Ive seen the posts on the price issues but havnt seen the reasons why they have gone up.I dont understand why fender doesnt just put out the standerd AM STRAT AT $500. They would sell a million of them.I guess theyr just greedy like most companys.

Absolutely. They are a business after all and have to do what they consider is best for themselves. If they thought they'd make more money selling icecream GC stores would all have mr whippy ice cream vans tomorrow.

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No no and no

Quit your b*tching.
These are some of the finest precision instuments being produced in the world. Fender is a huge company with hundreds of millions in overhead and production costs. I doubt they are boosting prices so the CEO can buy his own Island in the Agean.
If you want a $500 strat, buy a MIM or get a time machine.
The made in USA strat is worth every penny and more.

It's all about maximizing profit and showing a GROWTH in profit annually. Sometimes it's just time to bump the price. Yes they could sell them for less and initally the response would be great. Sooner or later though I'm pretty sure that the rumour would spread that the price drop was due to a quality drop or that Fender was using third world orphans to "put the pieces together" and keep prices down. Long term a price drop would hurt the company.

It's all in the same catagory as:
Artist models
Factory Special Runs
Limited Editions
Custom Colors

Regardless of how we all feel about Fender, it's just another company trying to make a buck.

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"Life is like eating jalapenos. What you do today may burn your arse tomorrow"

Agreed, Mthorn00.
Fender is company focused on profits and growth, just like every other company in the world. Yes, times are tough for many right now, but with rising costs of health insurance, retirement benefits, materials, labor, and energy costs in general, the price hike can be expected.
Everything is more expensive. When I was in the wine industry, I saw the dollar go down the crapper against the Euro, and first growth Bordeaux go from $350 a bottle to $1000 in 6 years.
Compared to Gibson, PRS, Taylor, and other producers of quality instruments, the American Fender Standard Series is still a pretty damn good deal.
Asses your personal budget, and make a decision based on your needs and cash flow.
I would love to have a Gibson VOS resissue of the 59 Les Paul Standard but, it's not in the cards. The solution is not to b*tch, its to find a product that I can afford with the features that I want.

The economy (globally) is kicking the crap out of everyone. I would expect that Fender will suffer a downturn in sales as a result. Many people don't have the income these days to absorb the price increase.

My local store told me that sales have declined across the board, but since they raised the Fender prices they've fallen off a cliff. He offered me the 62 Reissue at the old price, since he bought it pre-price increase.

I fully understand business...since I live it every day, but during distressed times like we are faced with now, the price increase is like a punch in the face to loyal customers.

All, or some of what previous posters stated is likely true. Still...sometimes you have to do the right thing for your customers even if it has a short term cost to you.

I would think that their prices rise for the same reasons that auto manufacturers, component manufacturers and other manufacturers raise their prices.

Business Management 101

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Being able to play and enjoy music is a gift that's often taken for granted.

Don't leave home without it!

This is why Fender offers a LARGE variety of models in correleation to various income situations. This way everyone can enjoy a quality instrument regardless of the amount of cash in their pockets.

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-Classic 50's Strat.
-Std. Telecaster.
-Mike Dirnt P-bass.
-Custody of SE Strat.
-Peavey Predator/Dean Evo/Epiphone DR150/Gibson Slide (much older than me).

Rellik Productions Inc.

I would imagine these price changes were planned a while ago, and implemented in a long term business plan, put in place at the start of a financial quarter. The fact that it fell right when it did, when the global economy took one right to the huevos couldn't have been any worse.

If the current economic climate was like it was a year ago, we would have $@!&#* a bit, but then talked about how fender has kept prices stable for a long time, over a decade without a significant price hike.

As I plan to buy an already high priced (read not part of the regular production runs,) strat I am in no real hurry to pull the trigger. I am interested to see how fender responds to the current situation, and how quickly.

Prices may indeed fall, but it poses a danger to a companies reputation if they fall too much too quickly. Price drops always spark questions about the overall health of a company, of quality issues, and much more.

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I'm not an expert, but I play one on the internet.

well the road worn are a good way to increase sales, I think they are going to get a lot of impulse buyers with the roadworn, they look vintage.

my thought on the roadworn...buy a MIM and some sandpaper, save yourself $400

this is the first price jump I've seen on fender guitars but it's not as shocking as the epiphone & gibson price jumps, the epiphone standard went from $399 to $549. The MIM went from $399 to $449, so it's survivable.

My local craigslist is absolutley loaded with Fender guitars at the moment, and some really choice ones (A '91 Strat Plus with lace sensors in 3 color sunburst at the moment, which is killing me) and I'm sure if one can't afford a new one, there are people that buy new, figure out that they don't like to play guitar (imagine that!) and sell two months down the road.

Raise the prices a bit, next thing you know you're Gibson