Members Midcitysaint Posted January 26, 2009 Members Share Posted January 26, 2009 I thought it was interesting, Sweetwater Music emailed me today telling me Fender is raising their prices accross the board, as much as 20%. I checked American musical and it looks to be true, Fender MIM standards? $599. Go Fender.... Link to comment Share on other sites More sharing options...
Members oryan Posted January 26, 2009 Members Share Posted January 26, 2009 Old news Link to comment Share on other sites More sharing options...
Members zooLemon Posted January 26, 2009 Members Share Posted January 26, 2009 MF is showing them at $399, $599 is MSRP. I'm pretty sure that's not a change. I doubt the price would go up all the way from $399 to $599. That's way more than 20%. A 20% increase would be $480. Link to comment Share on other sites More sharing options...
Members Scoogs Posted January 26, 2009 Members Share Posted January 26, 2009 Fender prices are indeed going up. They have their new prices released on their website. For example... The '52 RI Butterscotch Tele was $1900 MSRP It is now going to be $2300 MSRP starting Feb. 1st. Better make your Fender purchases this week. Link to comment Share on other sites More sharing options...
Members David E H Posted January 26, 2009 Members Share Posted January 26, 2009 Fender sales going down in 3...2...1... Yeah, I know...really. Link to comment Share on other sites More sharing options...
Members brewgoodbeer Posted January 26, 2009 Members Share Posted January 26, 2009 Actually it is not a bad economic "strategy". People who are looking to purchase a new fender guitar are still going to do it. They are not going to say they will wait until the prices go down. The prices won't go back down. Fender sales may be down this year due to the economy, but not to the price of their guitars. If someone doesn't have the money, they do not have the money regardless of the price. If they have the money, they will pay more. The only way a business can make more money is to cut overhead and increase sales. By raising sales, they have already increased their potential revenue with flat sales. Link to comment Share on other sites More sharing options...
Members uOpt Posted January 26, 2009 Members Share Posted January 26, 2009 Since it's old new anyway let me derail the thread: Assuming I call Sweetwater and want -say- an American Strat listed for $1000-1100, how soft do you think the price will be? Are they going to block haggling saying "hey you can be glad with the $1000 today, next week it'll be gone"? Link to comment Share on other sites More sharing options...
Members ashasha Posted January 26, 2009 Members Share Posted January 26, 2009 I disagree wholeheartedly with the notion that prices on new Fenders will plummet. This has been discussed in the other countless threads and the truth is that Fender has actually been behind the curve for price increases for quite some time. I don't see this as a move to make more profits because of the current economic state; I see it as a natural price increase. If anything it may be a victim of poor timing, but the economy goes up and it goes down and a long standing major manufacturer knows this and they get to that point by not freaking out and slashing prices because of a dip in the market. They'll lay off people, cut down production and possibly do something to reduce costs of parts, but they won't cut their own throats by lowering prices because in the long term it's suicide. As for the current competition from overseas that is something that they should be worried about, but at the end of the day if given a choice most people are going to look to brand name recognition and either save or borrow the money to get the guitar that they want. And yes, I took the knowledge of the coming price increase into consideration when I bought my new tele last week. The fact that I was able to get it for considerably less than regular asking price just made it a no-brainer. Link to comment Share on other sites More sharing options...
Members derf Posted January 27, 2009 Members Share Posted January 27, 2009 Sorry, not buying it at all.For the 20th time... market saturation. The baby boomers who drove the exploding demand in guitars for the past decades are now retiring to fixed incomes. Every second household already has an unused guitar, one of the first things they'll get rid of in a pinch, and 10 million more were manufactured in 2006. Competition is increasing, quality is increasing at lower price points, and demand is dropping fast... and by all indications, permanently. The "Guitar Hero" generation mostly doesn't care.We're going to be swimming in guitar "deals". Some of us (here) already are...Contrary to your post, Fender is neither a necessity of life, nor are they a monopoly- only if they were both could they just ignore market forces and play it the way you propose. We inherently have the upper hand, we can choose not to buy at inflated prices- whether we can afford those inflated prices or not is irrelevant. They HAVE to sell. We DON'T have to buy. Who do you think loses that standoff?IMHO, prices are going to come down... a lot. This year, next year.. they'll delay it as long as they can, of course, but I think this is about gouging for every dime they can get BEFORE prices plummet. I think anyone who buys in the next 6-12 months is just plain being taken advantage of. The thing is the entire Global economic system is breaking down if you believe what is being put out by Economists the Media, the US Goverment, Europe, China etc. Basically everyone in the world. Taken in that context perhaps Fender's business model no longer works. Or perhaps this is an early sign of the Hyper Inflation many have predicted would result from the massive injection of capital western nations are continuing to implement. Perhaps Inflation will make " manufactured goods" more "valuable" (expensive). Or perhaps Fender will collapse under the weight of it's own dependence on consumer irresponsability, much like the Auto industry. Perhaps consumer's will rebel against paying a premeium for a "Brand". Perhaps they will become more brand consious in an attempt to protect their investments. I think one has to think outside the box to understand what's happening. Link to comment Share on other sites More sharing options...
