A rumor is GC is closing stores and in financial trouble.... Wouldn't surprise me. http://money.aol.com/creditdebt/article/...324160309990001

I heard a rumor that Warwick, RI and Natick, MA may be done soon.



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God Bless,
Mikey

www.mikeymaestro.com
www.myspace.com/kidconcert
www.balloonanimal.com
www.1000colorcards.com

Its about time, it was certainly inevitable.......maybe we'll get lucky and someone will open a Music store that caters to musicians & can offer current models in all areas & gear for a hands on sales approach like the good old days for a change vs customers being overcome by Catalogs & Internet sales.

Much to the opposite. The closing of a big retailer such as GC will mean even less availability locally. Especially the keyboards we discuss, are not normally found at GC; I've seen more at Sam Ash. But to close a large, big box store like GC means the overall market is either saturated (which it isn't) or shrinking (which is more likely). Costs keep stores open or close them. We'll more likely see more little guitar shops, but keyboard shops - I doubt it. Start collecting those catalogs...

That would not be good news. These big chain stores come in and run the local guys out of business and then they wind up folding. This happened with Mars Music a few years ago. Dan, do you still work at GC and if so do you know anything about their status?

Joe

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Songman55
Joe Ayala

The little guy doesn't have any chance anymore being gobbled up by corporate saturation.

[This message has been edited by John DiLeo (edited 04-14-2008).]

No .. I do not work at GC....

I did go back to work for them November 2006.. It was a horrible experience. Prior to leaving, GC changed all of their salespeople to commission. When I went back to the commission scenerio, it was a very cut throat, look out for yourself mentality vs.. look out for the customer..

I work for a large independent. I believe we have a better handle on things because of the following differences

1. We carry Pianos and keyboards but do not sell Workstations because of the internet and our market.

2.We cater to the market. Places like Guitar Center HAVE to buy the same goods and inventory for all the stores no matter what the market.

3. Owner pays cash for everything that comes in the back door. Instead of interest paid there are 3-10% discounts received for quick payment.

4. Employees are paid a great hourly wage and a small commission on serialized gear. Bonuses are given twice a year based on profit margins. Employees are empowered to make a deal according to business needs. IE high dollar items sell for less during slower months. Want a PRS for well under MAP. Shop in February, LOL

5. We balance low margin gear with high margin sheet music.

6. We don't carry everything for everyone.

7. Everyone is a manager. We all decide what and how much to order, not the owner as we are on the floor and know what sells and what dpes not.

I do not believe places like Guitar Center can be as flexible and are more corporate policy oriented for all locations. All geographic locations are not the same.

Carrying a few $3000 Motifs will not fly in a smaller area. Nor will DAW software. You have to know what will sell and how much. The GCs of the world apply the same formulas to all locations. Thats what caused Brook Mays to go belly up.

Now I hear Best Buy will become the New GC becasue margins are better for MI than TVs.They will have the same problem GC had.

I like the idea of GC having issues. The large Vendors have all buy dismissed the little guy and it will be the little guy who will become their biggest customers.

Gibson blew out the independents by strong arming them in to carrying too much product and making demands on Wall space. Without GC they will suffer as well. Fender outsells Gibson 2-1,

Its going to get interesting.

That's not good news those are the 2 GC stores I visit, one near my home, the other near my day job. That's too bad, I was able to demo a number of arranger boards at those stores including the Tyros2.



[This message has been edited by Stephenm52 (edited 04-14-2008).]

I suppose it's a sign of our evolution to an internet controlled marketing system.
Regarding Best Buy, I have totally crossed them off my list of stores to consider when I am shopping for something, because of their policy of bait and switch. Several times I have rushed down to take advantage of a great bargain they advertise, and when I get there it's always the same story: "Oh they were gone in ten minutes, let me show you this . . ."
No thanks,
DonM