Gibson's New Internet Policy For Dealers

[The Golden Boy]

Recently you received a letter from Gibson regarding significant changes in the company's web policy. Gibson's intent is to drive more customers into your store, thus making your store a destination location. It has always been Gibson's desire to have sales of their instruments be done on a personal level, not on a "point and click" shopping cart level. It is only when the end consumer interacts with your sales staff can the "Gibson story" be told, and an instrument be truly matched to that individual consumer's personal needs.


Pursuant to that goal, and effective immediately, all authorized Gibson & Epiphone dealers are expected to comply with the following:

Internet sales of all new Gibson Brand instruments and products, including Gibson USA, Gibson Montana, Gibson Memphis, Gibson OAI, Slingerland, Tobias, Gibson Custom/Historic, Epiphone, Valley Arts, Gibson Strings and Accessories are to cease immediately.
All authorized GMI dealers will be allowed to advertise that they are an "AUTHORIZED GIBSON DEALER" and link to the Gibson website, www.gibson.com.
Photos of "in-stock" instruments currently in dealer's inventory will not be allowed to be published on dealer's website.
Consumers are to be encouraged to actually visit the store to purchase instruments, or contact the store regarding a purchase via phone or email. Authorized GMI dealers will be allowed to email consumers photos of specific guitars in dealer's inventory.
Specific artwork and advertising templates for authorized dealers will be made available for dealer's use on their websites. These materials will be made available for download on Gibson's internet press site, www.gibson.com/press.
Advertising outside of dealer's immediate market area as specified in the Gibson Dealer Agreement will not be allowed. This includes (but not limited to) any printed materials such as catalogs, flyers, etc. If there is a question as to your specific market area, please contact XXXXXXXXXXX at Gibson, XXXXXXXXXXX, XXXX.
Sales of new Gibson brand instruments at guitar shows, music events, concerts, music festivals, etc. outside of dealer's approved market area are not allowed

In the past, you would have a picture of the guitar you were interested in posted on the dealer's website. Now the dealers can't do that. Does that seem like a not quite bright advertising strategy? I've bought 3 high end guitars (+$2,000) in the past 6 years or so, solely on the strength of pictures on the dealer's webpage. If those pictures had not been there, I wouldn't have bought those guitars.

[Eyescream]

They can still email pictures to you if you ask.

[The Golden Boy]

Point is that it makes the sale difficult, for the shopper and for the seller. What's easier, hitting 6 or 7 websites of your favorite stores, checking out the pics or sending emails to those 6 or 7 stores asking for pics? Seeing a beautiful guitar can create a "need." Seeing= GAS. Only people that will be thinking "I want a new Les Paul" are going to contact the dealers, instead of a person saying "I'd like a new guitar."

It doesn't really affect price point shoppers who say "I want a Les Paul," it affects people who say "I want that Les Paul."

[Slater]

Aren't these the same people that started MusicYo?

This new policy may help the Mom & Pop music stores a little, but IMO, it's just going to make it easier for the superstores like GC to gouge an uninformed shopper for an already over priced instrument.

What's Musician's Friend going to do with all of their GMI products?...

[DigMe]

Yeah..that sucks because someone who doesn't know all that much cannot go to the internet to see if they are getting a good deal from GC or whoever else. Doesn't seem like a good idea from a marketing standpoint either.

brad cook

[The Golden Boy]

Originally Posted by Slater

This new policy may help the Mom & Pop music stores a little

Imagine you're in a store in Podunk, Idaho. Mr. and Mrs. Jones have a music store, and when the internet came they were able to advertise well and sell guitars all over the world at a comptetive price with friendly, knowlegable and prompt service, and they do well. Suddenly, they can't advertise their price or show the really cool guitars they've got in stock. Now from going nationwide, they're strictly reliant on repeat customers, word of mouth or local sales. Local sales wouldn't mean a lot because the local population is small and you can't do guitar shows because:

Sales of new Gibson brand instruments at guitar shows, music events, concerts, music festivals, etc. outside of dealer's approved market area are not allowed

Big Gibson sellers like Wildwood, Dave's Guitars, Vintageworld are basically "Mom and Pop" stores, but they owe much of their success (and you can surmise the success of the Historic line) to the advertising on the internet.

