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G&L out of business?

No companies compete solely with endorsements. That's not the metric. The point is endorsements do drive sales.

In the 80s there was a sea change in hard rock drumming to Tama, led by the public use of their kits by Lars Ulrich, Neil Peart, Dave Lombardo and Steve Riley. It had a huge impact on sales at the time.

Lots of small companies today partner with musicians that mutually benefit both sides. It might be with smaller or up-and-coming artists with niche fandom, to compete more affordably with Fender's bigger roster of popular endorsers. JHS made a distortion/overdrive pedal by partnering with Brazilian guitarist Lari Basilio. Reverend partnered with 90s-era musicians like Mike Watt and Meshell Ndegeocello for signature models. Schecter recently made a deal with Charles Berthoud.

But you don't need to go as far as making a signature instrument just to make a simple endorsement deal.
Tama had huge distribution via Hoshino and were in every single store. I recall ove the past 35yrs seeing 1 or 2 new g&l basses for sale on a wall at a music shop..ever.
 
Seems like the import line was a bad idea with terrible quality and canabalizing USA line sales.

I think it actually saved them from becoming ultra-niche like MTB Basses.

Apparently a couple of days ago a former employee Invalid Link Removed, "Tribute Series – While I was employed at the Fullerton factory, the Tribute Series is what kept the doors open and the lights on. The profit margin on those instruments was far better than the U.S.-made models. They were the financial backbone of G&L during my time there. When a new container arrived near the end of the month, the final assembly department would often put U.S. production on hold to QC the imports and get them shipped out to dealers."
 
Definitely. But even a liquidation can lead to another business buying enough relevant assets to begin where the previous business had halted, so it doesn't necessarily mean we've seen the end of the L2000 etc.

I was trying to point out that "going out of business" in OP's title is a stretch when there was no evidence of that specific thing. It sure looks like G&L is in trouble, but we've only seen reports on the consequences (furloughs, shutdowns) of whatever that trouble is. The people who know exactly what kind of trouble they're in are not talking publicly.
That they are not communicating anything publicly makes me even more suspicious that they're in negotiations with a buyer or taking on an equity partner who can help them resolve whatever financial issues they face. All of that may be subject to an NDA.
 
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Seems like the import line was a bad idea with terrible quality and canabalizing USA line sales.

I would argue the opposite. Back when I first started playing G&L, brand recognition was extremely low. When they launched the Tribute line, brand recognition went up significantly within a few years. Sure some opt to buy the cheaper instrument instead of the US one, but many of those would have bought a different brand cheaper instrument anyway. At least if they stick to buying your brand of cheaper instrument you get the profits from that sale. If you have a decent product, you build some loyalty and have a chance at a future sale (of either the Tribute or US model).
 
Tama had huge distribution

Tama had distribution with Hoshino's Elger subsidiary starting in 1972 and that distribution deal didn't skyrocket sales. Only after they innovated their way into desirability of pro musicians like Peart, Ulrich et al you saw a halo sales effect. When drummers saw those pros moving to Tama it exploded sales for the brand in the 80s.
 
I would argue the opposite. Back when I first started playing G&L, brand recognition was extremely low. When they launched the Tribute line, brand recognition went up significantly within a few years. Sure some opt to buy the cheaper instrument instead of the US one, but many of those would have bought a different brand cheaper instrument anyway. At least if they stick to buying your brand of cheaper instrument you get the profits from that sale. If you have a decent product, you build some loyalty and have a chance at a future sale (of either the Tribute or US model).
Other folks are saying that the line kept the lights on due to the higher profit margin as well so sure it goes many ways. To me personally I never had any desire to get an import g&l as it has zero of the things that would interest me in anyway when there are many great deals on used USA g&ls. They are great instruments but resale is many times not so great as a seller. Godin and a few others are good examples of this.
 
Tama had distribution with Hoshino's Elger subsidiary starting in 1972 and that distribution deal didn't skyrocket sales. Only after they innovated their way into desirability of pro musicians like Peart, Ulrich et al you saw a halo sales effect. When drummers saw those pros moving to Tama it exploded sales for the brand in the 80s.
Every kid wanted a Tama or Pearl kit in a 80s/90s just like they wanted a fender bass because their heros played them. G&l didn't really have this other than "Hey Leo Fender made these, if you like fender you will like these" and then proceed to never get them in stores in hands of players.
 
Every kid wanted a Tama or Pearl kit in a 80s/90s just like they wanted a fender bass because their heros played them.

We agree. That's the point. This is only being discussed in response to someone who wrote in the thread, "Endorsements are largely BS." They're not, they have been shown to drive sales for decades.

In recent years paying social media influencers for demos (eg BassTheWorld, Janek Gwisdala, Ian Allison, Jon Dretto, Davie504, Nate Navarro, Jonny Dibble) and canny brands using YouTube and TikTok (eg Andertons, JHS) have encroached on this because social media marketing has become quite influential.
 
