KVR Audio

cryophonik · Post by **cryophonik** » Tue Mar 04, 2014 10:18 pm

http://bobbyowsinski.blogspot.co.uk/201 ... enter.html

Not a good time for large music companies, eh?

Hink · Post by **Hink** » Wed Mar 05, 2014 1:06 am

I was recruited by GC after leaving MARs music (had the job if I wanted it), when MARs went down (I was gone by then) many of my friends went to GC because it was right across the street basically. GC typically had very high employee turnover rates (but so did MARs), my manager was once a GC manager so we knew all about their ways. Extremly high draws for employees so making the fade as GC calls it is very difficult and if you dont make the fade you get zero commission (same with all similar sales jobs)...dont make the fade for 2-3 months and many were let go.

I moved onto another pretty large chain through-out New England, New York and New Jersey which is also out of business (Daddy's Junky Music), I hope this trend continues. I miss going for rides hitting the local music stores looking for used gear...I live close to tax free New Hampshire and it use to be a day long event every so often but then Daddy's got huge and it was like a few stores and Daddy's for used gear. It was tough to find good deals on used gear because Daddy's set the pace basically and smaller stores started starving. I long for the day of the family owned music stores again, but I suspect with the internet it will never be the same...stumbling on an unbelievable deal is mighty rare these days.

VitaminD · Post by **VitaminD** » Wed Mar 05, 2014 2:14 am

I suppose many people would use GC as their showroom to then buy it online at a less price. Much like people did Circuit City and BestBuy for electronics.

In their realm, CC folded and BB pulled their music instruments section and added a bunch of consumer merchandise (Cellphones, Tablets, Console video gaming systems/games) as they couldn't compete with the pricing online and the increased prices of having physical, brick-and-mortar locations.

I like the feel of walking into a GC and seeing all the instruments from guitars to drums to pianos.. all in one place. A playland for aural creativity and possibility. But you could cut the ego with a knife in there every time.. it was really thick... and I mean largely from the other customers. The employees were hit or miss in their service in my experiences.. from completely ignored to felt like a valued customer.. usually closer to the former than latter ime.

The service industry in this country is really really lousy. And by that I mean companies tend to pay terribly and don't seem to have any benefit for those on the showroom floor going above the general job description. It ends up simply being a job to get a paycheck and meet quotas to keep getting a paycheck and nothing more. Where is the job satisfaction in that?

I have a distaste for restaurants not paying a decent hourly amount for their service/wait staff too. Tips used to be for service above the job description not for simply doing your job.

These companies with a service oriented face to them end up being about the shareholders/bigwigs first, customer second, and employees third. And it is a mistake. People (both customer and employees) end up tending to get treated like cattle in this environment.

I think the only way you get people to walk out of your store buying merchandise is to have a strong customer service atmosphere.. not a thick, cheesy one.. but an intelligent, non-choking service experience... that is, to compete with Sweetwater, Musicians Friend, and Amazon. Not to mention being more competitive with pricing.

But I guess that is hard when your only employees (online) are box pushers in the warehouse and a handful of buyers and IT staff updating the site versus having to fork money for the service staff and pay for the physical store. Which could be the issue.. the likes of GC or BB seem to have a more expenses than a SW or MF yet, perhaps, want to keep the profits flowing up the chain at the same volume. Which leads to cutting corners at the stores... with the employees and the customers.

robogone · Post by **robogone** » Wed Mar 05, 2014 2:45 pm

Well they got royally screwed when Bain Capital bought them, as Bain bought high and then saw the stock crash. Mitt Romney wasn't at the helm when that happened, but it's certainly the result of his years at the company that makes them so predatory and so willing to immediately ditch any non-performing assets with little regard to what happens to them.

osiris · Post by **osiris** » Wed Mar 05, 2014 3:08 pm

That's very sad news. That's where I got to demo Omnisphere. I also loved going in the synth room and could get lost for hours....
The only plus side I see is store liquidation sales.

BERFAB · Post by **BERFAB** » Wed Mar 05, 2014 3:13 pm

robojam wrote:Well they got royally screwed when Bain Capital bought them, as Bain bought high and then saw the stock crash. Mitt Romney wasn't at the helm when that happened, but it's certainly the result of his years at the company that makes them so predatory and so willing to immediately ditch any non-performing assets with little regard to what happens to them.

