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So, what if Guitar Center DOES go under...

#161
I'll post this here for those interested: Invalid Link Removed

TL;DR GC is screwing their employees over by...
- decreasing sales commissions from 10% on profit and 2% on gross down to 0.25%
- decreasing the number of work hours for both salesman and managers
- raising the cost for employees to purchase new gear by 10 to 15%
 
#162
letsrumble said:
I'll post this here for those interested: Invalid Link Removed

TL;DR GC is screwing their employees over by...
- decreasing sales commissions from 10% on profit and 2% on gross down to 0.25%
- decreasing the number of work hours for both salesman and managers
- raising the cost for employees to purchase new gear by 10 to 15%
Click to expand...
That is a good article.

In any case, for anyone that hasn't seen a large chain go bankrupt lately, the process is pretty simple. The courts ultimately turn the operation of the stores over to liquidators who try to squeeze every penny they can out of existing inventory and store items such as fixtures, shelves, display cases, etc. Entire process takes a few weeks to a couple of months.

Generally the entire store will be 10% off, then 20, 30.... And at the end 70-80%. Basically all good guitars, amps and other desirable items will go in the first week or so. At the end, all that would be left would be woman's small tshirts, Beatles branded coasters, banjo strings, etc. and they would be sold in bulk and likely show up at flea markets or discount retailers.

I just watched Target Canada go down very recently and it was pretty sad. Hundreds of stores and 18,000 employees gone without a trace within a couple of months. Not even a sign on a wall when all was said and done.
 
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#168
I always love when on the rare occasions I go into A GC and ask for a specific pedal, which is inevitably not in stock, the salesman says "Well, I can order it for you."

I always say, "Well, I can order it for me too."

It's like these stores have not yet realized that they are in competition with the internet. I used to love GC, but like many people here, I've noticed a huge downshift in their operations in the last 10 years. It's very sad walking in these places nowadays.
 
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#169
MGR said:
I always love when on the rare occasions I go into A GC and ask for a specific pedal, which is inevitably not in stock, the salesman says "Well, I can order it for you."

I always say, "Well, I can order it for me too."

It's like these stores have not yet realized that they are in competition with the internet. I used to love GC, but like many people here, I've noticed a huge downshift in their operations in the last 10 years. It's very sad walking in these places nowadays.
Click to expand...
I agree completely. When I worked for 'em about 4 years ago, we were finally able to price match on Amazon, within certain limits. Although they were savvy enough to have a computer set up for customers to compare our prices with "competitors" like Musician's Friend.
 
#170
I just got back from the GC in my town a few minutes ago. It has been probably 5-6 months since I have even been in the store, but needed to go today to pick up a patch cable. Interesting scene....they had scaled down the bass section from 1 full wall down to a corner in the very back of the store where the "used clearance guitars" used to be and there were only about 18 basses displayed with most being Ibanez under $300's and Squiers. With the exception of 1 MIM Jazz and 1 USA Jazz. So, I picked up the MIM and dear god....that thing had almost 3/4" string height on it...just horrible playing and sounding and not to mention I actually had to plug one of the few bass amps in to the wall to even test it out. It is a sinking ship and going down faster than ever....I just really feel bad for my 2 friends that work there. They were screwed several years ago when GC bought out a regional store that treated their employees very well (similar to Sweetwater) and brought them under the GC regime. They tell me all the time how horrible the management that sends down the "to do" lists are. Just sad.....So, I stick to my mom and pop stores and fortunately I am close to both Sweetwater and Chicago to have options.
 
#172
A-Step-Towards said:
If guitar center as a whole goes under and all there store fronts are liquidated do you guys think there will be a resurgence in mom and pop guitar shops? That would be cool if so.
Click to expand...

Not a chance. Big cities might get the odd niche store, like a bass or drums only type of thing, but they won't last. People are hyper-extended on credit, jobs are being lost for a variety of reasons, pensions are grossly underfunded and some major ones may even implode, and equities are long overdue for a bear market.

There will be a proliferation of pawn shops, if anything. The credit binge party is, or will soon be, over from the gov't on down, and the hangover will be long and brutal. That easy access to credit is what GC and retailers like it lived and will die by, and by the time the dust settles it will seem as amazing that the average kid jamming to RHCP in his bedroom, or accountant with at most a half-dozen cover gigs a year, had 5 basses and two rigs as it currently seems amazing that people used to smoke cigarettes on airplanes at their desks at work. Easy come, easy go.
 
#173
Well, as a left-handed bass player with no room in my herd for a $300 Squier starter bass ( my Alembic would leave if one showed up), I personally won't miss them if they do disappear. Never found much to tempt me in there, anyway. But, yes, it will be hard on the employees, and the suppliers and everyone that depended on GC being around. Will be interesting to see what (if anything) takes their place when a Business-Darwinism niche opens up.:)
 
#175
A-Step-Towards said:
If guitar center as a whole goes under and all there store fronts are liquidated do you guys think there will be a resurgence in mom and pop guitar shops? That would be cool if so.
Click to expand...
I doubt it they will still face the pressure on the low end from mail order and be unable to stock variety on the high end. In effect you will have a teacher or collective of teachers with an on hand stock of accesories
 

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