Thanks for the kind words, Edward and we are still in the talking stages, so Helene and I are not going anywhere just yet. ;)
My Taylor story goes back about 25 years at which time the company wasn't that well known. I was lucky that my sales guy took the time to listen to my needs, watched me play and based on that suggested the 714ce. The D-28 would have been the wrong choice for me at the time. Worked out well for Taylor as well because in the next two years I added six or seven more Taylors to my growing arsenal and when we started selling new guitars at LA Guitar Sales, Taylor was the first brand I picked up, becoming one of their top dealers.
Great hearing from you Ted - you were one of the pioneers of selling guitars online w/ excellence w/ excellent photography and using the internet to touch the customer. Your business has been highly regarded and a pilllar of the guitar community for quite a long time!
There’s been a lot of dialogue across multiple social media platforms - and it’s been interesting to see some of the dialogue that has been going on.
I’d say it’s a split of folks who don’t understand the issue w/ manufacturers selling direct, some that see the issue, and some that are ok w/ taylor going direct.
I def find the lack of transparency shocking - and am trying to do my part, in educating the general public why taylor selling direct is not a positive thing for the guitar community.
I hope that whatever choice you make in regards to retirement - leads you to continued happiness, you have to do what is right for you and your wife - just know, that there are countless guitar enthusiasts who have appreciated what you have done for the industry!
Cheers!
Thanks for the kind words, Z.
It's a fact that folks prefer and greatly benefit from being able to try guitars, which is where manufacturers with a strong dealer network will have a huge edge in the coming years. Facebook ads and pretty pictures can't compete with hundreds of guitar stores and thousands of their employees talking up, or even downplaying a brand. And given that the costs associated with selling direct will quickly eat up any added profit, selling direct can't possibly be a first choice for any manufacturer.
Some builders try to have it both ways of course, selling direct while maintaining a dealer network, but most store owners frown on this. Chuck Surac, the founder and former CEO of Sweetwater touched on this a few years ago. Here are his thoughts:
The Downside Of Manufacturer Direct Sales
Why a “click to buy” button threatens to undermine longstanding retail relationships
by Chuck Surac
In recent months, I’ve noticed a disturbing trend of certain manufacturers selling their products direct to end-customers, bypassing the “traditional” rep/dealer chain. I have deep reservations about this trend, not just for its impact on my company, Sweetwater, but also for all retailers, reps, manufacturers, the m.i. industry, and the end-customers we serve. This is a practice that we must address now. Most of the 5,000 or so retailers have elected not to create their own private labels to compete with the manufacturers; it is a slap in the face for manufacturers not to offer us the same respect.
It’s no secret that sustained success in our industry is built on relationships and loyalty. Those two powerful words reflect strong fundamental values. If having an “Add to Cart” button on your site garners you a few sales but ultimately strays from those values and damages or destroys relationships and loyalty among your retailers, is it really worth it? Trust matters.
I can see where some manufacturers might believe there are benefits to selling direct. But when we take a closer look, those seeming benefits aren’t as large as they appear, and in fact ultimately will cost the manufacturer. One definite cost will be the loss of support from retailers. One would have to assume that even if they don’t drop the lines that sell direct, retailers will shift their focus to selling brands that don’t sell direct. Manufacturers have said they expect growth of 1% to 2% using direct sales. But the loss of even a few good retailers in response will eliminate that growth and more, resulting in a net loss.
For decades, manufacturers have been building a supply chain of retailers to serve the needs of both the manufacturers and existing and potential end-customers. This chain works. The key to its success is that everyone has their area of expertise and can focus on doing that job well. The manufacturer designs and builds high-quality products, often with input and feedback from retailers who are constantly interfacing with end-customers. The retailers focus on selling the products, which includes marketing, proactive sales outreach, order fulfillment, after-the-sale support, repair, returns, and so much more, all of which leads to a great customer experience.
Putting up a website with an “Add to Cart” button is just one tiny part of providing a customer experience. Good retailers know this and work hard to do what manufacturers are not set up to do: deal effectively with end-customers. Good retailers are intentional about every aspect of a sale, from confirming the order to getting the item shipped quickly to following up after the sale. Plus, retailers are uniquely qualified to assemble, quote, and sell systems and packages, whereas individual manufacturers cannot adequately service this need at all–and selling direct completely undermines this massive market opportunity.
When a manufacturer sells a product direct, the retail part of the equation is obviated, and there is no compelling customer experience. Simply put, manufacturers are not in the retail business. Pretty much every manufacturer we challenge about selling direct says, “It’s such a small part of our business, it doesn’t even matter.” That statement alone proves that the manufacturer has no idea what they’re doing. A good retailer knows that every single customer matters. Every interaction matters. Every experience the customer has can go viral–either positively or negatively. But beyond that, if it doesn’t matter, then why do it at all and risk losing customers and dealers?
What can a manufacturer do to drive sales for customers who visit their site or inquire directly? There are many options. For example, use “Buy Now” buttons that link to retailer product pages. Use services such as Omacro to connect to retailers on the web. Keep “Where to Buy” links updated–it’s amazing how many companies don’t do this. Partner with your retailers for better training and marketing. Support dealer initiatives that support your brand and products. Above all, simply communicate with your dealers!
Fortunately, most manufacturers understand the situation and have been loyal to the mutual support synergy provided by the retailer chain. They know that they’re manufacturers, not retailers, and they understand the benefits of doing their job to the best of their ability, while allowing retailers to do our job to the best of ours. This proven partnership provides the best experience and support for our end-customers, which keeps them coming back to purchase again and again.
When a manufacturer chooses to blindly discard this partnership, everyone loses. I can assure you that here at Sweetwater, we are closely monitoring which manufacturers are choosing to go direct and will be making quick decisions about the lines we will be carrying and supporting based on that. I encourage all of the more than 5,000 retailers in our industry to take a close look at which manufacturers are supporting you and which are choosing to compete with you, and to decide who you will support accordingly.