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What can we possibly expect from Yamaha taking over Ampeg?

It seems to me that getting a good used Ampeg is not that difficult. Lots of players don't want to mess with tube amps for the obvious reasons of weight and tube replacement.
So if Yamahahaha does not do the brand right I dont think it will be that big a deal. Unless of course you are wishing for a brand new top shelf SVT from them. I guess we shall see soon enough.
 
I think the real key as to what Yamaha plans to do with Ampeg is their analysis of who (i.e., demographically) they see as their future customers while still trying to keep the current customer base at least somewhat happy.

A number of years ago, Cadillac founds themselves in a position where their average customer was 71 years old. It was clear that they couldn't survive on the current customer base since they were dying out. That's when Cadillac went about completely redesigning their line in an effort to appeal to those in their mid to late 40's. It worked extremely well and Cadillac is on better shape today than have even been.
Occasional re-designs can be beneficial. The CL was a re-design and it worked out quite well IMHO. Give it a cosmetic makeover if you want, too. I got no problem with that as long as it still sounds like an SVT.

Enough about Cadillac...

If one want to know what Yamaha will do, one would need access to their internal research documents that say who the upcoming intended group of customers are post acquisition.

Lastly, if Yamaha just wanted to "look good" in selling bass amps, it would have been far cheaper and entailed less risk to do a licensing deal with Ampeg and subsequently sell Yamaha bass amps with Ampeg designed guts. That is not the direction they chose to follow.
Why do that when you can own the company outright? It's Yamaha...they have the money. Besides, LOUD wasn't licensing Ampeg...they put it up for sale. Either you buy the whole thing or not at all.
 
Well if they get all jiggy with the research they will find out playing musical instruments is on the way out quickly shut down operations and cut their losses.

IMO in this shrinking market the best strategy is to down size and increase quality while keeping the price affordable but no one and I mean absolutely no one seems to be doing this. They are all trying to make larger production numbers of inexpensive crap. IMO this is a recipe for a longer term failure. Quality is what builds a brand.
You should go tell them how to do business, man! Why, if you ran things, it would be the most awesome success ever!

:D

This thread is a real hoot!
 
I have been a clinician with Yamaha(trombone) since 93’ and they have always really pushed wind and percussion instruments big time, Piano, Keyboard and a Recording studio stuff too.. back in 88’ Yamaha had Mike Soldano on staff to design awesome tube amps I have two of them 50 watt combo and 100 watt head.. . Yamaha at that time also had Carlos Santana playing their SG batwing guitar which was so close to a Gibson that Yamaha was sued by Gibson forcing Yamaha to make changes.
.IMO, Yamaha Guitar’s and amps have never been able to keep up with the Big Boys of guitar, Fender, Martin, and Gibson..even though what they do make is really great quality...the Yamaha Corp. just may be too big! Too big to push a line of instruments that have been perceived as also rands. If you look back at Yamaha Guitar’s, basses and amps, they’re all versions of the big three..but they were very affordable...you have to go way back to the late 60,s and early 70’s to find really different designs..some really wacky stuff.
Buying Line 6 and Ampeg means a built in customer base of products that are original and established. No need to emulate instruments from another maker...and I’m sure the price was right too.

What I'm actually wondering about here, thinking about the Ampeg acquisition again, is if it will affect what we see in retail. It has always bugged me that Yamaha seems to have a number of bass models but I rarely see them in stores, except recently for the TRBX line that GC seems to have taken to. I wonder if Yamaha holding Ampeg will mean more distribution deals with retail stores to push more Yamaha basses, as linkage to the better-established Ampeg demand.
 
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What I'm actually wondering about here, thinking about the Ampeg acquisition again, is if it will affect what we see in retail. It has always bugged me that Yamaha seems to have a number of bass models but I rarely see them in stores, except recently for the TRBX line that GC seems to have taken to. I wonder if Yamaha holding Ampeg will mean more distribution deals with retail stores to push more Yamaha basses, as linkage to the better-established Ampeg demand.
The old buy some potatoes and we'll sell you some steak deal?
 
The old buy some potatoes and we'll sell you some steak deal?

That's what I'm speculating. I haven't worked retail but some stores I've talked to have hinted those kinds of deals happen. "Buy some of these and we'll give you a discount on those," or "you need to meet a quota on X to be eligible to deal Y."
 
Well if they get all jiggy with the research they will find out playing musical instruments is on the way out quickly shut down operations and cut their losses.

