So, If You Owned Gibson...

Uncle Vinnie

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You bought a Mega Millions lottery ticket and won $500m, you bought Gibson lock stock & barrel, paid off all its debts, and now you're the sole owner with dictatorial powers.

What would you do? What would you change?

(Posted on another Gibson forum)
 

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Uncle Vinnie

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LOL! Well, there is that.

C'mon. You know what I mean. Just brainstorming here.
 

Cjsinla

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So, you are assuming that they only owe $500 million.

“The company has $145 million in outstanding bank loans that will come due on July 23 and another $377 million of outstanding secured notes maturing on August 1.”

You’d still be $22,000,000 in the hole.
 

Les Paul Newb

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In the USA line I would only make a LP standard, studio, & jr. Other models like a special would be, well, "special" and only come around every few years.

Quality would be paramount.


Edit: guitars would be non-weight relieved, long tenon, 50s wiring, & bone nut.
 

Uncle Vinnie

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So, you are assuming that they only owe $500 million.

“The company has $145 million in outstanding bank loans that will come due on July 23 and another $377 million of outstanding secured notes maturing on August 1.”

You’d still be $22,000,000 in the hole.
I frankly didn't know they owed that much, but I think you get the drift of my question.

How would you as a guitar player, not as an accountant or an MBA from Harvard, run that company?
 

Platte City Paul

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Merg gibson and epiphone under the Gibson headstock. Epi becomes the “Mexistrat” of the Gibson line. Adopt the 14 degree Epi headstock angle. Bunch of other ideas but I’m out and about.
 

Cjsinla

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I frankly didn't know they owed that much, but I think you get the drift of my question.

How would you as a guitar player, not as an accountant or an MBA from Harvard, run that company?
I know, I was messing with you. The problem is that the guitar market is shrinking every year. You would have to run the company as a smaller operation, you couldn’t have stockholders or anybody looking at your bottom line because profits will be shrinking over time.

That said, I’d probably work at producing copies of the guitars that put the company on the map, from the golden years of the 50’s and 60’s. That means no more HP line.
 

2017Classic

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I think that people underestimate the amount of money it takes to build the classic, traditional and standard models with a gloss finish. The price difference between a studio and standard reflects having no binding and the thicker body. Having a long neck tenon would also be reflected in a higher price as well. American craftsmanship demands a premium in labor costs, guitars are no different.
 

mudface

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Well I hate to say it,......layoffs......reduce production numbers.......streamline the product line.....sell off what isn't needed.... develop a true Custom Shop.
 
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azzapeel

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Weed out employees who don't stick to quality issues.
Offer different finishes on guitars.... nitro clear coat/ poly/ satin etc. Cut down models to just studio. Juniors. Melody makers. Classics. Traditional. Standard. Customs. Historic reissues. Offer 60s ...50.... asymmetrical necks on all models.with or without nibs. Any pickup combo in any guitar. Like a build it yourself kit. Then offer it all again in left handed model. Prices would vary for what you wanted.
 

MrYeats

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On a more serious note, I would strip the production plant down to bare necessities , Start from the ground up with production of mid price guitars, mandolins, etc... Then offer a build your own to compete with Fender and keep it simple till the finances started into the black, then slowly make improvements.
I would make it so that the Gibson would be sought after and not flood the market with stuff that won't sell.
 

Left Paw

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So, you are assuming that they only owe $500 million.

“The company has $145 million in outstanding bank loans that will come due on July 23 and another $377 million of outstanding secured notes maturing on August 1.”

You’d still be $22,000,000 in the hole.
Yeah, but you would have enough equity in the company to borrow that much. And you could borrow more to develop some 'new products' that the guitar buying public would surely love.
 

Leña_Costoso

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1. Move to liquidate, or at least divest most allied lines,, making Gibson guitar companies the core of business.

2. Simplify line of guitars.... Offering special runs on occasion.

3. Diassemble the arrogant strongarm dealer and endorsement policies. Open up small shops again.

4. Be responsive to customers.

5. As can be afforded, promote music programs for kids.
 




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