Gold Supporting Member
Ed.....are you guys making these? Looks the same to me:
You guys are bada$$es !!!:BEEROriginally posted by 6AM
Old news. THD licensed the design to Gibson. It says THD on the back.
How so? We get paid whether it says THD or Gibson on it?Originally posted by hear and play
I'm intrigued by this at a business level.
Isn't THD sacrificing their own market share by building for Gibson?
Obviously THD doesn't think so. What am I missing?
Nope, only two markets they can sell in...US and Japan.Originally posted by LaXu
What I'm interested in is will I be seeing Gibson attenuators over here in Finland in stores that sell Gibson guitars and amps? Attenuators are really in short supply over here, only one store in Helsinki sells THD and Weber stuff. Not that I would buy one (already got an attenuator collecting dust in the cabinet because I've got a Power Scaled amp) but it would be nice when trying out amps.
Thanks, Ed.Originally posted by Ed DeGenaro
How so? We get paid whether it says THD or Gibson on it?
Also, since we just raised prices they're now the same street price.
Originally posted by PUCKBOY99
You guys are bada$$es !!!:BEER
Yeah, I was curious to see that the Gibson CORPORATION would charge a little extra for the priveledge of using their name.
Their reputation is more suited for the Marshall Power Brake than THD....but bidnez iz bidnez, I guess.
You've forgotten one scenario by focusing on margins (instead of market share), namely:Originally posted by hear and play
1. I was thinking (perhaps mistakenly) that THD's margin would be lower selling to Gibson than to a retailer.
2. I assumed (likely mistakenly) that THD could distribute to everywhere Gibson does as efficiently (same cost) as Gibson does.
3. Assuming that the market doesn't change by adding a re-branded item (probably an addditonal bad assumption), the total number sold is a constant (save, perhaps, for increased floor stock).
4. In such a scenario, THD might sell fewer directly to outlets if they sold to Gibson -- thus, reducing their profit.
Yes, many assumptions.
I know I've got 1 or more wrong, I just don't know which.
John,Originally posted by John Phillips
Only in a marketplace where the customers do not care about quality and diversity. It doesn't do you any good to completely dominate the market if the customer simply doesn't want your product.
I think you may have missed my point, and I don't believe your comments address hear and play's questions, which were aimed at understanding why a company like THD would knowingly and willingly give up margin on their existing attenuator sales by rebranding them for Gibson. The reasons I listed can explain those kinds of decisions, even if THD makes less margin on every unit that Gibson sells, and even if sale of those units by Gibson means that they will sell less units of THD-branded attenuators.A small maker that concentrates on building a quality product at a fair price that does something better than yours (or maybe even doesn't, but is sufficiently different that some customers prefer it) and isn't interested in market share or fighting a price war but simply making a profit, will still be able to do so.
For every Microsoft there is an Apple.
For every Gibson there are a host of small companies who make a better quality product, often at a better price, and who spend their time just doing that rather than plotting how to take over the world.