Gibson 635 W HP Acoustic

[gibsonjunkie]

I got an HP 665SB about a year ago and it's a great little guitar. I've got a bunch of acoustics but none as small (compact) as this one. It sounds a lot bigger than it is (if that makes sense) and it's a fun guitar to play. When I want a richer sound I'll play my J-200 (or Hummingbird, or Guild D-55)but if I just want to have some fun, this is a great guitar for it!

 

[fortyearspickn]

Gibson cannot compete across the board with Martin. Martin has a bigger production capacity in the US and puts their names on offshore imports. Martin probably has 10x as many models to offer. Some adorned with artwork promoting legalizing marijuana, some 'travel' guitars, etc.

Gibson has an edge in brand recognition at the professional level - but can't ride on that. They have to offer more than a Standard J45, Standard SJ200 and Standard H'Bird, even though those 3 model lines are the ones that get the lion's share of the recognition. The HP line is as important a strategic business decision as sticking to their branding of only American made guitars. Considering challenges like market saturation, protected wood species, marketing to younger generations - I'm sure the new product line was carefully planned and addresses many of those issues.

It would be nice if we could create a linear relationship here: "Gibson's sound 2x as good as Epiphones, so they should cost only twice as much". But that is not the way the world works. Rolex doesn't tell time any better than Seiko. Polo keeps you as warm as Old Navy. Epiphone is overpriced if you compare them to First Act. Gibson's were high priced back in the 60s when I started. If you adjust for rising prices - they are still priced about the same. The market is bigger than it was back in the day - baby boomers had babies and their in their 30s now. My grandchildren are at the age where they're playing instruments. But, back in the day - the Mom & Pop music stores weren't flooded with imports. However, the guitar market, like the automobile market, was 'invaded'. Labor is a big part of the cost of a guitar - China pays 5% of what we do, and of course no 'benefits'. Materials - I can't think of anyone who wouldn't prefer plain white generic bone pins instead of plastic. And it would have made sense to add that upgrade across the board before introducing a 10% price increase. Flubber guards? Hopefully Gibson won't order any more from their supplier.

As far as 'production' - when you introduce a new product to market, one big mistake to avoid - is to not have enough product to meet the initial demand. It is better to have a temporary overstock than to lose sales. You can sell your overstock guitars later, but if you lose sales - those folks bought Martins, Taylors or Taks. You may have lost a potential life-long customer when that ship sales.

So - to quote someone smarter than me - "Smarter folks than me will have to figure this out."

[bobouz]

Gibson cannot compete across the board with Martin. Martin has a bigger production capacity in the US and puts their names on offshore imports. Martin probably has 10x as many models to offer.

I believe Martin's lower-tier guitars are sourced only from their plant in Mexico, which has been in operation now for over twenty-five years.

 

As I mentioned above, the Mexican-made formula has allowed Martin & Taylor to cover all areas of the acoustic market with name-brand quality products that us old folks would probably have drooled over as kids looking for an entry level guitar - followed by a reasonable probability of a future purchase from the same maker. Yes, Gibson's typical price-point in the high-end market is most likely rather similar to what it was in the '60s, but the ground underneath that price point has completely changed.

 

All of that said, there clearly are ways for other companies to make it in this market. Larrivee seems to be doing just fine in their niche, and it's probably more expensive to build a guitar in Oxnard, California than almost anywhere else in the states. Someone there must be making some very carefully reasoned management decisions!