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Sweetwater Music bought by a Private Equity Firm| Founder & CEO just stepped down, next GC?
Old 1 day ago | Show parent
  #391
Gear Guru
 
kennybro's Avatar
 
3 Reviews written
🎧 10 years
Quote:
Originally Posted by greggybud ➡️
Once price matching starts, they will gradually loose this reputation that was established over many years. The perception will take longer to loose hence good times for the PE group in the short run.
Yup. Spin down of the wheel's momentum. There's good money to be made during this period, as growth re-investment is not usually on the table. Maintenance is the key, while mining off the remaining wealth. Once the initial investment is recouped, sell for what value is left. And of course, the new owners have been drawing a nice bit the whole time.
Old 1 day ago | Show parent
  #392
Lives for gear
 
🎧 15 years
Quote:
Originally Posted by kennybro ➡️
Yup. Spin down of the wheel's momentum. There's good money to be made during this period, as growth re-investment is not usually on the table. Maintenance is the key, while mining off the remaining wealth. Once the initial investment is recouped, sell for what value is left. And of course, the new owners have been drawing a nice bit the whole time.
I think quite a bit is possible with the right vision and execution.

Last edited by nightjar; 21 hours ago at 03:02 AM..
Old 21 hours ago | Show parent
  #393
Gear Guru
 
kennybro's Avatar
 
3 Reviews written
🎧 10 years
Quote:
Originally Posted by nightjar ➡️
I think quite a bit is possible with the right vision and execution.
So much is possible with the right vision and execution. The most common vision that PE firms want to execute is to make maximum money in the shortest term possible with the least financial risk.

But I don't disagree. Vision is king. Chuck Surack has vision. He turned a small music retail outlet into a multi-million dollar business.
Old 21 hours ago | Show parent
  #394
Here for the gear
 
🎧 5 years
Quote:
Originally Posted by Cuboctahedron ➡️
While I trust he has done his diligence, of course a private equity firm is encouraging him to grow. That's literally the entire point of what they do.

The cuts and the changes in business model come later.
I, for one, am ready for a change. SW lost my business long ago. I asked my sales rep to remedy something three times. The first complaint was in the form of a question of an overcharge - does this look right? He couldn't see a problem. Did he really look? I explained it further a second time, and questioned the transaction. It wasn't getting through to him. The third time I photocopied the overcharge and sent the info to him circling the actual overcharge. My rep circled his reply "How so?" .....Again a useless pursuit. After three attempts, I had enough. Why couldn't the rep's response have been, "Let me have someone else take a look at things." How can he just reply "How so?" My former SW reps' name is not C----- anymore to me, it is now Howso. I no longer need sales rep Howso or SW in order to acquire the gear I need. Maybe a change AWAY from rep-driven communication to something else will weed out smart aleck Howsos and prove to be a better future business model for SW. Who would want to deal with Howso again? Not me. Maybe there is change for the better on the horizon here.
Old 20 hours ago
  #395
Lives for gear
 
My sales guy has never called me out of the blue, but only if I emailed him about something, prob cause there’s no money in dealing with me haha but for real, i don’t bother him unless I need something, any of my sales guys, I don’t talk to them about stuff and not buy it usually. I mean I do my own research and when it’s time ask for a quote.

Sometimes I’ll chop it up casually about random stuff but that’s just small talk that branches off whatever I might be getting into when finalizing my order.
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