Tony Burns
Member
Visiting Elderly is always fun and worth your time !
How does the one (Asian production) have anything to do with the other (USA trouble keeping up)?So you buy a guitar company right here in the USA, but decide you want to borrow a bunch of money, invest that borrowed money and go the mass guitar production route in Asia?... Then, the USA Guilds having trouble keeping up with the few domestic models they do build....
My take is that is just not the business model they chose to operate under. There are many goals in operating a business. The most common one is making the biggest possible profit. Less common, but feasible, are offering the best something that can be made and at a cost that the people making it can live comfortably. Other businesses have a product that someone thinks will change the world. And so on.Why can't a company like Guild build guitars to order?
I actually do think the Collings business model would work well for Guild. I know throughout the years here someone expresses their wishes for their dream Guild from time to time. Even in this thread folks are wishing Guild made a true OM. I don't see any reason Guild couldn't do the same. In fact, if I could order a Guild dread and have it built to my specs, I'd buy a new one in a heartbeat. I think a lot of people would.My take is that is just not the business model they chose to operate under. There are many goals in operating a business. The most common one is making the biggest possible profit. Less common, but feasible, are offering the best something that can be made and at a cost that the people making it can live comfortably. Other businesses have a product that someone thinks will change the world. And so on.
Before CMG bought Guild my understanding is that they had successfully offered a mass market line of classical guitars made overseas and an almost boutique line of classicals that were high end. I think they were made in USA but may have been made elsewhere. I understand for certain types of instruments, made in Spain is more highly sought than made in USA. So CMG buys Guild and they just expand on the business model that already works for them. They get low and high end acoustic guitars made in various places and they get viable electrics to boot.
So CMG has just chosen to operate Guild in a particular way that has worked for CMG in the past and that success did not need nor require custom builds to order.
To veer slightly, does the Collings model seem likely to "work" for the Guild brand? I'm going to say no if Guild's continued success depends upon selling all of the built to order instruments they can get orders for and make. I base that on my perception that the Guild brand still stands for "bang for the buck". So anyone who is willing to spend $5000+ on a Guild guitar is going to be constantly defending their decision. For people already comfortable with the brand and image there is still the fact that new Guilds compete with used Guilds (at the "higher end") and new Guilds don't always win. So a "build to order" Guild strategy is going to be, at best, a small portion of the revenue stream and something Guild does to mold the brand image and not just for profit.
IMO. YMMV.
A little overextended I'd say. Myself and others wish Guild had never started overseas production in the first place, but hey, it's their company. If they want to build guitars in Mexico, in Asia, or Lord knows where else, that's Guild's business, I just think they'd be better served by staying home and concentrating of the folks who made the Guild name what it is/was in the first place. Another poster mentioned his desire for OM's, but the only OM's Guild makes anymore are made in Asia if I'm not mistaken. I just think, and have thought for several years now that Guild is all over the map, and not really concentrating on or putting all their efforts into anything.How does the one (Asian production) have anything to do with the other (USA trouble keeping up)?
take
A little overextended I'd say. Myself and others wish Guild had never started overseas production in the first place, but hey, it's their company. If they want to build guitars in Mexico, in Asia, or Lord knows where else, that's Guild's business, I just think they'd be better served by staying home and concentrating of the folks who made the Guild name what it is/was in the first place. Another poster mentioned his desire for OM's, but the only OM's Guild makes anymore are made in Asia if I'm not mistaken. I just think, and have thought for several years now that Guild is all over the map, and not really concentrating on or putting all their efforts into anything.
West
Oh for sure. And I still say the Collings' business model isn't a bad one to emulate. You never keep any inventory, establish orders up to a couple of years out, which essentially is job security. You know you've already sold every single piece you build. You'd establish retailers to take your orders, and also to order directly from you. There's no wasted motion and little wasted money. It's very efficient.I think the overseas thing created a branding identity crisis to some degree. Is Guild on the same level as Gibson, Martin, Taylor and Larrivee . . .or Eastman and Blueridge? Granted, some of the brands mentioned are making guitars in Mexico, but I think the perception of that is different than off-shore manufacturing. What's the difference between and M20 and an M120. We know. But many folks are probably confused.
