http://www.thefretboard.co.uk/discussion/138925/classic-richards-guitars-video#latest - Saw this link posted on FB and it reminded me of a chat at the Leeds Guitar Show this weekend regarding a new buying consortium - Called GAP - GuitarGuitar + Andertons + PMT
They have acquired the UK distribution for G&L as their first line - It appears to be a direct to market option for the manufacture - No middle man, straight into 3 large UK accounts with appropriate web sites and a good spread of outlets across the UK in major cities
Nothing new in such buying consortium's, but the first I recall for many years that is run by such large accounts
It certainly gives G&L a large and prominent 'shop window' in the UK, based on many years as a line carried amongst 'lesser known' accounts
My gut feeling at this stage is that they will add other similar lines as an 'exclusive retail outlet' - Such power could easily give them access to lines such as Tokai, maybe Tom Anderson, maybe Mesa Boogie, maybe Duesenberg - then add pedals, pick-ups, amp lines and acoustic as required - Such lines have either had very little major strength in the UK market place, or handled via a middle man which could now be eradicated - Such lines would sit amongst the major brands they already stock, like like PRS, Gibson, Fender, Yamaha etc whereby the UK/EU divisions are just part of the manufacture/distribution channel, so no middle man and again effectively a direct to market option - Prices will be controlled by all 3 stores and the same across all outlets - I don't see such a consortium handling small 'boutique' lines like say Matchless/Carr etc, as the sales potential and supply is not larger enough for such an account as GAP - They and others will stick more with specialist outlets like Coda Peach, WG etc
The negative of this may well come in months time - GAP will have to place orders in advance for delivery schedules months later - What happens if one outlet is finding the line slow and needs no additional stock ?
I can well imagine that come NAMM, GAP will be looking to add to G&L and I can see certain manufactures looking towards GAP as a direct to market option - Will it be short term gains for the manufactures with potential large opening orders - We'll have to wait and see - But I can certainly see GAP having enough purchasing power, with relative marketing, promotion and retail access, that can create a monopoly in the UK for brands like Rickenbacker and maybe even Taylor - They could easily take a UK exclusive on the likes of Hamer and/or Guild if required
In short they can create a monopoly on well known brands with a direct to market option - As required - In the short term this will certainly be bad news for many smaller stores
Let's see how it pans out
Comments
I would hate to see specialist shops that rely on niche brands go under after their supply dries up and the years of great customer service they have put in.
I spoke to Lee Anderton about it in anticipation of these threads popping up; the focus is on brands which don't have particularly good representation in the UK, for whatever reason (but mostly the distributor markup pricing them out of the market). These are not popular brands - that's the whole point of the exercise: to bring them to the UK under better terms which benefit the consumer as much as the retailers involved.
There's explicitly no agreement in place regarding pricing, so Richard's veiled insinuations about collusion are baseless (note the clumsy attempt at covering himself, with the whole "This might be a load of rubbish, but..." which has never convinced a judge in this history of defamation hearings...). Lee's always been genuine and up-front with me in the past, so I have no reason to doubt him now.
My personal take on it is that Andertons are by far the biggest fish in the UK pond, and they could easily take care of "controlling the supply of certain popular brands" by themselves if they wanted to, but this could be about spreading the risk for them. Besides which...which "popular brands" could be problematic here? Gibson and Fender already have such overbearing terms attached to any purchase agreement that smaller shops are effectively priced out of the market anyway.
Here's a completely hypothetical question of my own making: would you guys think it was as scary/damaging/unfair etc if they started buying Mesa amps, and because of the shortened supply chain brought the prices down to the exchange-rate-equivalent of the US prices?
I think he stocks them again.
I'll get my coat and go hang myself.
I spoke to Lee Anderton about it in anticipation of these threads popping up; the focus is on brands which don't have particularly good representation in the UK, for whatever reason (but mostly the distributor markup pricing them out of the market). These are not popular brands - that's the whole point of the exercise: to bring them to the UK under better terms which benefit the consumer as much as the retailers involved.
100% agree with this - It is almost like owning your own opposition to the major brands like Fender etc
It is certainly not a complaint from my end, just an observation and a report of what is happening in the market place - It will be tough for many smaller independents who can no longer support major brands, thanks to stocking requirements and now start to loose secondary lines
It's interesting how, when this sort of thing, everybody's suddenly bothered about the plight of the small shop...because most of the time, folk are pissed-off with the lack of service, poor attitude of sales staff, lack of stock and ludicrous pricing with those one-off shops.
I'd say, generally-speaking, that they have bigger problems than three box-shifters with fancy store-fronts getting hold of cheap deals with a couple of brands that (currently) nobody wants to buy.
*An Official Foo-Approved guitarist since Sept 2023.