357 is at it again!!!

[HoWheels]

When something sounds too good to be true ....

-a

[RobRR]

Let's do some simple math here...shall we?

357 says everyone will get their guitars (even if they bail out). Dealer cost on these is probably around $600. Just to be safe we'll say it's $500. So, $500 x 3000 guitars = $1,500,000.00. Does 357 expect anyone to believe that they are gonna give away $1.5M to protect their "Good Name"?

The only problem is that they arent paying $500 per guitar. They are ordering 3000+ guitars, they list for $1332. They normally sell for $799, already 40% off list already. With such a huge quantity order, Im speculating that they are paying $250-300 per guitar. At $300 per, thats $900,000, lets be conservative and say $1,000,000. These promotions have easily brought in at least $1,000,000. Now lets say they invested that million and made 5% interest off of it, thats another $50,000. So now with $1,050,000.

Now lets say the 2000 diecasts cost $8 each, thats $16,000. I dont know the number of MP3 players, but Im guessing that it was 1000. These are straight from China, and probably only cost $10-12 each, so thats $12,000. Now the gift certificates... $200,000 worth. Now, we all know theyre not paying $40 for a hoodie. More like $5. Chances are, they are only paying 10% of their advertised merchandise price, so lets again be conservative and say that $25,000 worth of gift certificate merchandise will be sold. So we have a total of $53,000 aside from the guitars.

Total income from promotions: $1,050,000
Guitar cost for 3000: -$1,000,000
Merchandise cost: -$53,000

Total: -$3000

These are just rough estimates, but I believe they are somewhat close to accurate. The first rule of business is to never lose money... after all this is said and done, they arent really losing anything after all, and are getting their name out there in a big way... not a good way, but a big way. If they come through with this, they will be out almost no money, and will have 3000+ waliking billboards; people walking around in 357 Customs gear. Also 3000+ people saying where they got that guitar for free from. Not a bad deal on their end if you ask me.

[krimson]

I can't find any mention of 357 Customs anymore on Zacks website. They used to have a big banner on the homepage.

True I looked earlier and found nothing as well, but 357 still has Zakk on their site.

[metaljunkie]

The 357 banners are back up at Zakk's site

[IrfaanSE801]

They took down the 357 store link with his merch from the front page. I don't see the banner though

[horns666]

OK man..I can NOT restrain myself any longer..

I have ZERO clue what this thread is about..

it's a sucker thread isn't it..

I knew it..that's why I'm not here bitchin' up the place..

you got suckered na na na na nahhhh...

OK, my job is done here..:ROTF:

I don't know who all posted in here.. but C'ya suckers!

Bill Z Bubbles

[lerxstcat]

The only problem is that they arent paying $500 per guitar. They are ordering 3000+ guitars, they list for $1332. They normally sell for $799, already 40% off list already. With such a huge quantity order, Im speculating that they are paying $250-300 per guitar. At $300 per, thats $900,000, lets be conservative and say $1,000,000. These promotions have easily brought in at least $1,000,000. Now lets say they invested that million and made 5% interest off of it, thats another $50,000. So now with $1,050,000.

Now lets say the 2000 diecasts cost $8 each, thats $16,000. I dont know the number of MP3 players, but Im guessing that it was 1000. These are straight from China, and probably only cost $10-12 each, so thats $12,000. Now the gift certificates... $200,000 worth. Now, we all know theyre not paying $40 for a hoodie. More like $5. Chances are, they are only paying 10% of their advertised merchandise price, so lets again be conservative and say that $25,000 worth of gift certificate merchandise will be sold. So we have a total of $53,000 aside from the guitars.

Total income from promotions: $1,050,000
Guitar cost for 3000: -$1,000,000
Merchandise cost: -$53,000

Total: -$3000

These are just rough estimates, but I believe they are somewhat close to accurate. The first rule of business is to never lose money... after all this is said and done, they arent really losing anything after all, and are getting their name out there in a big way... not a good way, but a big way. If they come through with this, they will be out almost no money, and will have 3000+ waliking billboards; people walking around in 357 Customs gear. Also 3000+ people saying where they got that guitar for free from. Not a bad deal on their end if you ask me.

Non of that takes into account the $3 million in debt President Dan left behind when he bailed on the other promo company, where people bought diecast racecar models and a chance to win a Camaro. Nobody got a Camaro, the investors got screwed and the company went BK with $3 million in the hole. Everybody is now aware that the president of 357 has already run this scam before, how exactly has that helped his current copmpany?

[skorb]

If this is an official statement from Zack's wife it is the clearest indication to:
GET THE FUK OUT of this deal that I have seen yet.
Zack had no idea.
Zack is severing his relationship with 357.
If this isn't clear enough you deserve to lose the money you paid.

oh man am I glad I passed this up

this is so funny, how this all is turning out

but I'm sorry you guys are getting hosed, it's just wrong

[hippietim]

i got an email from them today. they said they're giving everyone their money back and still sending them their goods including the guitars. they also said that those who canceled will also get the guitars.

[hippietim]

for those of you quoting guitar costs. don't assume they are paying anywhere near the amount you think they are. some of the zakk's are made in korea and some are made in china.

i've spoken with some importers a few times over the years and these things are MUCH cheaper than you think for the companies to have made. i know of one massive guitar maker that has part of their import line made in china - the guitar corporation pays about $12 (yes twelve dollars) for a typical bolt on guitar in this line. i belive gc was paying about 40-50 bucks for them at the time and they sell for $119 (street - closer to 175 retail). the more deluxe versions cost about 25-35 dollars and sell for $200-250. a typical dealer may pay the traditional 40%-50% of retail that we're all used to. but in massive quantities it's a different ballgame altogether.

now, i'm not saying that i will actually get my epi les paul, only time will tell for sure.

at the same time, those of you speculating on the costs of these guitars probably should not assume they cost anywhere near what you think they do. obviously, they will be substantially more than 12 bucks but i'd bet it's nowhere near 400-500 dollars.

as for those mp4 players and the motorcycle models - those are dirt cheap - i'd bet the cost of those barely factors into the economics here.

[toejam]

i got an email from them today. they said they're giving everyone their money back and still sending them their goods including the guitars. they also said that those who canceled will also get the guitars.

I got the same email. I was only in on the first run in December with the diecast and $100 GC, paid an extra $30 or $32 for the shipping of the free guitar. I got the diecast and used the GC for BLS merchandise, which I received, so I'm only waiting on the free guitar. I'm not expecting a refund on anything, but if they choose to give me one, cool.

[RacerX]

Right, I was thinking closer to $100....remember guys, Rondo markets Agiles (Korean) and SX (Chinese) for little money...the diecasts are tiny, right....Chinese labor = cheap cheap cheap

[guitarsjb]

I got the same email also. They still haven't cashed the check I sent for my merchandise either.

[Razor]

I received the same e-mail also. I am glad they have legitimized this by sending out a mass e-mail from 357 Customs.

I'm in the same boat as toejam. I have received all of my merchandise, and all of my die casts.

A lot of people on the Black Label Society board have mentioned donating their refunds to charity, and I think that is a great idea. It was mentioned on the Black Label board that 357 has worked with St. Judes Childrens Hospital in the past. I think it's great that so many people want to donate their refunds to charity. Speaks volumes to me.

[slayer]

I didn`t receive the Email from 357 yet. I am still in though!! Jack.