PMT and Gibson Guitars - Big news and changes

guitars4you

Big news at The Guitar show was that PMT a have relinquished their dealership agreement with Gibson - one of the UK's largest dealers so that is a major statement - From what you gather at the show it is the usual issues with Gibson's expectation from the dealers and the pressure they apply - have to order guitars you don't really need/want, that don't sell, hence absorb good profits from good sales - The regular dumping etc by Amazon and other reason's - But to have one of the UK's largest outlets making that decision is big news

TTony

I heard a rumour at the show

Strangefan

The end is close for this incarnation of gibson, let's hope it's a quick death and a hasty resurrection lead by someone who actually gives a shit about the staff, customers and guitars. 

impmann

TBH it's more likely that Simon and Terry are just reverting to type... if you've ever had dealings, you'll know what I mean. 
I bet Guitar Guitar are laughing up their sleeves at this.

impmann

Oh and if anyone is daft enough to think that PMT refusing to deal with Gibson is going to harm Gibson, then you are delusional!

Nitefly

Very interesting, that - I was in Dawsons Manchester last Friday, and the Gibson / Epiphone racks looked strangely bare - only about half of what they usually have.  Cheapest 335 was over £3k...

ennspek

Never used PMT. I doubt this will make huge shockwaves in the Gibson boardroom to be honest.

Bridgehouse

I am Nostradamus and I claim my £5

darthed1981

I was wondering why my local PMT had so little Gibson/Epi in.

The price rises and currency shifts this year from Gibson and Fender are mental, A LP Standard, even an "HP" is NOT worth £2700, IMO.

As beautiful as the "real deal" is - "American made" is at risk of pricing itself out of the market for the hobby guitarist, given the suprising standard put out for a few hundred ££ by Chinese manufacture.

Voxman

One swallow a summer does not make.  But if other large outlets should follow suit...who knows.

frictionfraction

It's always an interesting one when this happens.  Ultimatly brands still rule the guitar market and fender and Gibson are pretty much miles out in front on this despite Gibson seeming to have some sort of self destruction complex.   I dont see it lasting if the customers want Gibsons then that's what you need to get them in the shop if you are a large chain 

Bridgehouse

As I said a few weeks back - it only needs Guitar Centre in the US to fail to solve their $1.5bn debt problem by the end of this year, and 'bang'

sweepy

All the US brands seem to have had a price hike, I was in Guitar Guitar in Birmingham a week ago and the PRS and Gibson definitely seem to be significantly dearer

frictionfraction

Bridgehouse said:

As I said a few weeks back - it only needs Guitar Centre in the US to fail to solve their $1.5bn debt problem by the end of this year, and 'bang'

This is the more interesting situation - then the brand name can be sold by th administrator and start again... 

guitars4you

Any PMT staff etc who are involved on FB, or indeed regular customers who can pass additional comment

Bridgehouse

frictionfraction said:

Bridgehouse said:

As I said a few weeks back - it only needs Guitar Centre in the US to fail to solve their $1.5bn debt problem by the end of this year, and 'bang'

This is the more interesting situation - then the brand name can be sold by th administrator and start again... 

With the amount of money they owe both Fender and Gibson written off (or 1c in the $) - bang goes their cash flow. Rumour is that it would be unrecoverable for Fender.. and with Donald in, their Mexican plant looks a bit ropey too.. naughty Fender shipping good American jobs over to those nasty latinos....

richardhomer

I've always been surprised how many Gibson guitars my local PMT (Salford) had in stock - and how high up the range they went as well. I've seen people trying out Studios and the like - but I've never seen someone playing an Historic in there.

This now leaves Dawson's as the only Gibson dealer in Manchester. How times have changed since I was a kid - you could buy one in pretty much every music shop. Admittedly they may have only had one Gold Top LP Deluxe in stock - but they were widely available.

guitars4you

Gibson have a $375 million payment on a debt based bond to pay in just 15 months or so - So that will be an interesting build up as and when, to see how it pans out - The debt is not an issue providing the funds are there to make appropriate payments, which of course is based on a successful trading pattern

Certainly not a nail in the coffin from PMT towards Gibson - but a continue and serious trend, following Guitar Village barely 4 months ago  - Yet to walk into some large stores in major cities and not be able to buy a new Gibson Guitars (once existing stock has gone) is a major statement

Sure PMT will have to look in other areas to re-invest such funds, be it guitars, amps, hi-tech etc etc etc,  - It may well have an impact on revenue, certainly in the short term, as you can't exactly replace Gibson Guitars with another major guitar brand - Yet dead wood on models you don't really want to buy, but have to commit towards, as part of a dealership program, will probably have little impact on the groups overall profits - So with strategic planning I'm sure it will have little overall impact on PMT's figures and certainly far less hassle for them

cacophony

wonder how thomann 'get on' with gibson?. that would be interesting...

Bridgehouse

cacophony said:

wonder how thomann 'get on' with gibson?. that would be interesting...

Now if they stopped, the bell really would be tolling..

dindude

Gibson will be reincarnated within the next 2-3 years is my prediction - just look at their core 2017 range, designed for manufacturing convenience (no-one wants a P90 pickup or anything other than a slim-taper neck in 2017?) and price-point rather than what people want, a very steep slippery slope that.