Bad News for the Big G

[László]

I was able to register for Experience PRS, so let's not jump to conclusions on this good decisions thing.

Hey, Alan, they let you in before, and they’re still doing OK.

Maybe you’re their lucky socks.

 

[BlueWhale]

A stunningly phenomenal business plan Paul has had.

Passion breeds quality. Quality breeds success. Success breeds an icon.

 

[walrus]

From yesterday - creditors say "Leadership must change"...

http://ultimateclassicrock.com/gibson-guitars-change-leaders/

 

[Elliot]

Does Gibson really have an enormous stock of instruments sitting in the factory or is that a rumor?

 

[Alnus Rubra]

I’d be interested to know too! Probably a closely guarded secret, as it may be damaging to them in their present situation!

 

[Elliot]

a girl can dream

 

[Alnus Rubra]

a girl can dream

Now, now. Competition keeps instrument makers keen to make quality instruments at good prices!

 

[Elliot]

I agree but if Gibson were in a scramble to pay back investors and had to liquidate some stock...

It’s not like I’m going to get rid of my PRS. That would be pure madness

 

[Alnus Rubra]

I see what you’re thinking

 

[Michael_DK]

I agree but if Gibson were in a scramble to pay back investors and had to liquidate some stock...

It’s not like I’m going to get rid of my PRS. That would be pure madness

They'll have to get them through the supply chain first, though... Who might not be interested in selling at lower prices, if they are already fully stocked

 

[Elliot]

They'll have to get them through the supply chain first, though... Who might not be interested in selling at lower prices, if they are already fully stocked

I’m sure there is room for some negotiation of the wholesale price if they had to liquidate.

As a last resort, if they couldn’t be bothered to set up a temporary shop or warehouse sale, they could have a nice big bonfire.

I bet those hollowbodies burn real well.

 

[Alnus Rubra]

I’m sure there is room for some negotiation of the wholesale price if they had to liquidate.

As a last resort, if they couldn’t be bothered to set up a temporary shop or warehouse sale, they could have a nice big bonfire.

I bet those hollowbodies burn real well.

Very naughty!

 

[AP515]

Does Gibson really have an enormous stock of instruments sitting in the factory or is that a rumor?

I saw a factory tour video a while back where the tour guide got to the warehouse and while the camera looked down a huge long isle of nothing but loaded guitar boxes, he said they had 12K guitars stored in there. I don't know if it's the only warehouse.

 

[Kiwi]

They'll have to get them through the supply chain first, though... Who might not be interested in selling at lower prices, if they are already fully stocked

Interesting thought. We can take the recent Chicago Music Exchange blowout as an example, in the fall of 2017.

Several hundred (maybe more) Gibson Memphis 2016s were sold in bulk by Gibson to CME for cash. Two conditions: No Gibson warranty was attached, and they could not be marketed as "new" (although they were new guitars in sealed Gibson factory boxes).

So CME sold them as "floor models" and opened each box to perform an inspection and set-up. Then they blew them out at about half the normal retail cost. I wasn't even in the market for a 335, but I got a flawless, like-new figured-maple ES-335 for $1700 shipped to my door, no tax. That's about half what any other retailer would have charged me. Impulse buy, because I know I'm unlikely to see a price lower than that for a new USA Gibson guitar.

I've got to think that the CME blowout sale has trashed the market for ES guitars, in the short run. If there's a warehouse full of similar unsold Gibsons, and if Big G does reorganize (and neither of these rumors is certain), then the existing inventory on Gibson retailers' shelves would become devalued.

=K

 

[Michael_DK]

Interesting thought. We can take the recent Chicago Music Exchange blowout as an example, in the fall of 2017.

Several hundred (maybe more) Gibson Memphis 2016s were sold in bulk by Gibson to CME for cash. Two conditions: No Gibson warranty was attached, and they could not be marketed as "new" (although they were new guitars in sealed Gibson factory boxes).

So CME sold them as "floor models" and opened each box to perform an inspection and set-up. Then they blew them out at about half the normal retail cost. I wasn't even in the market for a 335, but I got a flawless, like-new figured-maple ES-335 for $1700 shipped to my door, no tax. That's about half what any other retailer would have charged me. Impulse buy, because I know I'm unlikely to see a price lower than that for a new USA Gibson guitar.

I've got to think that the CME blowout sale has trashed the market for ES guitars, in the short run. If there's a warehouse full of similar unsold Gibsons, and if Big G does reorganize (and neither of these rumors is certain), then the existing inventory on Gibson retailers' shelves would become devalued.

=K

Yes.

It's possible they could do something like this, but it would be like peeing their pants. nice and warm to begin with, but soon it will be cold and smelly .

 

[László]

Orville died 100 years ago; a 100 year legacy isn’t a bad thing. So if the company that bears his name folds, I have to think they’ve had a heckuva run.

 

[Orange Tiger]

Orville died 100 years ago; a 100 year legacy isn’t a bad thing. So if the company that bears his name folds, I have to think they’ve had a heckuva run.

This is actually a pretty measured way of looking at things. However, the thought of Gibson or Fender growing bust makes me very sad indeed. I hope their fortunes turn round. The guitar making industry as a whole will be stronger for their continued presence.

 

[László]

This is actually a pretty measured way of looking at things. However, the thought of Gibson or Fender growing bust makes me very sad indeed. I hope their fortunes turn round. The guitar making industry as a whole will be stronger for their continued presence.

I agree. I think entropy kind of sets in with firms sometimes, though. Is there enough creative energy left to revive their fortunes? I’d hope so.

Unfortunately, a long chain of errors seems to have been Gibson’s lot for the last umpteen years. Maybe someone with better ideas will rescue the brand?

I’m not pretending to have an answer. Just being philosophical.

 

[Ovibos]

I hope parts of it get bought by Fender or Yamaha or something.

My sinking feeling is that if will be a vulture private equity firm like Bain, which will strip it down and leave it even worse like they did with Toys'r'Us.

 

[11top]

Makes me sad. Some really nice people there. And some really good ones have already been dismissed.