GC Pricing...your opinion!!!!!!!!!!

[Big Poppa]

This is a question that has been posted by Marty Albertson, CEO Guitar Center.
I am going to embarrass him a little bit and tell you that Marty is our industries current "Man of The Year" and is a rare CEO that started not in business school but behind the counter of SF GC 30 years ago. HE happens to be the most powerful man in the hitory of our industry and handles it with style and grace. I take that he is asking for input here to be the supreme compliment he could pay us Knuckleheads...Please resond......

Here is Marty's question



"Hi All......wanted to get some input.....we (GC) are testing the idea of eliminating negotiation in our stores. We find that most but not all customers find it unpleasant. we have a price guaranty and could offer a loyalty program for frequent shoppers...do you all feel this is a good or bad idea ? Or are there suggestions on your part that you feel would make this work best ......love to hear from any and all...."

 

[jar546]

I prefer to buy locally and only buy there as needed although I did purchase my SR5HH and LMII there. If they stop negotiating then I would certainly not purchase anything at all. I can negotiate with the local dealer if GC stops negotiating.

 

[silverburst]

The negotiations always make me feel like I am buying a used car.

Then again, I like the feeling that I am getting a deal if I can talk them down on something.

It is a conundrum.

 

[OldManMusic]

I can put up with the GC negotiation routine but I've been doing it a long time. There is that mental thing that I think I'm getting a better deal when someone says they'll knock a few bucks off whatever I'm buying. I bought my latest MM SR5 HH from GC about a month ago and got a killer deal because it had been hanging on the wall for a while. But it does make some of the guys in GC seem like used car salesman sometimes, but I keep going back...

 

[Aussie Mark]

Negotiating can be fun in a local market in Asia, but in a national chain music store I'd be happier to know that the advertised price is the best price, and if they are willing to match advertised prices from other stores, then that's good as well. I'd prefer knowledgeable sales staff who are paid a fair salary to sell quality gear, rather than commission monkeys who have to sell 4 Corts a week to make the installment payments on their most recent tattoo.

 

[bovinehost]

...we (GC) are testing the idea of eliminating negotiation in our stores. We find that most but not all customers find it unpleasant. we have a price guaranty and could offer a loyalty program for frequent shoppers...do you all feel this is a good or bad idea ? Or are there suggestions on your part that you feel would make this work best ......love to hear from any and all...."

I would have a question first, and that question would be, "Was it broken?" I have to assume that something wasn't working quite right or this wouldn't be a question, but perhaps the first thing I would wonder is, if it was broken, how broken was it?

I've seen a lot of chatter about this on the internet. (And we can make whatever assumptions need to be made about the business acumen of those of us on the internet.) Unsurprisingly, much of the commentary is of the negative sort.

"My drummer used to be able to get me stuff at cost, and now..."

"My brother's cousin got me whack deals, and if I can't get that now...."

And so on. It's hopefully safe to assume that no one was getting rich on those deals anyway.

I see car dealers trying this no-hassle, no-haggle approach. Here's the price. No, that's really the price. No, I'm not kidding. Does it work? I don't know, but I bet you've looked at it.

On a personal level, I rather enjoyed the freedom to go in and do the dance with the sales guys. I bought my PA gear at GC and was/am pretty pleased with the gear and what I paid for it. (Other stuff, too, but that's the latest.)

I think most people who have shopped at GC are at least initially going to be reticent to accept the changes. Maybe it's a question of time. Let them get used to the new business model and they'll be back, but what sells many of those guys is really the price. They may well value the 30 day exchange/return option but what they're looking at first and foremost is damage to the wallet.

If you go to the no-haggle model, seems to me that after-sale service is going to have to be flogged hard to get the hagglers through the initial implementation period (and maybe add a few months because they're hard-headed - and cheap).

Again, to ME, personal opinion only, I liked the old model. I'd caution you against reading too much into that because I myself am an old model. (Not that there was much danger, I'm sure.)

I would continue to shop at Guitar Center either way, so I'd pay more attention to the 20-somethings than I would to guys like me (50-somethings).

Jack

 

[tkarter]

Well being almost as old as Jack I guess what I think doesn't count now seeing as I am an old model.


tk

 

[maddog]

has he tried a test store?

 

[RobertB]

I think it's a good idea, as long as the set pricing is right. Some people really enjoy the "haggling" aspect of the deal; I'm one who doesn't. And no offense, but it has an especially repelling effect when, as is sometimes the case, the person you're directly negotiating with knows nothing or next to nothing about the product. So yeah, in my case personally - *as long as the set pricing is right* - knowing that I don't have to play games with the sales guy would most likely result in my buying more gear at GC.

 

[Eggman]

I bought three Bose L1 systems at GC and of course since it was Bose - no negotiation - price was the price. The sales guy did treat me well on some subsequent purchases - did not have to haggle - he just knocked off some bucks since I had just dropped a bunch of $$$. He is no longer there so now I really don't buy much at GC. I have made great contacts through internet shopping - they give me great deals on whatever I need - with free shipping and no sales tax. Being a bit outside the typical demographic of a GC shopper - I find that the shopping experience there isn't quite for me.

