Klarinet Archive - Posting 000559.txt from 1999/11

From: "Kevin Fay (LCA)" <kevinfay@-----.com>
Subj: [kl] The Conn Job
Date: Sun, 14 Nov 1999 17:24:15 -0500

I've read these strings with some interest -- they are an interesting mix of
clarinet, religion and (personal) philosophy, bundled with arguments I
recall long ago from my political science days.

The story of the demise of Conn is particularly interesting -- especially
the part about how the evil unions forced them to retreat to Mexico. The
failure of Conn had much more to do with mis-management than evil, greedy
employees. A euphemistic account can be found at
http://www.usd.edu/~mbanks/CONTENT.html#content.

The evil/greedy employees did not for the most part end up in an
unemployment line. Conn's "new" brass factory was purchased by Selmer, who
almost immediately started churning out Bach brasses -- with designs vastly
superior to the ones Conn had been producing in the same factory. So the
same people, using much of the same tooling, continued in business by
producing better horns.

Neil Leupold hit the nail on the head when he said:

<<<Depending on the nature of the busines (making cars vs. producing fine
wines, for example), and depending on the business strategy (low cost leader
vs. quality niche market vs. something in between), as well as the relative
conditions of the market environment (stable vs. volatile) -- all of these
factors, along with others, combine to do exactly what you propose should
not be happening: businesses place relative emphasis on quality vs. quantity
vs. price, in congruence with their particular mission and strategy. Some
people seem to be making the assumption that all businesses strive to
produce the highest quality product they can. It's a nice thought, but is
generally false. The level of quality, quantity, and price are all
determined by one thing: the strength of the market for the product.
Business follows the demand. If there's no demand for a high quality widget,
there's no incentive to produce one, much less base an entire business
strategy on it.>>>

Price v. quality is not necessarily a false dichotomy, depending on the
business. In the manufacture of trucks (a business I know quite well), it
rings true. Kenworth and Peterbilt trucks are marketed for their higher
"quality" -- which can be shown statistically to fleet owners in decreased
down time, making the economic case that they are in fact a more profitable
choice than a less-expensive truck. Other customers don't buy the argument,
and hence buy the less-expensive trucks on the market. Profitability
doesn't hinge on low quality; PACCAR (who makes Kenworth & Peterbilt) hasn't
lost money in a fiscal quarter since 1938; many other makers have been
bankrupt numerous times.

Where price v. quality becomes a false dichotomy is where there is a
breakthrough in technology or manufacturing technique. A good example of
this is the emergence of Yamaha in the music industry. Yamaha did not have
a substantial history in the instrument business, but were instead very,
very, very good at manufacturing engineering. Buying designs from Reynold
Schilke, they were able to use the superior manufacturing techniques from
their other industries to make a fine trumpet for a low price -- setting the
entire industry on its ear for some time. They did the same for their other
instrument lines.

Could Buffet/Selmer/Leblanc/Yamaha make a "better" clarinet? Undoubtedly.
To make a material improvement, however, they would have to spend a great
deal of money -- and the price of the new horn would probably be
significantly higher than what most of us are willing to pay.

Most professional musicians are willing to shell out about two thousand
bucks for a new clarinet. Not surprising, the "workhorse" of the makers'
product lines -- the R-13 and the Concerto -- fall into that price point.
You can spend more on a Prestige or Opus, but most of us don't.
Consequently, Leblanc & Buffet do the best they can at that price point (and
do remarkably well, IMHO).

Student horns aren't as good. They can't be, because they can cost no more
than three hundred bucks or so wholesale. Knowing this, the manufacturers
do the best they can. Some do better than others.

kjf

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