The New Gibson CEO is...

ehb

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What folks see on all the onlines is not list though... It is MAP which is a much much narrower margin...
 

dissaffected

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Gibson's new CEO is.....well...new. Let's give him a chance to map a strategy. I am more interested in where he is going than where it went bad. I want to remain open minded until facts start coming in.
 

fleahead

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I don't have the numbers, but, it just seems that the Zoot Suit SG and robo tuners were a drop in the bucket compared to the other non guitar related ventures. Every drop counts, but.....
Yup, and a million here and two million there do add up. In the mid '90s we were to get new software for the entire company. HJ was quite unreasonable in his demands so much so that Microsoft, who was working on this project pulled out and was stiffed a very large amount of money. But HJ was firm in his demands so he put his own IT on notice that it was up to them to do the impossible - even as it was WAY over their capacity and ability to accomplish that.

I was in Nashville on March 29th... talking to a friend at corporate.... she was freaking because HJ demanded that the new software be finished and ready to go the following Monday. Two and a half days away.

So, that Monday (April Fools day to be ironic) the software was launched. And failed within minutes. And for an entire month, no one could generate orders, conduct manufacturing, AP and AR, view inventory..... the entire world-wide Gibson operation was shut down.... for a month! Well over a million and a half dollars lost.... and the company had to go back to the DOS based system.

This kind of thing happened regularly, whether it was screwing up a product line, trying to sell things that were unpopular/unsellable or flat out wasting money in cockeyed ideas. That was before he even got into the non-musical instrument disasters.

Gibson's failing took a good 20 years to get to, and he did a great job of it.
 

freebyrd 69

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Yup, and a million here and two million there do add up. In the mid '90s we were to get new software for the entire company. HJ was quite unreasonable in his demands so much so that Microsoft, who was working on this project pulled out and was stiffed a very large amount of money. But HJ was firm in his demands so he put his own IT on notice that it was up to them to do the impossible - even as it was WAY over their capacity and ability to accomplish that.

I was in Nashville on March 29th... talking to a friend at corporate.... she was freaking because HJ demanded that the new software be finished and ready to go the following Monday. Two and a half days away.

So, that Monday (April Fools day to be ironic) the software was launched. And failed within minutes. And for an entire month, no one could generate orders, conduct manufacturing, AP and AR, view inventory..... the entire world-wide Gibson operation was shut down.... for a month! Well over a million and a half dollars lost.... and the company had to go back to the DOS based system.

This kind of thing happened regularly, whether it was screwing up a product line, trying to sell things that were unpopular/unsellable or flat out wasting money in cockeyed ideas. That was before he even got into the non-musical instrument disasters.

Gibson's failing took a good 20 years to get to, and he did a great job of it.
Wow. Why don't those stories shock me? LOL. That's CRAZY!
 

freebyrd 69

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Yup, and a million here and two million there do add up. In the mid '90s we were to get new software for the entire company. HJ was quite unreasonable in his demands so much so that Microsoft, who was working on this project pulled out and was stiffed a very large amount of money. But HJ was firm in his demands so he put his own IT on notice that it was up to them to do the impossible - even as it was WAY over their capacity and ability to accomplish that.

I was in Nashville on March 29th... talking to a friend at corporate.... she was freaking because HJ demanded that the new software be finished and ready to go the following Monday. Two and a half days away.

So, that Monday (April Fools day to be ironic) the software was launched. And failed within minutes. And for an entire month, no one could generate orders, conduct manufacturing, AP and AR, view inventory..... the entire world-wide Gibson operation was shut down.... for a month! Well over a million and a half dollars lost.... and the company had to go back to the DOS based system.

This kind of thing happened regularly, whether it was screwing up a product line, trying to sell things that were unpopular/unsellable or flat out wasting money in cockeyed ideas. That was before he even got into the non-musical instrument disasters.

Gibson's failing took a good 20 years to get to, and he did a great job of it.
Wow. Why don't those stories shock me? LOL. That's CRAZY!
 

Bill Hicklin

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Which Fender? Let’s compare apples to apples. Does Fender have a set neck carved top guitar?
Again, a set neck and a well made bolton require exactly the same amount of work. They are exactly the same, until you get out either the screwdriver or the glue pot.

