Behringer leaving Guitar Center

Re: Behringer leaving Guitar Center

I think Behringer's biggest problem now is that it's grown too fast and that demand is outstripping supply. This is having the problem that when A new product comes along it is taking a long time to get the product out to market as they are unable to manufacture it.
This has caused problems with products like the iX16/X18 where customer feedback then ends up altering the product before any have had a chance to be manufactured thus extending lead time even longer.

Hopefully the larger factory should help with this but I see it as typical for a company with it current growth levels. The last shipment of X32's, for example, (according to their FB) sold out in 8min!
 
Re: Behringer leaving Guitar Center

Daniel Levi said:
I think Behringer's biggest problem now is that it's grown too fast and that demand is outstripping supply. This is having the problem that when A new product comes along it is taking a long time to get the product out to market as they are unable to manufacture it.
This has caused problems with products like the iX16/X18 where customer feedback then ends up altering the product before any have had a chance to be manufactured thus extending lead time even longer.

Hopefully the larger factory should help with this but I see it as typical for a company with it current growth levels. The last shipment of X32's, for example, (according to their FB) sold out in 8min!
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Having too much sales is never a problem for any company. I guess you could relieve some of that pressure by making it harder for dealers to buy product by tightening credit standards.

If you believe that I have some slightly soggy land in MS to show you. :-)

JR
 
Re: Behringer leaving Guitar Center

I spoke to a Music Group US rep and the inside story as they tell it is actually very different, as Music Group headquarters stopped shipping to both GC and MF at the end of last year because of a credit risk and late payments. When GC terminated Behringer, MF had placed a one million dollar order to Starin (the US distributor) which they rejected.

Look up GC’s rating which is under Bain, and it is CCC, which is literally a junk value. Mesa Boogie has left GC completely, and I am sure others have cut down GC’s credit as well. Sounds reasonable to me that Behringer would have concerns.

The upside is I was also told that Starin is stepping it up for independents, offering free freight programs and 90 day payment terms for dealers. Sounds like now that GC is gone, it is a great opportunity to pick up the line. GC/MF is handing over $50 million dollars worth of business, which makes it a great time to be an independent dealer. Maybe not a bad thing for Behringer after all!
 
Re: Behringer leaving Guitar Center

Adam Bradford said:
I spoke to a Music Group US rep and the inside story as they tell it is actually very different, as Music Group headquarters stopped shipping to both GC and MF at the end of last year because of a credit risk and late payments. When GC terminated Behringer, MF had placed a one million dollar order to Starin (the US distributor) which they rejected.
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Oh well, it must be the truth then:D~:-D~:grin:
You people just love behringer. I don't trust them.
 
Re: Behringer leaving Guitar Center

Well they've got nearly 10,000 pre-orders for the M32 on top of new X32 sales and sales of it's other products (that was already giving them good business) so Behringer is obviously not going to take much of a hit from lost GC/MF sales.
 
Re: Behringer leaving Guitar Center

Daniel Levi said:
Well they've got nearly 10,000 pre-orders for the M32 on top of new X32 sales and sales of it's other products (that was already giving them good business) so Behringer is obviously not going to take much of a hit from lost GC/MF sales.
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I don't see how to spin this as a win-lose. It's clearly a lose-lose. Perhaps a lose-LOSE. GC/MF sells (or sold) exactly the kind of value products that makes so much money for Behringer. I'm not sure we should stick a fork in GC just yet, while this will make climbing back a little harder. If it's a win for anybody maybe somebody competing with Behringer gets more GC./MF business for now.

Save the spin for a less professional forum.

JR
 
Re: Behringer leaving Guitar Center

I'm not sure behringer will feel the hit as bad as GC however. There are multiple points of sales for behringer, Big one I can thing of is Full compass, who also isn't limited to US only sales.
 
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