The Internet is Killing Guitar Shops

[randymarsh]

Yes folks. You heard me right. Yan ang na-eexperience namin ngayon dito sa Sydney. Just a few months ago, a major music shop chain "Allans and Billy Hyde" was foreclosed due to financial problems. Jackson's Rare Guitars, one of the best vintage/hi end guitar shop here in Sydney is also now closed.

When I arrive here in 2007, guitar shops agad ang hinanap ko and there were plenty around the CBD and Annandale area. Though prices are more expensive than US/Canada prices (a new Fender American Deluxe Tele is $1700 in the US while the negotiable price tag here is $2400), there's a wide selection of guitars, amps and gadgets you can choose from.

Now all that is left are smaller guitar stores. They don't stock high end equipment but rather cheap epiphones, squires, ibanez and the likes. Kung meron mang mamahaling gitara, you can look but not try it. These shops don't have much customers even on weekends but most of their sales are done online, thru ebay or other websites.

The Australian economy is doing much better than the US nowadays. Before the exchange rate was about 90 AU cents to an American dollar, today it's the other way around. I think the Philippine peso is rallying towards a better exchange rate against the dollar. A lot of Aussies would rather buy from the US and wait for a couple of weeks than go to a local music store due to the savings of buying online.

I think these are the signs   

• We'll have to rely on other people for reviews and demo videos over the internet
• Fewer local music shops if not none, though stocks will be limited or per order basis
• If you want a high quality instrument, you'll have to trust the description and photos posted online by the seller
• You cannot test the guitar in the shop unless you are a valued customer or known personality
• Cheap and fake/imitation guitars will be wide spread (this is already happening)
• Resale value of guitars will go down drastically even for high end ones

I'm glad that music stores in the Philippines still stock better equipment but in a few years time we will follow other countries. Sulit, ebay.ph and the classifieds here are the starting point. Once we pinoys are comfortable with online trading/use of credit card, we will follow suit.

news link
http://www.smh.com.au/entertainment/music/strings-attached-as-guitar-store-goes-under-20121217-2bjai.html

[Poundcake]

LOL. It's already happening here. Ang daming nagfe-feeling negosyante dito pero di naman registered sa DTI/SEC. Inaamag na yung mga pedals sa mga tindahan ng JB, Yupangco at Audiophile.

[randymarsh]

LOL. It's already happening here. Ang daming nagfe-feeling negosyante dito pero di naman registered sa DTI/SEC. Inaamag na yung mga pedals sa mga tindahan ng JB, Yupangco at Audiophile.

Last December nagpunta ako ng Audiophile Mandaluyong. At least meron silang JS and JEM on display. Dito bihira na ako makakita ng JEM na nakadisplay, lalo na Gibson, Suhr, etc. Parang may hoarding nga ng Gibson LPs dito.

I think oversaturated na ang guitar market at yung ratio ng guitars vs owners.

[Stratzkiboy]

Ang daming nagfe-feeling negosyante dito pero di naman registered sa DTI/SEC.

Hahaha... Right on the money!! 

[randymarsh]

Masyadong generous kasi si Mr Jim Ayson. Kung ako sa kanya, I'd be making profit for the classifieds section. Kung sa ibang bansa lang to, we will be paying 50 pesos just to get an ad in classifieds back to the first page.

Wala pa kasing concrete laws para sa online trading. Kawawa naman yung mga staff ng guitar shops kung hindi sustainable ang business.

[Bondz]

LOL. It's already happening here. Ang daming nagfe-feeling negosyante dito pero di naman registered sa DTI/SEC. Inaamag na yung mga pedals sa mga tindahan ng JB, Yupangco at Audiophile.

True.

[Gunslinger]

LOL. It's already happening here. Ang daming nagfe-feeling negosyante dito pero di naman registered sa DTI/SEC. Inaamag na yung mga pedals sa mga tindahan ng JB, Yupangco at Audiophile.

Aye. Lumalabas pa kasi mas mura if over the net ka bibili. Ano ba naman ang 2 to 4 weeks wait time. Win-win sitch din sa buyer and shipper.

[techbp]

Siyempre kung saan ang mura dun ang tao...

[maton601]

Aye. Lumalabas pa kasi mas mura if over the net ka bibili. Ano ba naman ang 2 to 4 weeks wait time. Win-win sitch din sa buyer and shipper.

yes, but not all the time win win, example korg pitchblack tuner - it retails before sa mga resellers dito 3k plus to 4k the most eh ngayon sa Audiophile 2,8k plus  nlang srp. Artec pedals nung wala pa sa pinas umaabot din ng 4k sa mga resellers dito.

