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Posted: Mon Feb 09, 2009 1:29 pm
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bruno690 wrote:
cu_jarrett wrote:
contrabassist wrote:
I concur. Supply & demand.


Price increase does not affect demand. Price increase will affect quantity demanded. Basic Economics.

Honestly Fender makes unbelievable instruments and after with their suppliers raising prices on things they have to do this. In my opinion 1400.00 for a American Standard Strat is fair.


cu_jarrett,

How do you know Fender's suppliers raised their prices? I would offer that under the current economic conditions, most companies have held pricing steady. If the suppliers did raise pricing, I would think it would be minimal…not 30%

In actuality, most of my suppliers have lowered there pricing. The current CPI would support my theory as well.

I agree with you bruno. From what I am seeing is that many Suppliers are holding there prices steddy and in fact lowering so as to maintain a customer base by helping to keep product desirable in the pricing. Only the strong will survive this down turn and the suppliers that can do it will reap the reward in the long run. For Fender I wonder if such a large increase is in need for cash on hand. The musical instrument business has enjoyed both good time and bad in the past.

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Posted: Mon Feb 09, 2009 1:38 pm
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j_rockr91 wrote:
well, as we all know, the economy is in pretty bad shape.

Think about it this way: would you rather have a 30% price increase, or let Fender go bankrupt? I mean sure, that's a long way off, but they still need to make a profit.

Hopefully the recession will be over in a year or two.


Yeah it it sh*t right now. Even a soft drink sometimes is like almost 4 bucks for 551 ml! :cry: :? :shock:


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Posted: Mon Feb 09, 2009 1:42 pm
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cvilleira wrote:
bruno690 wrote:
cu_jarrett wrote:
contrabassist wrote:
I concur. Supply & demand.


Price increase does not affect demand. Price increase will affect quantity demanded. Basic Economics.

Honestly Fender makes unbelievable instruments and after with their suppliers raising prices on things they have to do this. In my opinion 1400.00 for a American Standard Strat is fair.


cu_jarrett,

How do you know Fender's suppliers raised their prices? I would offer that under the current economic conditions, most companies have held pricing steady. If the suppliers did raise pricing, I would think it would be minimal…not 30%

In actuality, most of my suppliers have lowered there pricing. The current CPI would support my theory as well.

I agree with you bruno. From what I am seeing is that many Suppliers are holding there prices steddy and in fact lowering so as to maintain a customer base by helping to keep product desirable in the pricing. Only the strong will survive this down turn and the suppliers that can do it will reap the reward in the long run. For Fender I wonder if such a large increase is in need for cash on hand. The musical instrument business has enjoyed both good time and bad in the past.


cu_jarrett 1400.00 dollars for an american standard start is REALLLLLLLY high. You can get some here in Canada for about 550.00! lol be real


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Posted: Mon Feb 09, 2009 1:55 pm
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For your information..... I do alot of photography work and my developer told me the prices for memory cards are going up 40 % in a few weeks. He told me quite a few manufacturers have gone out of business, so if you think you might want a new one, get it NOW !!!


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Posted: Mon Feb 09, 2009 2:10 pm
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The price increases are going to backfire on Fender, of this I have no doubt. In the economy now, people dont have an additional $1000 kicking around for an American Standard, let alone $1400. The sales are going to bottom out even more than they would with the economic downturn.. This really pisses me off seeing that the American Deluxe I bought back in Sept was stolen, and never recovered. I will not be buying a new one for over $1600. What I will be doing is building all my strats from hear on. I love Fender's, but I will not spend $1400 for an Am. Std, they aren't worth it. I really dont know how they justify that kind of price increase... I understand the price of materials increased last year due to fuel increases, but trying to supplament lagging sales with higher prices NEVER works. I recomend everyone who's thinking of picking up a new strat to do it now while there are still some 08's left at the 08 prices.


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Posted: Mon Feb 09, 2009 2:14 pm
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Posted: Mon Feb 09, 2009 2:45 pm
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I'm wondering if these staggering price increases have markup buffer in them to allow discounting. I've worked in retail and wholesale automotive sales for almost 12 years. Years ago, there was a pretty decent markup from invoice price (dealer cost) to MSRP (customer price). It allowed dealers to take money off the price to entice a sale. Over the last decade that market shrunk to a point that when I tell most people how much profit there is in a car, they think Im making it up (A Chrysler Crossfire SRT-6 with a MSRP of $49,995 had $2000 in it). This allowed manufacturers to give hefty Rebates (and cut out the dealers profit margin, which made the dealers look bad and the factory good) Anyways, i know that there was really no money in new Fender sales at stores, I think you get one to sell and keep the money for every 10-12 you sell. I wonder if they mark these up to allow haggleing at stores, or large Fender rebates to look good in advertisment. If it is, it's stupid, and it will do the same thing these insane $9000 rebates on cars do, bastardize and devalue your product. I mean just because they retail an Ameican Standard strat for $1400 doesn't mean it's worth $1400, it's not, especially when I know I could have got one a month ago for $995. There isnt $400 in upgrades done to them. I understand that most of the stock they use to build their guitars were purchased when wood, and metal where at an all time high due to inflated fuel prices, and I'm sure this has something to do with the price increases, but to raise your flagship guitar 40% is just rediculous. The only time I ever see that happening is when the "we know what's best for you better than you do" crowd imposes huge taxes on cigarettes because "smoking is bad for you and second hand smoke kills' (though there is nothing more than speculation to back that myth up). I can tell you by living in a city in Massacusetts that is 5 minutes from the New Hampshire border that all that does is make me buy them up the road for $2.50 less a pack. Unfortunately, I cant go across the border to buy a new strat. I recently got a unbelievably good deal on a limited run MIM reissue 5760 strat, that was better built than all the other MIM's i came across to give me something to play since my AMerican Dlx was stolen. As of now, the body and neck are the only thing on it that is stock (and the neck is next to go). I realize that i can build my own strat exactly to the specifications that i want, for a good bit less than the price of Am Stds last year, now, with the new prices, its' not even close. I love Fender, they make the sweetest sounding and playing electric out there, but unless I win the lottery, I wont be buying a new one ever again. It's too bad.


