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Post subject: Re: Fender IPO - Guitar Center May Default!
Posted: Mon Jul 23, 2012 7:45 pm
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Violin Parent wrote:

Also, GC sucks, and if it were not so greedy and lowered it's extreme markup a little bit, perhaps it could actually sell a guitar one day.

This is an interesting opinion. What leads you to believe the markups are "extreme"?

If you look at MSRP (Manufacturers Suggested Retail Pricing) that you can see here on fender.com, then you know one thing right off, none of the retail places sell at that price.

What would you consider to be a "fair" markup? In reality the fair price for something is what someone is willing to pay for it. I don't see anyone getting upset with the guy who sells a vintage strat for 50 grand, when he may have only paid a couple of hundred bucks for it.

If you were to build a product, and let's say the cost of bill of material cost was $100.00, assuming you build it yourself and you were the only labor and it took you two hours to build, what would you sell it for to be fair?

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Post subject: Re: Fender IPO - Guitar Center May Default!
Posted: Mon Jul 23, 2012 8:04 pm
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markara wrote:
Violin Parent wrote:

Also, GC sucks, and if it were not so greedy and lowered it's extreme markup a little bit, perhaps it could actually sell a guitar one day.

This is an interesting opinion. What leads you to believe the markups are "extreme"?



Equipment production was out-sourced to dramatically cheaper international labor. We should be seeing dramatic price cuts not artificially inflated prices and cheaper products meant to maximize profit at the expense of musicality and durability and consumer satisfaction.

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Post subject: Re: Fender IPO - Guitar Center May Default!
Posted: Mon Jul 23, 2012 9:09 pm
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RCB-CA-USA wrote:
markara wrote:
Violin Parent wrote:

Also, GC sucks, and if it were not so greedy and lowered it's extreme markup a little bit, perhaps it could actually sell a guitar one day.

This is an interesting opinion. What leads you to believe the markups are "extreme"?



Equipment production was out-sourced to dramatically cheaper international labor. We should be seeing dramatic price cuts not artificially inflated prices and cheaper products meant to maximize profit at the expense of musicality and durability and consumer satisfaction.

So I am confused on two fronts. Do you mean to say that my 2012 American Standard is built overseas?
My question was not answered is the other confusion. How much is a fair markup?

Another interesting tidbit.

Cost of a Strat in 1954. $249.50
In 2010 that was equal to $2000.31
However 2012 American standard set me back only 900.00, less if you take away the sib case it came in.
A 2012 standard Strat would set you back only $449.00.
I fail to see the gouging going on. I think fender has done an exemplary job of making guitars at a fair price for everyone.

You may not be able to afford the guitar you want but there is a fender you can afford.

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Post subject: Re: Fender IPO - Guitar Center May Default!
Posted: Mon Jul 23, 2012 10:48 pm
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markara wrote:
So I am confused on two fronts. Do you mean to say that my 2012 American Standard is built overseas?


No.

markara wrote:
My question was not answered is the other confusion. How much is a fair markup?


Fair markup is whatever the free market will sustain.

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Post subject: Re: Fender IPO - Guitar Center May Default!
Posted: Tue Jul 24, 2012 11:43 am
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RCB-CA-USA wrote:

Fair markup is whatever the free market will sustain.


Almost right. You can sell you widgets for whatever the free market will pay. It may or may not be sustainable. You may not be making enough margin or volume to stay in business and make money at a given price point.

GC's markup is really no different from any other shop. They, as well as other big box types, probably receive a slightly larger discount than the mom and pop shops because of the sheer volumes they commit to buy whether they sell that volume or not. Now this has nothing to do with the competence or lack thereof of their staff. Its just the way business operates. GC and their peers also have to pay much more in salary, benefits, taxes, commissions, rent, utilities etc than a mom and pop shop will do.

Where you take your business is where you decide to take it, however it is not fair or accurate to say that GC or their peers are doing anything underhanded in their business practices.

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Post subject: Re: Fender IPO - Guitar Center May Default!
Posted: Tue Jul 24, 2012 8:18 pm
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Guitar Center's problem is they don't wheel and deal. I buy small stuff from them as for guitars and amps I seek out mom and pop stores cause they'll bend on prices. GC's blemished products are a joke too.


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Post subject: Re: Fender IPO - Guitar Center May Default!
Posted: Tue Jul 24, 2012 9:12 pm
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markara wrote:

But the "free market" has not sustained Fender or any other manufacturer--of anything--in the United States. Nor GC.

Bingo. You hit the nail on the head. ..."free market". We're not living within a free market -- we're living within a well planned, slowly evolving tyranny, a plan designed to destroy the free market and pave the way for communism.

When we had a free market, Fender did fine. When Fender returns to free market manufacturing, they'll do fine.

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Post subject: Re: Fender IPO - Guitar Center May Default!
Posted: Tue Jul 24, 2012 10:08 pm
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Are you still preaching that i see dead people sheit.......Jeezez mate........Get off the gear... :roll:

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Post subject: Re: Fender IPO - Guitar Center May Default!
Posted: Wed Jul 25, 2012 2:20 am
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RCB-CA-USA wrote:
communism.


Stop smoking this stuff, it ain't no good for you.


