Thread on TGP says G&L now exclusively special order. ?

[ASATNoah]

Have I missed something or is this another of the various misunderstandings about G&Ls? The statement is part way down the first page.

http://www.thegearpage.net/board/showth ... p?t=876675

[Darth Invader]

I just read that thread and some of the guys understand how we work. Dealers order for their inventory, but they spec everything out. It's been like that for ages, but as our options have proliferated, there's just more things to choose from.

We used to carry some US inventory because we had the production headroom and having some inventory on hand can help dealers replenish stock more quickly which supports more sales. It's not a matter of policy that we don't have inventory of US instruments now, it's just that orders from dealers and distributors take up all the available production. I would really like to have some inventory of choice instruments, and heck, I'd love to sit down and spec out some cool instruments to build for stock. It's just plain fun to do, and our crew is very good at it since they see all the best combos as they build them for orders.

We have been on a really good run, balancing more custom options with reasonable lead times. Over time, we'll grow slowly as we find more talented people who really want to be part of building G&Ls, but we're not rushing to crank up production. It may seem old-fashioned, but our goal is to keep building the very best instruments we can, keep finding ways to improve them, and the sales will take care of themselves.

Dave

[Dick Seacup]

...Over time, we'll grow slowly as we find more talented people who really want to be part of building G&Ls, but we're not rushing to crank up production....

Dave, can I ask you a business-related question? I will understand if you can't answer directly, but I have an interest in this sort of thing. First, let me state that I have a, er, peculiar take on The Business Purpose. Well, it's only peculiar in light of modern attitudes, because it was the standard for a very long time. So, maybe antiquated is a better term to apply. Essentially, I hold that The Business Purpose is "to increase shareholder value over the long term." I think it's a very simple concept, but it necessarily limits the pursuit of short-term gains (or chasing stock price) by forcing a longer time horizon (long term view) and also focuses the entities energies on "shareholder value" not "stock market returns" or "immediate profits." Management is virtually chained to the notion of doing what is right for the organization "over the long term" as opposed to what might line their own pockets in the here and now.

You say that you are planning on growing slowly. I actually *like* to hear that from a company. It tells me they aren't caught up in the share price/short term profits arms race. Usually. Now, I don't think you folks are publicly traded, but that's beside the point. Would you say that your management team focuses on the longer term view and sees slow, but steady growth that enhances the value of the going concern as preferable to raking in short-term profits via various schemes which ultimately shorten the life span of the enterprise?

Sorry for hijacking the thread, but, well, I find these things fascinating.

-John

[yowhatsshakin]

Just want to say kudos to Dave and everybody at G&L. Just like Dick, I adhere to the 'long term view' too. Staying focussed on the quality of the product, keep doing what you do best, i.e. building great instruments, and slowly grow seems like a good way to go.

- Jos

[Darth Invader]

sure it's OK to ask this; nothing trade-secrety about it. I was a business major at USC and did my MBA at Pepperdine, so I'm familiar with the concepts.

Often it's not an either-or, short-term vs long-term view, but which needs focus at the moment. As in, "holy <censored word> the numbers are coming in like crap and we've gotta do something quick" or "the numbers are really good this quarter; now how about we polish up our mission statement then go have some lunch?" Everyone feels it at some point.

Now, when you're a public company, it's a whole different bag than when you're private. Far more pressure for actual short-term performance, or at least window dressing that suggests there will be strong performance, well, pretty-soon-just-bear-with-us. In a private corporation, even one that's not a VC-funded start-up, you can have investors that are very demanding for the short-term. A few companies in our industry are feeling that heat quite strongly at the moment. Fortunately, this company is, in my opinion, in a much better position to create long-term value because we don't have short-term demands.

I like to make money as much as the next guy, but for me, this is more than a business. It's a passion. I love this place, the people, the products, and I'm proud as hell of it. I want to be even more proud of it 20 years from now.

Dave

...Over time, we'll grow slowly as we find more talented people who really want to be part of building G&Ls, but we're not rushing to crank up production....

