7 Things That Do Not Make Guitars Expensive Anymore

[Theleman]

The presenter of this vid talks with electric guitar as example, but wondered if they apply to acoustic guitars too?

https://www.youtube.com/watch?v=CoF6zS5PHyA

[AndrewG]

CNC machines have had the greatest impact on speeding up manufacturing and increasing accuracy and consistency of build, reducing man hours spent per unit. However the economies of scale which should result from this and be giving us cheaper instruments, don't appear to apply in the majority of cases. While guitars built in China, Indonesia and elsewhere appear to be getting cheaper, those in the west seem to be getting more expensive every year, and with little logical justification apart from the ususal 'new and improved' claims, (which are seldom the case). If an economy is stagnant and wages remain largely static, why is everything becoming more expensive? I don't pretend to be an economist...

[Theleman]

Yes, this is true. Made in USA and Canada acoustic guitars are now far more expensive than they were in 2002 - 2003.

I could have bought a Seagul S6 brand new in the local guitar shop for £150 - £200, and a brand new Martin D15 for £600 in 2002.

Now? they are more than double of that price.

[stringjunky]

I think prices are based on what the market can tolerate at the time. The idea of ethical pricing died a long time ago.

[The Bard Rocks]

Originally Posted by AndrewG

If an economy is stagnant and wages remain largely static, why is everything becoming more expensive? I don't pretend to be an economist...

Only the economy isn't stagnant. Many firms are just doing better and better. Look at the NASDAQ, Standard and Poors, the Dow Jones, all way up from a few years ago. Employment is way down from what it was. What isn't up to where it should be are people's conceptions of well-being - many of us do not feel as financially secure as indicators should make us believe, which has led to a dichotomy in perception. Part of this is the rich getting richer and the poor staying poor, which seems endemic now.

So some of us feel well-off and some don't. For the ones who feel well-off it is not such a big step to spend more for the better instruments, which leads to higher demand for the more expensive guitars. Those that feel insecure will buy the bargain-priced ones if they buy at all. And there are some surprisingly good instruments out there at very cheap prices, better than it was a decade ago.

Inflation has been working away all this time. It is not excessively high so it doesn't make the news so much, but it has been creeping steadily along. Raw material prices, electricity and utilities, delivery costs, machine prices and so forth have risen. Wages, not so much, but they too have risen.

So it hardly a surprise, when you think of these things, that guitar prices have risen. Most everything else is up as well.

[Gmountain]

Originally Posted by stringjunky2

I think prices are based on what the market can tolerate at the time. The idea of ethical pricing died a long time ago.

You are kidding, right?

[stringjunky]

Originally Posted by Gmountain

You are kidding, right?

You clearly think otherwise. Fine. Why are <insert famous luthier name> guitars the prices they are? Because the market can stand it. This applies to many products.

[Gmountain]

Originally Posted by stringjunky2

You clearly think otherwise. Fine. Why are <insert famous luthier name> guitars the prices they are? Because the market can stand it. This applies to many products.

Do you own your own business? Do you pay employees? Do you pay suppliers, who have to pay employees? Add in taxes, insurance, mortgages or rent, utilities. Now you are out of pocket for a lot of money, before you even see a cent of profit.

If you work for someone else, are you willing to take a pay cut?

And let's face it, the only reason people are in business is to make money. So if you can't make a profit, then there is no point.

[stringjunky]

Originally Posted by Gmountain

Do you own your own business? Do you pay employees? Do you pay suppliers, who have to pay employees? Add in taxes, insurance, mortgages or rent, utilities. Now you are out of pocket for a lot of money, before you even see a cent of profit.

If you work for someone else, are you willing to take a pay cut?

And let's face it, the only reason people are in business is to make money. So if you can't make a profit, then there is no point.

Of course, but there comes point where there's profiting reasonably and actually gouging people. I read often about what markets can stand. Big Pharma works on the principle.

[808K]

Originally Posted by stringjunky2

You clearly think otherwise. Fine. Why are <insert famous luthier name> guitars the prices they are? Because the market can stand it. This applies to many products.

Originally Posted by Gmountain

Do you own your own business? Do you pay employees? Do you pay suppliers, who have to pay employees? Add in taxes, insurance, mortgages or rent, utilities. Now you are out of pocket for a lot of money, before you even see a cent of profit.

If you work for someone else, are you willing to take a pay cut?

And let's face it, the only reason people are in business is to make money. So if you can't make a profit, then there is no point.

Interesting. It seems to me that you are not actually disagreeing with each other. Maybe I just don’t get it?

[Pitar]

Originally Posted by stringjunky2

I think prices are based on what the market can tolerate at the time. The idea of ethical pricing died a long time ago.

Actually, no, it rises with the successive cost of living (COL) increases; taxes, wages, consumer goods, education, medical care, etc., and all driven by demand. So, essentially, the high cost of a guitar is consumer driven and, as a luxury item, seriously should not be berated in any manner related to acquisition cost. It's a toy for all intents and purposes.

[Napman41]

I’m not sure ethical pricing has anything to do with guitar prices. Please elaborate on this idea.

Anyone who thinks large guitars makers in the US are rolling in profits are simply uninformed. This is not the case, and hasn't been for much of the last 10 years.

[Shortfinger]

Capitalist pigs are making our instruments? Smoking cigars on their yachts and laughing at us? Rolling in profits?

I feel a song coming on.

[Carmel Cedar]

Originally Posted by Shortfinger

Capitalist pigs are making our instruments? Smoking cigars on their yachts and laughing at us? Rolling in profits?

I feel a song coming on.

Thank you for the comic relief! We were risking this thread going to unconstructive places...