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Can Fender Afford?
- Thread starter JAUQO III-X
- Start date
Could Fender survive? Maybe yes, maybe no. Why would they get rid of Squier, considering that Squier, with good quality instruments at a good price, is likely a big money maker for Fender during the current economic downturn. It would be extremely foolish if they got rid of Squier. If they did, in order to survive they would have to let go a lot of workers, here and overseas.
I think they could survive without Squier or MIM. Fender has to decide what kind of company it wants to be. They used to be a manufacturer that made great quality instruments at a decent price. Then they starter making insturments in Mexico and Japan and introduced the Squier line. I'm sure that they are maikng a very good profit margin on Squiers but they really have to decide if they want to be known as a company that sells lower quality and lower priced instruments or one that wants to go back to being recognized as a manufacturer that most players prefer. Their business model seems to cater more to the Guitar Center type of customer.
That's a pretty snobbish attitude, considering that Fender IS the manufacturer that most players prefer. And that includes their Squiers and Standard lines. Having lower cost (not necessarily low quality) instruments does not hurt their rep in the least.
They would survive just like GM who got rid of Pontiac, Saab, Hummer, Isuzu, Saturn and Olsmobile. GM is still here just with a leaner variety. That is just my opinion being a GM factory worker. It just will not be the same when you are looking for different models to compare. They will not do this anyway because most Squire buyers are repeat shoppers who will want to upgrade to the Standard series and American series. Just my .02.
Rickenbacker's market share is rather small, too.
P.S. Quote what you reply to, otherwise a comment will be assumed to be responding to the OP. In that case, your comment would make no sense.
That's kind of an inaccurate comparison. GM got rid of brands that were losing money. Squier isn't losing money.
A better comparison would be to take the current GM (chevy, GM, Buick, Cadillac) and have them get rid of Chevy.
Would they survive? Probably. But they'd be getting rid of their best selling brand and losing a ton of profits.
mndean said:
Actually the Rick comparison is highly salient.
When I was a teenager in the 70s basses were Fender, Gibson or Rick. Musicman was just coming along and Japanese brands were moving up the quality ladder,
So in 1979 Fender, Rickenbacker and Ibanez were peers of more or less equal quality.
Rick stayed in the high end market, Ibanez made everything from entry level to high end under the one brand and Fender had clear brands for USA, nonUSA and Squier.
Result - Fender is the only one of the three to successfully play in all sectors of the market and still have clarity as to the quality of their high end stuff.
Why would they change to a less successful strategy?
- Dec 5, 2002
- 4,165
- 2,254
- Disclosures
- Endorsing Artist: Ernie Ball Music Man/Sterling By Music Man
You see, THIS, to me, is the real question.
What I mean is - why is this even a question?
I wasn't trying to be snobbish, I was just stating facts and my opinion. Fender uses lower quality parts on Squiers and MIM. Plastic nut versus bone for example. Different fret wire, pickups etc. Don't get me wrong. The Squiers are decent for the money. Great for entry level or mid level players. The problem with Fender is that they are trying to sell to everybody. When companies do that, they tend to lose focus on what made them great in the first place. Having a masters in finance, a masters in marketing and an executive MBA, I have seen several companies try follow similar business models. They usually either fail, or eventually just sell lower priced products in order to survive. There are some exceptions. Hyundai for example. In the 1980s and 1990s they were aweful. They shifted their focus and now producing good cars at prices that are in the same range as other imports such as Honda and Toyota. They made the decision to produce higher quality cars which has resulted in more sales and higher profits. Not sure if Fender would be as successful if they dropped Squier but they really should decide what they want to be.
As a standard, I would agree with this, but Fender has already established SO much brand awareness and loyalty that I don't think that they have those standard concerns. As was stated before, many people start on Squier and continue to upgrade within Fender's line of products over time. Looking at it from the outside, it seems like getting rid of Squier would be a horrible buisness move. Those low end models allow the low income customers to keep up with the Jones' and get something that is familiar.
No.
But they sure as hell could afford to come up with some better ideas for their newer models. They've recently given me the impression that they're a bit lacking in the "common sense" department.
But they sure as hell could afford to come up with some better ideas for their newer models. They've recently given me the impression that they're a bit lacking in the "common sense" department.
Sadly, the brand awareness and loyalty is so high that they don't need new ideas or products to sustain the draw to their name.
True. I really think that's the only reason they're still able to stay in business, even.
Very possible, IMO. Although, some that I've picked up have been of good quality. Some have been pure dung with strings and pick ups. They really aren't my kind of instrument. To each his own, though.
HAHA! And I thought I'd get berated for going too far.
Fender-style instruments are the only basses I've ever been interested in, so regardless of their quality control, their more recent marketing tactics have really put me off the Fender name (Road Worn, 60th anniversary Pbass, American "Special" series, etc.)
I'd really like to know how their brainstorming sessions go. Maybe something akin to this portrayal of Dreamworks?
