Is SWR gone?

[georgestrings]

Why is it that nobody ever faults the company founders who put themselves so far in the hole that they had no choice but to be "bought out". Companies like Fender and Gibson are doing what every corporation does: eating the competition and crapping out their ashes. They are staking their survival on the bones of weaker little guys. That's what they're supposed to do.

Yeah, I don't get all the Fender hate, either - most of it is pretty childish, IMO... I'm a fan of both Fender and Genz-Benz, but understand that business is business...


- georgestrings

 

[georgestrings]

The vituperative animosity towards FMIC from people who don't know history used to be amusing, but has gotten annoying. Steve Rabe left SWR well before FMIC bought them, and the company was going down in innovation and market share already. FMIC kept them going much longer than was reasonable financially.

Eden already had CS issues and inability to provide products to dealers well before US Music bought them; Genz-Benz was purchased by Kaman years before FMIC acquired Kaman; Ampeg's been at least four companies, and has had long periods of disrepute under several; Sunn went under; Ernie Ball bought Music Man's patents at a bankruptcy sale. Companies change, deal with it.

John

There you go, letting those pesky facts get in the way of another good Fender hate fest...


- georgestrings

 

[NeonVomit]

Yeah, I don't get all the Fender hate, either - most of it is pretty childish, IMO... I'm a fan of both Fender and Genz-Benz, but understand that business is business...

Yeah, it's important to remember that a LOT of stuff goes on behind the scenes. Deals are struck and money changes hands, but other than that we don't know what is said/intended/implied by the parties involved. Keeping a 'small' company afloat is no mean feat in today's world, and I have the utmost respect for people who can do it.

I don't get the Fender hate either. They're one of the heavyweights of the industry but I guess they're as good as you could expect. Now whether their products are overpriced or whatever, that's a non-issue - nobody forces you to buy Fenders! If your problem is with them buying companies and 'turning them bad' I guess that's an issue between them and the company in question.

 

[NeonVomit]

And another thing we have to remember - small companies making innovative products are appearing all the time. Some 'make it' and evolve into big companies.

I'm always reminded of the ending of that South Park episode about Wal-Mart in situations like these.

 

[BawanaRik]

AFAIK you have to have two parties to do a deal! A buyer and a seller! So blaming the buyer is never 100% of the story. Someone on the selling side had an interest, too.

My workgiver acts the same way on the business floor - buy small companies, take over their R&D and portfolio, keep what's interesting, throw out what is not of any profit. Sometimes the brand-name is worth more than the company itself, and sometimes only the two R&D guys or the salesman is of any interest.
I hate that it is that way novadays - that companies cannot co-exist anymore because they need to make more profit than the year earlier, which in return means another company makes less profit and maybe, dies. Nothing against companies colaborating and doing great things both of them wouldn't be able to on their own (see Behringer's digital mixing line thanks to Midas know-how and Behringers infrasctructure).
All this results in a very fast and short-thinking business, where companies are owned by huge investment banks who try to sell within 3-5 years with max profit. So the whole business strategy is designed for 3-5 years, and what's coming afterwards is a surprise. We been there, nearly got extinct.
If a company wants to keep that principle going, in the end there's one man in the factory building all the guitars in the world. That's the ultimate end of the "we have to make more profit next year" principle

Yet people like Terry McInturff and Steve Wishnevski still manage to make a living.

A free market will always be able to allow for alternatives to the mass produced generics.

Keep in mind that Fender was originally a small esoteric builder.

Compare a BF Fender to what's being built today and I think you can see why they still command solid prices. And why people still copy them for people willing to pay more for a better amp.

I think the SWR gear started out great. Maybe later it lost a bit.

 

[JazznFunk]

I guess at this point, my music room looks like a museum to the outside observer. 2 SWR Workingman's 12 combos (1 pre and 1 post-Fender), 2 Workingman's 2x10T cabs, 1 Workingman's 1x15 cab, and a 1990 'transition' Goliath I/II cab (Goliath I but with the II's metal grille). No SWR heads, except for an old Workingman's 2004. Never had any of it crap out on me and it sounds great, particularly paired with my Eden heads.

 

[Willie The Pimp]

I'm pretty sure we can add Genz Benz to the list of great bass amplification companies killed off by Fender alongside SWR. I'm curious as to why a company would acquire a viable brand with a killer RnD dept, and a real knack for giving players what they want just to put on the shelf....tax write-offs?

More like eliminate the competition so they can keep selling the same old dross.

 

[Troph]

AFAIK you have to have two parties to do a deal! A buyer and a seller! So blaming the buyer is never 100% of the story. Someone on the selling side had an interest, too.

Precisely.

I hate that it is that way novadays - that companies cannot co-exist anymore because they need to make more profit than the year earlier, which in return means another company makes less profit and maybe, dies. Nothing against companies colaborating and doing great things both of them wouldn't be able to on their own (see Behringer's digital mixing line thanks to Midas know-how and Behringers infrasctructure).
All this results in a very fast and short-thinking business, where companies are owned by huge investment banks who try to sell within 3-5 years with max profit. So the whole business strategy is designed for 3-5 years, and what's coming afterwards is a surprise. We been there, nearly got extinct.

First of all, the drive to continuously report more profit is a symptom only of publicly traded companies. There are plenty of private companies out there who seek profits but aren't beholden to short-term stockholders telling the board of directors to fire management.

Second of all, as you already stated, nothing forces a private company to sell out to a larger company unless the owners are tired of running it and want to cash out. They built up the company; they get to choose what to do with it, after all. Nearly all of the brand names we have today were created by someone else who sold out. Good for them.

Third, the risk of competition from other companies is precisely what drives many companies to innovate and differentiate their product line. It also forces older, existing product lines to react to newer manufacturing techniques and market demands. CNC machines are a good example; at this point anyone trying to do volume work by hand will be priced out of the main market. The end result is usually higher quality at lower price points.

Ultimately, the real question of whether the system "works" or not is whether you have available to you a wide array of product choices at reasonable prices. And I would argue that you have more quality choices at accessible prices today than you've ever had before.

If Fender hadn't purchased SWR, it would have failed on its own earlier. They gave it a try to resurrect the brand. There is nothing evil about that at all.