Dave, can I ask you a business-related question? I will understand if you can't answer directly, but I have an interest in this sort of thing. First, let me state that I have a, er, peculiar take on The Business Purpose. Well, it's only peculiar in light of modern attitudes, because it was the standard for a very long time. So, maybe antiquated is a better term to apply. Essentially, I hold that The Business Purpose is "to increase shareholder value over the long term." I think it's a very simple concept, but it necessarily limits the pursuit of short-term gains (or chasing stock price) by forcing a longer time horizon (long term view) and also focuses the entities energies on "shareholder value" not "stock market returns" or "immediate profits." Management is virtually chained to the notion of doing what is right for the organization "over the long term" as opposed to what might line their own pockets in the here and now.

You say that you are planning on growing slowly. I actually *like* to hear that from a company. It tells me they aren't caught up in the share price/short term profits arms race. Usually. Now, I don't think you folks are publicly traded, but that's beside the point. Would you say that your management team focuses on the longer term view and sees slow, but steady growth that enhances the value of the going concern as preferable to raking in short-term profits via various schemes which ultimately shorten the life span of the enterprise?

Sorry for hijacking the thread, but, well, I find these things fascinating.

-John

[legacyman]

Hey Dave;

I just want to say Thank You for not following the CROWD! That is just exactly why I purchased a G&L over any other brand. I just recently purchased my first USA G&L Guitar and must say that I am impressed. I only wish I had discovered this company much sooner!!

[supereiv]

all of that is just another brick in my G&L wall of deep love and respect ...

thank you guys

[Dick Seacup]

sure it's OK to ask this; nothing trade-secrety about it. I was a business major at USC and did my MBA at Pepperdine, so I'm familiar with the concepts.

Often it's not an either-or, short-term vs long-term view, but which needs focus at the moment. As in, "holy <censored word> the numbers are coming in like crap and we've gotta do something quick" or "the numbers are really good this quarter; now how about we polish up our mission statement then go have some lunch?" Everyone feels it at some point.

Now, when you're a public company, it's a whole different bag than when you're private. Far more pressure for actual short-term performance, or at least window dressing that suggests there will be strong performance, well, pretty-soon-just-bear-with-us. In a private corporation, even one that's not a VC-funded start-up, you can have investors that are very demanding for the short-term. A few companies in our industry are feeling that heat quite strongly at the moment. Fortunately, this company is, in my opinion, in a much better position to create long-term value because we don't have short-term demands.

I like to make money as much as the next guy, but for me, this is more than a business. It's a passion. I love this place, the people, the products, and I'm proud as hell of it. I want to be even more proud of it 20 years from now.

Thanks for the candor, Dave. I really appreciate the opportunity to gain a little insight into how others run their businesses. I like the "It's a passion" statement the most, though. Without that piece, it's hard to fathom how any organization hopes to be around long, you know? As an interesting aside, I've had the pleasure--privilege really--of spending some time with a few of the owners of a certain Kalamazoo guitar builder. They have that same passionate approach to running their business. I think that's why I'm such an ardent, vocal and enthusiastic supporter/proponent of both brands. Well, the high quality/high value thing helps, too.

[smileradio]

I heart G&L.... simple as that.

[rpt]

Last night I took my lefty '92 ASAT Classic and '91 Leo signature ASAT Classic to the semi-monthly 3 hour worship jam at the Harbor Church in Ventura. I left the '89 Leo signature ASAT, '93 Legacy and '91 Leo signaure S-500 at home. I like the long term perspective Dave describes. I've seen the effects of short term financial pressures on clients, and appreciate his and G&L's long term view. I'd also like to have some patron offer his house or studio (or hotel, for that matter) for another summer jam this year.

[suave eddie]

When you place a custom order is the lead time determined completely by luck?
If you order options that are less popular does that automatically increase the wait time? For instance, it appears that vintage frets are not very popular as are neck profiles other than #1. If I were to order options such as these would that necessarily increase the wait time?

[overt1]

Common options probably do come quicker since I ordered my legacy with only the gun oil tint option, and the dealer quoted me 2 month... But it was ready in 2 weeks. I almost think they have everything made already for mine, and they just had to quickly put it together

[BillEvans1956]

Good thread this one. Explains why we are all so passionate about G&L. Thanks Dave.

Bill

[sirmyghin]

Common options probably do come quicker since I ordered my legacy with only the gun oil tint option, and the dealer quoted me 2 month... But it was ready in 2 weeks. I almost think they have everything made already for mine, and they just had to quickly put it together

It is entirely possible that is exactly the case you may have lucked out and orderred something they were working on, especially if it didn't have anything odd to it.