More Guitar Center news

[jp_nyc]

Forbe’s has the latest on the GC saga. Employee commissions have been slashed to 0.25% and salaried employees have had their hours slashed. Seems like a backdoor layoff—they’re trying to push people out the door and avoid unemployment claims, so that probably means they aren’t going to shut down. When I look at recent GC events I see:
• Slashing inventory
• Corporate layoffs
• Selling HC
• The new Times Square flagship
• Backdoor layoffs of retail employees

To me these events suggest that they’re getting ready to shut down underperforming stores, sell off the long-term leases, and focus on lean mail-order operations with the remaining stores operating as flagships that advertise the brand and make money off the “Platinum Gear” room.

 

[Help!I'maRock!]

Forbe’s has the latest on the GC saga. Employee commissions have been slashed to 0.25% and salaried employees have had their hours slashed. Seems like a backdoor layoff—they’re trying to push people out the door and avoid unemployment claims, so that probably means they aren’t going to shut down. When I look at recent GC events I see:
• Slashing inventory
• Corporate layoffs
• Selling HC
• The new Times Square flagship
• Backdoor layoffs of retail employees

To me these events suggest that they’re getting ready to shut down underperforming stores, sell off the long-term leases, and focus on lean mail-order operations with the remaining stores operating as flagships that advertise the brand and make money off the “Platinum Gear” room.

Sounds like a solid plan, actually.

 

[IamSeaDevil]

Sounds like a solid plan, actually.

That actually makes sense.

 

[Chicken Man]

Forbe’s has the latest on the GC saga. Employee commissions have been slashed to 0.25% and salaried employees have had their hours slashed. Seems like a backdoor layoff—they’re trying to push people out the door and avoid unemployment claims, so that probably means they aren’t going to shut down. When I look at recent GC events I see:
• Slashing inventory
• Corporate layoffs
• Selling HC
• The new Times Square flagship
• Backdoor layoffs of retail employees

I'd be more upset if i didn't have experience with gc salesmen.

 

[jp_nyc]

I'd be more upset if i didn't have experience with gc salesmen.

But if they can’t work at GC who will hire stoners too ugly to work at marijuana dispensaries?

 

[Danhedonia]

JP's plan is intelligent indeed. While I don't agree that mail-order guitars are just as suitable as playing it first, I think the market has already voted with it's feet. And whoever posted that hell on earth vid of being in GC with the horrendous wailing makes the point: who'd want to hang around that? Top it off with some staff who make Starbucks hipsters look attentive and caring, and lo: it's a drop ship, inventory management world.

Which may reopen a door for smaller mom and pops who can offer what GC really can't any more:
* good advice, patient dialog and a real relationship with customers
* locally appropriate items (e.g., the sheet music for the HS musical)
* lessons (please let's not talk about GC's foray into 'being a location' ...)
* a used-gear market that's robust and attractive to more dedicated musicians (Noted: my local MGR has seemed to improve stock as well as just general business vibe since GC's walls started looking bare a year or so ago)
* Right-now / one-stop shopping for when you need some strings and picks for that night, and hell, throw in the cool strap too ....

While I've no respect for what I've seen perpetrated in the name of PE LBO's, it still feels a little icky to cheer the demise of a company that once filled a positive space. But they are doing neither employees nor customers any favors at this point, and it's time.

 

[IamSeaDevil]

I have

I'd be more upset if i didn't have experience with gc salesmen.

never had a bad experience with them. For the most part they seem genuinely enthusiastic about what they are doing. Sure they don't know as much as my local Mom and Pop, but they don't talk to me like I am an idiot either.

 

[Danhedonia]

I've dealt with good and bad, but there's a degree of hucksterism at the local ABQ branch that is reminiscent of car dealers. You're "going to have to check with the manager" to get me 15% off MSRP? Really?!??! Huh. I must look too old to pull up MF / Sweetwater / Zzzounds / etc. on my smartphone and show you the price to match. That help?

They also had that little venture into pedal repair, whereupon their 'tech' talked himself up, then literally tried to abscond with my Deluxe Electric Mistress. Thank goodness for good documentation with serial #'s.

Nah, fuck GC. I've seen them take terrible advantage of vulnerable people (airmen from Kirtland; poor people buying beginner instruments) and they ought to be ashamed. Or, closed.

 

[IamSeaDevil]

If they close up, I'll lose one of the three places I kill time at lunch

 

[OGG]

Behringer has them right where they want them now. I expect the takeover announcement is imminent.

I for one, would like to welcome our new European overlords.

 

[shoeless]

I can see it now....TC Electronics by Behringer, sold exclusively at Gutiar Center.

 

[PunkKitty]

http://www.forbes.com/sites/bobbyow...dence-of-big-changes-coming-to-guitar-center/

 

[fused]

I believe that the peeps will be way better off working for someone that appreciates them and treats them better...
and almost anywhere would have to be better...
Now the Ma and Pa shops can come back and make it right in this world...
Of course if the Unions can get a foot hold, that would help to protect them. I'm not a union guy, was many years ago and they do have their place..
THIS would be such a place...

 

[Danhedonia]

Yuck: "I am pleased to present you with ...."

American corporate culture has gotten repulsive.

 

[dougpg]

I just bought my new tele there in support of their efforts. Power to the people.

 

[jp_nyc]

A guy on Ultimate Guitar just posted that GC quoted him $103 for a setup on a hardtail guitar. They’re getting desperate.

 

[GilmourD]

A guy on Ultimate Guitar just posted that GC quoted him $103 for a setup on a hardtail guitar. They’re getting desperate.

Each GC has a different tech which isn't actually an employee but a third party, unless something changed fairly recently. That would be the techs rates. I think the rates are different at my local GC.

Sent from my VK810 4G using Tapatalk

 

[Kerouac]

GC has their own techs now. They're butchers at worst, sub-standard at best. My local one is charging $30 for a string change.

 

[Virtual Pariah]

Now the Ma and Pa shops can come back and make it right in this world...

I just don't remember the Ma and Pa shops being all that great.

The reason GC hit big is because the local shops were pretty terrible to their customers. They filled a need at the time.
Now, that need may no longer be there, or GC has made terrible decisions that have caused them to suffer, but GC was doing something right until they weren't anymore.

Either way, I don't see GC going away as a great thing. They did expose many people to playing guitar simply by being there and having easy access to trying things.
We're going to lose that if they fail and it's going to percolate upwards.

No Beginners = No Future Old Timers with disposable income.

 

[Danhedonia]

I just don't remember the Ma and Pa shops being all that great.

Mine is (Grandma's Music, ABQ). Terrific people, and they didn't even talk smack about GC when they were more competitive (e.g., "there's some good guys over there"). Now, Grandma's has clearly won a war and GC is a depressing store environment.

However, my original M&P (Acton Music, Acton, Mass) was in fact shitty to customers - as is the ABQ Guitar Center.

I think it's really about people, and GC is now run by bad people.