Fender Price Hike ... Again

Jakedog

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Yep. When you want something, jump on it. Don’t wait around. Nothing is going to get cheaper over time. I bought another bass on NYE. Don’t actually need it. But I wanted it. I realized there was only one left in the color I wanted, and the new ones that were coming in in different colors were all $100 more than the last batch. So I bought it. That earned me a sideways look from the CFO, but it had to be done! :cool:
 

Telekarster

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Yep... days like these are when we try to remember our econ classes from ye old school days, and remember the discussions about supply chains, demands, value of the dollar, etc. and most of us blew those classes off ;) LOL!!! Welp... now we know :cool:
 

Jakedog

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Take note- it isn’t just Fender. The bass I bought isn’t a Fender. Everything is going to jump for the new year. Especially with NAMM about to hit. If you want something, buy what’s left from 2021. Right now.

Personally, I like it when it affects things I already own. The LP I bought for $1899 in 2020 is now selling for $2300 new. And it’s about to go up again. The PRS I bought for $2400 is now $2450, and I’ll bet by the end of this year it’ll be $2600. The acoustic I bought in 2020 for $1600 on sale now sells new for $2500 and hasn’t increased for 2022 yet.

This is all good news for my resale values. Should I ever want to move any of these. I’m not planning to. But it makes me feel good nonetheless.
 

chris m.

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We can see here in this thread how inflation can be directly driven by expectations. Since you all believe that prices are going to go up, you decide you better buy now before that happens.
That increases demand, which increases the price. A self-fulfilling prophecy. And that's why the Fed will signal things like reducing quantitative easing and raising interest rates. They are trying to alter peoples' expectations for the future. Of course, we are in somewhat unprecedented territory right now. No matter what monetary or fiscal policy is right now, there's no escaping a serious, real, pandemic-driven supply chain problem, which in and of itself does drive prices higher as long as demand stays high, which it is. Demand needs to drop just a bit, and supply needs to go up, or else monetary and fiscal policy adjustments are only going to be able to do so much.

This is a tricky one because you could see the potential for an over-correction. Demand may drop and supply may increase, such that things would have leveled off. But then the Fed raises interest rates a couple of times, taking away the punch bowl, and triggers a mini- or full-blown recession. Being Fed chairman is not an easy job, that's for sure.

But one thing is for certain-- companies are always going to raise prices in response to high demand. Part of it is that they can get higher profits per unit sold, but part of it is also that they are actually trying to reduce demand. They don't want to be in a position where they are bumming people out by not being able to fulfill orders. They know if they bump up the price a bit then that can cool demand, and they can thereafter do a better job of meeting demand without having to further increase capacity and thereby incur other expenses-- hiring, facilities, equipment, etc.
 

archetype

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Someone should write a macro or script that opens a browser to tdpri.com and replicates all the posting steps and generic text about how terrible Fender is, how they're just price gouging, and that the person is again never buying a new Fender, again. The text should end with the claim that it's stone cold fact that macroeconomics or business factors have nothing to do with the increase.

Brand name and URL would be variables and the script would loop through a table of brand names and associated URLs, sending the same basic post to all known brand-specific sites. A task scheduler or chron job would run this script every January 1st, perpetually.

Surely this could be monetized and social media influencers could demand that guitar makers send them free guitars in lieu of the script being run.
 

archetype

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We can see here in this thread how inflation can be directly driven by expectations. Since you all believe that prices are going to go up, you decide you better buy now before that happens.
That increases demand, which increases the price. A self-fulfilling prophecy. And that's why the Fed will signal things like reducing quantitative easing and raising interest rates. They are trying to alter peoples' expectations for the future. Of course, we are in somewhat unprecedented territory right now. No matter what monetary or fiscal policy is right now, there's no escaping a serious, real, pandemic-driven supply chain problem, which in and of itself does drive prices higher as long as demand stays high, which it is. Demand needs to drop just a bit, and supply needs to go up, or else monetary and fiscal policy adjustments are only going to be able to do so much.

This is a tricky one because you could see the potential for an over-correction. Demand may drop and supply may increase, such that things would have leveled off. But then the Fed raises interest rates a couple of times, taking away the punch bowl, and triggers a mini- or full-blown recession. Being Fed chairman is not an easy job, that's for sure.

But one thing is for certain-- companies are always going to raise prices in response to high demand. Part of it is that they can get higher profits per unit sold, but part of it is also that they are actually trying to reduce demand. They don't want to be in a position where they are bumming people out by not being able to fulfill orders. They know if they bump up the price a bit then that can cool demand, and they can thereafter do a better job of meeting demand without having to further increase capacity and thereby incur other expenses-- hiring, facilities, equipment, etc.

Thanks for having this understanding and being able to explain it clearly.
 

Dan German

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On a related note, a friend of mine told me he’s looking to buy a Telecaster. I did some quick research to freshen up my knowledge of the current lineup (I thought he was buying new). The prices surprised me (a little). Then he told me he’s looking at an American Special. I thought the price seemed high, so I did some research. It’s selling at the low end of current prices. And it’s selling for more than it would have been when I was looking at them new 10 years ago, if memory serves. I’m not saying that’s good or bad, right or wrong, it just makes my head hurt.
 




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