Buffet buys Powell

[TrueTone]

So I was looking through my subscriptions on youtube, and found this:
https://www.youtube.com/watch?v=lc0SqvznNyE
Anyone's thoughts? I know Buffet and Powell (well, Verne Q Powell's son,) collaborated in the 30s on the Buffet-Powell sax, so that's probably another reason they specifically chose to buy Powell.
And Buffet's certainly getting up there in how many brands it has now: Buffet itself, Keilwerth, B&S, Schreiber, Besson, Courtois, Scherzer, Hans Hoyer, Melton Meinl Weston, and now Powell.

 

[Steve]

It's a good thing
http://www.buffet-group.com/sites/buffetgroup/files/Press Release Powell_01042016_eng.pdf

Buffet learned in the past to either become larger to compete better globally
or be bought and languish as part of another company. Remember UMI ?

They are trying to stay in the upper end of the market, instead of competing against the asian flood.
Don't forget the other large manufacturers in the marketplace.

Conn - Selmer USA / Steinway
Yamaha

even Selmer Paris is expanding in it's own weird way.

 

[pete]

Anyone remember the Powell Silver Eagle sax line? This could be the driving reason why the line was discontinued.

Anyone else think that the president of Buffet looks like a slightly older, lower-budget Mark Ruffalo in that video? Just me?

================

I'm not a flute player. I know Powell flutes are pretty high-end. I do know Buffet clarinets and (older) saxophones. I don't have a problem thinking that Buffet owning Powell will "hurt" Powell flutes in any way. I'm also relatively sure that Buffet wouldn't stop selling instruments under the Powell name, as that's a fairly well known name.

So, cautiously optimistic.

 

[Gandalfe]

...even Selmer Paris is expanding in it's own weird way.

Hmm, what does this mean Steve.

 

[pete]

The Mentos Axos models.

 

[Steve]

Hmm, what does this mean Steve.

Selmer Paris expanding their lines of instruments with the Seles "student instruments" (identified as student on their website selmer.fr ) - but identified as professional in the stores.
This is a good way of keeping people busy by creating another line.

French labor laws are notorious in preventing flexibility of labor hours and wages.
I haven't read about it in years but essentially you cannot vary or lay people off without extensive prewarning and plans submitted to the government.
==> http://www.triplet.com/50-10_employment/50-12_laysoff.asp

Normally it's easier to buy a company. But with french labor laws it may be easier to use existing staff to create a new product line instead. Keep the same people busy while also increasing efficiencies.

Of course, I don't know any of the financial or business analysis behind their Seles line, but it certainly has merits to increase internal manufacturing rather than buy other companies. Selmer Paris also has a name with a distinct following which is advantageous.

 

[Steve]

my post about Powell seems to have not taken ...

But the Powell saxes I think were originally started in 2010 according to their website.
The cost of design & planning, tooling (even though they bought post and padcup tooling from B&S), and a short run must have been very expensive.
6 years from inception to making some horns.

I'm curious if that cost was part of the plan to find some deeper pockets.
There's a lot to be done with "merging" with another company.
Deeper pockets to help during a cash crunch,
more wide expertise in certain manufacturing and streamlining techniques,
and the owners may just want to retire or slow down as a company ages, and many other reasons.

But I'm also curious of the Silver Eagle was priced too high for the high end market.
and how price sensitive sax players are in comparison to, I think, more price insensitive flute players are.
It's all Supply and Demand. Was the demand too low for a short run supply per year, or were costs still identified as too high for the targeted price.
We have a few on this board which may know more but I certainly don't know anything about the Silver Eagle manufacturing and connection with Buffet other than what I"ve read.