It is currently Tue Mar 17, 2020 3:41 am

All times are UTC - 7 hours



Post new topic Reply to topic  [ 20 posts ]  Go to page 1, 2  Next
Go to page 1, 2  Next
Author Message
Post subject: Did You Know This?
Posted: Sat Oct 12, 2013 6:52 am
Offline
Rock Star
Rock Star

Joined: Fri Apr 08, 2011 5:14 pm
Posts: 3169
Location: Linningrad
If this has been posted before, I am sorry, but this is news to me. Control of FMIC has been taken over by two companies: TPG Growth, and Servco. :?

http://www.pehub.com/2013/09/30/with-control-tpg-growth-servco-make-fender-consumer-friendly/

_________________
2012 Lefty American Standard Jazz
2017 Lefty American Professional Precision
2018 Rumble Studio 40 Combo
2016 Rumble 200 Combo
One day they shall name a GREAT city after me, and they shall call it LINNINGRAD


Top
Profile
Fender Play Winter Sale 2020
Post subject: Re: Did You Know This?
Posted: Sat Oct 12, 2013 7:14 am
Offline
Rock Star
Rock Star
User avatar

Joined: Mon Jan 12, 2009 4:50 pm
Posts: 7998
Location: ʎɹʇunoɔ ǝsoɹ pןıʍ
Genuine Fender Partsocasters.

_________________
Image
Just think of how awesome a guitar player you could have been by now if you had only spent the last 10 years practicing instead of obsessing over pickups and roasted maple necks.


Top
Profile
Post subject: Re: Did You Know This?
Posted: Sat Oct 12, 2013 7:29 am
Offline
Aspiring Musician
Aspiring Musician
User avatar

Joined: Sun Jun 02, 2013 6:16 pm
Posts: 894
Interesting. According to the article, they are saying something about buying instruments directly from Fender in late November. I wonder how or if that would pan out?

_________________
ImageImage


Top
Profile
Post subject: Re: Did You Know This?
Posted: Sat Oct 12, 2013 7:50 am
Offline
Rock Star
Rock Star
User avatar

Joined: Thu Aug 07, 2008 3:12 pm
Posts: 6355
Location: Albemarle, NC
linnin wrote:
If this has been posted before, I am sorry, but this is news to me. Control of FMIC has been taken over by two companies: TPG Growth, and Servco. :?

http://www.pehub.com/2013/09/30/with-control-tpg-growth-servco-make-fender-consumer-friendly/


Weston Presidio wanted out apparently. I think they had like 43% ownership and were the largest single shareholder. Yamano Gakki and Kanda Shokai who are the two separate parent companies of Fender Japan are long time shareholders too but their shares combined do not equal 43%. Many of the board members and CEO Larry Thomas are shareholders. Mr. Thomas' contract is up I think in March of 2015. Here is the prospectus.
http://www.sec.gov/Archives/edgar/data/767959/000119312512101896/d293340ds1.htm
When I read it I found that several of my observations were proven accurate.


Top
Profile
Post subject: Re: Did You Know This?
Posted: Sat Oct 12, 2013 8:01 am
Offline
Rock Star
Rock Star

Joined: Fri Apr 08, 2011 5:14 pm
Posts: 3169
Location: Linningrad
Yes, and Servco has been a part owner and good friend to FMIC since the very begining in 1985. Also "Fender planned to go public last year but pulled the offering at the last moment. At the time, Weston Presidio owned about 43% of the music company. Servco Pacific, led by chairman and CEO Mark Fukunaga, agreed to buy Weston Presidio’s stake in the fall of 2012, McGlashan and Fukunaga said."

So, some very interesting changes lay ahead, and soon too. In time for Christmas shopping??? Seems so.

_________________
2012 Lefty American Standard Jazz
2017 Lefty American Professional Precision
2018 Rumble Studio 40 Combo
2016 Rumble 200 Combo
One day they shall name a GREAT city after me, and they shall call it LINNINGRAD


Top
Profile
Post subject: Re: Did You Know This?
Posted: Sat Oct 12, 2013 8:25 am
Offline
Rock Star
Rock Star
User avatar

Joined: Tue Mar 01, 2011 3:10 pm
Posts: 5646
Location: Gateway to the West
They also need to let you buy a "Partsocaster" with amp selections :!: :!: :!:

Sure would be nice to get a "New" Real Deluxe that is VERY reliable electronics wise and also be able to choose your tolex and grill cloth!

But with them talking about expanding the brand, and expanding the life style...I am not so sure this will be a good thing...will have to wait and see.