Members PlantBoy Posted January 27, 2009 Members Share Posted January 27, 2009 This means Jackson as well, right? Link to comment Share on other sites More sharing options...
Members Help!I'maRock! Posted January 27, 2009 Members Share Posted January 27, 2009 This means Jackson as well, right? Fender Gretsch Jackson Charvel Tacoma Guild Kaman Music (Hamer, Ovation, Takamine, Genz Benz, Gibralter, CP Percussion...) Link to comment Share on other sites More sharing options...
Members fulcrumpoint Posted January 27, 2009 Members Share Posted January 27, 2009 Two words... BUY USED... /Thread Link to comment Share on other sites More sharing options...
Members Kid Klash Posted January 27, 2009 Members Share Posted January 27, 2009 For what it's worth, I was at NAMM week before last, and the Fender area was packed with people looking at all their products. Right up the hall was the Gibson area, and there was almost nobody there. Both companies are old line companies, both are raising (or have raised) their prices. If I was a gambling man (which I'm not), I'd be betting on Fender's chances of survival over Gibson's chances of survival in the next few years.OK - back to the original topic! Link to comment Share on other sites More sharing options...
Members derf Posted January 27, 2009 Members Share Posted January 27, 2009 Exactly. Something different has happened. For the first time in several decades, the US consumer, who's been accused incessantly by the whole world for consuming too much, finally cut back.. and the world wasn't ready. This isn't like any situation we've seen since WWII... and too like some we've seen before. But it isn't so much that people can't afford as much anymore, it's a much more fundamental change. They've HAD ENOUGH. We're all swimming in consumer crap we don't want, and the whole hamster wheel thing is really, really getting old. And, incidentally... we're swimming in guitars. We've slowed drinking from the fire hose, and they're still turning it up. How many guitars per household, on average, do you think we're going to buy, year, after year, after year? Any purveyor of "luxury goods" (and how many people NEED a new guitar to get fed?) that fails to understand that this is not just a momentary blip on the charts is in for a very rough time. Hell, most who do understand it are in for a very rough time. The choices for manufacturers and retailers in the months ahead are not appealing. The local Cash Converter's is always filled with beat to crap guitars so at least some are being consumed. And of course trends will change and many current production guitars will become "worthless", like the $75 dollar Kramer Focus series, Ibanez Roadstars, Japanese Squiers, Aria's, Westones etc. of the mid 90's. There will always be demand for certain aftermarket guitars, The trick is to recognize where the market is heading. Much of what you're saying is valid about market saturation, but I doubt that a solid Rosewood Epiphone Masterbilt will ever be worth a whole lot less then the $250 or so it goes for now on Ebay. In fact if manufacturing of these instruments dries up due to world economic conditions there may even be increased demand... Link to comment Share on other sites More sharing options...
Members wagdog Posted January 27, 2009 Members Share Posted January 27, 2009 MF has MiM standards in their latest catalog for $449. Link to comment Share on other sites More sharing options...
Members monzablue Posted January 27, 2009 Members Share Posted January 27, 2009 Actually it is not a bad economic "strategy". People who are looking to purchase a new fender guitar are still going to do it. They are not going to say they will wait until the prices go down. The prices won't go back down. Fender sales may be down this year due to the economy, but not to the price of their guitars. If someone doesn't have the money, they do not have the money regardless of the price. If they have the money, they will pay more.The only way a business can make more money is to cut overhead and increase sales. By raising sales, they have already increased their potential revenue with flat sales. Meaning there's no price sensitivity among people who purchase Fenders?? I disagree. There certainly are buyers who have not cut discretionary spending, but the vast majority of people are at least paying a little more attention to where their money is going these days. And at the same time, there are lots of available used guitars right now. So the guy that's gassing for an American Tele might see the price hike and decide to hit the used market instead. Or consider a Mexican Tele. And the guy that was gassing for a MIM tele is maybe looking harder at the Squiers, and so on. Seems to me that someone has to rewrite decades of economic theory to find a way that raising prices in a widespread recession does not kill sales. Link to comment Share on other sites More sharing options...
Members Scoogs Posted January 27, 2009 Members Share Posted January 27, 2009 Two words... BUY USED.../Thread The transition will be slower than buying new, but the used market prices are going to go up as well. All in all, it's going to suck balls. I honestly didn't want to spend any more money so soon because I just got my Gretsch.. But I think I'm going to go grab me a 52 Tele sometime this week. Not new.. But if I wait till the summer like I had originally wanted, I'm going to be paying easily $200, most likely $400 more for a guitar I can get for $1200 CDN (Just under $1000 USD) today. No taxes, no shipping. Link to comment Share on other sites More sharing options...
