This is old news but I thought I throw in my opinion about the press statement made earlier this year by the most popular CEO in the guitar making business.
I'm not going to point out their guitar flaws, I mean those are now common knowledge since long ago.
So one of Henry quotes was "There are problems with the guitar retail industry"
I know many players were disgruntled by his statement but I want to peel the issue as rational as I could. So okay, Hendry spoke about bad support from dealers and all of a sudden the guitar community which are mostly consumers choose to bash Henry while being seen to side with the dealers. Well now you fucking moron. How about taking the time to see the big picture and doing some research about how business works. Then and only then you make conclusion.
First of all the guitar business is not rocket science. I came from the CEP (Consumer Electronics Product) field and I could see some similarities between these two industries. Both would have what we call organised chain distribution. You have the manufacturer selling to the distributors. The distributors then sell the products to dealers then the dealers sells to the general consumer. Sometime the distributor and dealer is the same guy so go figure. Then someone somewhere came up with the MSRP or RRP in the contract. Gee I wonder who's that fucking genius might be. Somebody tell me please.
I want to share my two cent about this MSRP/RRP. From what I know there are only two types of it.
The Enforced MSRP - to put simply, this is what I call price fixing to corner the consumers and maintaining order amongst dealers at the same time. When I was in the CEP industry we use this system on all our dealers. The benefits for our dealers is they're able to stock up by full consignment or partial transaction. To be honest it really doesn't matter to us if our dealers made full advance payment because they're bind to our T&C, Another benefit is they don’t have to worry about rival brand MSRP, market trend,advert and forecast as we have a special team for that. All they(the dealers) have to do is sell it. Our rules are quiet simple. If a dealer do not reach our volume sales then he's OUT. All discount or price hike of our products is determine by us. Any discount or promo by dealers must be consulted and approved by us or you're OUT. We send spies as customer in disguise to your shop to make sure you're not undercutting our other dealers behind our back. If you're caught then you're OUT. Bottom line, to us the dealers are just machai sharing the profit pie. No machai is allowed to step on another machai's foot. Sounds cruel but this is the real world. For your information our competitors are doing the same too. Hehe
The Free Market MSRP - Basically the contract only secures the exclusive rights between manufacturer and dealers. The MSRP really does means the MSRP. No price control and fix. The shop owns the products so it's entirely up to the shop if the shop wants to sell it at higher, max, half or at a loss. Market factor and consumer buying strength determines the price of things. Every man(dealer) for himself and each man decides his greed. If the circumstances is right. The sky is the limit. I can't elaborate a lot on this as I have no experience.
You see I'm beginning to think we consumers are seen to be not that bright or like water fish by many. It's time to rid ourselves off this stigma by asking these questions.
Who the fuck among us water fish is able to buy directly from Henry e.g. a Les Paul Standard and pay say at USD1000 or whatever cost price it might be?
Answer - No water fish allowed,only the distributors/dealers.
Who the fuck is charging us water fish USD3000++ for the very same Les Paul Standard? Where do you think the X amount of money went to?
So which partyfuck is exactly ripping off the water fish?
So before we dumbfuckers choose to blindly side with any shop, any Gibson bashing forum/FB or make any YouTube video about it, we should perhaps do some research. All we dumbfucker need to do is just sniff where the urine is and bark at the right tree in other words follow the money trail.
Hmm...I wonder which MSRP system is being use in the guitar industry? I'm so wanting to know!
Part I Here
Part I Here
I'm a proud dumbfucker too