HOPEFULLY the BA2. If it has the Fender Hi-Mass, I'll be ok with that, too. I've used the Hi-Mass on 2 other basses & was relatively impressed with it.
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New "FENDER DIRECT" article
- Thread starter Bassmunnky
- Start date
I get it, but to put it in perspective the potential profits from a $30k order won't even cover the annual salary of a grossly underpaid part time employee. What percentage of annual spend in product does that $30k represent to the dealer? 10 percent?
For a small business that is a whole of cash to tie up at one time, and it might be better spent on items that could be moved more quickly.
No doubt. Inventory financing is a whole broad subject of its own. Imagine being a car dealer...
They wont bi-pass their dealers.They may screw them for some of the online business .I know myself i will not buy a Bass without playing it first.Im sure at least 50% if not more bass buyers feel the same way.Fender is throwing out the bait to see how the public reacts to the news.You can bet they read all these post from all the musician web sites.My guess is they will sell direct online and keep the dealers who still want Fender products.Win win for Fender.For the small dealers well you keep your own customer base sell the odd new Fender pick up a little fender service and warranty work.The small guy will need to stock as many brands as he can afford.
Or an RV dealer. I see some places with hundreds of RVs, and some of those are worth 500k-$1.5m.
I think Fender is one of the few brands where the people who are the biggest customers won't think twice about buying before trying.
I could never buy an instrument without playing it... I think fender will see a lot less of their products in the hands of musicians like myself, I'm a touring musician (who is generally broke).
the thing that brought me to use Fenders in the first place was how versatile, easy to fix, easy to find parts and easy to replace (in a worst case) they are... in the event they go though with this "direct sale" thing it will ruin what fender is to me as a touring musician, it's too bad.
Hobby musicians that work full time and have credit cards won't be affected by this.
The front line musicians will have a harder time getting these instruments and therefor fenders will go out of style among these types of musicians (fender is essentially say F you to local young musicians by direct sales IMO).
Suddenly there's a two week wait to get the gear I need if mine breaks? That doesn't work on tour....
Let alone what they're doing to "mom & pop shops",
It's too bad company's will ruin the image they have to be just a little more profitable, if fender gose though with this Ill be devistated to have to "break up" with them.
the thing that brought me to use Fenders in the first place was how versatile, easy to fix, easy to find parts and easy to replace (in a worst case) they are... in the event they go though with this "direct sale" thing it will ruin what fender is to me as a touring musician, it's too bad.
Hobby musicians that work full time and have credit cards won't be affected by this.
The front line musicians will have a harder time getting these instruments and therefor fenders will go out of style among these types of musicians (fender is essentially say F you to local young musicians by direct sales IMO).
Suddenly there's a two week wait to get the gear I need if mine breaks? That doesn't work on tour....
Let alone what they're doing to "mom & pop shops",
It's too bad company's will ruin the image they have to be just a little more profitable, if fender gose though with this Ill be devistated to have to "break up" with them.
I think that lots of impulse folks will buy them and sell them used, just as they do now - and THOSE we'll see in the hands of guys like you and me. If I had a mind to get a Fender J bass, I'd buy one used in a heartbeat because I know that if it was "meh", I could resell it for what I paid. Not so much with a new MF / Sweetwater bass.
Speaking as a consumer, I used to buy into the Fender mystique. Yes, I once upon a time slurped the Fender Kool-Aid. Owned a Fender for 20 years...and a way above average example at that. Also tried them out in stores every chance that came my way. Then I discovered what else is out there. Sold the Fender and never looked back. Having said that I expect Fender will continue to succeed, whatever their business model. So many folks are mesmerized by the brand name that they should be able to ride that wave for years to come. Don't worry about me. I will continue to stand tall as an official non-user of Fender.
M. M.
Same story here... though I moved on a bit faster, mostly because I wanted a 5 and the only Fender 5 I even vaguely liked was a Roscoe Beck and those things are hard to find.
But I'd own/play a newer fender -sure. But I'd prefer to play what I have.
There won't be a shortage of used Fenders to try before buying anytime soon and Fender won't miss your company. Most guys that I know who are doing any significant touring aren't buying brand spanking new Fenders in one town and expecting a replacement in the next one if it breaks. No offense, but I'm a little confused at your logic here.
No, you could actually just return one of those within 30/45 days for a full refund. Trust me, I've done it
It's a small family business. I've seen instruments stay in there for at least two years. Even if they sold half in a reasonable amount of time that still leaves $15000 stuck on a wall for a few years. That's taking up space they could have for other instruments to sell. I'm sure they'd rather have a couple of high end guitars and stock the store with entry and mid level stuff so they could get their money back sooner.
Of if they finance the inventory that's $1500 over two years at 5% as an example. Do they float their own inventory then?
Fender is rolling the dice with this business move. On one hand they're going to make higher margin because they'll be selling products at retail prices without giving a dealer discount. On the other hand, they're going to loose a lot of business from dealers because dealers won't want to support their competition. Fender is counting on the loyalty of the consumer to make this gamble work. I don't think it will.
Ok sorry, to clarify; I'm not buying brand new fenders, you're right.
That being said if Fender initiates this "direct sales" it's only a matter of time before ALL of their products (including replacement parts) become online/by order exclusively. That is a serious downside for road warriors...
It's not the instrument that is the whole concern here, it's everything Fender.... I like keeping my basses original, this is a major inconvenience to guys on the road. If I break something on the road it makes it far harder to replace it on the fly..... Just saying!
Hmm. As a business owner, It makes sense. Shipping direct to the end customer, bypassing the expenditure of large shipping and distributing efforts....The important piece of the article is that they will be shifting towards direct sales rather than a complicated chain of shipping, sales reps, complicated buy-in schemes, etc. Since they are expected to offer wholesale pricing to retailers, what again would be their motivation to continue to do that? Umm, they loose a little bit on every sale but make it up in volume? That strategy dosnt work.
There is nothing evil and corporate about that. Its sound business policies. The company is probably going to have a decent measure of success with it. Not really like Mrs. Mamm buing a squire for Jr. needs to play before she buys it ya know. And Mr and Mrs are doing most of their retail shopping online these days. So while its fun to hate corporations and successful companies, youd probably be better served by hopping up on Etrade and buying a bit of their stock, Maybe short some of the smaller chain stores that going to go under.
I dont know, I usually buy used anyway, total impulse buyer, If it feels good, and Im flush...Im in.
There is nothing evil and corporate about that. Its sound business policies. The company is probably going to have a decent measure of success with it. Not really like Mrs. Mamm buing a squire for Jr. needs to play before she buys it ya know. And Mr and Mrs are doing most of their retail shopping online these days. So while its fun to hate corporations and successful companies, youd probably be better served by hopping up on Etrade and buying a bit of their stock, Maybe short some of the smaller chain stores that going to go under.
I dont know, I usually buy used anyway, total impulse buyer, If it feels good, and Im flush...Im in.
Just two thoughts:
Last time Fender was run just thinking about profit and eficiency (CBS) it ended pretty bad.
Even when Fender is a market leader, making great products in all its lines, crushing the competition, and has a loved brand they still fail their IPO..
makes you think.. something does not sound right..
Last time Fender was run just thinking about profit and eficiency (CBS) it ended pretty bad.
Even when Fender is a market leader, making great products in all its lines, crushing the competition, and has a loved brand they still fail their IPO..
makes you think.. something does not sound right..
