Will the Pedal Market ever reach a Tipping Point and be Oversaturated with Stuff?

[5150user]

It happens in other industries all the time. Only the strong survive. The market chooses which companies and designs make it, and which don't. How many pedalmakers can really make any serious money in this game?

[Devi Ever]

lulz

[Rid]

Who has ever made any serious money in this buisiness??
;)

[carljoensson]

well, what kind of money there is I don't know. Pretty sure though that the boutique-world is not so much about being big and strong (like BOSS) as it is about being the best in a small niche (Paul Cochrane for example) etc. /C

[Mr_You]

I think its already over-saturated and I think many are making money because the overhead is so low. Especially when you consider most of the non-boutique major manufacturers have their products built in China.

[lux_interior]

Can they make serious money out of it? I think it's hard to, because they have to convince everybody that what they are offering does the job better than all the other million choices that already exist. Some even charge crazy amounts of money for it. Hats off to everybody that can do it, but personally speaking I am tired of seeing fifteen thousand fuzzes and eighteen thousand delays labeled as "different".

I also believe that it is over-saturated, and it wouldn't be like this if GAS inducing internet places like TGP, HC, Proguitarshop and Tonefactor did not exist. Where was everybody fifteen years ago or more? Did anybody have trouble making music without the millions of pedals going around? Don't get me wrong, I really like sexy and colourful little boxes, not only as hobby toys but also due to the very important fact that they stimulate creativity, but... come on, a pedal maker is born every minute!

[Jim Moulton]

Right now, for some reason, there is an explosion of new pedal makers and small companys springing up all over the place, However, They do not make an overabundance of product, the best pedals, people are waiting months for, like the Klon, AM's KOT and some others. Other pedal makers are not selling.
Lots of guitarists ,pros are happy with Rack systems and MXR and Boss, They are more into great guitars and amps.
JIm

[Bob Loblaw]

Well, since y'all are the only guitarists on earth I guess it's blown out and flooded. Game over, we are all closing up shop and going home on Monday.

[dr.tdw]

I, for one, like having this huge world of gear to live in. It makes my life as an electric guitar player a lot more interesting now than it was in 1988 when my effects were all Boss and Arion. The effects market feels pretty saturated and must be a tough business, but I gotta believe the hard working builders who make quality+creative effects will survive.

[semi-hollowbody]

It already is imo...especially overdrive and distortion

[Ti-Ron]

As long as TGP exists the market will be safe, don't worry!

[Uma Floresta]

Already over saturated, esp with overdrives

[tonesurfer]

Already overdone.

[erksin]

One man's 'oversaturated' is another man's 'lots of choices' I guess.

Personally, I think its awesome to have this much stuff out there. Pedal companies are like restaurants. You all wanna eat at McDonalds everyday or do you want some options? What if you don't even like hamburgers?

[enocaster]

Well, since y'all are the only guitarists on earth I guess it's blown out and flooded. Game over, we are all closing up shop and going home on Monday.

Hey, I love your Law Blog!

[FenderBigot]

Consolidation... it happens in major business EVERY day. You guys ever hear of a company called Cisco? They buy up smaller companies on a regular basis. They buy new technology, they buy market share. This pedal industry will have the same thing happen sooner or later. Someone will call up Paul or Sean or one of the other guys and say "I will pay you X for your product" and then that guy will be the next Boss or Dunlop or Digitech. Competition is a good thing... especially in this lousy economy.

[Jack DeVille]

Consolidation... it happens in major business EVERY day. You guys ever hear of a company called Cisco? They buy up smaller companies on a regular basis. They buy new technology, they buy market share. This pedal industry will have the same thing happen sooner or later. Someone will call up Paul or Sean or one of the other guys and say "I will pay you X for your product"and then that guy will be the next Boss or Dunlop or Digitech. Competition is a good thing... especially in this lousy economy.

or company

[wyatt]

Who has ever made any serious money in this buisiness??
;)

I know at the time of the fire, Keeley stated the annual gross income of the company was around $4 million. And have heard a very similar number for ZVex. If you assume 10% goes to the owner, that's serious money.

On another angle of this discussion, I assume the second-hand market bubble will one day burst.

[doralin]

People have been making music MUCH longer than people have been building pedals.

Any over saturation in the music scene?

Not yet, if not we wouldn't be playing guitar would we?

[Rid]

I know at the time of the fire, Keeley stated the annual gross income of the company was around $4 million. And have heard a very similar number for ZVex. If you assume 10% goes to the owner, that's serious money.

On another angle of this discussion, I assume the second-hand market bubble will one day burst. http://img.thegearpage.net/board/images/buttons/quote.gif (http://www.thegearpage.net/board/newreply.php?do=newreply&p=7768461)Well that is not big money....
I'm just happy that I am not with new started company....life is tight these days....
I know people that make more money in one month, than most well paid people does in one year....and that is way beyond anyone I know gets for being in this biz, it is a crazy world, and the music biz is one frakked up entity.
;)

[FenderBigot]

I know at the time of the fire, Keeley stated the annual gross income of the company was around $4 million. And have heard a very similar number for ZVex. If you assume 10% goes to the owner, that's serious money.

Profit margins on the manufacturing side are a LOT higher than 10%. Most privately held smaller companies that actually manufacture something have margins in the 50+% range. SG&A (selling, general and administrative expenses) can be anywhere from 8 to 15% of the total revenue number. Do the math... owners can be in the 35 to 42% range when all is said and done. That is pretty darned good.

[greenlander]

People have been making music MUCH longer than people have been building pedals.

Any over saturation in the music scene?

Not yet, if not we wouldn't be playing guitar would we?

Dude, if you don't think there's any oversaturation in the music scene please tell me what planet you live on...because I want to move there!

There are literally thousands upon thousands upon thousands of bands clogging the scene. In every genre. And there's more and more coming all the time. And maybe one tenth of one percent are halfway decent. It's staggering.

But at least the pedal builders have a vast consumer base.

[bseamus]

I like choices and go thru phases with different makers. I spend in the middle range for pedals, around $200, but now I'm switching to buying or trading on the Emporium. I get the pedals i want for less than what online retailers charge. If a pedal is hot, I just have to wait a month or so and they will pop-up.

[peridot1]

It's over saturated now but the tech is getting better and there's always room for improvement.

I remember when digital recording first came out there was much skepticism. Nowadays everyone has their material recorded in digital format with a few exceptions.

Tech is getting better.

[ibobunot]

Someday we will all be musicians/gear builders and we'll be trading homemade gear and MP3's back and forth with each other... :huh