[shodawmoon]

good insights sir.

interesting read. thanks!

[sargento]

 

[Gunslinger]

yes, but not all the time win win, example korg pitchblack tuner - it retails before sa mga resellers dito 3k plus to 4k the most eh ngayon sa Audiophile 2,8k plus  nlang srp. Artec pedals nung wala pa sa pinas umaabot din ng 4k sa mga resellers dito.

Yeah, but that was before the prices went down - before the units' origin changed to Vietnam. Assuming that the Pithblack before was 2.8k, and assuming that the market knew that SRP locally, they wouldn't opt to buy overseas. Plus, the shippers are in a business. Di sila papayag kung breakeven lang or worse, malulugi. Still a win-win.

[rtf_axeman]

Siyempre kung saan ang mura dun ang tao...

tama

[redballs17]

I'm guilty of trying out in stores then buying in the internet because of the price. 

[MYN11]

May mga tao kasing di makapaghintay ng 2-4 weeks kaya kung meron naman locally at maganda ang nai-offer na deal go na. Ako yun hehehe!  Pero ang laban dito is yung warranty pag locally ka bumili.

I love both online and local music stores. Para sa akin sana walang mawala sa kanila. Iba pa rin kasi yung masususbukan mo yung unit bago mo bilhin e.

[shodawmoon]

May mga tao kasing di makapaghintay ng 2-4 weeks kaya kung meron naman locally at maganda ang nai-offer na deal go na. Ako yun hehehe!  Pero ang laban dito is yung warranty pag locally ka bumili.

I love both online and local music stores. Para sa akin sana walang mawala sa kanila. Iba pa rin kasi yung masususbukan mo yung unit bago mo bilhin e.

when it comes to guitars, mas gusto ko matry ko muna bago ako magdecide to purchase.

[xto]

Yes folks. You heard me right. Yan ang na-eexperience namin ngayon dito sa Sydney. Just a few months ago, a major music shop chain "Allans and Billy Hyde" was foreclosed due to financial problems. Jackson's Rare Guitars, one of the best vintage/hi end guitar shop here in Sydney is also now closed.

So sorry to hear that.
Just over a year ago (Oct 2011) i got to visit Melbourne and was on Allans Music twice. Such a big store with every musical instruments you can imagine. But on the 2 occasions i was there for over 2 hours, i think they have only sold 1 MI Audio Neo Fuzz (me).
There were even very few walk-ins.

Even GC's in the U.S have very few customers coming in. It must be their internet sales that is keeping them alive.

[rtf_axeman]

yeah, the best padin pag masusubukan mo yung Guitar, iba iba kasi ang feel, and you cant take anyone;'s word for it when it comes to a guitar's playability. Iba iba tayo eh.

Nakaklungkot naman yung mga nag sara na music stores sa AU, pwede rin na ang ikinaluge nila ay ang pag papasok ng mamahaling mga guitars pero wala namang bumibili. pansinin nyo sa mga local music stores, puro Low - Mid end guitars lang. Pinakamahal na ang mga US standrads and some Signature series guitars. walang custom shop level na naka display. Patay kasi ang pera dun eh

[guitaricci]

Yes folks. You heard me right. Yan ang na-eexperience namin ngayon dito sa Sydney. Just a few months ago, a major music shop chain "Allans and Billy Hyde" was foreclosed due to financial problems. Jackson's Rare Guitars, one of the best vintage/hi end guitar shop here in Sydney is also now closed.

When I arrive here in 2007, guitar shops agad ang hinanap ko and there were plenty around the CBD and Annandale area. Though prices are more expensive than US/Canada prices (a new Fender American Deluxe Tele is $1700 in the US while the negotiable price tag here is $2400), there's a wide selection of guitars, amps and gadgets you can choose from.

Now all that is left are smaller guitar stores. They don't stock high end equipment but rather cheap epiphones, squires, ibanez and the likes. Kung meron mang mamahaling gitara, you can look but not try it. These shops don't have much customers even on weekends but most of their sales are done online, thru ebay or other websites.

The Australian economy is doing much better than the US nowadays. Before the exchange rate was about 90 AU cents to an American dollar, today it's the other way around. I think the Philippine peso is rallying towards a better exchange rate against the dollar. A lot of Aussies would rather buy from the US and wait for a couple of weeks than go to a local music store due to the savings of buying online.