Carved tops? A Strat's countours and a Lester's arch are made exactly the same way: put blank in CNC machine, push button.
 

Bill Hicklin

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Which Fender? Let’s compare apples to apples. Does Fender have a set neck carved top guitar?
Again, a set neck and a well made bolton require exactly the same amount of work. They are exactly the same, until you get out either the screwdriver or the glue pot.

Carved tops? A Strat's countours and a Lester's arch are made exactly the same way: put blank in CNC machine, push button.
 

Roshy Boy

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I’ve never paid attention to what the CEO’s do at the companies I buy their products. I don’t know the impact he had at Levi’s. I’ve been buying Wranglers for the last 20+ years. Jeans are jeans to me. I go through them pretty fast with painting and yard work. So cheap is best for me.

Guitars on the other hand, in my view need to prove themselves. I’m willing to pay more for the perceived quality I see that should go with the name. As long as Gibson can build a guitar better than the the competition with their Gibson variants, they should do fine.

I actually don’t see Fender as direct competition, other than people only have so much money to spend. Eventually, most players want one or more from each company. Both brands are iconic. But Gibson has the edge in my view as the premier brand. They are simply beautiful guitars.

If the workers are given the latitude to build the best guitars they can and not experiment with the zaniness of models that won’t sell to the masses, Gibson will be fine. The CEO doesn’t need to make headlines. He just needs to run the company and make good business decisions.

It’ll be fun to watch what happens. And criticize any boneheaded decision and guitar we don’t like.
 

strömsborg

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Again, a set neck and a well made bolton require exactly the same amount of work. They are exactly the same, until you get out either the screwdriver or the glue pot.

Carved tops? A Strat's countours and a Lester's arch are made exactly the same way: put blank in CNC machine, push button.
I don't believe that. Forget the neck joint, it's about the number of steps in the manufacture. A Fender is just two planks bolted together, it's two dimensional. Run the wood through a planer and rout it. The complete instrument has only one glue joint and the body and neck has a single finish each. No binding, dot markers.
A Les Paul body has two extra pieces of expensive wood and has to be routed in several stages, it has an arched top, binding and is finished differently on the front and back. Add the angled neck and headstock, neck binding, three-piece headstock with veneer, different finish front and back, irregular inlays etc etc.
Cost of manufacture must be more than double the Fender.
 

MikeyTheCat

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Yup, and a million here and two million there do add up. In the mid '90s we were to get new software for the entire company. HJ was quite unreasonable in his demands so much so that Microsoft, who was working on this project pulled out and was stiffed a very large amount of money. But HJ was firm in his demands so he put his own IT on notice that it was up to them to do the impossible - even as it was WAY over their capacity and ability to accomplish that.

I was in Nashville on March 29th... talking to a friend at corporate.... she was freaking because HJ demanded that the new software be finished and ready to go the following Monday. Two and a half days away.

So, that Monday (April Fools day to be ironic) the software was launched. And failed within minutes. And for an entire month, no one could generate orders, conduct manufacturing, AP and AR, view inventory..... the entire world-wide Gibson operation was shut down.... for a month! Well over a million and a half dollars lost.... and the company had to go back to the DOS based system.

This kind of thing happened regularly, whether it was screwing up a product line, trying to sell things that were unpopular/unsellable or flat out wasting money in cockeyed ideas. That was before he even got into the non-musical instrument disasters.

Gibson's failing took a good 20 years to get to, and he did a great job of it.
Sounds like 30% of the software projects I've had to bail out in the 90's. Crazy demands from CEOs are nothing new and I've turned down my share of work.
HJ is really no different than a lot of other CEOs just a lot more visible to us.
 

rich85

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Gibson just need to leave their core guitars alone and build an artist roster with interesting/different guitars that way. They are becoming a parody of themselves at the moment with Slash and Joe B.

The new CEO needs to get James Hetfield Gibson models out. And release and leave Angus Young models etc in the model range like Fender.

Basically, go through the ESP artist roster and anybody playing Gibson designs, get them playing some actual Gibsons. Slim necks, hot pickups etc

Just my opinion. Gibson became so obsessed with milking the 59 reissues they forgot that, wow, some guitar players dont want them.
 