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Posted: Mon Feb 09, 2009 3:20 pm
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All these price increases in times of economic stagnation are instigated by fat cat shareholders bemoaning inflation that they cause. Its your duty not to spend your hard earned on such peoples produce, you only encourage them to raise prices further.

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Posted: Mon Feb 09, 2009 3:45 pm
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Now, I'm really confused :? It's been more than a week and prices haven't gone up. You can still get MIA Strats fo $999. MIM Deluxe for $630, up from last years $599 due to popularity (and that increase came at the begining of the Christmas Season '08 ). MIM Standard up $50 due to upgrades in electronics and finishes. MIM Deluxe NAshville Teles are Down $50 due to Unpopularity. All the Hot Rod Devilles have gon up some, but Amps like the '65 Deluxe Reverb and 65' Princeton Reverb have come down some. This is all normal Supply and Demand market fluctuation.

Remember the original Rumor stated Feb 1st. prices were going up. Every guitar forum on the net had a thread specifying Feb. 1st. Not one Price shifted in any direction the Week Berfore, the Day Of, or the Week After Feb 1st. Why are we talking like Y2K really happened?

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Posted: Mon Feb 09, 2009 4:00 pm
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FirstMeasure wrote:
Now, I'm really confused :? It's been more than a week and prices haven't gone up. You can still get MIA Strats fo $999. MIM Deluxe for $630, up from last years $599 due to popularity (and that increase came at the begining of the Christmas Season '08 ). MIM Standard up $50 due to upgrades in electronics and finishes. MIM Deluxe NAshville Teles are Down $50 due to Unpopularity. All the Hot Rod Devilles have gon up some, but Amps like the '65 Deluxe Reverb and 65' Princeton Reverb have come down some. This is all normal Supply and Demand market fluctuation.

Remember the original Rumor stated Feb 1st. prices were going up. Every guitar forum on the net had a thread specifying Feb. 1st. Not one Price shifted in any direction the Week Berfore, the Day Of, or the Week After Feb 1st. Why are we talking like Y2K really happened?
It has taken a while for the price increase to filter through. But there certainly has been a notable increase in many of the products, if it is not entirely across the board.


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Posted: Mon Feb 09, 2009 4:09 pm
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There has been a definate increase in UK prices. I think your experiencing honest sellers not marking up old stock. They must know its a bad move.

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Posted: Mon Feb 09, 2009 4:10 pm
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nikininja wrote:
There has been a definate increase in UK prices. I think your experiencing honest sellers not marking up old stock. They must know its a bad move.
I think some are hoping fender changes its mind too, just like us.


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Posted: Mon Feb 09, 2009 4:17 pm
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That wont happen. The decision was made by some executive who's only guitar experience was hearing a pat boon song once 30 years ago.

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Posted: Mon Feb 09, 2009 4:19 pm
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nikininja wrote:
There has been a definate increase in UK prices. I think your experiencing honest sellers not marking up old stock. They must know its a bad move.

Well if the increases are in USA's Foreign markets, as it seems to be mostly Canada, the UK, and other European countries, I'd say its gonna be trade agreements between countries that are flying under the News Hawks radars. Most of the increases I've noticed are on th MIM stuff, American made Fender Stuff actually seems to be decreasing. MIA Standards were around $1100 last year, only 999 now.

What are the prices of Burns and other UK brands doing?

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Posted: Mon Feb 09, 2009 4:36 pm
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FirstMeasure wrote:
nikininja wrote:
There has been a definate increase in UK prices. I think your experiencing honest sellers not marking up old stock. They must know its a bad move.

Well if the increases are in USA's Foreign markets, as it seems to be mostly Canada, the UK, and other European countries, I'd say its gonna be trade agreements between countries that are flying under the News Hawks radars. Most of the increases I've noticed are on th MIM stuff, American made Fender Stuff actually seems to be decreasing. MIA Standards were around $1100 last year, only 999 now.

What are the prices of Burns and other UK brands doing?

Thats just new old stock selling for 999. look futher you will see 2009 prices are up big.

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