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Thread: Dark days at Gibson

  1. #1
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    Default Dark days at Gibson

    Came across this interesting article. I'm standing by waiting to see where it goes.
    http://nashville.bizjournals.com/nas...l?b=1267419600

    Garry Chaffin bought his first Gibson guitar when he was 13 years old.

    He worked all summer for his father before striding into a Cookeville store with $189, nearly all his earnings, and taking home his prize. He had no money for a case, and worried constantly about the instrument’s condition.

    “I used to polish that thing every day,” Chaffin, 58, said, reminiscing in his Nashville law office on a recent afternoon.

    The image of Gibson Guitar Corp. and other iconic companies, like the sheen of Chaffin’s first instrument, are subject to all sorts of threats. And the Nashville manufacturer has faced them from many directions in the past year — from the tough economy to scrutiny by federal authorities to accusations of price rigging.

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  2. #2
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    The rest of the article is for paid subscribers?

    Anyhow, it all started when Gibson Guitar stole a photo from my website...
    The Law of Gravity is nonsense. No such law exists. If I think I float, and you think I float, then it happens.
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  3. #3
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    Heh. My first professionally published photo was stolen off my uncle's Facebook..
    Electrics: '07 Gibson Les Paul Classic Antique, Oscar Schmidt OE40N Hollowbody aka. "Fat Girl"
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  4. #4
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    This from the Gibson site:
    http://www.mandolincafe.com/news/pub...s_001176.shtml

    Nashville, Tenn. — A note to Mandolin Cafe visitors: Gibson Guitar Corp. has sent to media outlets this formal statement reproduced in full, below. We have not edited the statement nor intend to comment or hold any kind of official or unofficial position on it. We are simply making the information available as intended. Please note when the term Gibson is used this is representing the umbrella corporation. This site typically deals only with Gibson Original Acoustic Instruments Division.

    OFFICIAL STATEMENT:

    Gibson Guitar Corp. is one of many manufacturers and organizations in the Musical Instrument Industry that has been named a party to approximately 30 lawsuits that claim they conspired to artificially increase and fix the prices of musical instruments. These lawsuits stemmed from an investigation by the Federal Trade Commission that lasted several years and was not pursued by the FTC after they concluded the investigation.

    The allegation that Gibson participated in any scheme to artificially inflate or fix prices is wholly without merit. Gibson strives to provide customers with the best musical instruments in the world and to build lifelong relationships with musicians who choose the Gibson brand.

    Gibson believes in the American system of justice and believes that through that system, the claims against Gibson will show to have no merit. Unfortunately, that process will undoubtedly result in high costs to many organizations that, like Gibson, strive to provide music lovers everywhere with quality instruments, and aggressively compete on price. They provide true and accurate information to their consumers, continue to innovate and provide great value in product offerings overall.

    Additional information:
    Gibson Guitar Corp. web site

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  5. #5
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    Quote Originally Posted by Spudman
    Unfortunately, that process will undoubtedly result in high costs to many organizations that, like Gibson, strive to provide music lovers everywhere with quality instruments, and aggressively compete on price.
    Read: if they are found guilty of price fixing they won't be able to adjust the prices because they have to pay off their massive legal fees.

  6. #6
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    He who lives by the lawsuit...
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  7. #7
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    How does a company like Gibson fix prices? It's their product................they can name their own prices..............

    I'm just a simple guitar player. Perhaps some learned economics expert here can clear this up for me?
    Guitars: 2008 Gibson SG Classic, 2006 Gibson Les Paul Standard LE, 2002 Gibson SG Supreme, 2001 Gibson Les Paul Studio Plus, 1996 Les Paul Studio Gem, American Deluxe Double Fat Strat, Bluesville "Super" Strat Copy, MIK Fender "Limited Edition" Tele, JD Bluesville "Night Pilot", Yamaha AES 820, Steinberger Spirit GT Pro, Taylor 355CE, Ovation 1897 Adamas, Ovation CC057 Celebrity

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    Quote Originally Posted by Plank_Spanker
    How does a company like Gibson fix prices? It's their product................they can name their own prices.............
    This is just a musing, but I think cartels are illegal because it's when a bunch of companies in an industry get together and decide to inflate prices so that there aren't really any viable alternatives. It's as if Toyota, Honda, and every other car manufacturer got together and decided that they wouldn't sell a car for under $50K -- suddenly if you wanted a car, you'd have to give it to one of them.

    I'm not saying that's what's happening here; I don't know anything of the situation. I do think that's one way in which price fixing can be bad, however.
    Quote Originally Posted by Spudman
    Does anyone read the original post?
    Guitars: Gibson LP Studio, MIA Fender Precision, Carvin C350
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  9. #9
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    Lets face it, you are paying for a name, doesnt mean that their guitars are any good or put together well. My brother recently brought a Fender tele and the frets needed to be re-done , the action wasnt that good. All fixed but at a cost.

  10. #10
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    Hard to say without seeing the suit itself, but it could even be something like artificially inflating the prices of some woods to keep it out of the hands of some buyers/builders.

    Remember: being a monopoly isn't illegal. Acting like one is.
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