Craft Guitars Company History Established 2015

Craft Guitarsestablished 2015company Historycraft Guitars Cg Manufa

Craft Guitars (CG) is a manufacturer of musical instruments founded in 2015 by Mary Garcia. With a background deeply rooted in music—her parents being local band performers and her own experience as a guitarist since age four—Ms. Garcia leveraged her expertise and industry contacts to develop a unique brand. She holds a BA in marketing from California State University San Bernardino (2004) and advanced her education with a Master of Science in Entrepreneurship & Innovation from CSUSB in 2019. Before establishing CG, she worked with renowned guitar companies like Gibson Brands and Fender’s Guild Guitars, contributing to her understanding of the manufacturing and marketing sides of the industry.

CG specializes in designing and producing high-quality electric and acoustic guitars, including custom orders tailored to individual customer specifications. Their pricing reflects the exclusivity and craftsmanship involved—with custom models ranging from $2,500 to $10,000 and typical orders averaging around $5,400. Standard models are priced more accessibly, from $800 to $2,000, with an average of $1,300, making them appealing to a broader customer base. The company operates out of a leased 15,030-square-foot facility in San Bernardino, employing 78 workers, and is financed initially by Ms. Garcia and a private stock sale to management and family members.

Company Growth and Market Position

Initially gaining rapid momentum, CG’s sales grew substantially during its first six years, driven by its reputation for innovative designs and high craftsmanship. The company gained industry recognition when prominent guitarist Dan Auerbach appeared with a CG custom guitar on the cover of Guitar World Magazine. Further boosting its profile, guitarist Nita Strauss ordered a unique acoustic model in 2018, which she showcased on her solo album "Controlled Chaos," significantly elevating CG's visibility among guitar enthusiasts and collectors. CG’s limited-production guitars—each design introduced fewer than 25 units annually—are highly sought after and often sold out before production even begins, emphasizing exclusivity.

Product Lines and Customer Engagement

CG began as a custom shop but expanded in 2017 into producing standard models—both electric and acoustic—to appeal to a mass market. These models feature high-quality workmanship but use less expensive woods for affordability. The company's online platform is a core sales and engagement tool, allowing customers to design guitars by selecting materials, shapes, and features. Customers can upload images and collaborate directly with craftsmanship professionals to finalize their designs, which are then hand-built and delivered in custom cases configured to customer specifications.

The custom shop produces distinctive, highly priced guitars that often include personalized features like names embedded in the fingerboard or custom tuning keys. Production is strictly limited to maintain exclusivity, with about six new designs introduced annually. This approach has cultivated a dedicated collector clientele, with many owning multiple limited edition models.

Financial Performance and Strategic Outlook

Financially, CG has sustained healthy margins despite its rapid growth, with sales reaching nearly $4.9 million in 2019 and expanding further in subsequent years. The performance reflects effective cost control and premium pricing strategies. The company's sales increased from 1,835 units in 2018 to 2,132 units in 2020, indicating resilience and market penetration.

Looking ahead, CG aims to enhance brand development, digital marketing, and product diversification by exploring new categories such as bass guitars, branded apparel, accessories, and related products. The company’s management is also considering expanding its sales force to smaller retail outlets and investing in manufacturing efficiency improvements. By 12 years from inception, CG aims to achieve $25 million in annual sales, at which point they plan to pursue a sale, targeting a valuation of 5–7 times EBITDA, along with the added value of the property it leases.

Marketing and Industry Relationships

Historically, CG’s marketing efforts have centered on print advertising in industry magazines like Guitar World, Premier Guitar, and Acoustic Guitar, complemented by modest online campaigns and organic social media activity from amateur musicians. The company is beginning to invest in social media expansion, creating instructional videos, factory tours, and leveraging industry trade shows through NAMM membership.

Organizational Structure and Management

The company is governed by a management committee meeting weekly, with a Board of Directors composed of Ms. Garcia, industry professionals, financial, legal, and industry contacts. The Board provides strategic guidance, financial oversight, and resource support, ensuring CG’s growth aligns with its vision for high-quality craftsmanship and market expansion.

Real Estate Acquisition and Financial Planning

Recently, CG negotiated to purchase its manufacturing facility, a 15,030 SF building on 0.8 acres in San Bernardino for $3,450,000. They are seeking an $2,760,000 bank loan—covering 80% of the purchase price—to finance this acquisition. The company’s detailed financial statements, including historical and projected income, balance sheets, and cash flow analyses, reveal stable growth, healthy margins, and manageable debt levels. These financial insights support their loan application and strategic plans for expansion.

Conclusion

Craft Guitars (CG) exemplifies a modern, innovation-driven manufacturer of premium and custom guitars, leveraging industry experience, exclusive product offerings, and digital engagement to build a strong brand. Its strategic focus on limited-edition products, expanded market reach through standard models, and plans for property acquisition position the company for sustainable growth and attractive exit opportunities, whether through acquisition or organic expansion.

References

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  • Fender Musical Instruments Corporation. (2018). Company Overview. Fender.com. https://www.fender.com
  • California State University San Bernardino. (2023). Master of Science in Entrepreneurship & Innovation. CSUSB.edu.https://csusb.edu
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  • National Association of Music Merchants (NAMM). (2022). Industry Insights. NAMM.org. https://www.namm.org
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  • US Small Business Administration. (2021). Small Business Trends in Manufacturing. SBA.gov. https://www.sba.gov
  • Groove, M. (2023). The Rise of Limited Edition Guitars and Collectability. Guitarist Magazine, 49(2), 78-85.

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