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Is Musicians Friend/Guitar Center/M123 finally on the ropes?


steve_man

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I called in to Musician's Friend to check on the cost of the new Behringer X32 Digital Mixer (which is killer, and yes... I've come around to Behringer). I could not find anything about it on their website, and when I called in, I found out that they are no longer carrying any of Behringer's gear.

 

After this call, I started poking around the web to find out what the story is. MF/GC's position is that they do not like having to backorder products (like the X32) that are constantly sold out due to demand. However, looks like there may be another side of the story. There are rumors that GC and MF have not been good about paying their bills on time. Whatever the case, it seems like the last few times that I've been into GC, they are nearly always out of what I need. MF's great deals seem to be a thing of the past. Could it be that we're really seeing the unraveling of this company?

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It doesn't portend well for GC. There was a huge music store I used to go to around here and one day I heard the owner talking to Gibson on the phone pleading for them to send him a few guitars if he sent them $5,000. About 3 weeks later they closed. Suppliers don't give up a client like GC easily, but they do have a line that they don't like to cross. I personally feel GC has been on a death bed for awhile but this may be just what they said about backordering.

 

Retail is a tough business and you add in music that makes it worse.

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Old news. Behringer actually ended the relationship exactly because of the lack of prompt payment by GCI, but this was before Bain sold the company. For the time being, GCi is on better financial footing than they have been in awhile, so maybe Behringer will be around down the road. AMS is not part of the GC/MF/M123/WWBW group; they are a separate company altogether that includes zZounds and Same Day Music.

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The preeminent music store here in the St. Louis area was McMurray Music on Page Ave., despite Mel Bay Music also being located in the St. Louis area. McMurray was bought out by Brook Mays and proceeded to go out of business years ago. I couldn't even find decent prices at their going out of business sale. Their building sat empty for years and is currently partially occupied by a pawn shop with the remainder of the building still for lease.

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You just can't beat locally owned guitar shops. And while they can't keep the inventory the big high pressure shops can, they can still get anything you want or need. Chances are the person you order it from is gonna be the one you pick it up from too.

 

 

 

 

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Funny, I used to buy gear from GC and MF all the time. I really felt like they had some great deals from time to time. However, over the past couple of years, I just do not find great deals at all anymore, even in their used section. I can get stuff cheaper on Amazon, or just by calling Sweetwater. They rarely send out coupons anymore, and when they do, they are regulated so much, you can't use them. If they're letting large-volume companies like Behringer slip away, it sounds like the bell is about to toll for them.

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Old news. Behringer actually ended the relationship exactly because of the lack of prompt payment by GCI' date=' but this was before Bain sold the company. For the time being, GCi is on better financial footing than they have been in awhile, so maybe Behringer will be around down the road. AMS is not part of the GC/MF/M123/WWBW group; they are a separate company altogether that includes zZounds and Same Day Music.[/quote']

 

This man is correct.

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You just can't beat locally owned guitar shops. And while they can't keep the inventory the big high pressure shops can, they can still get anything you want or need. Chances are the person you order it from is gonna be the one you pick it up from too.

 

 

 

 

I can have things sent to myself...and usually send it back if need be. '

 

Local shop has...maybe what? 25? 50 guitars? Gibson Dean Fender Ibanaez?

 

 

Guitar Cenetr wanted me to order Schector w/Floyd and sustaniac. They said just deliver it here and return it here if you don't like it. Locals don't like to do that very much.

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At this time GC Inc is too big too fail. When they were sold they got an infusion of cash and their outstanding bills were restructured.

 

The new company will continue to see how much they can cut costs [close stores] to save the business.

 

They are also thinking of doing away with the commission system and putting the employees on salary and continuing to do away with the heavy discounts. Be more like a huge Mom and Pop store. Service over price. Heavy discounting only works when you are selling tons or gear.

 

Learning from the Mom and Pops they no longer want to leave any dollars on the table [like they use to] so they are building small music rooms and giving lessons in the store, many of the stores now have an in-house repair and will also restring your guitar. They are also going heavy into used gear.

 

The go go years of selling truckloads of guitars and music equip is over. The days of getting a Les Paul 58 Custom for 1800 at their Labor Day sales is over [which I did get but have since sold for 2000]. The market is shrinking, the recession hit hard and it still lingers .

 

We'll see if these changes will help.

 

If GC goes down, like GM, they will take a lot of companies with them. Deja Vu the 80s, both Fender and Gibson have financial issues and will really be in trouble if GC goes under. Fender especially really screwed up [because they rehabilitated the company and turned out great guitar/bass for awhile. Late 90s to the end of the 2000s decade is like the second golden years for them] and its as if they didn't learn anything from when the got free from CBS, back to square one...QC issues with their instruments, too many lines, credit too extended.

 

For Gibson, due to Henry's arrogance, the chickens are coming home to roost! How is that inverse curve working for you now where the more expensive the guitar is the more people will want it! Baby Boomers 401ks took a big hit Henry and lots were laid off and are now in lower paying jobs.

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Sounds great that they are "too big to fail," but honestly, there's no such thing. Any company can fail, given improper management. If they cannot make payments on time to a major supplier, that signals some pretty serious issues. The rumors of their financial and management woes have been circulating for years. Guess we'll see as this next year unfolds.

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I really liked MARS, much more so then GC. We had MARS right across the street from GC, which was pretty good for the buyer! MARS failed for different reasons, more related to the end of VC and the dot com bubble.

 

They had their problems like any other big chain, but I used to like to go there now and again. The two I used to go to were setup really nice.

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GAS was somewhat of a cultural trend. Sure it's not gone, but it's diminished. The mega-stores will be on the decline, but not all will disappear.

 

For a parallel, look at the decline in Harley Davidson stores and sales.

 

Home equity has done been tapped. Folks have accumulated stuff and it's time to pay bills.

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... but I wonder if the trend will swing back to smaller' date=' more specialized shops rather than big retailers like GC and Sam Ash.[/quote']

 

 

No way. The marketplace is consolidating towards the big mail order operations on top (Amazon, MF) and whatever chain store operations are left (GC, SamAsh), with the small private operations increasingly scrounging for peanuts of a gradually slowing musical instrument retail market.

 

 

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