Gibson cutting jobs

[g6120]

Between me you and a lampost maybe its time to look at the cost to consumers and what ....

fender has price increases up to 30% for 2009

Im not certain this has been posted here but thought i would share this information along .



Nashville-based Gibson Guitar Inc. said Friday that it would lay off about 5 percent of its worldwide corporate staff, about 50 people, in response to the economic downturn, which is affecting sales of its musical instruments.




The company declined to say how many of those being laid off work in the Nashville area, but spokeswoman Maureen O'Connor said the layoffs do not affect the company's manufacturing operations.
"We regret that the company had to reduce our work force to meet the economic challenges faced by our industry," Gibson Chief Executive Officer Henry Juszkiewicz said in a statement.
"We believe our streamlined team of talented people will continue to serve our valuable customers in an increasingly excellent fashion," he said. "We expect to continue to build the finest instruments in the world and lead the industry in quality and innovation."
The company said that worldwide sales of musical instruments in the product categories it competes in have dropped more than 20 percent in the first quarter of 2009, compared with the same period last year.
Gibson produces a variety of stringed instruments, including acoustic and electric guitars, mandolins and banjos, and has been headquartered in Nashville since 1984.
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[thearabianmage]

"We expect to continue to build the finest instruments in the world and lead the industry in quality and innovation."

Epic fail. And since when have Gibson been innovative? The V, SG, LP, and 335 were all designed between 30-50 years ago. What have they done since? Guitars that tune themselves? Failtastic.

I won't even go into my rant about overpriced instruments. Surely Gibson are just fine considering the profit margin they've made on instruments that - including labour - would have probably cost around £200-300 to make.

And Fender's price increase . . . They shot themselves in the foot. . . Think about it, if a company is worried about sales, the least logical thing to do - in terms of sales (not profits) - is to put your prices up. Then, in the current economical climate, people who couldn't afford it to begin with really can't afford it now.

Guitar companies make bijillions. Especially Fender and Gibson (a 20% decrease in sales is nothing compared to the hundreds of companies that have gone bankrupt. They should just be quiet right now. Absolutely quiet.

[just strum]

Remember that Gibson's insurance cost have gone up dramatically. They now have to insure their product against lead paint content, variety of possible other chemicals in their product, the possibility of faulty wiring that could result in electrocution...

On a serious note, I wouldn't criticize a company for striving to make a profit, last time I checked, that is what it's all about. The companies that don't turn a healthy profit, don't seem to stick around a long time. Then again, they could go before congress and ask for billions.

[thearabianmage]

On a serious note, I wouldn't criticize a company for striving to make a profit, last time I checked, that is what it's all about. The companies that don't turn a healthy profit, don't seem to stick around a long time. Then again, they could go before congress and ask for billions.

Making money is the point of business - but at what cost? Where are the ethical lines? How can the owner of Gibson sleep at night knowing that he made a guitar for $200-300 and sold it for $3,000? If he made it himself with his own sweat and blood, that's one thing. But he didn't, the body and neck were cut out by machines, some guy slapped frets on it and put a few wires in it, and then they have the audacity to brand their guitars as 'hand-made'.

Gibson cut corners (like in the ways you mentioned). They overprice their products. A CTS potentiometer is £4 here, but a Gibson CTS is £9. Same exact product. It's capitalism gone mad and is also a factor in the current economical situation that has hit the US and completely engulfed the UK. Greed. They put the prices up because they know people will pay it. Greed. They cut corners to save money thus increase profit margin. Greed. Everything makes perfect sense, expressed in dollars and cents, huh?

Now - yes - this comes down to the consumer being informed enough in their decisions to make the right choice - but people rely on Gibson to rock out. How can they rock out when they are electrocuted or lead-poisoned?

Not everyone has time to do hours of research to get the best deal. So you say if they are willing to spend $3k, they should, but even if they did, why should they? Why can't they just trust the company they buy from? Why can't the company be trusted to begin with?

Oh well. . . I'm not trying to bring capitalism down or big up socialism or communism or anything, but it is ridiculous. . .

All I know is that I'm not buying a Gibson anytime soon. . .

[just strum]

All I know is that I'm not buying a Gibson anytime soon. . .

But a lot of people are and until that changes, there is nothing that would give them reason to change their business practices and pricing structure.

[thearabianmage]

But a lot of people are and until that changes, there is nothing that would give them reason to change their business practices and pricing structure.

And it's exactly that which incites my (hopefully controlled and articulate) anger. Because they can: they will.

[just strum]

And it's exactly that which incites my (hopefully controlled and articulate) anger. Because they can: they will.

And that's my point. They can because we allow it.

