🎸 Guitar Center has been a go-to destination for musicians for decades, but it’s important to remember that too much expansion can be detrimental to success.
don’t care about guitars. This is a really valuable business lesson anyway. So Guitar Center was huge in the 80s, 90s, early 2000s. They basically took over the mom and pop guitar shop. But the problem was that they massively over expanded. Somebody the other day was like, oh, let’s talk to this person. They have like a five million person email list, right? And then I think we kind of realized that it was like just because they have a ton of emails, just because Guitar Center has a ton of location, now they’re a billion dollars in debt. They’ve been taken over by corporate, people like Bain Capital and some other people like that. And they can’t even pay the interest on their loans all because most of the time they’ve massively over expanded and they’ve lost sight of their true customers. The same can be said for the huge list, right? Like if you have a million people on your email list, well, how many of those people are actually gonna buy your stuff? And how much of your money is being spent to just pay Active Campaign or MaraPost or whoever to keep those people on your list?