I think these are the signs   

• We'll have to rely on other people for reviews and demo videos over the internet
• Fewer local music shops if not none, though stocks will be limited or per order basis
• If you want a high quality instrument, you'll have to trust the description and photos posted online by the seller
• You cannot test the guitar in the shop unless you are a valued customer or known personality
• Cheap and fake/imitation guitars will be wide spread (this is already happening)
• Resale value of guitars will go down drastically even for high end ones

I'm glad that music stores in the Philippines still stock better equipment but in a few years time we will follow other countries. Sulit, ebay.ph and the classifieds here are the starting point. Once we pinoys are comfortable with online trading/use of credit card, we will follow suit.

news link
http://www.smh.com.au/entertainment/music/strings-attached-as-guitar-store-goes-under-20121217-2bjai.html

Is that the same as Allan's Music Store?!? Yan ba yung sa may Pitt Street and malapit sa Pitt Street Mall? I was in Sydney back in '07 also and yan rin yung unang music store na napuntahan ko sa Sydney. Nakakalungkot naman ito....

[grasyaps]

this is the inevitable by-product of technology. sooner or later, yung mga tasks na kayang maaccomplish through the use of advanced technology eh ipphase-out na ang manual labor.

however, since tangible goods ang product, ang tumitiba ay ang shipping/logistics industry. kasi kung hindi satisfied, isasauli. gagasta para sa shipping ulit.

in short, people are paying for convenience. instead of travelling to the store, they order online. anyway, they get free shipping and if they dont like the thing, they can get their money back through refund kahit na may bawas na restocking fee or shipping cost na shouldered nila.

you save on rent and a lot of overhead costs. all you need is a warehouse and some people to move things around.

inevitable tlga. this is because we operate within the moneytary system.

[Skybox]

I hope the increasing market share of online music gear sellers drives down the SRP of products being sold in music stores here in the Philippines. Most of us won't rely on the online sellers if the difference in price compared to the music stores is negligible.

The ability to test items before purchasing, the in-store warranty and the elimination of risk of non-delivery would definitely be worth the premium.

[nickson]

Kung nasa stores nga lang yung hinahanap ko eh, dun ako bibili eh. Pero wala eh. And I'm more into the 2nd hand market. Kung makakita man ako ng used item sa store, waaay overpriced. So, online ang resort ko.

Nagebenta din naman ang mga music stores online diba?

[rtf_axeman]

I hope the increasing market share of online music gear sellers drives down the SRP of products being sold in music stores here in the Philippines. Most of us won't rely on the online sellers if the difference in price compared to the music stores is negligible.

The ability to test items before purchasing, the in-store warranty and the elimination of risk of non-delivery would definitely be worth the premium.

tama. kahit mga 25% - 30% lang ang ibaba ng presyo, tubo padin naman siguro sila doon.

If i were to operate a full scale music store chain, hindi na ako kukuha ng madaming pwesto, 3-4 branches lang sa metro manila then ONLINE na ang bentahan, then makikipag kaibigan ako sa madaming musikero para SMOOTH at mag karoon ng RAPPORT sa mga end users. At isa pa, hindi ako kukuha ng staff na mas mayabang pa saakin, yun ang nakaka sira din kung bakit ayaw na mag effort ng mga tao pumunta sa music store, teka OT na. hehe

Kung nasa stores nga lang yung hinahanap ko eh, dun ako bibili eh. Pero wala eh. And I'm more into the 2nd hand market. Kung makakita man ako ng used item sa store, waaay overpriced. So, online ang resort ko.

Nagebenta din naman ang mga music stores online diba?

GAS god. 

[fretboard]

Siyempre kung saan ang mura dun ang tao...

kung saan mura na may kalidad 

[jefisipbata]

adapt or die.

guitar center and sam-ash didn't start out as the online musical instrument retailer that they are know today. both started as physical stores. they just adapted as time passed, to the new trends in selling musical instuments. you really can't blame the consumers coz they'll always go where they can get the maximum value for their hard-earned peso.

nakakapagtaka lang sa mga major retailers natin, bakit di sila mag umpisa sa online retailing? mahirap ba gumawa at mag maintain ng site kagaya ng musiciansfriend (with the convenience of credit card payment and shipping) ? panigurado marami silang mahahanap na tao na kayang gawin yung ganun, at kung sa online shop na, mababawasan na yung overhead cost nila, mababawasan din SRP ng mga binebenta nila. yung sound essentials, medyo naguumpisa na, tingnan nyo yung concierge service nila

http://www.sound-essentials.com/concierge.html

pero sana yung full e-commerce site.