Cheers

David

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Post subject: Re: Fender IPO - Guitar Center May Default!
Posted: Wed Jul 25, 2012 7:13 am
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As far as the market conditions of every manufacturer out there, it's all about numbers. More, more, more, no matter what. I've worked in Quality Control for a lot of years, in the past three years ther haqs been a marked change in the way things work, and it's not just with my industry either. More product, no matter what. is the thought. Quality has fallen behind and if there is a problem with the product, just replace it, we're making so many, we can do that.

I've been watching the trade magazines and this is everywhere. We as consumers are paying the price by having to contend with lower grade products and higher prices.


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Post subject: Re: Fender IPO - Guitar Center May Default!
Posted: Wed Jul 25, 2012 7:26 am
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Strider wrote:
Guitar Center's problem is they don't wheel and deal. I buy small stuff from them as for guitars and amps I seek out mom and pop stores cause they'll bend on prices. GC's blemished products are a joke too.

I found that to be the opposite. I always get great deals at the GC I go to, and they often beat prices that are lower online...... I guess it depends on which GC you go to.

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Post subject: Re: Fender IPO - Guitar Center May Default!
Posted: Wed Jul 25, 2012 8:21 am
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I agree with bg65, i've always been able to haggle when I felt like spending the time and energy. They will come down after a while. As far as matching prices, I've never gotten an arguement, lower prices require a little work.

Remember, if you don't ask, you don't get.


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Post subject: Re: Fender IPO - Guitar Center May Default!
Posted: Mon Aug 06, 2012 9:40 pm
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.....Is there a point where extreme against society political views should be mediated by Brad here? I think our culture over here is less acceptant of these views over the pond.....I don't know if that's a good thing or a bad thing... :? ...It's just what i'm used to....This stuff would be slammed agressively over here instantly by any public presence. Is that style of extreme against the establishment viewpoint common over there that you all just accept it as democratic? I have to ask....As the lack of reaction to it is startling to me..... :shock:

Ps... just for the i see dead people activists... :roll: ...Its exactly the opposite to your thoughts why we react baddly to it....We react baddly to it because we try our hardest and succeed to be a a democratic fair, Humane, moral, free society. If you want to whinge about oppression and crimes against society go live in war torn african and eastern european countries and feel what its like to be raped and beaten down with no hope no matter how hard you try... :wink: ..... People who take this line in free democratic countries where if you try hard you can live well, like most of ours remind me of spoilt little weak children who have no heart muscle to get out of bed and be a adult and be accountable............

So our our financial system makes mistakes.... :roll: It sure the beats the hell out of genocide, Civil war, dicatorships, Racism and opression like the rest of history...... :|

I really did't mean to start chaos.....But the preachers are bleating so there's my bleat back.....
:|

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Post subject: Re: Fender IPO - Guitar Center May Default!
Posted: Tue Aug 07, 2012 1:10 am
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ozrv wrote:
.....Is there a point where extreme against society political views should be mediated by Brad here?


Simply don't react to it. And the Jefferson-quote is a Hoax:

http://www.snopes.com/quotes/jefferson/banks.asp

Cheers

David

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Post subject: Re: Fender IPO - Guitar Center May Default!
Posted: Tue Aug 07, 2012 6:36 am
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ozrv wrote:
.....Is there a point where extreme against society political views should be mediated by Brad here? I think our culture over here is less acceptant of these views over the pond.....I don't know if that's a good thing or a bad thing... :? ...It's just what i'm used to....This stuff would be slammed agressively over here instantly by any public presence. Is that style of extreme against the establishment viewpoint common over there that you all just accept it as democratic? I have to ask....As the lack of reaction to it is startling to me..... :shock:

Ps... just for the i see dead people activists... :roll: ...Its exactly the opposite to your thoughts why we react baddly to it....We react baddly to it because we try our hardest and succeed to be a a democratic fair, Humane, moral, free society. If you want to whinge about oppression and crimes against society go live in war torn african and eastern european countries and feel what its like to be raped and beaten down with no hope no matter how hard you try... :wink: ..... People who take this line in free democratic countries where if you try hard you can live well, like most of ours remind me of spoilt little weak children who have no heart muscle to get out of bed and be a adult and be accountable............

So our our financial system makes mistakes.... :roll: It sure the beats the hell out of genocide, Civil war, dicatorships, Racism and opression like the rest of history...... :|

I really did't mean to start chaos.....But the preachers are bleating so there's my bleat back.....
:|



There's a lot of irony in the fact that you are touting your society as moral, humane and free right after you are calling for him to be censored and seem proud of the fact that dissent against the establishment gets "aggressively slammed" where you are from.

Also, just a little lesson on "democracy" for you. Democracy is about as humane and fair as gang rape. It's two people telling a third that they have the "right" to steal their property because there are more of them. It's institutionalized mob violence and theft.

We have it here too, as the republic has been steadily eroded. (not that it didn't have it's issues as does all government) Anyplace with a taxcode has it. It's a violation of rights in it's most vicious and despicable form. It's the tyranny of the weak over the strong. It's slavery.

The fact that your immediate response to his post was to petition for a "higher authority" to censor him instead of just taking upon yourself to ignore him is a perfect example of the one of the symptoms of a society that has been beaten into submission and can't fathom the thought of not being told what to do.

I'm not posting this to insult you. I'm posting this to hopefully make you see that we have very different cultures. I have no issues with you and yours living your way, please don't try to enforce your way of life on us. If you don't like something he posts, or even my post. Please feel free to ignore us. I'd rather have a discussion or a debate with someone I disagree with then to not have the ability to have a free exchange of ideas.

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