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<blockquote data-quote="John Roberts" data-source="post: 132422" data-attributes="member: 126">Re: Peavey shut downOwning a factory in China would make a rather small difference in product cost vs. using a large contract manufacturer. The good large contract manufacturers only charge a slender profit margin, or they would lose business to the next contract manufacturer eagerly bidding for the same business. I would not attempt to judge Peavey&#039;s sales success in Europe from a one customer anecdote (from an unnamed country). In fact local sales and marketing is the job of the local distributors and some countries are better served than others. The distributor needs to invest in inventory (few do seriously), so order-takers generally suffer from a long supply chain.Decades ago I spent time visiting dealers in several European countries, often staying in europe for a few weeks after the Frankfurt show. I learned a bunch and enjoyed traveling with the Peavey reps and meeting Peavey dealers but marketing at such distance is never easy.Innovation is a double edged sword. In my experience Peavey customers were not very comfortable with too much change. They generally want a product like all the others, just for a little less money, but built a little better... easy peasy... JRPS; Hartley has a well deserved reputation for being frugal...but no more stories today...</blockquote>

[QUOTE="John Roberts, post: 132422, member: 126"] Re: Peavey shut down Owning a factory in China would make a rather small difference in product cost vs. using a large contract manufacturer. The good large contract manufacturers only charge a slender profit margin, or they would lose business to the next contract manufacturer eagerly bidding for the same business. I would not attempt to judge Peavey's sales success in Europe from a one customer anecdote (from an unnamed country). In fact local sales and marketing is the job of the local distributors and some countries are better served than others. The distributor needs to invest in inventory (few do seriously), so order-takers generally suffer from a long supply chain. Decades ago I spent time visiting dealers in several European countries, often staying in europe for a few weeks after the Frankfurt show. I learned a bunch and enjoyed traveling with the Peavey reps and meeting Peavey dealers but marketing at such distance is never easy. Innovation is a double edged sword. In my experience Peavey customers were not very comfortable with too much change. They generally want a product like all the others, just for a little less money, but built a little better... easy peasy... JR PS; Hartley has a well deserved reputation for being frugal...but no more stories today... [/QUOTE]

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