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Tuesday, 29 September 2009 - Guitar maker draws buyers, cult-like following | Entertainment |
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    My Profile    Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Entertainment > Article Home Business & Finance News U.S. Politics International Technology Entertainment Film Music People Television Arts Industry Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Guitar maker draws buyers, cult-like following Mon Sep 28, 2009 1:43pm EDT   Email | Print | Share | Reprints | Single Page [-] Text [+] By Andrea Shalal-Esa STEVENSVILLE, Md (Reuters) - Three decades after defying the odds and persuading Carlos Santana to try out his hand-built guitar, Paul Reed Smith's quest for perfect tone is still reeling in enthusiasts from all over the world. Despite the world economic downturn, his company has built a new multimillion dollar factory and is looking at multiplying revenues while other instrument makers report declining sales. More than 1,700 guitar dealers and customers traveled to a festive open house at Smith's Maryland headquarters this past weekend to see his newest guitars and tour a factory that turns out over 16,000 handcrafted instruments each year. The crowd -- which included dealers, doctors, investment bankers and ordinary guitarists -- ordered more than 500 guitars ranging in price from several thousand dollars to as high as $70,000, for a grand total of well over $1 million. Over the past 25 years, that kind of excitement has made Paul Reed Smith (PRS) Guitars the third largest U.S. electric guitar maker, helping it to squeeze older names Fender and Gibson and capture 40 percent of the high-end guitar market. Nick Catanese, of Black Label Society, began playing PRS guitars in January, and says there's no comparison with other brands. "They're almost like a work of art," he told Reuters. Those kind of reviews are good for PRS's bottom line, which is surviving the economic downturn better than most. This year, PRS expects to match its 2008 revenues of $38 million, while competitors report declines of 20 to 30 percent, and the new factory should allow the company to double its sales once the economy recovers, says President Jack Higginbotham. Gary Ciocci, managing director of Premier Guitar magazine, attributes the company's success to Smith's intense focus on its customers and events like the $300,000 open house. "They're not here to make a quick dollar," he said, noting that despite the economic downturn there weren't many used PRS guitars among thousands for sale on eBay. CONTAGIOUS PASSION Santana, who has been playing Smith's guitars since 1980, said he was grateful "God put me in Paul Reed's path" because his passion and integrity were simply contagious. "It inspires you to be the best you can be," he told the crowd during a surprise concert on the eve of the open house. "He's like Leonard Bernstein ... and the people who make the guitars are like the symphony," he told 400 guests. Santana was so impressed with PRS's new amplifiers -- a product line introduced this year -- that he ordered several for a concert on the West Coast next week.  Continued... View article on single page   Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn     Next Article: "Lucy in the Sky with Diamonds" inspiration dies     Also On Reuters U.S. dollar seen caught in G20 meeting's crosshairs Banged up, Allen Stanford back in jail after brawl Video  Video: Next up, mind-controlled gadgets? More Entertainment News Polanski to fight extradition after Zurich arrest   |  Video "Lucy in the Sky with Diamonds" inspiration dies Warner, YouTube near deal for music videos: sources "Cloudy" again leads struggling box office Harrelson, Murray bring flair to "Zombieland" More Entertainment News... Editor's Choice Slideshow  A selection of our best photos from the past 24 hours.  Slideshow  Most Popular on Reuters Articles Video Anger in France and Poland after Polanski arrest Honduras spurns OAS, vows to close Brazil embassy  |  Video Poland okays forcible castration for pedophiles Guitar maker draws buyers, cult-like following Man sues BofA for "1,784 billion, trillion dollars"  |  Video Iran flexes muscle ahead of talks with major powers  |  Video Crawford says Time Warner will sell magazine unit Madoff sons, brother, niece to be sued: report Iran flexes muscle ahead of talks with major powers For China, Iran uranium plant no game changer Most Popular Articles RSS Feed Video  Mao friend recalls Chairman Merkel wins German vote Cyborg beetle flies by wireless Philippines typhoon kills 86 Philippines typhoon aftermath Iran tests longest-range missiles China art dissidents look back Iran tests longer-range missile UK navy's record cocaine seizure New German govt faces econ challenge Most Popular Videos RSS Feed Reuters.com:  Help and Contact Us  |  Advertise With Us  |  Mobile  |  Newsletters  |  RSS  |  Labs  |  Journalism Handbook  |  Archive  |  Site Index  |  Video Index Thomson Reuters Corporate:  Copyright  |  Disclaimer  |  Privacy  |  Professional Products  |  Professional Products Support  |  About Thomson Reuters  |  Careers   International Editions: Africa  |  Arabic  |  Argentina  |  Brazil  |  Canada  |  China  |  France  |  Germany  |  India  |  Italy  |  Japan  |  Latin America  |  Mexico  |  Russia  |  Spain  |  United Kingdom  |  United States   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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