Guitar Center may be in trouble

Welcome to ODJT
Wanting to join the rest of our members? Sign up today!
Sign Up

DJ Ricky B

DJ Extraordinaire
Mar 9, 2015
4,513
3,363
115
36
#21
I think one big problem that man brick and mortar retail businesses have is the large up front cost of RENT at many of these locations. With the current retail environment, profits on most products are low. These retailers have to pay a high rent, then labor, and all the other overheard to operate. Back in the 80s, and 90s the business formula was simple, and it worked out well in most cases. Today however, the retail business formula just doesn't really cover the expense of operations due to all of the competition from big box online retailers they have to compete with now. Selling intruments, and DJ equipment, and Lighting would require a lot of volume to cover the day to day expenses of running this business. Unfortunately, they can't rely on a heavy volume like they could in the 90s compared to now.

Last dozen times or so I patronized a Guitar Center, I could see a noticeable decline in foot traffic compared to 10 years ago.

Also, School systems do not push music programs and classes like they use to. Less students needing to go out and purchase instruments for music or band in school is another factor in GC's decline! ...I know local music stores relied heavily on students purchasing instruments or renting them back in the day.
 
Likes: Hank Davidson

Albatross

DJ Extraordinaire
Sep 7, 2016
1,445
3,273
115
#23
Article also mentions Gibson Guitars is close to bankruptcy as well .. their parent company (Gibson Brands) also owns Stanton and Cerwin Vega.
I don't follow the guitar market well but Cerwin Vega and Stanton might as well take the top spot for brands that haven't been able to stay relevant. Cerwin Vega could have been Bass Boss, but with a head start. And Stanton had a lot of spots that they could have been relevant to DJs and turntablists. But instead... if you Google "Stanton" the DJ company is the 8th (!!!!!) result.

I do think there is a market for brick and mortar retail. But I also believe in capitalism. If these brands were doing enough to earn our business they wouldn't be in this position. Whether consumer trends, business decisions, or other factors take them out... the market will determine what lives.
 
Likes: steve149

djtaso

DJ Extraordinaire
Apr 4, 2017
1,653
3,466
115
31
NJ
www.djtaso.com
#24
Most of these online companies also have brick and mortar presences as well. IDjnow actually has two. Guitar center never did enough to capture the online market. Another story of an old school business model that relied on a physical presence and failed to adapt to an online world. PSSL and Idjnow are tiny in comparison to guitar center... but in the online dj world, they probably do way more business than guitar center does. Likewise, im sure there are other companies online that have a better presence in other sectors like guitars or drums or production equipment than does guitar center.
 

MIXMASTERMACHOM

DJ Extraordinaire
Oct 16, 2011
7,221
989
115
60
#25
Most of these online companies also have brick and mortar presences as well. IDjnow actually has two. Guitar center never did enough to capture the online market. Another story of an old school business model that relied on a physical presence and failed to adapt to an online world. PSSL and Idjnow are tiny in comparison to guitar center... but in the online dj world, they probably do way more business than guitar center does. Likewise, im sure there are other companies online that have a better presence in other sectors like guitars or drums or production equipment than does guitar center.
I agree totally with what you said. It's about adopting to what people want and not staying stuck on how you want to do things. I hate texting. I would rather you call me and tell me what you want. Not many people call any more. They either text or use Facebook. So if that's what I got to do to keep in touch, so be it.

We've become a lazy society over the years. Why go to a store to shop, when you can stay at home and shop? That's another way that companies save money as well. They don't have to worry about paying a gas and electric bill. No paying for employees to physically be in a store. That can be cut down and just have people maning the phones for people who need help with an order or answer questions someone may have. That also helps with certain items having free shipping by the cost to run the company being lowered. It's also attractive to see an item that has free shipping and all you need to do is to wait for it to be delivered to you.
 

MIXMASTERMACHOM

DJ Extraordinaire
Oct 16, 2011
7,221
989
115
60
#27
In 10 years or so, most brick and morter stores will be gone....like cassettes...:cry:
I disagree. Some will be gone but not most. Record stores are obsolete because of downloading music is the norm today. You can go to Walmart or Target and buy CDs but those are about the only places besides Best Buy. Those small record stores in the neighborhood are finished. They may have one left in East Orange, NJ.

What is killing off some of those businesses is people shopping online instead of physically going into a store. I don't see a mattress store like Mattress Firm not having physical stores because the best way to check out a mattress is to lay on it. You can't do that online.
 

steve149

Urbane Legend
Sep 26, 2011
20,467
29,001
115
Prospect, CT
#28
Most of these online companies also have brick and mortar presences as well. IDjnow actually has two. Guitar center never did enough to capture the online market. Another story of an old school business model that relied on a physical presence and failed to adapt to an online world. PSSL and Idjnow are tiny in comparison to guitar center... but in the online dj world, they probably do way more business than guitar center does. Likewise, im sure there are other companies online that have a better presence in other sectors like guitars or drums or production equipment than does guitar center.
GC does have musiciansfriend.com (they own it) in addition to a few other websites (music123.com is one). But I agree they didn't do enough to stay relevant with the brick and mortar business. Probably should have moved to teaching DAW usage early on.
 

tunes4046

DJ Extraordinaire
Jul 24, 2008
3,910
5,593
115
48
Fennimore Wi
#29
I disagree. Some will be gone but not most. Record stores are obsolete because of downloading music is the norm today. You can go to Walmart or Target and buy CDs but those are about the only places besides Best Buy. Those small record stores in the neighborhood are finished. They may have one left in East Orange, NJ.

