores are going to have to become specialty shops. Catering to higher end instruments or custom setups.

[Dwight]

Originally Posted by Neal Pert

I have a friend who owns a music store. When GC moved into town, they pulled this-- calling him to get his prices, then undercutting him and telling the customers who came in that they would always get better prices at GC. I hate that company.

That sounds like normal competition between business's.

What do you think about Amazon. They've nearly bankrupted the entire brick and mortar sector by out competing them on price.

[thunderboltfan]

Not sure how relevant this is, but I recently put in two requests to MF to talk to one of their high end guitar “experts,” one by email and then a phone call. I wanted info on a $6700 Martin on their site because there were absolutely no specs listed, just photos and price. I sent a second email asking for specs. Three days later I got a reply that said “none have been provided by manufacturer.” I never received a call back. I was motivated in doing this by their Rocktober sale, 15% discount, which applied to this Martin. So if this is any indication of how they are running their business vis a vis their current travails...

Oh, and I ended up buying something else from an indie shop.

[BoneDigger]

Originally Posted by Neal Pert

I have a friend who owns a music store. When GC moved into town, they pulled this-- calling him to get his prices, then undercutting him and telling the customers who came in that they would always get better prices at GC. I hate that company.

This sounds dubious at best. Doesn't corporate set prices for pretty much everything sold at local GC stores? So, how would they specifically target a certain store?

As for the claim that GC specifically tries to undermine local shops, I can't refute it but I have seen no specific evidence of it here in east Texas. In N. Charleston (I am a Lowcountry native) the GC is a very small store with very little inventory to speak of, and much of it (DJ equipment, etc) does not overlap Ye Olde Music Center.

I'm certainly not a GC apologist, but some of the claims being made in this thread seem a bit questionable.

[howard_c]

Always an interesting topic....

I live in Dallas and have 3 GC’s and 1 Sam Ash within 20 minutes of my house.

Of course there are several more scattered around the Metroplex.

Five years ago two former GC employees opened up Tone Shop Guitars in Addison (a suburb of Dallas).

They just celebrated 5 years in business and they are killing it!!!

Their most recent purchase was a Plek machine....

[mcduffnw]

Originally Posted by BoneDigger

This sounds dubious at best. Doesn't corporate set prices for pretty much everything sold at local GC stores? So, how would they specifically target a certain store?

As for the claim that GC specifically tries to undermine local shops, I can't refute it but I have seen no specific evidence of it here in east Texas. In N. Charleston (I am a Lowcountry native) the GC is a very small store with very little inventory to speak of, and much of it (DJ equipment, etc) does not overlap Ye Olde Music Center.

I'm certainly not a GC apologist, but some of the claims being made in this thread seem a bit questionable.

Hi BoneDigger

As a former GC employee...almost 11 years...I can tell you for certain that yes...it is true that there was a Corporate level idea to pressure small Mom-n-Pop type stores out of business in certain prime areas. This started rougly in the late 90's early 2000's when GC started it's big store location expansion, and the genesis of this idea was created by GC's main executives Marty Albertson and Larry Thomas the CEO and COO if I remember right. Those two were VERY aggressive in their mindset about knocking out competition, meaning other retailers. To give you an idea...Marty and Larry used to do videos for the stores/store employees, talking about various business topics, and they would always end the videos by the two of them saying "Now, go beat somebody"...meaning the local competition.

Not, go help folks make music and make good purchase decisions...nope...

"Go Beat Somebody"

They didn't try and do it everywhere, and they mostly seemed to try and pick on the low hanging fruit of shops that did not have a strong independent presence...like a TME or Gruhns, or Mass Street Music have. They went after weaker stores...and it also depended on the GC Store Manager in a given store...some were much more Gung-Ho at doing that stuff than others, so it was not an evenly executed operation, and it mostly ended in 2008 when Bain Capital took over ownership and the big economic crash happened. Then GC had their own big problems to immediately worry about, problems that are now coming ripe and creating GC's new level of distress.


duff
Be A Player...Not A Polisher

[SongwriterFan]

Originally Posted by howard_c

. . Tone Shop Guitars in Addison (a suburb of Dallas) . . . Their most recent purchase was a Plek machine....

When did that happen? A few years ago, the closest Plek machine I knew of was in Norman, OK (about 2.5 - 3 hrs away).

[howard_c]

Originally Posted by SongwriterFan

When did that happen? A few years ago, the closest Plek machine I knew of was in Norman, OK (about 2.5 - 3 hrs away).

Earlier this year. I’m sure there’s info on the web site.

[Scotso]

Originally Posted by mcduffnw

Hi BoneDigger

As a former GC employee...almost 11 years...I can tell you for certain that yes...it is true that there was a Corporate level idea to pressure small Mom-n-Pop type stores out of business in certain prime areas. This started rougly in the late 90's early 2000's when GC started it's big store location expansion, and the genesis of this idea was created by GC's main executives Marty Albertson and Larry Thomas the CEO and COO if I remember right. Those two were VERY aggressive in their mindset about knocking out competition, meaning other retailers. To give you an idea...Marty and Larry used to do videos for the stores/store employees, talking about various business topics, and they would always end the videos by the two of them saying "Now, go beat somebody"...meaning the local competition.

Not, go help folks make music and make good purchase decisions...nope...

"Go Beat Somebody"

They didn't try and do it everywhere, and they mostly seemed to try and pick on the low hanging fruit of shops that did not have a strong independent presence...like a TME or Gruhns, or Mass Street Music have. They went after weaker stores...and it also depended on the GC Store Manager in a given store...some were much more Gung-Ho at doing that stuff than others, so it was not an evenly executed operation, and it mostly ended in 2008 when Bain Capital took over ownership and the big economic crash happened. Then GC had their own big problems to immediately worry about, problems that are now coming ripe and creating GC's new level of distress.


duff
Be A Player...Not A Polisher

Wait...what...20 yrs ago they said, in effect, let's beat the competition. WOW...that is awful.

[BillyMays]

Originally Posted by Scotso

Um...any proof of this claim? Kinda sounds like urban myth given the fin'l shape GC is in.

I don't have any tangible proof other than hearing it firsthand. It was upsetting to hear. They also used to try to call and get prices. Now Mike only tells prices in store for that reason. He sells just about everything cheaper than you can get it online, let alone GC. Got my Limited Edition Telecaster Cabronita for close to 1100 tax included and my Breedlove Tigers Eye for 1890 tax included.

There are people that buy from him and sell online for more, which I do not like. I can see getting a friend a hookup, but to profit off of the kindness of others is wrong in my opinion.