Why did Fender raise the price?

Discussion in 'Stratocaster Discussion Forum' started by 357mag, Jun 2, 2021.

  1. Morf2540

    Morf2540 Senior Stratmaster

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    Demand > supply.
     
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  2. John C

    John C Most Honored Senior Member Silver Member

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    Yes and no - Gibson actually did increase the price of the Traditional and Standard for the short-lived "2019 Model Year", which lasted from September 2018 through March 2019, then with the current lineup they dropped the price of the "Original Collection" Standards down to below the price of the "2019 Model Year" Traditional but above the price of the "2018 Model Year" (which ran from September 2017 through August 2018) Traditional. So they combined the "raise the price then lower it" marketing ploy with the "let's change the name" marketing ploy.

    I think the Traditional went up from around $2,300 (the 2018 Model Year price - and probably 2017 Model Year as well) to $2,700 for the "2019 Model Year" then down to $2,500 for the "Original Collection" Standard.
     
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  3. The-Kid

    The-Kid Dr. Stratster

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    This is why I love my Fenders or FMIC guitars like Charvel because they are not only top notch quality and craftsmanship but they treat their employees well, give them great benefits and dont take them for granted and kept them when times were tuff in the pandemic and I especially love my Princeton Bordeaux for this fact because that amp is 100% made here in America.



    Even if you have an import/overseas Fender product like my guitars for example, its supporting a job here domestically in some way shape or form and your getting a fantastic quality guitar or amp for the price and if you buy an MIA guitar or amp even better because that directly supports a great well paying job for someone here in the States.



    No complaints from me, maybe other companies need to take a page from Fenders book.



    Fender is a pretty great American company supporting well paying jobs, treating their employees well and making fantastic top quality products and Im happy with all my Fenders/Charvels and my Princeton ~(*_*)¬
     
    Last edited: Jun 7, 2021
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  4. hardwired

    hardwired Strat-Talker

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    I didn't catch it, what percent did the pricing go up?

    Inflation is out of control some things have gone up 10 and 20%. Has anyone tried to buy a car lately?

    Does Guitar Center have guitars again lol.
     
  5. The-Kid

    The-Kid Dr. Stratster

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    When you adjust for inflation to a 1957 Stratocaster the price of the modern day counterpart, the MIA Pro is actually more affordable in 2021 vs 1957. Even adjusted for 90s inflation for example guitars are not over priced and have stayed relatively the same in price when adjusted for inflation in modern times even with these recent "price increases".




    When adjusted for inflation you actually pay way way less now for a similar guitar of equal value and quality than in 57. In a sense its more fair to pay an even higher price than what they are going for now but I mean thats probably not going to happen.


    I think the "price increases" started end of last year going into January. Not real increases because when adjusted for inflation the prices have not really risen from decade to decade as a reference.



    It's not just Guitar Center that is low on stock but practically every other stores in general but for a few exceptions so it kind of sucks for a whole lot of stores right now in that sense as well.
     
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  6. John C

    John C Most Honored Senior Member Silver Member

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    Agreed - some of the increases are for keeping workers on, other are for component/raw material increases.

    I think that Fender still wants to keep that "California heritage" thing going; so does EBMM. For everyone complaining about Fender's increases - check out EBMM's increases between 2020 and 2021.

    Although I've been hearing rumors that EB may eventually move MM out of San Luis Obispo to their main location in Coachella - while not as cost-saving as moving out of California it would be cost-effective compared to San Luis Obispo. Evidently their chief designer, Dudley Gimple, wouldn't move from SLO to Coachella, but he retired last year so that would open them up to making the move.

    It's not just guitars; has anyone driven past a car dealer lately? We were out yesterday and happened to drive past 2 different Ford dealers and they had very few new models on their lots and not many more used cars. Evidently a lot of them can't get electronic components (chips specifically).

    Laptops are all but sold out as well - component issues, issues getting them from overseas, etc.
     
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  7. The-Kid

    The-Kid Dr. Stratster

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    Im sorry your just making too much common sense and this contradicts my narrow point of view on the subject.......Its much easier to just blame everything on Fender and inflation so I'm just going to just keep believing that despite all the common sense saying otherwise.




    Its all Fenders and inflations fault ;)
     
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  8. CB91710

    CB91710 No GAS shortage here Double Platinum Supporting Member

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    Yep.
    Just bought an Avalon Hybrid 2 weeks ago with 3 miles on it (1 of those was my test drive).
    Got it cheaper than the Camry that I was considering.

    As for overall inflation:

    1978 my new Strat was $600
    That would be $2475 today... yet a Corona-built American Pro is only $1500
    Going back to 2015, that $600 would still be nearly $2200, so the inflation of the last 6 months has not made that much of a difference.
     