T2

_________________
-----------------------------------------------------------
What time is it? It's Fender Time.


Top
Profile
Post subject: Re: Did You Know This?
Posted: Sat Oct 12, 2013 8:28 am
Offline
Aspiring Musician
Aspiring Musician
User avatar

Joined: Sun Jun 02, 2013 6:16 pm
Posts: 894
Well, they've been coming out with a lot of new stuff lately, so who knows what's up? I'm curious about the statement about selling directly, too.

_________________
ImageImage


Top
Profile
Post subject: Re: Did You Know This?
Posted: Sat Oct 12, 2013 9:00 am
Offline
Rock Star
Rock Star

Joined: Fri Apr 08, 2011 5:14 pm
Posts: 3169
Location: Linningrad
Fender's new Dimension basses are a great example of Fender striding confidently into the future. Being able to custom order online direct from Fender could be a real God send for us leftys. :D

_________________
2012 Lefty American Standard Jazz
2017 Lefty American Professional Precision
2018 Rumble Studio 40 Combo
2016 Rumble 200 Combo
One day they shall name a GREAT city after me, and they shall call it LINNINGRAD


Top
Profile
Post subject: Re: Did You Know This?
Posted: Sat Oct 12, 2013 9:50 am
Offline
Rock Star
Rock Star
User avatar

Joined: Sun Sep 08, 2013 8:50 pm
Posts: 4602
Location: ˚ɷ˚
CPL wrote:
Well, they've been coming out with a lot of new stuff lately, so who knows what's up? I'm curious about the statement about selling directly, too.


Well, they'll have to be a lot more honest with their MSRPs then, cause no one will buy a guitar at $1399 from Fender if they can get the exact same one for $899 if going through any dealer.
But if they do that, that will lose sales too - Johnny Eighthgrader might not buy a $899 MSRP Strat at $899, if he can find a $1199 MSRP PRS at $899, and thinks he saves $300 on the deal.
We know not to take prices and "sales" at face value, but there are an awful lot of first time buyers out there.

So IMO, having a direct factory store would be a bad idea, one way or another.

An expansion of the parts store, though, is sorely needed. There are too many models for which parts aren't available. At the very least, I think one should be able to buy replacement pickups and pickguards from Fender.


Top
Profile
Post subject: Re: Did You Know This?
Posted: Sat Oct 12, 2013 10:14 am
Offline
Rock Star
Rock Star

Joined: Fri Apr 08, 2011 5:14 pm
Posts: 3169
Location: Linningrad
None of us have yet seen the 'BIG Picture', so let us all hope for the very best. Everyone involved has demonstrated a love for Fender and a HUGE commitment to its continued success to the tune of something like $100 Million. So they have most certainly put their money where there mouth is BIGTIME!

_________________
2012 Lefty American Standard Jazz
2017 Lefty American Professional Precision
2018 Rumble Studio 40 Combo
2016 Rumble 200 Combo
One day they shall name a GREAT city after me, and they shall call it LINNINGRAD


Top
Profile
Post subject: Re: Did You Know This?
Posted: Sat Oct 12, 2013 10:32 am
Offline
Rock Star
Rock Star
User avatar

Joined: Tue Jul 17, 2007 9:44 am
Posts: 7282
Location: Washington
brotherdave wrote:
Many of the board members and CEO Larry Thomas are shareholders. Mr. Thomas' contract is up I think in March of 2015.


Is he CEO of Fender Japan?

_________________
Member #26797
My other guitar is a Strat.

Image


Top
Profile
Post subject: Re: Did You Know This?
Posted: Sat Oct 12, 2013 11:00 am
Offline
Aspiring Musician
Aspiring Musician
User avatar

Joined: Sun Jun 02, 2013 6:16 pm
Posts: 894
arth1 wrote:
CPL wrote:
Well, they've been coming out with a lot of new stuff lately, so who knows what's up? I'm curious about the statement about selling directly, too.


Well, they'll have to be a lot more honest with their MSRPs then, cause no one will buy a guitar at $1399 from Fender if they can get the exact same one for $899 if going through any dealer.
But if they do that, that will lose sales too - Johnny Eighthgrader might not buy a $899 MSRP Strat at $899, if he can find a $1199 MSRP PRS at $899, and thinks he saves $300 on the deal.
We know not to take prices and "sales" at face value, but there are an awful lot of first time buyers out there.

So IMO, having a direct factory store would be a bad idea, one way or another.

An expansion of the parts store, though, is sorely needed. There are too many models for which parts aren't available. At the very least, I think one should be able to buy replacement pickups and pickguards from Fender.


