Maybe the next business model evolution will be brick & mortar stores where you can go in and physically see, feel, try out BUT NOT BUY something, however they will have terminals right there so you can order it from their online store.  About as close as you can get to the best of both worlds I'd imagine.

Unfortunately, Craigb, I think they called that place, Guitar Center.

The last couple of evenings, while driving home, I have seen one of those digital billboards and it has flashed a message about an new Guitar Center Outlet, located here in Dallas.  The hwy that its on is not on my route home, but I found that interesting and thought to myself, I wonder what that is all about?  Colors that did n't sell very well?  I wonder if they will have my size?  Hopefully they won't all be "Outlet Stores" here in the near future. 
 
My hope is that some form of GC survives, even if it is a scaled down version.  You can never have to many places to shop for musical instruments as far as I am concerned.  Obviously the other foot that would fall if they just collapse is with the instrument manufactures themselves.  It is already a tough market, I could see many of them really getting dinged, including some of the big boys.

I hope GC survives too. They are not my first place to go. At least here Sam Ash has a better atmosphere. I always get the feeling that GC is being run by children. It is too jammed up. I always feel uncomfortable in there but I have bought some things there over the years.
By far my favorite big store was MARS. I could spend a whole afternoon in there. Maybe it was this certain store but the sales people were nice and let me do pretty much anything with anything, even dime a fullstack Marshall Plexi one morning... that got looks from all over the store, lol.
We now have a small store in town "Southern Guitars" that carries some "boutique" pedals, CS guitars and some nice amps.
I hope GC survives, I think it will be good for all of us if they do. I remember the days when we were pretty much at the mercy of the local store and a lot of them abused musicians with pricing... that all changed when MARS and GC came to the area... and as far as I know all the small stores are still in business.
I'm in a different business but I have always thought that there is enough business out there for everyone.. if you take the time and trouble to get it. I disagree with John D. Rockefeller who said, "competition is sin".
 
Julien
PS: congrats Rain...!!!

"By far my favorite big store was MARS."

Mars was my favorite too. I bought my 4003 from Mars in Dallas just before they closed. They used to have mic testing stations were you try them before you buy. I don't know of anyone that does that anymore.

Mars got me to the tune of about $30,000.00.  I guess I should feel lucky because they got Fender in the millions.

The scary thing that up until they closed you could have run a Dunn and Bradstreet report on them and they would have looked golden.
 
I just happen to see the news that they filed bankruptcy in Google news.  I printed the article and dropped it on my partner's desk.  (He was the admin guy and I was more operations.)

What do you mean, Dave... they owed you that much? Or you spent that much with them?

Ruben
What do you mean, Dave... they owed you that much? Or you spent that much with them?

They owed me that much for my product.
http://www.plasticsamerica.com/SB_flyer.pdf

Ah yes, I remember your drum shields - they looked very nice. Did you sell any through Mars, or did they just order some and then not pay you?

Yeah, we sold through Mars, Musicians Friend, Thoroughbred Music, Armadillo Music and Sam Ash a little later.  Our sister company still sells Sam Ash as far as I know.
 
We still sell them through smaller shops but so many small guys have jumped on the bandwagon that it's become a commodity item to an extent.  Luckily, this is just a small segment of what we do.  The money is in the custom (plastics) work.  (And no, I don't build aquariums like that company on TV.  I WILL build you a box to your specifications and if you decide to fill it up with water later, that's your business.)