Music Business State of Affairs
The Music Business never seems to surprise me. So many trends that so many don't realize are taking place. At best, the average public seems to operate on info that is 10 years old. Information comes in and about every few months there is "Wow" moment...what happened there?
The Bach strike appears to be nearing an end in a rather sad fashion. Talk about long, slow, drawn out destruction. You can read the story here:
South Bend Tribune Article
After a year of feuding it looks like things might end in a fizzle. With the fire gone, the last smoldering ashes will be stamped out without a funeral. At least Yamaha had the decency to get it over quickly. Show up in the US, announce the closure, give 'em two months and get out...chapter closed. But here's a prime example of problems facing the industry. The downward trend in price (and quality) led by "big box" stores has finally come home to roost. Not only have they destroyed themselves, but they've taken the manufacturers with them. Prices in band instruments have been reduced to ridiculous levels cutting quality the whole way to achieve a price edge. The marketing scheme was to sell a million instruments at a $1 profit and make a million. So what happened???
In their zeal to capture the "whole market" with loss leaders, selling below cost started to spread across too many items. One behemoth swallowed another behemoth to gain market share and debt piled up clamping the manufacturers even more. They were able to maintain cash flow but sooner or later these things catch up to you.
Finally we are about down to one behemoth. Who's left to buy them when they fail if they keep up the same failed marketing scheme? That's not going to be a good day for the industry when it happens...
Next time...why are these cheap piece of junk instruments so insanely popular with the public? .....Until then....
JB
The Bach strike appears to be nearing an end in a rather sad fashion. Talk about long, slow, drawn out destruction. You can read the story here:
South Bend Tribune Article
After a year of feuding it looks like things might end in a fizzle. With the fire gone, the last smoldering ashes will be stamped out without a funeral. At least Yamaha had the decency to get it over quickly. Show up in the US, announce the closure, give 'em two months and get out...chapter closed. But here's a prime example of problems facing the industry. The downward trend in price (and quality) led by "big box" stores has finally come home to roost. Not only have they destroyed themselves, but they've taken the manufacturers with them. Prices in band instruments have been reduced to ridiculous levels cutting quality the whole way to achieve a price edge. The marketing scheme was to sell a million instruments at a $1 profit and make a million. So what happened???
In their zeal to capture the "whole market" with loss leaders, selling below cost started to spread across too many items. One behemoth swallowed another behemoth to gain market share and debt piled up clamping the manufacturers even more. They were able to maintain cash flow but sooner or later these things catch up to you.
Finally we are about down to one behemoth. Who's left to buy them when they fail if they keep up the same failed marketing scheme? That's not going to be a good day for the industry when it happens...
Next time...why are these cheap piece of junk instruments so insanely popular with the public? .....Until then....
JB
2007-05-03 01:08:43 GMT
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