I know what you mean. They could do what Carvin does and have a list price (which is funny, considering they only sell direct-probably do it for the reason you said) and then "discount" that to the price they are going to sell it for, anyhow. Of course, the whole list price thing is just a sales tactic so the dealer makes a profit (which makes sense, otherwise they couldn't be in business,) while the customer thinks they're getting a big deal. I know for a fact that the dealer's cost is a lot cheaper than that. I used to be in a band and friends with a dude that worked for a music store who was going to sell me stuff at his cost. I'm sure what the dealer pays a mark up too (although they probably get some sort of bulk deal,) so Fender can make money from building them. I'm curious to know what, say a Telecaster, actually costs to make per unit.

_________________
ImageImage


Top
Profile
Post subject: Re: Did You Know This?
Posted: Sat Oct 12, 2013 11:08 am
Offline
Aspiring Musician
Aspiring Musician
User avatar

Joined: Thu Sep 05, 2013 8:03 am
Posts: 575
Location: In the Land of "Stratocaster"
The thing that most concerns me about all of this is if Fender is going to STAY in the USA.
Too much is already being outsourced.

_________________
★ ★ ★ ★ ★


Top
Profile
Post subject: Re: Did You Know This?
Posted: Sat Oct 12, 2013 11:31 am
Offline
Rock Star
Rock Star
User avatar

Joined: Thu Aug 07, 2008 3:12 pm
Posts: 6355
Location: Albemarle, NC
CPL wrote:
Interesting. According to the article, they are saying something about buying instruments directly from Fender in late November. I wonder how or if that would pan out?


This is happening. I'm expecting that initially the options will be somewhat more limited than some would like to see and it will be for USA models only. The options might expand based on response and consumer feedback about the program. The volume more than feedback will tell the tale of whether it pays off or not. "Money talks and BS walks" as they say.

I do not expect to see online custom configuration ordering for MIM instruments right off the bat but if the customized USA models see significant online sales that would be a sign that the MIM offerings should eventually be added. That would be fairly easy to do. However I don't think you'll ever have the ability to custom order Fender Japan instruments through the USA Fender site because the logistics for doing that are simply not there.

I also have to wonder how the mom and pop dealers are going to receive it. They can't be happy that this is happening. I suspect a few are more than just a little miffed. Many of them may actually be unaware of it.


Top
Profile
Post subject: Re: Did You Know This?
Posted: Sat Oct 12, 2013 1:16 pm
Offline
Rock Star
Rock Star
User avatar

Joined: Thu Aug 07, 2008 3:12 pm
Posts: 6355
Location: Albemarle, NC
orvilleowner wrote:
brotherdave wrote:
Many of the board members and CEO Larry Thomas are shareholders. Mr. Thomas' contract is up I think in March of 2015.


Is he CEO of Fender Japan?


No and didn't mean to give you that impression but in re-reading my post I see how you might could interpret it that way.

Larry Thomas is CEO of FMIC which is "Fender" in USA/North America. Previously he was CEO of Guitar Center. He took GC public and sold GC to Bain Capital after which time he came to Fender when Bill Mendello retired as FMIC CEO. Bill Mendello had been at Fender since the CBS era.

Before Bill Mendello the first FMIC CEO was Bill Schultz. Schultz is "the man who saved Fender" and put together the deal to buy the brand from CBS. Schultz had been with Yamaha and was hired by CBS to be president of the Fender division of CBS. Bill Mendello also was a player in the CBS buyout remaining with Fender in the transition to FMIC.

The FMIC IPO prospectus mentions Thomas' contract ending. Larry Thomas is only the third CEO in FMIC's 30 year history.

Fender Japan is a completely separate entity from Fender/FMIC. Fender Japan's controlling majority shareholders are Yamano Gakki which is the rough equivalent of Guitar Center in Japan (except Yamano actually makes money) and Kanda Shokai which is a musical instrument distributor/wholesaler.

It is interesting that in a reciprocal swap arrangement FMIC owns shares in Fender Japan and Fender Japan owns shares in FMIC. The percentages were setup to be equal as I recall. FMIC's ownership stake in Fender Japan and Fender Japan's ownership stake in FMIC while interesting are minority non-controlling interests. Yamano Gakki, Kanda Shokai and FMIC have been the owners of "Fender Japan" since day one with no ownership changes and there are no other minority interests in Fender Japan of which I am aware. Both Fender Japan and FMIC would list their shares of the other as an asset on a balance sheet.

In addition to the minority ownership shares held by Fender Japan's partners in FMIC other minority shares of FMIC are held by other members of the FMIC board.

The most interesting thing about this "online sales of custom ordered Fenders" is that I recall several posts by others on the forum going back years wondering why they couldn't order a custom instrument online like Carvin has always done. It seems that someone actually listened to that and took it to heart.


Top
Profile
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 20 posts ]  Go to page 1, 2  Next
Go to page 1, 2  Next

All times are UTC - 7 hours

Fender Play Winter Sale 2020

Who is online

Users browsing this forum: No registered users and 2 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Search for:
Jump to: