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Any more on Fender Japan closing 2006


Grynch

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Hasn't been discussed for a while, any more news on FujiGen ceasing production and so on?

Just found this interesting bit on another forum!

 

Without wanting to sound like I am only promting sales for my own shop, a recent update from friends in Japan confirm this MAY actually be true! Fender USA is getting very concerned about the number of F.J. guitars now making their way out of Japan. The number is starting to impact on sales of Mexican instruments in some "sectors" and also threaten the "price point" of various USA models. Fender USA make aprox 300-500% on every Mexican guitar sold in the USA, while they make little (in comparison) on a guitar sold from Japan. Interestingly a worker in the Japanese factory is paid MORE than a worker in the USA factory,yet a USA '62 reissue sells (retail)for over twice the cost of a F.J. model!!

 

Without wanting to sound like I am only promting sales for my own shop, a recent update from friends in Japan confirm this MAY actually be true! Fender USA is getting very concerned about the number of F.J. guitars now making their way out of Japan. The number is starting to impact on sales of Mexican instruments in some "sectors" and also threaten the "price point" of various USA models. Fender USA make aprox 300-500% on every Mexican guitar sold in the USA, while they make little (in comparison) on a guitar sold from Japan. Interestingly a worker in the Japanese factory is paid MORE than a worker in the USA factory,yet a USA '62 reissue sells (retail)for over twice the cost of a F.J. model!!

 

Not so good news for players all over the world , but DEVESTATING news for lefties, as Fender Japan make about 5 times as many lefty models as the parent company!!

 

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Originally posted by Grynch



Without wanting to sound like I am only promting sales for my own shop, a recent update from friends in Japan confirm this MAY actually be true!


Fender USA is getting very concerned about the number of F.J. guitars now making their way out of Japan. The number is starting to impact on sales of Mexican instruments in some "sectors" and also threaten the "price point" of various USA models.



If you read what our friends in the USA say about a wide variety of subjects at this forum :rolleyes: , then I would treat the "from friends" hearsay as...hearsay. Gossip. (And pray it's not true :p .)

Instead of shutting down FJ, FMIC could simply discourage easy direc- buying and shipping...or lower the prices on MIMs.

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Originally posted by Grynch


Fender USA make aprox 300-500% on every Mexican guitar sold in the USA, while they make little (in comparison) on a guitar sold from Japan. Interestingly a worker in the Japanese factory is paid MORE than a worker in the USA factory,yet a USA '62 reissue sells (retail)for over twice the cost of a F.J. model!!


 

 

Is it just me or does this make absolutely no {censored}ing sense whatsoever????

 

First, up to 500% on MIM stuff??? MIM's can be had for what, $300? Which means that they cost the dealers, lets say, $200 bucks. (Because remember, Fender doesn't actually profit from selling guitars to you and me they profit by selling guitars to the dealers that we buy them from...) I'm expected to believe that all in after Fender is done paying marketing and gas for the trucks to get them there and back and the paychecks of the Mexican workers and everything, a MIM Strat costs FMI $40 bucks to make??

 

That's {censored}ing laughable!

 

Also, help me through this equation... The Japanese workers get paid more than the American workers.. Yet the '62 reissue from and American factory is magically more than double than the MIJ one?

 

I love it when small business owners with no real understanding of margin or profit start to talk about these things.

 

Like, because they pay a Mexican worker $2.00 a day to make Strats and he can make 2 a day, it means that they cost $1.00 a piece. Thus, when I buy it in a store for $300, some Fender exec gets a check for $299 cash from the money fairy....

 

I'm not saying they aren't closing the factory (which I doubt anyway). But I just have to giggle when I see stuff like this.

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Actually, it's a) not posted on an American forum and b) posted by a businessman who actually probably would have a fairly good grasp on costs.
Have you ever seen a price list from a Chinese manufacturer for instance. Cheapo electrics can be had for as little as about US$12, not cost of manufacture, that's sell price from a broker working on behalf of the manufacturer. Not inconceivable that a MIM could cost $40?

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Originally posted by jec

help me through this equation... The Japanese workers get paid more than the American workers.. Yet the '62 reissue from and American factory is magically more than double than the MIJ one?

