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Post subject: What TRULY drives the price of a new guitar?
Posted: Mon Jun 17, 2013 2:30 pm
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More newbie-esque questions but I figured it was worth asking. I am but a humble padawan!

I was perusing through the fender website last night and was taken, as always, with the J Mascis Jazzmaster. The guy is a monster player (for my fellow truly alt-rock friends) and I've loved how this guitar sounds when I play it.

But what makes it so cheap? My initial thought is that much of the pricing is due to the creation of an artificial market, but a bigger name is on it, so it's strange.

So overall, what drives the cost differences? Materials and labor can't be so far apart that this guitar is $500 and another Jazzmaster is $2000.

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Post subject: Re: What TRULY drives the price of a new guitar?
Posted: Mon Jun 17, 2013 2:57 pm
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Fashion, nothing more.

What is popular commands more money.

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Post subject: Re: What TRULY drives the price of a new guitar?
Posted: Mon Jun 17, 2013 3:07 pm
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It's a squire


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Post subject: Re: What TRULY drives the price of a new guitar?
Posted: Mon Jun 17, 2013 3:14 pm
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tbazzone wrote:
It's a squire


But what about it makes it THAT much less expensive?

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Post subject: Re: What TRULY drives the price of a new guitar?
Posted: Mon Jun 17, 2013 3:38 pm
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chrisconsin wrote:
tbazzone wrote:
It's a squire


But what about it makes it THAT much less expensive?

Hi Chris: it's made by people who are paid around a fifth as much as in the US factory. There are other factors as well, but that's a big part of it.

Cheers - C

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Post subject: Re: What TRULY drives the price of a new guitar?
Posted: Mon Jun 17, 2013 4:31 pm
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Maybe the price is influenced by demand from media influence. There are more outlets now with the internet.


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Post subject: Re: What TRULY drives the price of a new guitar?
Posted: Mon Jun 17, 2013 4:49 pm
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Ceri wrote:
There are other factors as well, but that's a big part of it.


+1

Lesser grades of lumber, lower-quality hardware, and cheaper labor costs are all contributory factors.

Arjay

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Post subject: Re: What TRULY drives the price of a new guitar?
Posted: Mon Jun 17, 2013 4:54 pm
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chrisconsin wrote:
tbazzone wrote:
It's a squire


But what about it makes it THAT much less expensive?

Fender's Squier range are made in China.

If the same guitar with the same name on it were made in Mexico or US Fender factories, it would cost at least twice as much. If they put a more famous name on it, they add that to the cost too.


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Post subject: Re: What TRULY drives the price of a new guitar?
Posted: Mon Jun 17, 2013 5:27 pm
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Price points are important, too. You want to have a line of products where there is a "right" price for every buyer from the Starcaster you can buy at Walmart to a one-off Custom Shop creation and everything in between.


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Post subject: Re: What TRULY drives the price of a new guitar?
Posted: Mon Jun 17, 2013 5:31 pm
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You buy cheap, you get cheap, regardless of how wonderful someone thinks it plays. I'd venture to guess though, the profit margin is just as good or most likely better when compared to MIMs, MIAs, etc.

On the other side of the coin, having to pay $2K for certain 'standard' type guitars are simply because people WILL shell it out. If they didn't, the prices would drop overnight.

As always, this is merely IMO where YMMV.

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Post subject: Re: What TRULY drives the price of a new guitar?
Posted: Mon Jun 17, 2013 5:39 pm
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When I bought my JA90 signature Tele I thought the same thing. This is a great guitar, why is it so cheap. It's made in Indonesia, and what I got is a very nicely built and finished guitar with doo doo electronics. In the year and a half that I've owned it I've changed out the pots, caps, switch, input jack and nut. It's a great little guitar that keeps getting better. :D
Also, my Tele didn't come with a case, so that brings the price down. If it's something your going to play than buy it and know that you'll need to do some upgrades. No biggie. My Tele gets played more than any of my other guitars.