I would love to see just what their profit margins really are. The guitar market is so competitive that I would think price increases would be avoided unless it is something that is impacting all guitar manufacturers. Since Gibson is not the only one raising prices, I think there is a market cost impact. I haven't monitored all manufacturers, but I would think that most are either following Gibsons lead or Gibson is going with the flow.

I worked at a place that would purchase an item for $500, put an inspection stamp on it after a visual inspection, and then sell it for $25,300. Based on that, the guitar thing is just chicken feed.

[thearabianmage]

I worked at a place that would purchase an item for $500, put an inspection stamp on it after a visual inspection, and then sell it for $25,300. Based on that, the guitar thing is just chicken feed.

You hold a couple good points. . . I'll just retire back to my el cheapos. . .

[just strum]

You hold a couple good points. . . I'll just retire back to my el cheapos. . .

Hey, you don't see a Gibson in my bunch. You don't even see one that was purchased new.

[g6120]

Gibson is no different than alot of companies out there , its about the profit margin and i believe most want thier products to be of high quality .

Its just that we all know what the world economy is at this point and most people are watching thier spending because things are unstable its no big secret .

Some corporations i guess are a bit worried about the not so big paychecks they might recieve so they inflate the cost for consumers and broaden thier market to help web potentail buyers .

Then they cut jobs and the existing workers pick up the slack .

[red]

Gibson is no different than alot of companies out there , its about the profit margin and i believe most want thier products to be of high quality .

No, they don't mind their products being high quality. Quality is always a secondary concern for probably all commercial enterprises. If you think differently, look at the budget a medium to large company allocates for PR, marketing and sales vs. actual product development.

[Tig***]

I have to question Gibson's recent marketing and product development practices over the last year or so. They keep coming up with some instant fail guitars, like...

The recent Gibson Hendrix guitar mega fail:


The $4000 robot guitar:


The really good acid induced Zoot Suit SG:


The Raw Power series:


I'll stop before I loose my stomach contents!

[mrmudcat]

I dont usually get involve in these type of discussions but ill add my 2 cents.

The robot guitar was a failure why???? It was innovative has helped with some of my limited motion/mobility and can tune to other tunings fairly quick and can intonate itself. I have yet to have any problems period..how can one say it was an instant failure if they have not owned or atleast played one...nuff said

I do see a potential problem in the future with the electronics under the saddle /bridge do to sweat......but then ill just frakenize it

[mrmudcat]

Tig minus the fist pic (hendrix) here lies the problem with innovation of say gibby or fender. The traditionalists will hate every new model or any new version of an old design.Some like me are open to various versions of the ol stand by's. Some new models reverse v,the eye are appaling in my opinion but the raw sg/lp I will purchase soon.I like a maple neck

[Tig***]

The robot guitar was a failure why????

It was a business failure. I know it takes a few swings to hit a home run, but they are striking out a bit too much lately. -The O/P was about Gibson laying off employees due to business slowing down, etc. I brought up a few of their recent developements that have failed to sell, which I believe is a big reason Gibson isn't doing well. As in, they've done it to themselves.

It isn't just about traditionalists not liking newer designs (nothing will please some peep's!), but consumers not liking what Gibson is pushing out the door in general with their latest offerings. When an economy is tight, you have to be wise in what you develop and produce. I feel that Gibson hasn't done their research before designing and producung some of the newer products. They appear out of touch and misguided. I'll bet they do a little re-org at the top of some of their departments soon.

The Dark Fire concept is actually pretty cool, but how much market is there for it at that price?

[markb]

I think we all know who should be losing his job at Gibson

But, to put Gibson's problems in context, it pays to remember that the original Les Paul didn't exactly set the world alight. Despite going through some cosmetic changes to try to boost sales it was still discontinued after about 5 years of production. Not a long time for those days.

I think the Robot has failed because those who need it largely can't afford it (or justify the expense, which is the same thing) while those that can afford it mostly don't need it. There are, of course, exceptions to this. Add a shrinking economy and...

[mrmudcat]

Gibson's HD.6X-PRO Digital Guitar and the Gibson Robot Guitar have been some of the most innovative products to come down the pipe in 70+ years. What factual supportive evidence is there to backup the statement it was a buisiness failure(amount of sales) The zoot and the raw listed as instant failures yet they are new to market and I find it presumptive to say they are failures(yet)

Anyways im out as I find these discussions go round and round full circle.

[mrmudcat]

This Gibson announcement was made in march???


All replies are of my opinion nothing more or less and no disrespect is/was intended

[bigG]

I'll just add this and shut up:

In today's world, money, the bottom line, has become more important than people...human beings. Money has become the be all and end all. Everything and everyone else is secondary. That's all.