Members wimpy77 Posted January 27, 2009 Members Share Posted January 27, 2009 again i will say it. fender and any other company can charge whatt they want because guitars are not necessity and they know people will still buy them. Link to comment Share on other sites More sharing options...
Members KwadGuy Posted January 27, 2009 Members Share Posted January 27, 2009 again i will say it. fender and any other company can charge whatt they want because guitars are not necessity and they know people will still buy them. Hmmm...Guitars are not a necessity? Check. So people will still buy them at higher prices? Not so much check. As things get tighter financially, I can think of few things LESS important for most people to buy than a new guitar. Food? Yes. Clothing? Yes. Rent/mortgage? Yes. Then it gets discretionary and for most people a guitar is far far down that list. I don't see where raising prices at this time makes much sense. I know they expect demand to be elastic. I don't believe it. Link to comment Share on other sites More sharing options...
Members Axeslinger Posted January 27, 2009 Members Share Posted January 27, 2009 I'll say it again too.. Capitalism just simply does not work without someone getting exploited;) Link to comment Share on other sites More sharing options...
Members KsE fan Posted January 27, 2009 Members Share Posted January 27, 2009 i like sweet water cuz they give me candies Link to comment Share on other sites More sharing options...
Members Roadrunner Posted January 27, 2009 Members Share Posted January 27, 2009 I can't speak for anyone else, but I have probably reached my saturation point as far as guitars are concerned, and will probably only lean the herd from this point forward. Baby boomer, yep. Impacted by the downturn in the economy, you bet. Willing to buy new Fenders & Gibsons regardless of price, not hardly. I've jonesed for a 52 Tele for a while, but do I have to have one after a $300 price increase? No, I'll get by with the Tele I already have. Who knows, maybe I'll change pickups. Yeah, that's the ticket! Later, Jim Link to comment Share on other sites More sharing options...
Members Schtang Posted January 27, 2009 Members Share Posted January 27, 2009 Sorry, not buying it at all. For the 20th time... market saturation. The baby boomers who drove the exploding demand in guitars for the past decades are now retiring to fixed incomes. Every second household already has an unused guitar, one of the first things they'll get rid of in a pinch, and 10 million more were manufactured in 2006. Competition is increasing, quality is increasing at lower price points, and demand is dropping fast... and by all indications, permanently. The "Guitar Hero" generation mostly doesn't care. We're going to be swimming in guitar "deals". Some of us (here) already are... Contrary to your post, Fender is neither a necessity of life, nor are they a monopoly- only if they were both could they just ignore market forces and play it the way you propose. We inherently have the upper hand, we can choose not to buy at inflated prices- whether we can afford those inflated prices or not is irrelevant. They HAVE to sell. We DON'T have to buy. Who do you think loses that standoff? IMHO, prices are going to come down... a lot. This year, next year.. they'll delay it as long as they can, of course, but I think this is about gouging for every dime they can get BEFORE prices plummet. I think anyone who buys in the next 6-12 months is just plain being taken advantage of. I don't buy into what your saying at all. Let's just see what happens this year - let's bring this thread back in 9 months and see where prices are? because I will bet prices will be going up and up not down. When the world when thru different recessions in the 80's and 90's guitar prices went up - but during the good times from 1995-2007 guitar prices were cheap because the "good times roll" and companies were happy to discount because they were selling so many guitars. The discount days are over for the time being as companies can't afford it in the present climate. They will sell less but at higher prices and they will lay off people to keep their profits at an acceptable level (and because demand is down they don't need to employ as many people anyway). Do you ever notice when new products came out like Blu Ray,DVD, DVD recorders, iphone etc they sold at high prices because demand is low when they are first released. After the technology starts paying for itself and demands increases along with supply prices always drop. Link to comment Share on other sites More sharing options...
Members monzablue Posted January 27, 2009 Members Share Posted January 27, 2009 Long term, it seems very obvious to me that prices are coming down.... it might be delayed (and I think there are company execs praying it will be), but I don't think companies like Fender have the power to reverse the way supply-and-demand works just by behaving like monopolies, sorry. We're not serfs or slaves, nobody's really "locked in" to what they're offering at whatever prices they'd like to get. Well said, Oldfinger. I'm guessing the price increase was in the works long before the economy collapsed and perhaps FMIC is too big and slow to reverse course. Either way, Fender is making great guitars. When prices do come down, I hope that they don't end up skimping on quality. Link to comment Share on other sites More sharing options...
Members donsimon76 Posted January 27, 2009 Members Share Posted January 27, 2009 I had been thinking of buying a Fender strat but came across a G&L Tribute Legacy that I just fell in love with. It was used but in mint condition and much less than the Fenders I was looking at. Fender isn't the only game out there when talking about nice strats. (Granted, the 72 thinline tele semi-hollow still gets me a bit excited.) Link to comment Share on other sites More sharing options...
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