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Fender sited "present market conditions" as the reason for closing the plant. That means it is not economically viable and by reading between the lines, other plants may be closing as well. They are not as interested in making guitars as they are in making money.
 

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Fender sited "present market conditions" as the reason for closing the plant. That means it is not economically viable and by reading between the lines, other plants may be closing as well. They are not as interested in making guitars as they are in making money.
Well, they are a business after all. Thats what business's do.
 

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As sad as it may be, if it's your factory and you're losing money, how long do you keep it running?

I've played some very nice ovations. I still own an Ovation mandolin but I believe it was made in Korea.

Truthfully it's one of the better mandos I own.
 

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Well, they are a business after all. That's what business's do.
Yes, unfortunately, they do. Money (greed) is more important than people. And as you say, Bagpipe, it's not just in the music industry, it's in every industry. Big business pretty much runs this world.
 

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Yes, unfortunately, they do. Money (greed) is more important than people. And as you say, Bagpipe, it's not just in the music industry, it's in every industry. Big business pretty much runs this world.
Big business? How many "small" businesses would run at a loss for altruistic reasons?

I laugh when people blame big business for logical decisions, but who will transfer funds from one RRSP fund to another at the drop of a hat when it starts losing. When it's their money it's all business.
 

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"Fender officials say the factory closing will affect all 46 workers, who will get severance packages, outplacement services and other assistance."

Don't be too hard on Fender. It sounds like the workers can move to China if they want to.
(I'm be facetious)

On the other hand: I love how the Ovation's slide around in my lap when I'm playing them sitting down.
(OK, I'm be facetious again but I don't want to kick the brand when their down)
 

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Big business? How many "small" businesses would run at a loss for altruistic reasons?

I laugh when people blame big business for logical decisions, but who will transfer funds from one RRSP fund to another at the drop of a hat when it starts losing. When it's their money it's all business.
I have said it many times before, you are in business to make money. If not, why are you in business? If this is true, why not make as much money as possible. Is that not the goal? If you are not making any money and continue to run it you are a fool. As a side note I have never liked Ovation guitars
 

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Discussion Starter · #14 ·
I have said it many times before, you are in business to make money. If not, why are you in business? If this is true, why not make as much money as possible. Is that not the goal? If you are not making any money and continue to run it you are a fool. As a side note I have never liked Ovation guitars
There is making a comfortable living and providing secure employment at decent wages for employees, and there is the seductive lure of "growth" and tempting stockholder investment. Plenty of small and larger businesses are able to carry on in that first mode, for generations. It's when they get seduced by the idea of being bigger that they begin taking the sorts of risks that are meant to entice and secure investors. And if that means moving production offshore, so that investors get dollar signs in their eyes, then production gets moved offshore.
 

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There is making a comfortable living and providing secure employment at decent wages for employees, and there is the seductive lure of "growth" and tempting stockholder investment. Plenty of small and larger businesses are able to carry on in that first mode, for generations. It's when they get seduced by the idea of being bigger that they begin taking the sorts of risks that are meant to entice and secure investors. And if that means moving production offshore, so that investors get dollar signs in their eyes, then production gets moved offshore.
In business there is no such thing as enough. You are connected to the Gov, there is no better example of that then the Gov. They spend every waking moment trying to squeeze another dollar out of us. Fender is no different

Give me just one example of a business owner that will stand up and say he is happy with the current income and is not interested in making any more money and I will mark that down as a company to never consider investing in. The goal is ALWAYS to reduce cost and increase the bottom line. Obviously quality is important in that plan. Some have traded quality for cash over the years, not a smart way to go about it and eventually it will bring you down.

For the past 20 years we have witnessed this in every form of manufacturing in North America. Not sure why people continue to fight it and think that these companies are going to stay here for some kind of humanitarian reasons. It's business, like it or not that's the way the game is played.

Fender and Gibson and all the rest will keep a "custom shop" here for those that want to buy North American and they can do it by charging you $2500 per instrument on avg. All the rest of the scum will pay the $700 and get one made in Korea or Japan or China, or Mexico (Which is the same as buying one made in California BTW)

Wal-Mart is probably the greatest example of this I have ever seen. They operate all over North America and employ thousands of people at the lowest wages possible. They buy all their goods at the absolute lowest price they can find anywhere on earth and sell it to us at the highest price possible. Fantastic model
 

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Fender sited "present market conditions" as the reason for closing the plant. That means it is not economically viable and by reading between the lines, other plants may be closing as well. They are not as interested in making guitars as they are in making money.
No one seems to care about where our underwear are made.

Devil's Advocate
 

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Discussion Starter · #17 ·
I would respectfully disagree.

Once you have investors, the mentality changes, because now you have to dangle shiny objects in front of the investors to maintain their interest. Particularly since other companies trying to attract investment are dangling even shinier objects in front of them. And when that starter's pistol is fired, the race to the bottom begins.
 

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People can't keep buying cheap Asian import guitars then label Fender (or another co.) as a villain for shutting down a US plant.
 

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Kind of sad news, but that's biz.

My first ever 'nice' acoustic guitar purchase was a used American Ovation with the extra-deep bowl body. I think it's from the 70's, I bought it in 88 or 89. I still have it and still think it sounds great acoustically. Very well built instrument. I learned a lot of chords and wrote a lot of songs on that thing, and somehow got used to that big bowl back sliding around. I'll keep it forever!

I do remember how, at that time, Ovation was THE acoustic guitar to have on stage. They were all over guitar magazines and Much Music videos, etc. We didn't have internet back then so we had to use other means to find out what kinds of guitars were hip :)
 

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I have said it many times before, you are in business to make money. If not, why are you in business? If this is true, why not make as much money as possible. Is that not the goal? If you are not making any money and continue to run it you are a fool. As a side note I have never liked Ovation guitars
At the cost of others, many who may have been exceptionally hard workers and loyal to you for many years?
 
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