Right, because Mitt Romney has a lock on the concept of how venture capital firms should maximize their assets. Before he came along, most venture capital firms (and corporations in general) were more or less operated like non-profits. Pretty much just giving money away to anyone who asked.

-B

BERFAB · Post by **BERFAB** » Wed Mar 05, 2014 3:16 pm

Isn't GC essentially a monopoly in the brick and mortar space in the US? Are there ANY other national chains left that have a brick and mortar presence?

I would think that this would already position them well for profitability. But I guess the pull of the internet is just way too strong.

So where can you go to audition a new 88 key hammer-action Motif? Or Nord, or Virus?

-B

Frantz · Post by **Frantz** » Wed Mar 05, 2014 3:23 pm

BERFAB wrote:So where can you go to audition a new 88 key hammer-action Motif? Or Nord, or Virus?

Note you said "audition" not "buy" which is the essence of their problem.

robogone · Post by **robogone** » Wed Mar 05, 2014 3:58 pm

BERFAB wrote:
robojam wrote:Well they got royally screwed when Bain Capital bought them, as Bain bought high and then saw the stock crash. Mitt Romney wasn't at the helm when that happened, but it's certainly the result of his years at the company that makes them so predatory and so willing to immediately ditch any non-performing assets with little regard to what happens to them.

Right, because Mitt Romney has a lock on the concept of how venture capital firms should maximize their assets. Before he came along, most venture capital firms (and corporations in general) were more or less operated like non-profits. Pretty much just giving money away to anyone who asked.

-B

No, because Bain is probably THE most predatory venture capital firm out there. Just doesn't surprise me that Romney started the company.

BERFAB · Post by **BERFAB** » Wed Mar 05, 2014 4:14 pm

Frantz wrote:
BERFAB wrote:So where can you go to audition a new 88 key hammer-action Motif? Or Nord, or Virus?
Note you said "audition" not "buy" which is the essence of their problem.

I routinely spend the bulk of my annual music budget at the GC behind Fenway Park in Boston, and before that, the Comm. Ave. location. For years, I've continued to buy Komplete/Ultimate and all the upgrades there, as well as other software packages, guitars, keys, and various and sundry recording devices.

In contrast, Sweetwater almost never gets my business because, oddly, they just haven't been able to compete on price. At least not on the stuff I buy.

I said "audition" because there are a couple of things I will never buy online: Suits, and musical instruments. I'm always amazed that there are guitarists that will buy guitars sight unseen online. Even if you buy the SAME guitar you may have auditioned elsewhere, each production model is slightly different, thus affecting tone and overall feel. But you guys all know this.

Cheers
-B

BERFAB · Post by **BERFAB** » Wed Mar 05, 2014 4:16 pm

robojam wrote: Bain is probably THE most predatory venture capital firm

You DO know what a venture capital firm is, right?

djanthonyw · Post by **djanthonyw** » Wed Mar 05, 2014 4:24 pm

I used to work at GC years ago and this doesn't surprise me at all. They treat their employees like shit. Not only is it nearly impossible to make any commission with how they set things up, but you have to do a lot of other things besides sell, like be the janitor and merchandising. I'm so glad I don't have to deal with that anymore. The only positive thing was that I made a lot of connections from my time there.

robogone · Post by **robogone** » Wed Mar 05, 2014 5:10 pm

BERFAB wrote:
robojam wrote: Bain is probably THE most predatory venture capital firm
You DO know what a venture capital firm is, right?

I do, and for the past 11 years I have read the finance pages of various newspapers and web sites as part of my job, so I do know a little about the finance world and the players.

Frantz · Post by **Frantz** » Wed Mar 05, 2014 5:15 pm

BERFAB wrote:I'm always amazed that there are guitarists that will buy guitars sight unseen online. Even if you buy the SAME guitar you may have auditioned elsewhere, each production model is slightly different, thus affecting tone and overall feel.

Guitar? I guess that's some kind of analog hardware. Don't they make plugins you could use instead.

foosnark · Post by **foosnark** » Wed Mar 05, 2014 7:45 pm

I don't mind seeing Guitar Center going down, as I'd like to think it would open up room for more small music shops. Except that:

-- small music shops often don't have that much selection, and they will be more likely to concentrate on guitars, bass and drums, and/or band/orchestra instruments for students, with less electronic gear.

-- GC is likely to take down several suppliers with it, as their sales will plummet dangerously in the short term. Even Fender is bracing itself for some major pain.

Guitar Center to be Acquired