I would argue the opposite. Back when I first started playing G&L, brand recognition was extremely low. When they launched the Tribute line, brand recognition went up significantly within a few years. Sure some opt to buy the cheaper instrument instead of the US one, but many of those would have bought a different brand cheaper instrument anyway.
I was always "G&L curious" but never encountered one in a store to try, and I didn't know anyone who had one. Then I bought a Trib L2500 the first year the were offered as the bang for buck seemed undeniable and I needed a fiver. I liked it enough that I then bought a US L2500 about 6 mos later. Fast forward 20+ years and my two main players are both US G&Ls.
 
Every kid wanted a Tama or Pearl kit in a 80s/90s just like they wanted a fender bass because their heros played them. G&l didn't really have this other than "Hey Leo Fender made these, if you like fender you will like these" and then proceed to never get them in stores in hands of players.

In the stone age I used to live not far from the Slingerland drum factory in Chicago.

To your point...
 
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I have a soft spot for G&L because my first pro quality bass was a blue L-1000 which I bought in 1983 after spending almost a year learning on an uninspiring Fender copy. What I actually wanted was a real Fender, but in 1983 those were in short supply (believe it or not) and most of the employees at the stores I went to advised me that I could get more for my money with other brands, whether it be G&L or imports like Ibanez and Yamaha. The funny thing is that my L-1000 was fairly lightweight, which I guess was unusual for the time.

I never understood why G&L started making instruments that were almost exact copies of Precision and Jazz Basses. I’m sure they were really nice instruments, but I think they would have been better off sticking with the models that differentiated them. Somehow they wound up as a brand that never had a signature look or sound or a well-known artist that was closely associated with them.

Still, I hope that they continue and maybe make some changes that allow them to be competitive in today’s market.

- Steve
 
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We agree. That's the point. This is only being discussed in response to someone who wrote in the thread, "Endorsements are largely BS." They're not, they have been shown to drive sales for decades.

In recent years paying social media influencers for demos (eg BassTheWorld, Janek Gwisdala, Ian Allison, Jon Dretto, Davie504, Nate Navarro, Jonny Dibble) and canny brands using YouTube and TikTok (eg Andertons, JHS) have encroached on this because social media marketing has become quite influential.
Endorsements are certainly NOT BS! They drive sales and it's been that way for decades. Look at Hofner with Paul McCartney since the 1960s. Rickenbacker had three of the four Beatles (RIP to John and George), Al Cisneros, Chris Squire (RIP), Roger McGuinn of the Byrds, Glenn Frey (RIP), and more since the 1960s. Even Gibson with their plethora of aging guitar and bass heroes is noteworthy.

The rise of YouTube / YT Shorts, TikTok, IG Reels has changed marketing strategies in recent years. But all G&L has (or perhaps had) was Steve Araujo doing bass reviews on their channels and on the G&L channel. Their online presence besides their website was so much less than that of their competitors (even Gibson!). It's like G&L never caught up with the times.

This lack of insight is another failure on management and their marketing team. Not embracing the world of marketing and keeping up with the times is a choice, not an accident. What happens when businesses make continually poor choices? They go under.
 
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Yeah, I was thinking the same thing.

You might be forgetting how much Fender tried to bury G&L business wise. Many of the top Fender Custom Shop builders went to G&L because they became fed up with Fender's business practices. I would say Fender is the legacy product. Even Music Man is thin in the mids frequencies, and as far as I'm concerned the L2500 has twice the horsepower of any jazz or p bass.
Fender makes decent instruments, but its 100% a legacy brand. You can get a better version of whatever they make elsewhere.
G&L will then stand for Gibson & Loar(?). :wideyed:
It makes sense, I was just thinking about this possibility.
 
This lack of insight is another failure on management and their marketing team.

There's an interesting '93 article about the deals and finances here.

There's a palpable loss of recent management inertia by the company which bought out Phyllis Fender's stake in in 1991. After the buyout, McLaren (who once ran Fender for CBS starting in 1981) increased advertising and used BBE's distribution network, and significantly grew sales.

I don't know how or why things began to moulder, but considering that this is a tiny company with just a few dozen employees and you have manager James Gay speaking on the record about how for "years" the facility had poor quality control and "chaos" and was dirty, it seems like the ball was dropped by management who had to see what was occurring.
 
Many employees haven’t been payed for a while. Not a good sign. Lots of competition out there and many great choices. I hate to see this.
You never know, they may just continue with the Tribute line built in Indonesia and downsize to offer custom-built in a smaller US facility with fewer employees.
That would be a lot like many companies such as MTD & Dingwall. It’s appears to be working for them so who knows.

The builders overseas are getting better including China. Not a good sign.
Its only a sign that they are not making instruments that are in demand.