What is killing off some of those businesses is people shopping online instead of physically going into a store. I don't see a mattress store like Mattress Firm not having physical stores because the best way to check out a mattress is to lay on it. You can't do that online.
We just ordered a new matress online, guaranteed if you don’t like they will take it back including shipping it’s our 3 sleep number
 

MIXMASTERMACHOM

DJ Extraordinaire
Oct 16, 2011
7,221
989
115
60
#30
Article also mentions Gibson Guitars is close to bankruptcy as well .. their parent company (Gibson Brands) also owns Stanton and Cerwin Vega.
Cerwin Vega got bought out by them and the quality is not the same. The stuff they are producing is garbage. I heard a CV top in GC and it sounded like s***. For the price there was way better stuff and some cheaper than that which sounded twice as good.
 

steve149

Urbane Legend
Sep 26, 2011
20,467
29,001
115
Prospect, CT
#31
Cerwin Vega got bought out by them and the quality is not the same. The stuff they are producing is garbage. I heard a CV top in GC and it sounded like s***. For the price there was way better stuff and some cheaper than that which sounded twice as good.
I've never thought CV sounded great ... decent .. yes .. never great.
 

Ausumm

Day Late and a Dollar Short
Oct 21, 2008
9,799
9,082
115
54
Bethlehem PA
www.mikefoxx.com
#32
Likes: ittigger

Jeff Romard

Moderator
Staff member
Sep 4, 2006
16,655
10,795
115
48
Sydney, Nova Scotia
#33
Likes: ittigger

DJ Bobcat

DJ Extraordinerror
Nov 8, 2014
6,122
9,200
115
Oklahoma City
#34
Many years ago, my wife and I thought (when we retired) we might take some of our retirement savings and buy (or open) a little neighborhood music & book store. Then the big chains (like Barnes & Noble) came along... then Amazon. Kinda changed our world. It's much too risky to open a little business like that now. So I turned my love of music into a DJ business. And my wife turned her love of books into a... a digital book hoarding compulsion.
 
Last edited:

MIXMASTERMACHOM

DJ Extraordinaire
Oct 16, 2011
7,221
989
115
60
#35
I've never thought CV sounded great ... decent .. yes .. never great.
Their original stuff before they sold the company out was top of the line. The original Earthquakes which I have kick major butt. You just have to use an amp to make them work. Gibson has no clue about DJ speakers. Their expertise is in band equipment such as guitars and amps for the guitar to be heard.
 

steve149

Urbane Legend
Sep 26, 2011
20,467
29,001
115
Prospect, CT
#37
Their original stuff before they sold the company out was top of the line. The original Earthquakes which I have kick major butt. You just have to use an amp to make them work. Gibson has no clue about DJ speakers. Their expertise is in band equipment such as guitars and amps for the guitar to be heard.
They were loud (benefiting the horn loading), they were boomy and they were priced to be accessible, but they were never considered "top of the line". Small dance clubs liked them .. the better ones went with the JBL horn loaded subs.
 

MIXMASTERMACHOM

DJ Extraordinaire
Oct 16, 2011
7,221
989
115
60
#38
They were loud (benefiting the horn loading), they were boomy and they were priced to be accessible, but they were never considered "top of the line". Small dance clubs liked them .. the better ones went with the JBL horn loaded subs.
All I can say is there's a club that still uses those subs. I get that CV is not a choice you like. I was just saying the company that originally made their stuff was much better than the stuff with their name on it now.

One place that didn't last long was upstairs from Little Rascals in Montclair, NJ. They turned the upstairs into a club and they installed the big EAW sub that they sell in Musically Yours. That certainly is a monster sub. Not many subs can compete with that one. It didn't last very long because they wanted the DJ to play only Hip Hop and today's R & B all night. It quickly got shut down. I don't think it lasted a year..
 

MIXMASTERMACHOM

DJ Extraordinaire
Oct 16, 2011
7,221
989
115
60
#40
The type of music has very little to do with a business quickly shutting down.
Maybe where you're from but around here not many if any at all last very long when they allow a DJ play that kind of music all night long. It may start out good but eventually turn into a hot mess. After a while it will attract a certain crowd coming in the place. They come there dressed ghetto unfabulous. Around here they will eventually want the DJ to play the hardcore stuff.

All some owners will see is how much money they are making and don't care about who's coming in the place. Eventually it turns into a real mess and it's hard to recover from that once the place gets a bad reputation. The good people you want to see coming in there won't go near the place.

It's best to have a mixture like they did on Saturday nights at the Private Place Lounge. The DJ who played there regularly on that night was not allowed to play that kind of music all night long. He would play the good clean stuff in the beginning but at a certain time he had to switch up and play house music and some club classics. That had a nice mixture coming in the place and not just a bunch of young ones.

Trust me I've seen it happen too many times around here.
 
Likes: DJ Bobcat