 

 

I'm not arguing with the rest of what you said, but when has retail price and cost of goods ever had a direct connection? And japanese workers could well be paid more than US workers, but because they work more efficiently (different machinery & tools, fewer QC fixes etc) they might still make more guitars per $ spent.

 

Just a few thoughts.

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Originally posted by Grynch

Actually, it's b) posted by a businessman who actually probably would have a fairly good grasp on costs.

 

 

Not if he thinks that Fender (or anyone) is netting up to 500% on (mostly) non-automated production in a North American factory.

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Originally posted by Ancient Mariner



I'm not arguing with the rest of what you said, but when has retail price and cost of goods ever had a direct connection?



Because selling something for less than it costs you to make will put you out of business???

I don't think I understand your question. Unless you're inferring that there is no constant corelation between cost of manufacture and pricing.. In other words we don't mark things up using a universal multiplier? Example, everything is always sold for 5X more than it costs us to make it?

That's correct, there's not constant corelation but there is the basic fact that you can never sell something for less than it costs you to produce.

(Unless you're running some bizzarro charity....) ;)

Keep in mind too that assumptively, CIJ guitars are really only for sale in Japan. So figure that into the equation of "Japanese factory workers are paid more than American factory workers."

Remember what J. Keynes said about paying people to dig up glass jars with dollar bills inside?

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100% complete internet rumor garbage.

 

Guess we'll find out in 2006. As I understand it Fujigen are flat out with their car fit out manufacturing business. And they make their own line of guitars, maybe they're more interested in selling them domestically and cutting down their ghost making. I believe they've already scrapped all Japanese manufacture of Ibanez Prestige so.....

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Originally posted by Grynch


Guess we'll find out in 2006. As I understand it Fujigen are flat out with their car fit out manufacturing business. And they make their own line of guitars, maybe they're more interested in selling them domestically and cutting down their ghost making. I believe they've already scrapped all Japanese manufacture of Ibanez Prestige so.....

 

 

Not according to this link. http://www.jemsite.com/forums/printthread.php?t=37030

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raise your hand if you`ve ever been shopping in Japan. Wanna know why Japanese workers make more money than Americans?... come over and see...$10.oo strawberries, $20.oo watermelons, $50.oo cantaloupes, apartments? don`t go there. etcetcetc.
Japanese Fenders sell for just about double in Japan compared to the ones that have been exported to the US recently. And do people really think that Americans can dictate to the Japanese just what they can and can`t make? Fender USA may be able to control the use of their name but don`t for a moment think that if they no longer allow the Japanese to build under the name Fender that guitar production is gonna stop over here. The Japanese are out Fendering Fender and I don`t mean Fender Japan either, there are loads of builders over here making way better guitars than Fender USA, and nobody outside the country can buy them. Too bad for them but good for those of us who are here.
So...that old tale of Fender Japan closing is back eh?... I don`t care, I`ll continue to buy the old FJs and I`ve already got a nice supply of MIJs that blow the socks off my USA Fenders... if they had socks that is.

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Originally posted by jec

That's correct, there's not constant corelation but there is the basic fact that you can never sell something for less than it costs you to produce.



You ever hear of a "loss leader"?

Reportedly, every XBOX manufactured by MS has been sold at a loss.


Originally posted by zenbu

Wanna know why Japanese workers make more money than Americans?



Except that Japanese workers don't, on average, make more than Americans, neither in real dollars or purchasing power parity (PPP) adjusted dollars.

Plus has anyone taken into account all the basswood, zinc, and crap electronics in the FJ products?:D

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to be honest, if fender pulled fuji gens licsencing they would continue to make the guitars they are making today. And fender could do nothing about it- the whole copyright thing obviously is not enforcable internationaly, and never was. The only lawsuits issued were to stores selling"counterfiets" and they were never procecuted. Fender makes something off the japanese guitars, and a corp is happier with 10% of something as opposed to 100% of nothing.

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i had to do a search on these fender strats from japan after playing a couple gigs this week with a guy that had one from japan. He told me it cost him 500 bucks and looked and sounded better then the other guys california made custom fender strat.

where would you order or import somethign from these guys?

was going to look into a G&L tribute but if i can snag one of these for almost the same price well then hey!:thu:

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