I'm not looking for another guitar, but looking at this makes me want another one!

http://www.wildwoodguitars.com/elect...lpr_94775.html

[keb]

Bizarre.

By the way, as of this post, Musician's Friend and American Musical Supply still offer Gibson products for sale in a friendly "point-and-click shopping cart level."

[Josh Ryan]

Someone needs a firing.

[Brad Barker]

yeah, i read about this last night on guitargeek.

hopefully this policy will be changed shortly. especially after gibson notices a significant drop in sales...

[reasonbass]

Gibson is biting off Mesa's internet policy. But Mesa never sold online in the first place.

[Christopher]

Originally Posted by Slater

Aren't these the same people that started MusicYo?

This new policy may help the Mom & Pop music stores a little, but IMO, it's just going to make it easier for the superstores like GC to gouge an uninformed shopper for an already over priced instrument.

Seems like a pretty boneheaded business decision to me. One assured way of maintaining consistently high retail prices and margins is to allow market leaders like MF, AMS/Zzounds, GC etc. to set their usual 25-33% "discount off list price" for all to see. Almost invariably, everyone else follows suit with the same or slightly lower "discount." By contrast, a failure to advertise prices can result in deep discounting, especially on top-dollar items that don't move very quicky, with or without discounting. I don't think the new policy will lead to gouging so much as the opposite.

Granted, with the price advertising ban in effect, seller X no longer "loses" when a customer brings in an ad from company Y with a slightly lower price -- but they never did to begin with. The equilibrium for a market where prices are readily visible and "we will not be undersold" guarantees in are effect is for everyone to set roughly the same Gibson-approved price.

Weird.

[Slater]

Notice I said "may" help the "Mom & Pop" stores. If "Mom & Pop" are already selling on the internet, then this policy would probably crush them (unless they're also a Fender dealer )

[WillPlay4Food]

It wasn't mentioned in the letter above, but Gibson is pushing merchants who sell their OAI (other acoustic instruments) line to sell exclusively Gibson, or stop selling Gibson. This relates to Mandolins, dobros and other non-guitar instruments.

It looks like Music123, MF and 2 other internet shops will be allowed to continue selling Gibson on the net. Every other shop will be prohibited from doing so.

Sounds like Gibson doesn't want people to see or buy their products anymore. I know if I had a music shop and they started telling me what I could and couldn't sell, I'd stop selling their stuff and see if the state attorney general would consider this move anti-competitive / in violation of anti-trust laws.

[The Golden Boy]

Originally Posted by WillPlay4Food

It looks like Music123, MF and 2 other internet shops will be allowed to continue selling Gibson on the net. Every other shop will be prohibited from doing so.

The no internet advertising is stupid. The "only certain stores can have internet advertising" smacks of evil of some sort.

The more I read that the more perplexed I get. You can't advertise Gibson instruments in your catalogs or flyers.

[fastplant]

Super lame, who is it hurting?

[The Golden Boy]

First, it hurts every dealer that does not get to advertise on the internet.

Second, it hurts the consumer that doesn't get to readily pick the guitar of choice.

It also hurts the consumer when you cannot advertise your price on the internet, or in catalogs or flyers:

Originally Posted by Christopher

Granted, with the price advertising ban in effect, seller X no longer "loses" when a customer brings in an ad from company Y with a slightly lower price

[The Golden Boy]

Compare these websites, which do you like? Which makes it easier to choose the guitar you want?

http://www.willcuttguitars.com/brand...e=Brand&mfr=74

http://www.wildwoodguitars.com/elect...9/r9_home.html

[MAJOR METAL]

Wow , Gibson only makes 2 models of basses now.

[Nino Valenti]

They're doing this becasue the big chains like Sam Ash & GC are forcing it. They buy TONS of guitars for stores all over the country & internet & if they pull out, Gibson will be losing A LOT of $$$$$. Gibson's accountant's don't care about the smaller shops.

[MAJOR METAL]

Originally Posted by Nino-Brown

They're doing this becasue the big chains like Sam Ash & GC are forcing it. They buy TONS of guitars for stores all over the country & internet & if they pull out, Gibson will be losing A LOT of $$$$$. Gibson's accountant's don't care about the smaller shops.

Thats sad, those smaller shops are what made gibson what they are today.