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Post subject: Re: What TRULY drives the price of a new guitar?
Posted: Mon Jun 17, 2013 6:04 pm
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Overheads are one, but perhaps to a lesser extent these days. Prices are pitched at the outside boundaries of what people should pay.

Yea, we can say that it's made in china, but for an example, look at the iPhone. Grossly overpriced, along with all of the apple products. They're made in China too- so that blows that argument also.

Prices are pitched at all price points to ensure maximum sales, minimum competition and so on..

Also they are inflated to the point that you are Almost barely able to afford it, but market it to the point where you feel you really need to have it. That's how major companies work, a forum user mentioned previously that Gibson employ these tactics also and that is how they price their guitars.I'd also say the same for Martin guitars too. Some guitars are so grossly overpriced, you look at the smaller sister companies products (Squier, Epiphone etc..) and see great value, for let's face it- a product that is 95% the same product, just made with a different logo. using the same type of machines and same spraying techniques, made the same way by people who barely get paid enough to survive in a modern western country.

If guitars weren't desirable to collectors, the List prices would be cheaper.

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Post subject: Re: What TRULY drives the price of a new guitar?
Posted: Mon Jun 17, 2013 6:11 pm
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Blertles wrote:
Overheads are one, but perhaps to a lesser extent these days. Prices are pitched at the outside boundaries of what people should pay.

Yea, we can say that it's made in china, but for an example, look at the iPhone. Grossly overpriced, along with all of the apple products. They're made in China too- so that blows that argument also.

Prices are pitched at all price points to ensure maximum sales, minimum competition and so on..

Also they are inflated to the point that you are Almost barely able to afford it, but market it to the point where you feel you really need to have it. That's how major companies work, a forum user mentioned previously that Gibson employ these tactics also and that is how they price their guitars.I'd also say the same for Martin guitars too. Some guitars are so grossly overpriced, you look at the smaller sister companies products (Squier, Epiphone etc..) and see great value, for let's face it- a product that is 95% the same product, just made with a different logo. using the same type of machines and same spraying techniques, made the same way by people who barely get paid enough to survive in a modern western country.

If guitars weren't desirable to collectors, the List prices would be cheaper.


This feels pretty spot on. It also makes me think of Taylor. With the exception of the some of the rare models based on rare materials, it really is about creating a market. What's interesting about it is most of us are conditioned by this. I've picked up a lot of Epiphone LPs and for whatever reason, no matter how great it sounds, I look at that headstock, and never feel that into it. Someone could swap out the neck and not tell me - I'd feel entirely different.

Drew365 wrote:
When I bought my JA90 signature Tele I thought the same thing. This is a great guitar, why is it so cheap. It's made in Indonesia, and what I got is a very nicely built and finished guitar with doo doo electronics. In the year and a half that I've owned it I've changed out the pots, caps, switch, input jack and nut. It's a great little guitar that keeps getting better. :D
Also, my Tele didn't come with a case, so that brings the price down. If it's something your going to play than buy it and know that you'll need to do some upgrades. No biggie. My Tele gets played more than any of my other guitars.


Good call. It makes me want to convince my better half to let me get that Jazzmaster with "just a few extra things I'll need" to update it.

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And if you wanna have it all, you've gotta let it all go.
Before the adult world strings you up and skins your skinny bones clean to the bone."

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Post subject: Re: What TRULY drives the price of a new guitar?
Posted: Mon Jun 17, 2013 7:08 pm
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Martian wrote:
You buy cheap, you get cheap, regardless of how wonderful someone thinks it plays. I'd venture to guess though, the profit margin is just as good or most likely better when compared to MIMs, MIAs, etc.

On the other side of the coin, having to pay $2K for certain 'standard' type guitars are simply because people WILL shell it out. If they didn't, the prices would drop overnight.

As always, this is merely IMO where YMMV.


+1

You usually get what you pay for, nothing more, nothing less.

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Post subject: Re: What TRULY drives the price of a new guitar?
Posted: Mon Jun 17, 2013 7:08 pm
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Last edited by Her Wanna on Tue Jun 18, 2013 8:48 am, edited 1 time in total.

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