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Interesting Thread. I have no industry-specific knowledge. But I do have a few specific questions:
EVH = Profits. Guitars, amps, strings, magazine covers, whatever. The age of the guitar hero is eroding from pop culture. Look around, there are very few left. From things I’ve read, the Wolfgang is a very profitable product line for Peavey. I would guess the margins are good on both the U.S. and Korean models. The 5150 amp is good amp. Personally I prefer my old JCM 800, but nevertheless my 5150 combo is a good amp. Hey Jacksmar – that Carvin is of interest to me, but I’ve never played through one. I’ll have to check it out.
Okay back to the questions – Business is about money-margins-production-efficiency and economies of scale. That said, why would Peavey drop EVH if the product line continues to be a staple for them? Peavey isn’t selling soft drinks; they can’t just run out and find a different NBA star to peddle the goods. They’re producing goods in a much smaller category space, targeting a much smaller general demographic. Simply put, they need a guitar hero to help sell guitars. Someone whose name alone is a stand-alone brand - Someone like EVH. There’s too much equity there to let walk out the door.
Regarding the promotions - during a lean economy, why would Peavey spend marketing dollars to reach Joe Q. Consumer in mass, when the dealer/distributor channel is the selling vehicle? They wouldn’t. I would guess Peavey would spent their resources educating the distribution channel and it appears that One Voice confirmed this in his post. Besides, Peavey has kept it’s website current and updated with plenty of EVH products to offer anyone with a wallet and an interest. Hell, they’re even venturing into web-based companies, like Musicians Friend, with product offerings.
About the Satriani thing…I doubt Ed would have an issue with this. At MM, they had other artists on the roster and it wasn’t an issue for him then. Was it? My understanding is that Ed left MM because they could not cover production demands, thus placing a ceiling on profitability. Bottom line, more money could be made with a larger production facility. Am I wrong on this? Besides, I doubt Peavey would let one asset walk out the door simply to obtain a new one. That would limit their growth potential.
All I know about the Fender comment is that Ed did not play one in Greensboro. No mysterious “unmarked” strat appeared. Hey ZahZoo, nice call on the sustainer. I thought that’s what it was, but couldn’t quite tell. From a big picture perspective, Fender is a huge production conglomerate with lots of money and a large distribution channel. They’re everywhere, the world over. Signing EVH would be a nice notch in the belt. And based on their track record, they’d cannibalize and spin-off several models to reach varying levels of the marketplace. However, (for reasons previously stated) I believe Peavey would fight to keep EVH. Besides, why would EVH risk litigation if there were outstanding design/patent issues with Peavey? Why would he leave if they were R&D efforts underway?
Anyone have any thoughts?
EVH = Profits. Guitars, amps, strings, magazine covers, whatever. The age of the guitar hero is eroding from pop culture. Look around, there are very few left. From things I’ve read, the Wolfgang is a very profitable product line for Peavey. I would guess the margins are good on both the U.S. and Korean models. The 5150 amp is good amp. Personally I prefer my old JCM 800, but nevertheless my 5150 combo is a good amp. Hey Jacksmar – that Carvin is of interest to me, but I’ve never played through one. I’ll have to check it out.
Okay back to the questions – Business is about money-margins-production-efficiency and economies of scale. That said, why would Peavey drop EVH if the product line continues to be a staple for them? Peavey isn’t selling soft drinks; they can’t just run out and find a different NBA star to peddle the goods. They’re producing goods in a much smaller category space, targeting a much smaller general demographic. Simply put, they need a guitar hero to help sell guitars. Someone whose name alone is a stand-alone brand - Someone like EVH. There’s too much equity there to let walk out the door.
Regarding the promotions - during a lean economy, why would Peavey spend marketing dollars to reach Joe Q. Consumer in mass, when the dealer/distributor channel is the selling vehicle? They wouldn’t. I would guess Peavey would spent their resources educating the distribution channel and it appears that One Voice confirmed this in his post. Besides, Peavey has kept it’s website current and updated with plenty of EVH products to offer anyone with a wallet and an interest. Hell, they’re even venturing into web-based companies, like Musicians Friend, with product offerings.
About the Satriani thing…I doubt Ed would have an issue with this. At MM, they had other artists on the roster and it wasn’t an issue for him then. Was it? My understanding is that Ed left MM because they could not cover production demands, thus placing a ceiling on profitability. Bottom line, more money could be made with a larger production facility. Am I wrong on this? Besides, I doubt Peavey would let one asset walk out the door simply to obtain a new one. That would limit their growth potential.
All I know about the Fender comment is that Ed did not play one in Greensboro. No mysterious “unmarked” strat appeared. Hey ZahZoo, nice call on the sustainer. I thought that’s what it was, but couldn’t quite tell. From a big picture perspective, Fender is a huge production conglomerate with lots of money and a large distribution channel. They’re everywhere, the world over. Signing EVH would be a nice notch in the belt. And based on their track record, they’d cannibalize and spin-off several models to reach varying levels of the marketplace. However, (for reasons previously stated) I believe Peavey would fight to keep EVH. Besides, why would EVH risk litigation if there were outstanding design/patent issues with Peavey? Why would he leave if they were R&D efforts underway?
Anyone have any thoughts?
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