Colnago1

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I don't believe that. Forget the neck joint, it's about the number of steps in the manufacture. A Fender is just two planks bolted together, it's two dimensional. Run the wood through a planer and rout it. The complete instrument has only one glue joint and the body and neck has a single finish each. No binding, dot markers.
A Les Paul body has two extra pieces of expensive wood and has to be routed in several stages, it has an arched top, binding and is finished differently on the front and back. Add the angled neck and headstock, neck binding, three-piece headstock with veneer, different finish front and back, irregular inlays etc etc.
Cost of manufacture must be more than double the Fender.
I completely agree with you. With this, a Gibson is a deal compared to a Fender. I love them all, by the way.
 

Bill Hicklin

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I don't believe that. Forget the neck joint, it's about the number of steps in the manufacture. A Fender is just two planks bolted together, it's two dimensional. Run the wood through a planer and rout it. The complete instrument has only one glue joint and the body and neck has a single finish each. No binding, dot markers.
A Les Paul body has two extra pieces of expensive wood and has to be routed in several stages, it has an arched top, binding and is finished differently on the front and back. Add the angled neck and headstock, neck binding, three-piece headstock with veneer, different finish front and back, irregular inlays etc etc.
Cost of manufacture must be more than double the Fender.

Really? Then how come in 1959 a Les Paul and a Strat sold for the same price?
 

rich85

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Really? Then how come in 1959 a Les Paul and a Strat sold for the same price?
As a qualified cabinet maker I really feel the need to comment. Your comments in this thread are so ignorant I have just been shaking my head.

You clearly have absolutely no idea. I dont usually call people out but please just stop talking.
 

strömsborg

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Really? Then how come in 1959 a Les Paul and a Strat sold for the same price?
A quick search gives $375 for a Les Paul and $275 for a Stratocaster in 1959.
Subtract the sales margin and we get closer to the Les Paul being twice as expensive to manufacture.
Also, remember which guitar became a success and which one didn't. Fender likely had better margins.
 

ehb

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Back when I started in shops the Net % was about the same %.

Can't speak to 59.... but with the #'s above, a Skrat was about 73.33% of what a Lester was...
 

strömsborg

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Really? Then how come in 1959 a Les Paul and a Strat sold for the same price?
A quick search gives $375 for a Les Paul and $275 for a Stratocaster in 1959.
Subtract the sales margin and we get closer to the Les Paul being twice as expensive to manufacture.
Also, remember which guitar became a success and which one didn't. Fender likely had better margins.
Back when I started in shops the Net % was about the same %.

Can't speak to 59.... but with the #'s above, a Skrat was about 73.33% of what a Lester was...
The same margin in % on a cheap and an expensive guitar? Well, I'm not the one to tell.
Anyway the Strats sold well and the Les Pauls didn't so it's not a wild guess that they increased and decreased the margins accordingly.
 

ehb

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They were both considered expensive at that time as is now.... Leo designed his to be cheaper and easier to build, service, and upgrade. They were not exactly cheap. Many players played cheaper guitars because they could afford neither Fender or Gib... Gib has just moved farther up the $$$ scale over the years with fancier models and paint... Many Leo Fender guitars were just car paint....
 

freebyrd 69

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Again, a set neck and a well made bolton require exactly the same amount of work. They are exactly the same, until you get out either the screwdriver or the glue pot.

Carved tops? A Strat's countours and a Lester's arch are made exactly the same way: put blank in CNC machine, push button.
Not from what I saw at the Custom Shop. Definitely more to a set neck. Been there, saw it.
 

freebyrd 69

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Again, a set neck and a well made bolton require exactly the same amount of work. They are exactly the same, until you get out either the screwdriver or the glue pot.

Carved tops? A Strat's countours and a Lester's arch are made exactly the same way: put blank in CNC machine, push button.
Not from what I saw at the Custom Shop. Definitely more to a set neck. Been there, saw it.
 

ehb

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I remember folks playing Kay, Kent, Teisco, SIlvertone, Epiphone, etc... and they sounded pretty good.... Not like a Fender or Gib, just different...
 




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