Elliot
Gandalf the Vintage Yellow
- Joined
- Oct 13, 2016
- Messages
- 939
There are plenty of products that I really truly love... Apple products, other guitars and amps, the 3 Hyundai cars I've had.
However, I have never been more appreciative/respectful of a business model. I've been thinking lately, with all the light being shed on big companies lately, (Apple, Tesla, Amazon, Gibson) PRS stands alone as the best IMO.
Their business model of building to dealers' orders is so much better for the consumer, the employees and the brand. It's not as ideal for investors and that's fine with me. The fact that they rarely ever sell direct (PRS experience and shows?) in order to support their dealers is admirable. I suppose it cuts out the cost of a whole other department, as well.
Having a production back-up makes the short term growth much more predictable, increases the amount of time the consumer spends "desiring" the product (waiting for your orders), and eliminates warehouse/inventory liability (looking at you Gibson). It also buffers some of the risk of stagnant sales periods.
Companies like Apple and Gibson tried to meet immediate demand with huge production numbers, but take big hits when sales are bad. Apple has resorted to throttling old models to increase sales of new models. They were able to sweep it under the rug in late 2017. I'm sure they'll have to answer for this again. Apple is still wildly successful, but their integrity is not in-tact IMO.
PRS's commitment to safety and employee satisfaction, the commitment to quality control, the passion of the CEO and builders, the transparency of the factory, the highly customizable private stock line, the innovation and mystery of "what will come next?", the respect for international trade laws and preserving endangered species... I could go on.
I'm really appreciative of it all. I hope, going forward, PRS can keep these ideals but I'm sure the times will change and PRS will need to change and adapt. I just want to say I appreciate all they have done already.
However, I have never been more appreciative/respectful of a business model. I've been thinking lately, with all the light being shed on big companies lately, (Apple, Tesla, Amazon, Gibson) PRS stands alone as the best IMO.
Their business model of building to dealers' orders is so much better for the consumer, the employees and the brand. It's not as ideal for investors and that's fine with me. The fact that they rarely ever sell direct (PRS experience and shows?) in order to support their dealers is admirable. I suppose it cuts out the cost of a whole other department, as well.
Having a production back-up makes the short term growth much more predictable, increases the amount of time the consumer spends "desiring" the product (waiting for your orders), and eliminates warehouse/inventory liability (looking at you Gibson). It also buffers some of the risk of stagnant sales periods.
Companies like Apple and Gibson tried to meet immediate demand with huge production numbers, but take big hits when sales are bad. Apple has resorted to throttling old models to increase sales of new models. They were able to sweep it under the rug in late 2017. I'm sure they'll have to answer for this again. Apple is still wildly successful, but their integrity is not in-tact IMO.
PRS's commitment to safety and employee satisfaction, the commitment to quality control, the passion of the CEO and builders, the transparency of the factory, the highly customizable private stock line, the innovation and mystery of "what will come next?", the respect for international trade laws and preserving endangered species... I could go on.
I'm really appreciative of it all. I hope, going forward, PRS can keep these ideals but I'm sure the times will change and PRS will need to change and adapt. I just want to say I appreciate all they have done already.
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