 

[theoldmiami]

Knowing that I can get a reduced price on everything in the store has ALWAYS kept me coming back to guitar center. From Amps to Guitars to Strings to Premium audio, I've received it a discount. There is NO incentive to shop at Guitar Center if this disappears. I have found one salesperson who gives me the discounts. He has become a friend and I depend on him, he helps me out. It's a beautiful thing! Please keep this, it makes the customer feel special and important, especially for a 23-year-old person.

 

[Psycho Ward]

I know for a fact that every music store around here has a copy of the latest Musician’s Friend catalogue behind the counter. I’ve actually had a guy whip it out to give me a price for something in their store!

GC is a brick and mortar MF and as long as the prices are exactly the same I’ll still shop there. I buy lots of stuff (not just basses) and I like to be treated as a preferred customer and get a special deal every now and then. But for me I have to get at least as good a deal as I can find on the internet. I prefer to buy local and pay taxes in my own state, but if it ain’t in stock what can brown do for me.

 

[cky4ever]

Actually I think prices should only be negotiated on items refurbished, blemished, slightly used because each item is different and both parties (customer and GC) should establish value that suits them both.

As far as new gear goes, things should have fixed prices. I think it sets a standard of what things are worth. Negotiating prices on new gear in my opinion only affects its percieved value by the public. Take for example a standard mim pbass, these run for what 449? If someone gets a deal and buys it for 410 400. Word of mouth spreads. No one in their right mind would want to pay full price for the item. IMO negotiating on new products just affects their percieved value, and that is bad for business, unless its part of a bigger plan...

 

[jefft54]

I would visit GC probably the same whether set price or negotiating. That said, I don't use GC much except for the few big storwide sales. My problem with GC isn't the pricing it's the fact that too much of the equipment has been banged around by every american idol in town. I recently bought my son a new Scion not realizing when I went in that they use a set price. It was no hassle and I'll definitely go back because it was a good price and not all scratched up. I think people would adjust quickly to set pricing as long as the price is fair and the equipment doesn't look used.

 

[Kristopher]

Great idea

Negotiating makes me feel uncomfortable. I always feel like I'm trying to cheat someone out of something. Just mark the item at the price that you're going to sell it to me at. Make it easy for me.

Loyalty program - another great idea. I will spend even more money at GC than I normal do (and I just dropped $1300 there two days ago for a multitrack recorder).

Two great ideas that I hope get implemented.

 

[bdgotoh]

I agree with a lot that's been said here. I'll continue to shop at GC whether they change or not. I'm not big on haggling in general but still do it sometimes. I agree that being more flexible with used or blem items makes a lot of sense. I used to see excessively high prices on used equipment but that's less common at GC lately.

 

[sloshep]

I think if you are going to go to fixed pricing its going to be imperative the merchandise stays in like new shape. Why would I want to go there and pay the same price for a banged up demo weary item I could get on the internet . If an item is damaged there has to be discount procedure in place. Otherwise people like me will walk. The serious weakness for GC is the turnover and lack of experienced employees. Once discounts are taken away then there has to be something else to take its place. Other wise it will turn into a demo display store for everyone else that sells that product. A frequent buyer program I think might work. I will be candid in the fact I will be tolerant of the short comings of GC to get 1 year no interest financing on expensive items. If that were to go away so would my business on the big items. Part of what makes GC successful is the legend of the killer deal. You might get one of those if the timings right. This alone will keep some people coming back. Kind of a casino lure for some. A GOOD frequent buyer program and the 1 year same as cash might make up for a no haggle price.

 

[Kitsapbass]

My personal opinion is yes, on the new gear (New in Box that is), if they had a no haggle price I would continue to shop there. However, once it's on the floor - sorry - if I'm paying for a new one, I want a NEW one: not one that people have been banging/drooling/sneezing on. If I'm buying that one, there should be a little more off the top, or I should be able to get a new one in the box. If MF can do it, so can they; after all, they are the same company.

 

[Kirby]

I would support doing away with the haggling and just use fair pricing. Not for myself, but for the beginners out there. I have seen many parents and first time players ripped off by places that had a haggle policy because they did not know what fair pricing for their piece of gear was and ended up paying too much.

The flip side of this is that one could argue that the consumer should always do their homework,which is true.

I just prefer to not squash a newbies enthusiasm by having them think they cannot afford a piece or to purchase a piece and later find out they got taken. I find it rather offensive when I see someone behind the counter trying to charge retail for a set of bass strings and a poor mom shelling out the $45 because she does not know any better. (By the way this did not happen at a GC, but a local store years ago. Consequently I do not shop there now)

I think the frequent buyer idea is great though. A way to reward those who help you consistently.

Thanks for asking for our opinions, a great step in itself I think.

 

[strummer]

The feeling of making a kill is very powerful, and personally I would feel that fixed prices places me at the same level as the average consumer, and I’m not comfortable there. It’s stupid I know, but most of my friends are the same way.
SO, I guess I think haggling is part of the buying experience.