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LOUD..going...going....GONE
- Thread starter Tony Gray
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Except they are flourishing while many other companies are closing up shop. Tough to dispute their business practices in this economic climate. If you want a 4003 with standard Ric colors they are available pretty readily. Yes 4004s etc are harder to find and might have lead times but IMO it is a myth that if you want a Ric 4003 you will have to wait 18 months.
Now back to our regularily scheduled program.......
I think one of the underlying currents that I have read on TB about Ampeg is that most people believe that out-sourcing manufacturing to Asia was a HUGE mistake. I don't know if that is fact but there sure seems to be a lot of people upset about that move.
Even if there was no actual decline in the quality of the product the buying public seems to think there was. Real or imagined, the perception is there.
I think one of the underlying currents that I have read on TB about Ampeg is that most people believe that out-sourcing manufacturing to Asia was a HUGE mistake. I don't know if that is fact but there sure seems to be a lot of people upset about that move.[/QUOTE]
Actually, country of origin has much less to do with product quality than one might suspect. It can be more about constant "re-engineering" for cost reductions that causes contract manufacturer's to cut corners and cheapen the product.
The factories LOUD is using can produce great quality products or junk. It is all in the price you are willing to pay and the quality standards you are willing to accept.
In addition, the price you charge in the market has to bear some relation to costs.
When the AC30 from China came out it was half the price of the one out of England. People got that... and thought it was fair.
Not always the same situation for the Ampeg gear. In many cases, prices actually went up when costs should have declined dramatically. A basic sense of fairness makes some people feel ripped-off.
The bottom line: brands must provide value to consumers.
Actually, country of origin has much less to do with product quality than one might suspect. It can be more about constant "re-engineering" for cost reductions that causes contract manufacturer's to cut corners and cheapen the product.
The factories LOUD is using can produce great quality products or junk. It is all in the price you are willing to pay and the quality standards you are willing to accept.
In addition, the price you charge in the market has to bear some relation to costs.
When the AC30 from China came out it was half the price of the one out of England. People got that... and thought it was fair.
Not always the same situation for the Ampeg gear. In many cases, prices actually went up when costs should have declined dramatically. A basic sense of fairness makes some people feel ripped-off.
The bottom line: brands must provide value to consumers.
In this case, though, it was real. LOUD moved, outsourced all the parts with Chinese parts, cut corners where they shouldn't have, then rushed the entire product line to market and burned us (and shot themselves in the foot) with an inordinate amount of returns and exchanges. People would have gotten over the move if the quality had been there. It wasn't.
I rather like this analysis. It looks like an accurate picture to me. I'd suspect LOUD may have a fairly poor credit rating which will make capital costs very expensive and all credit hard to get, if not impossible.
At the other end of the line, many consumers are also finding it difficult to obtain sufficient credit for purchasing discretionary items like new amps, thus furthering the squeeze on sales.
It's pretty darn hard to operate in a situation like that.
Don't forget to include cutting off their customer service. Gotta have that if you want happy customers.
bongomania
Commercial User
Yeah that was the ultimate "no-no" from my perspective. I understand in tough times that corners get cut, but for pete's sake a company should never, ever nuke the customer support network the way they did.
Yeah, NAMM booths are rented out early. They probably figured they'd set up and move as many amps as they could before it's all over.
Particularly when there are untested quality control procedures/processes/staff in action.
Perhaps. However, what happens when a company (RIC for instance) succumbs to "pressure" and begins mass marketing their products? All this talk about wait times for the gear - I don't get it. I have played Ric since 1969 and have NEVER waited to purchase one of their basses......
Am I a "superstar"?? Of course not. However, if I'm told that this guy doesn't have what I want in stock, I go to where someone can help me. Once that meant visiting the devil himself - Ed Roman - however, I got what I wanted with a 2 day wait.
In my humble opinion, Ric has created a false sense of urgency with their guitars and basses and it has (obviously) worked to their advantage.
The opposite can be stated about LOUD.....fllod the market with products and accept a "reasonable" fail rate with many of the amps. Move production overseas and pray to god that no one notices. Well, most bass players DID notice and took it personal.
See, it's not about WHERE the products are made. It's HOW the products are made....this will be the ultimate downfall of any corporation - apathy.
I don't know what scares me more - the idea of Ampeg going away OR being made by Behringer!
I would imagine it's the same setup as the NAB show (National Assc. of Broadcasters), as soon as your back, you rent next years floor space. Decide what received the most traffic and if can you fit it into next years display. 6 mo. later it's being fab'ed for the next convention. I hated and loved those times.
Which "nuking" are you referring to? The original one after the purchase, or the newer one that seems to have occurred a few months ago?
The really lousy one was #1, where the entire support for Ampeg and Crate, etc, was trashed as worthless and redundant by the Sun Capital "minders" at Loud (At that time, just Jason Niemark and another guy).
Along that line, at the present time, the board includes no less than SIX Sun Capital folks... Thomas V. Taylor, Mark E. Kuchenrither, Kevin Calhoun, Clarence E. ("Bud") Terry, Lynn Skillen, and Jason Neimark. There are three outsiders, plus the CEO, also on the board.
Is there any question as to who or what is running the show?
My God, they all donated to Romney.
it's true.
More conspiracy theory: Mitt Romney's equity firm (Bain Capital) owns Guitar Center.
I don't know what scares me more - the idea of Ampeg going away OR being made by Behringer!
Behringer 3500 employees strong. 20 Years in the business. Throwing big parties at NAMM. Leading sales in the industry. As everyone else tries to copy their business model (and fails).
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