  9. Rocket King

    Rocket King Strat-O-Master

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    Which is still more than what the traditional cost and always closer to the cost of the Standard.
    As you said : it's mostly marketing talk.
    I got my ES 339 5 months after I got my 2014 Traditional.
    I paid 1840 euro for it.
    It's well over 2300 now.
    My traditional was 1780 new.
    A 50s Standard is now over 2000.
    It's practically the same guitar.
    The Modern or whatever they call it now is for all intents and purposes the high performance standard.
    They only really changed the names, not so much the prices.
    Which apart a few fluctuations, have been on a definite upwards trend.
     
  10. loziodavid

    loziodavid Strat-Talk Member

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    I noticed the same trend in the used market. 4 years ago I bought a used 2010 Mexico Standard at 350€.
    Today for the same guitar I should spend 500-550€: +45-55% of the original price.
     
  11. hardwired

    hardwired Strat-Talker

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    Increase looks like 10% on the MiM Players.

    Still not too bad after discount to around $650. Is stock on Fender back to normal?
     
  12. Bricks

    Bricks Strat-Talk Member

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    You make very valid points,
    thank you for ridding my ignorance on the subject.

    Price gouging wasn't the right word to use, when you mentioned the PS5, it made me think when the Nintendo NES, the miniature one, people would buy 10 console's then when the stores sold out they would sell them on Ebay with a price inflation of 800%, this would be price gouging.
     
  13. muttonbuster

    muttonbuster Strat-Talk Member

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    The thing with gouging is it only works if there isn't really an alternative. An example is the CDC recommending 70%+ isopropyl alcohol will kill SARS-Cov-II. There really isn't an alternative then for less than 70%. With MIA strats, a good portion of the market is on the fence going with a MIM if the price differential is too large. Likewise with MIM, a decent portion of the market is on the fence going with a Squier. Raise one, and buyers drop down a tier. Raise all three....the bottom end starts looking for other brands. So even if they wanted to gouge, they can't really do it. I guarantee you, Fender's pricing to the penny is determined by an actuarial anaylst who plugs in materials, wages, labor hours yada yada yada; then current inventory, how fast that inventory moves; then try to asess as closely as possible what current demand is, and model where they think it's headed.

    I'd love to know the sales figures. My guess is that the bulk of FMIC's dough isn't being made on MIA strats. And more importantly. The current boom? It ain't gonna last. No way. Call me a pessimist, but the people buying right now who think they can sell at a profit at five or even ten years? The majority will be gravely dissapointed.
     
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  14. Stratoskater

    Stratoskater Fuzz Meister General

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    No, price gouging is where a retail store jacks prices up, a person buying several of a hit item then selling them for a huge profit on eBay later is a free market and an individual taking full advantage of it legally. I did this years back when the Wii came out. Got in line early, bought 4, sold 3 at a nice profit and kept the 4th one for free. Also in many states, NC for example, price gouging is only illegal when a state of emergency is declared so retailers can charge as much as they like any other time.
     
  15. The-Kid

    The-Kid Dr. Stratster

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    Technically gouging is this, what I was referring to was gear scalping. Either way but yeah lol
     
  16. Stratoskater

    Stratoskater Fuzz Meister General

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    Sorry I thought bricks had mentioned price gouging and was replying to him. I was half asleep, too early in the morning :D
     
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  17. Davey76

    Davey76 Strat-Talk Member

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    As I mentioned in an earlier post on this thread. I’m over generic guitars by all the big guys so I’m parts casting and I’ve just bought all the components to do a complete build of a Strat for $1095 AUD. I’ll probably be looking at $250-$500 to have it built but that comes in $1000 cheaper than am Pro 2 which I can’t stand and the am OG series which is an extra $1500. All parts are quality parts from Japan or the States so I am completely excited to see how this goes. I’m sick of reputation propping up extortionate prices without the consistency in quality.
     
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  18. BigDan

    BigDan Strat-Talker

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    Wood is graded DA! Why don't you try to find a flamed neck or a decent piece of Ash or Rosewood on a new strat or tele without paying twice as much to the Custom shop.
    Trees grow like people. The same species has a different qualities. Some are better than others. Some have more of a grain pattern or color that is worth more and looks better and last longer and is more durable. Some is just smarter and smarter looking and there is not a unlimited supply.
     
    Last edited by a moderator: Jun 11, 2021
  19. StratLover66

    StratLover66 Strat-Talker

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    This is a retail price list from May, 1982. Adjusted for inflation, the Fender Stratocaster with trem would be $1506, today. The fancier The Strat (great guitar!) would be $1841 today.


    82 new prices.JPG
     
  20. guitarman1984

    guitarman1984 Senior Stratmaster

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    They realised people were selling used gear at higher price than the new one (kidding but not too much).