peavey??

J

jackson111

New member
i was in my local shop looking at a 6505 combo and it was foreign made? whats the deal with that. i thouhgt peavey was manufacturing their flag ship amps in the usa? the salesman told me oh yeah that used to be the case, but they have moved all their products overseas. is this true or does this guy not have a clue?
 
Re: peavey??

Watch the Peavey episode of Undercover Boss, they talk about how a lot of what they used to make here is now made overseas.
 
Re: peavey??

Gone_Shootin said:
Watch the Peavey episode of Undercover Boss, they talk about how a lot of what they used to make here is now made overseas.
Click to expand...

And more to come. Hartley wants to work on his bucketlist (which is fine, he built that company from nothing and accomplished plenty) but his stepson is taking over and... watch the episode.
 
Re: peavey??

I actually watched it last night, and it kind of turned me off of buying Peavy, granted they probably aren't any different than any of the other major manufacturers
 
Re: peavey??

wow that compnay is crap. i just watched the undercover boss, where they promised their employees stability and that things would get better, and then they close the plant layoff the same people and move overseas. screw peavey i hope they go down in flames.
 
Re: peavey??

Hey allbutromeo I too understand that they are not the only company to do that, but how stupid is it to air it nationally on a tv show. If they can't manage their company, or even manage their PR any better then that hue am I supposed to believe they can make a good product.
 
Re: peavey??

I agree completely. I understand that they have a business to run, but they built their reputation on affordable gear made in the US. I didn't mind when they started doing what other companies did building some of their entry level stuff overseas and still having their higher end stuff built here. But to go on a TV show, and treat their employees they way they did makes it hard for me to buy their products ever again
 
Re: peavey??

I got the feeling that Hartley is in the process of handing (selling) the reins to his Son In-Law. Does not seem that Hartley is too involved anymore, and the Son In-Law is packing up and moving for cheaper labor.
The problem with a "World Economy" is that we still have "Local Wages". We should all fight for higher wages in:
Indeia
China
Vietnam
Korea
etc etc
As long as the cheap labor exists.......
 
Re: peavey??

^^
Sure, then you can pay as much for a new Peavey as you would for a vintage Marshall. I'm all on board for that. I wouldn't buy anything new by Peavey, but I sure don't mind getting some of their older stuff for cheaps in the pawn shops.
 
Re: peavey??

zzmoore said:
I got the feeling that Hartley is in the process of handing (selling) the reins to his Son In-Law. Does not seem that Hartley is too involved anymore, and the Son In-Law is packing up and moving for cheaper labor.
The problem with a "World Economy" is that we still have "Local Wages". We should all fight for higher wages in:
Indeia
China
Vietnam
Korea
etc etc
As long as the cheap labor exists.......
Click to expand...


Whats funny about this comment is that its already happening in places. When I lived in China my wife did some work mediating european companies that wanted to outsource production to china. The reason these factories were free was cause the chinese had moved the factories to vietnam and it was no longer profitable for them to pay the wages in china.

hard to elaborate further without getting political but the situation with peavey is despicable.
 
Re: peavey??

Demanic said:
^^
Sure, then you can pay as much for a new Peavey as you would for a vintage Marshall. I'm all on board for that. I wouldn't buy anything new by Peavey, but I sure don't mind getting some of their older stuff for cheaps in the pawn shops.
Click to expand...

You really think the current economic model of mass consumerism of cheap products is sustainable?
 
Re: peavey??

^^
Can't answer that without getting "too political".
Let's just say that there's no faire like lazes faire.
 
Re: peavey??

Demanic said:
^^
Sure, then you can pay as much for a new Peavey as you would for a vintage Marshall. I'm all on board for that. I wouldn't buy anything new by Peavey, but I sure don't mind getting some of their older stuff for cheaps in the pawn shops.
Click to expand...

Even factoring in the cost and overhead of an American employee over a Chinese one it still doesn't change the price that much. It's just a race to the bottom, with the people at the top cashing in while they can.

Imagine that the overall cost of an employee here is $300 per day, and a Chinese employee is $1 per day. (The Chinese employee is more expensive, but just making a point here.) All things being equal (and not even taking in to account having to ship your products back here to sell), can you honestly say that the cost of an amp is going to be that much of a factor? If it's a handbuilt amp and they make one per day, that would be a $300 premium. I don't think that's a huge price to pay for a USA made amp vs a Chinese made one. If it's a practice amp that gets assembled here, I'd think that a trained person could assemble at least 4 per hour.. so 32 per day. Raise the price of the amp by $10 and the manufacturer comes out slightly ahead. When someone takes their kid to Guitar Center for an amp see if they buy the $100 Spider made in China or the $110 Vypyr that was assembled here (using domestic and imported parts.)
 
Re: peavey??

Whatever the market will support.
Of course if you pay $15 per unit manufactured...
 
Re: peavey??

It's not just labor, it's environmental regulations and liability and Workmen's Comp insurance, and all the palm grease for the zoning board. If you're making money in America, there's a long line of people who think they're entitled to it. In the People's Republic, they generally have one guy who rakes in the People's Bribes. In outlying territories, it's easier to find "reasonably priced" labor - prisoners, slaves, etc.
The lack of environmental restrictions is also a major cost-reducer.

And then you have the value of the USD vs the various PacRim/FarEast currencies, so that "dollar a day" they're paying could be closer to their version of $300 a week.
It's all about cost of living - someone paid $40K USD a year in China could be living large, while someone making $40K USD in America is far from it.

One Yuan is currently equal to 16 cents American.
One Indian Rupee is equal to 1 and a half cents American.

63 Indian Rupees equals 1 USD. An 8-hour job in America that pays $8/hour is $64 a day.
That's below poverty level.
 
Re: peavey??

So let's take this further and say that there's one American worker making $8/hour for 8 hours a day, for a total of $64 per day. Work 5 days a week and you have $320/week. Multiply that by 20 or more people in a small factory (I don't know about Peavey - I never been there and didn't watch the show), and the cost of labor is $6400 per week.

Take that same $8 USD to India and pay 1 worker 63 INR per day, or $1 USD. Immediately you free up the money to hire 8 people for the cost of one American. While Accounting says you're still paying $320 USD a week in labor costs, that's for 8 people doing 8 jobs instead of one person doing one job.

The issue then becomes (at least from the consumer end) - "what's the build quality?" I'm not going to say that non-Americans do not have the mentality or capability to build a quality product. In reality, Far East cultures knew how to do things right when EuroMericans were still wearing furs and worrying about the Vikings.
However, the quality level they're allowed by their corporate paymasters is a different story. The general consensus is that if you can flood the market, manufacturing defects due to poor training or rushed production or shoddy base materials is acceptable beyond a level associated with Made In USA. You turn out thousands a day, and only 100 are bad? That's not a bad average for some things, and the cost was low enough that even with international shipping by cargo boat, you've still spent less than you would on the one American worker and the related costs of doing reputable business in the USA.
It's popular in America to say "the Chinese can't build a good one" or "the Indians can't build a good one", but the fault with bad products lie with the company behind the logo, not the worker putting it on.
 
Re: peavey??

Ok I have one question regarding made in USA products. How can carvin manufacture USA products at a very fair price point?
 
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