Fender's Move To Sell Instruments Directly To Musicians Upsets Dealers

Discussion in 'Bad Dog Cafe' started by TeleAnthony, Mar 21, 2016.

  1. howlin

    howlin Tele-Afflicted

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    Who wants to know?
    That is from a year ago. And the outcome?
     
  2. ruger9

    ruger9 Poster Extraordinaire

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    subscribed
     
  3. Mr. Lumbergh

    Mr. Lumbergh Poster Extraordinaire

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    Business as usual.
     
  4. LutherBurger

    LutherBurger Friend of Leo's

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    Perhaps I'll finish it later, but I had to stop reading here:
    I wonder what really happened between this guy and Fender.

    EDIT: I found this http://www.msretailer.com/msr/fired-fender/, which Mr. O'Brien wrote in 2014. He makes some interesting points.
     
    Last edited: Mar 21, 2016
  5. Obsessed

    Obsessed Telefied Ad Free Member

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    I wonder how many guitars Fender has sold direct over a year's time?
     
  6. Zepfan

    Zepfan Poster Extraordinaire

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    Seems like Fender could sell them cheaper than the dealerships. Has that happened yet?
     
  7. Toto'sDad

    Toto'sDad Telefied Ad Free Member

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    I suspect the reverse is true. Fender is in my opinion taking this route out of frustration with companies that give fairly substantial discounts on Fender pricing, then run special discounts stating they are excluding Fender products and going ahead and honoring the discount at the store when you show up in person. The discounted prices that the guitars actual sell for has caused a price cap for a lot of Fender products that Fender simply can't overcome. At some point it's like buying watermelons for a dollar, and selling them for a dollar, to turn a profit you have to buy a bigger truck and make it up in volume. ;)
     
  8. Frank'n'censed

    Frank'n'censed Doctor of Teleocity

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    Jeepers, go figure...like growin' yer own meds & bypassing the pusher man or heaven forbid, building your own gee-tar!
     
  9. Buckocaster51

    Buckocaster51 Super Moderator Staff Member Ad Free Member

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    Does Mr. Fender sell those guitars at MSRP?
     
  10. BigDaddyLH

    BigDaddyLH Tele Axpert Ad Free Member

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    I thought Fender was doing this because of problems at GC, including worrying about GC tanking.
     
  11. Toto'sDad

    Toto'sDad Telefied Ad Free Member

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    I think that no matter what kind of discount they give the buyer direct, it has to make more money for Fender than going through a dealer. Brick and mortar stores are being replaced by direct sales from the manufacturer in lots of different areas. I'm surprised it's taken this long for Fender to start selling direct.

    Guitar Center and Musician's Friend are poised to eliminate the brick and mortar portion of their sales if the need arises, but as more companies start selling direct, maybe neither of those enterprises survive. We live in a changing world. My wifes phone service supplier was offering to sell her phones direct at deeply discounted prices. Just another example of the changing demographic of sales.
     
  12. tery

    tery Poster Extraordinaire

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    I don't know when Fender started selling direct ? A year ago in Feb . I bought a Cabronita at the $399 blowout sale price direct from Fender . It was set up by Fender prior to shipment at no charge .
     
  13. CrisHendrix

    CrisHendrix Tele-Afflicted

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    I think the bigger issue would be Fender selling guitars at a discount. As long as they stay at MSRP they're not undercutting their dealers. This is the same with any industry - what 3rd party seller would want to compete directly with a manufacturer, especially if the manufacturer started offering deep discounts? At that point the 3rd party seller would simply cut all ties with the manufacturer, so Fender better be capable of surviving without the help of any guitar shops selling their product if they want to start offering discounts directly to the end customer.
     
  14. Dave W

    Dave W Friend of Leo's

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    I don't think Fender cares what the dealership actually sells it for, so long as they don't advertise it for less than Fender's stated street price.
     
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  15. boris bubbanov

    boris bubbanov Tele Axpert Ad Free Member

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    Right. And they don't care internally even about that - they simply don't want to hear complaints from other dealers that some big-and-fast dealers are advertising below street price. Those small or constipated dealers are the ones these strictures are meant to protect.
     
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  16. String Tree

    String Tree Doctor of Teleocity

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    Why sell it cheaper when you can keep the Dealer Mark-up for yourself?
    Think about it.
     
  17. Mr. Lumbergh

    Mr. Lumbergh Poster Extraordinaire

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    That's how I came by mine as well.
     
  18. Toto'sDad

    Toto'sDad Telefied Ad Free Member

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    I think I may have not stated my case clearly. It is common knowledge that you can buy a Fender product for not only a discounted price at certain dealers, but get discounts that go even deeper. This practice has gone on so long, that hardly anyone save for someone who might have to have a guitar for a gig the same day will pay the stores going rate. In fact, I have heard of people buying a guitar, using it for a gig, and returning it during the refund period.

    This info is so widely reported that I cannot believe that Fender isn't aware of it. I personally think the offering of guitars direct to the customer is serving a warning to their dealers to stop discounting their products so deeply. Fender cannot raise prices to reflect the loss in dollar value over time if people know if they wait they can get it cheaper. Fender may be ready to simply give up that portion of their business and branch out into direct sales exclusively. If not today, maybe in the not too distant future. There would be some buckage from customers, but eventually just as they adjusted to the big box stores, they will adjust to a different form of sale from manufacturers, it's already happening in other business models.

    PS:

    I'm not advocating or endorsing the practice in any way, but the times are a changing. If you don't change with them, well you know the rest of that story. I have been the recipient of many good deals under the present situation, I don't want to lose that option, but I fear, if not me in my time, some of you will down the line somewhere.
     
  19. Informal

    Informal Tele-Holic

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    2 years or so ago, I went to Best Buy to get some better sounding speakers for my new truck, They were some middle of the road Polk audio speakers.
    Amazon had them for $99 a pair ... But I'm impatient, and the stock speakers were horrid.

    So I get there, and know they will be far more expensive, but at this point, a lot of major retailers were offering to price match Amazon, so I figure, if I can get a Manager to get somewhere NEAR the ballpark.. I'll eat it.

    Well, I get there, they have the exact same model in stock... for $199.00 a pair! I ask a salesman, "Can you pricematch Amazon?".... "No, sorry he say's"

    I ask to speak to the Manager, eventually he comes around, I repeat the question, and he laughs (seriously)

    Ok... well I'm not gonna get a pricematch, so I shoot for SOME sort of discount... Nothing... Not even 10% (which I would not have accepted anyway)

    So I told him, "Enjoy being the Manager of the place where people come to demo/look at etc.. the stuff they will go home and order online.....for as long as that may last"

    He scoffed, and walked away.

    I haven't been back since, but a buddy of mine told me they actually pricematch Amazon now?
     
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