IMO in this shrinking market the best strategy is to down size and increase quality while keeping the price affordable but no one and I mean absolutely no one seems to be doing this. They are all trying to make larger production numbers of inexpensive crap. IMO this is a recipe for a longer term failure. Quality is what builds a brand.

You are missing one huge piece of the puzzle.

Old guys with disposable income buy used amps. Young people just starting out buy new, inexpensive amps with bells whistles on them.

Old guy get in TalkBass and say "Mesa is dumb. If they put a tuner on the front of their $2,000 amp I would buy it in a second!" (But they rarely buy new and won't buy that amp with a tuner on it either.)

Young people say "You give be bluetooth on my amp and downloadable sounds for it and I'm in!" And Fender sells thousands of them.

What is "inexpensive crap" to you makes up a much larger part of the market than "high quality" amps.

For reference, I worked in musical instrument sales for a decade. This is not just anecdotal ramblings. The music industry makes MILLIONS more off of starter packs and Boss pedals than it ever will from the other end of the spectrum. The Fender Rumble combo will always sell more than the Ampeg SVT-CL. Period.
 
And speaking of Fender, can we all hope and pray that Yamaha doesn't follow the same procurement model?
(This would mean agreement on a singular idea...)
 
You are missing one huge piece of the puzzle.

Old guys with disposable income buy used amps. Young people just starting out buy new, inexpensive amps with bells whistles on them.

Old guy get in TalkBass and say "Mesa is dumb. If they put a tuner on the front of their $2,000 amp I would buy it in a second!" (But they rarely buy new and won't buy that amp with a tuner on it either.)

Young people say "You give be bluetooth on my amp and downloadable sounds for it and I'm in!" And Fender sells thousands of them.

What is "inexpensive crap" to you makes up a much larger part of the market than "high quality" amps.

For reference, I worked in musical instrument sales for a decade. This is not just anecdotal ramblings. The music industry makes MILLIONS more off of starter packs and Boss pedals than it ever will from the other end of the spectrum. The Fender Rumble combo will always sell more than the Ampeg SVT-CL. Period.
And that is why Ampeg also makes combos.
 
And that is why Ampeg also makes combos.

True. Didn't mean to single out either brand. I was speaking more in general terms.

Fender does seem to have its finger on the pulse of the bells and whistles side a bit more (as does TC). But, to your point, Ampeg combos will be more profitable to Ampeg than the high-end stuff as well. They just sell in such greater numbers.
 
Occasional re-designs can be beneficial. The CL was a re-design and it worked out quite well IMHO. Give it a cosmetic makeover if you want, too. I got no problem with that as long as it still sounds like an SVT.


Why do that when you can own the company outright? It's Yamaha...they have the money. Besides, LOUD wasn't licensing Ampeg...they put it up for sale. Either you buy the whole thing or not at all.

Jimmy, sorry -- I didn't explain myself very well.

Obviously, Yamaha had a desire to get into the MI amplification market. They could have gone about that in several ways.

One would be to start from scratch and design & build their own amps, build a sales force, establish channel relationships, etc. That would be fairly expensive with no guarantee of success.

Two would be to acquire an existing amp company. In the end, that is what they did. They may have talked with multiple companies before settling in on Ampeg. That is something we will never know (e.g., was there a 2nd shooter on the grassy hill?).

A third way would be to license designs and manufacturing from an existing amp company and label it with the Yamaha name. As you know, this happens very frequently in the guitar and bass markets. Often in a deal like that, the licensee (e.g., Yamaha) would also make a cash infusion into the licensor (e.g., Ampeg/Loud) in exchange for warrants. Warrants are similar to stock options, but they are issued to outside firms instead of employees. Also, they tend to be senior documents and subordinate other options. Companies like to do this since it carries a lower risk profile. For example, if they later choose to exit a market (e.g., no longer make/sell amps), they can do so at a very low cost.

It could be that Yamaha approached Loud about a licensing deal and Loud told them they would sell all of Ampeg to them. So, option #3 turned into option #2. I was involved in a scenario just like that around 1990. A company wanted to license products from the division I was working for (a chemical company) and have us do the manufacturing. Our parent company told them, why don't you just buy Company X from us. They did and the rest is history.

Sometimes when I post something here, I assume that everyone has the same background as me and that is a very bad assumption on my part. Again, sorry about that.
 
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