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The latest music industry battle - manufacturers vs retailers?

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  • #31
    There are way too many moving pieces to say it’s one thing or another that drives manufacturers to explore selling direct. Speaking as one who spent many years on both as an owner of a small chain of retail stores and as a manufacturer, there are two sides to the discussion.

    First, not all your customers run a nice clean and efficient business like Sweetwater. If that were the case I’m sure manufacturers wouldn't spend much time exploring their options. But from the manufacturing side I would say the primary drive is repairing the dollar to bull**************** ratio and not greed. Folks that run multi hundred million dollars of sales manufacturing fully realize the additional costs involved in retail distribution.

    Who could think Carvin is an example of failure? They ran a successful direct business for over 40 years. Big manufacturers like Yamaha or Peavey, who make everything could easily step in. And by controlling all the steps in the process they could actually end up with higher profits even with lower revenue.
    Last edited by dboomer; 11-28-2018, 05:31 PM.
    Don Boomer

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