Fender Price Hike ... Again

3fngrs

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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.

You are right but... the price will go up whether I buy one or not because everyone else will anyway. Then, if I want one, I'm going to have to play the inflated price.

You would have to make the entire country understand and accept that slowing down their purchasing will slow down inflation. That just isn't going to happen, especially in the US. It's hooray for me, the hell with everybody else.
 

keithb7

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What about vintage amps? How have their prices fared in the past couple years? I’ve been out of the market, not paying attention. I have a 1959 5F6A tweed Bassman sitting here in my closet. Not getting used. Perhaps I shall leave it there until I’d like a cash influx during retirement. 25 years from now. Sure, I can re-cap it then and have it gig ready.
 

chris m.

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You are right but... the price will go up whether I buy one or not because everyone else will anyway. Then, if I want one, I'm going to have to play the inflated price.

You would have to make the entire country understand and accept that slowing down their purchasing will slow down inflation. That just isn't going to happen, especially in the US. It's hooray for me, the hell with everybody else.
A similar phenomenon to -- "the tragedy of the commons". Individual behavior is not aligned with collective behavior....

https://www.masterclass.com/article...he-commons#what-is-the-tragedy-of-the-commons
 

Jared Purdy

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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.

I find the prices to be all over the place. Not everything is through the roof. As I mentioned in an earlier post, Mark Bishop, owner of Mark's Guitar Loft is selling CS R9's (current issues) for the same price as he was two years ago. I know this to be true because I considered buying one from him, but the border issue made it difficult and I was not going to pay brokerage fees. So ya, $5500 today, $5500 two years ago. In Toronto, they've gone up by about $250 for the same guitars from winter 2020 to now.
 

Tenderfoot

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Well, the 65 PRRI shown in my avatar went from $1099 to $1299 the week after I purchased it this past July! IIRC all the Fender amps took an increase as did other manufactures like Blackstar. Be interesting to see what the cost of a 65 PRRI will be in the coming months.
 

beninma

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It is what it is.

It's not just Fender. Exactly a year ago I bought my Reverend for $900 + $180 for the hard case. Today list price is $1199 + $205 for the hard case. There are some floating around for $999, but I think they are left overs from a year ago, and even those have still gone up $100.

Glad I bought a year ago, and I certainly don't need any more guitars. I got the Reverend cause I had never owned anything with humbuckers. Now I have an Acoustic, a single coil, and a humbucker, it covers an awful lot of ground.

Almost everyone complaining can probably sit on their guitars they own and play for years and be very happy if they get can break free of the whole GAS nonsense.

They've been brainwashing us with marketing for years to think you need a new guitar to play anything new... now the prices are just snapping people out of it.
 

JL_LI

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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.
I clicked "Like" but I don't like this. Unfortunately, its an accurate assessment of the situation.
 

Killing Floor

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I love Fender, it’s my favorite musical brand and I am pretty loyal in my buying.

AND

There is nothing Fender can do that will reduce their demand even incrementally. They can raise prices 3 times in 18 months at a rate exceeding inflation. They can draw down the quality of the wood and other components. They can draw down the quality of finish and assembly and QC/inspection. It’s not even relevant. They sell a brand to brand loyal, diehard fans. You should expect a price increase by July and I should expect to post a NGD thread before then.
Why wouldn’t they raise prices?
 

chris m.

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If enough people stand pat and stick with the guitars that they already own then that will help offset the folks that are panic buying now in anticipation of rising prices. We'll just have to see how it plays out...

upload_2022-1-3_13-37-9.png
 

Vibroluxer

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Vintera 50s Modified Tele went from $999.99 to $1199.99.

If someone offered me $1000 for my used Baja, I would let it go in a heartbeat.
I bought my used, mint, 2011 Baja 2 yrs ago, out the door for 650 even.

The best money I've ever spent on a guitar.
 

knavel

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I bought like mad in early 2021 because I knew this was coming in light of the election of 2020. These things do have consequences and the only thing that surprises me is that anyone might seem surprised. So I was "In before the lock" on Gibsons and Fenders--and Gretsch and Martin for that matter. The Gretsch 6120 Smoke was $3300 when I got mine (scratch and dent for $2100) and now it's $3600.

The hallmark of inflation is more money chasing after fewer goods. Here in the UK on some fronts the US price changes haven't hit, but those are the places who for such items say you can order now and stock expected in summer 2022--remember that over here the manufacturers lost a case with the Adverstising Standards Agency to be able to enforce published prices on the internet as they enjoy in the USA.

For example:

upload_2022-1-3_22-25-14.png


Versus now available price:

upload_2022-1-3_22-28-4.png
 

captain_jack

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Damn, they raised prices over the summer as well. Not sure if it was across the board then but at least the basic Player series Tele went from $749 to $799 in August. Now it's up to $849.
 

Controller

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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.

My random bunch of guitars has now become a "collection"!
 

beninma

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If enough people stand pat and stick with the guitars that they already own then that will help offset the folks that are panic buying now in anticipation of rising prices. We'll just have to see how it plays out...

View attachment 936397

Damn what's going to happen if people can't shop constantly and actually play their guitars and then realize it's more fun & rewarding than shopping & collecting?
 

Mouth

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I saw the potential writing on the wall and bought everything I wanted before late in 2020.

Funny how all the increased demand in 2020 didn't cause inflation.
 

Sax-son

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Fender is in debt. They need to raise their revenue so they will look for any excuse to up the price. Aside from some parts. I haven't bought any Fender gear in 10 years. If you keep paying the prices, they will keep raising it as much as they can get away with it. There is definitely some inflation out there, but not as much as these guys are trying to fleece from you. Since Guitar Center and MF is in bankruptcy, that doesn't help their situation either.

Oh, by the way, this isn't just happening in the music retail business, it's happening in all the other manufacturing fields as well. Corporate fleecing of America.
 




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