Godin recently started making some models overseas and it freaked out folks . . . because their business model rests heavily on being the best deal in North American made guitars. Now there are literally Art & Lutherie parlor guitars made in Quebec and Art & Lutherie parlor guitars made in Asia. The pandemic shutdown forced their hand to a large degree, but to me, it's still a big hit on their branding.
I feel similar about Guild.
I don't think Guild needs an OM, they already have the F30, the F30r, the F30rl, the F30r-ls, etc. That's the brand. Paul Simon, Mississippi John Hurt, and Taj Majal all chose the F30 or other OM models
Agreed!Oh for sure. And I still say the Collings business model isn't a bad one to emulate. You never keep any inventory, establish orders up to a couple of years out, which essentially is job security. You know you've already sold every single piece you build. You'd establish retailers to take your orders, and also to order directly from you. There's no wasted motion and little wasted money. It's very efficient.
West
Maybe, unless of course there's something very specific that you want, which was my case. Having said that, the one thing I do notice about the Collings' business model is that with so relatively few guitars on the new market, it sure puts a premium of the used Collings guitars, but again, provided you can find specifically what you want given the many options they offer.If you order what you want and have to wait, you'll just find what you want in a store and buy it. Few will want to wait. We are a culture of instant gratification. Guild does build what you want. Every dealer orders what they know will sell, and some slow movers so they have a good selection, even if they linger. Hey Guild, make us some more slow movers will you? Not going to happen. When they have dealers tell them three or four people have asked about them this week they might think about it when they have excess D 20 or D 40 inventory.
I hear what you're saying Frono, and I paid a bit north of $5000 for mine, but I don't see any need to try to rationalize that expense to anybody. In fact, at our age, for the first time I looked at that purchase like a once in a lifetime purchase, which it is. I really didn't take cost into account at all. I simply asked myself what options I've always wanted in a guitar and ordered it, with no regard to value, or resale, or what anybody thinks, other than me. And I'm not trying to sound snooty, it's just the way it was. I have no regrets, in fact it's more like a dream come true.My take is that is just not the business model they chose to operate under. There are many goals in operating a business. The most common one is making the biggest possible profit. Less common, but feasible, are offering the best something that can be made and at a cost that the people making it can live comfortably. Other businesses have a product that someone thinks will change the world. And so on.
Before CMG bought Guild my understanding is that they had successfully offered a mass market line of classical guitars made overseas and an almost boutique line of classicals that were high end. I think they were made in USA but may have been made elsewhere. I understand for certain types of instruments, made in Spain is more highly sought than made in USA. So CMG buys Guild and they just expand on the business model that already works for them. They get low and high end acoustic guitars made in various places and they get viable electrics to boot.
So CMG has just chosen to operate Guild in a particular way that has worked for CMG in the past and that success did not need nor require custom builds to order.
To veer slightly, does the Collings model seem likely to "work" for the Guild brand? I'm going to say no if Guild's continued success depends upon selling all of the built to order instruments they can get orders for and make. I base that on my perception that the Guild brand still stands for "bang for the buck". So anyone who is willing to spend $5000+ on a Guild guitar is going to be constantly defending their decision. For people already comfortable with the brand and image there is still the fact that new Guilds compete with used Guilds (at the "higher end") and new Guilds don't always win. So a "build to order" Guild strategy is going to be, at best, a small portion of the revenue stream and something Guild does to mold the brand image and not just for profit.
IMO. YMMV.
I would put Eastman against any high volume manufacturer US, Mexico, Eastern Europe, Canada, Pac Rim, etc.. They are just frigging dynamite and in the last 6 or 8 years have only gotten better.. They used to be the best MIC guitars you could find. Now they are one of the best mass-produced you can find period. Granted if this were a debate, there is no factual evidence to back up my remarks. Just a strong opinion based on my experience.I think the overseas thing created a branding identity crisis to some degree. Is Guild on the same level as Gibson, Martin, Taylor and Larrivee . . .or Eastman and Blueridge?