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Fender Price Increase?
- Thread starter Zildjian106
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Its pathetically true. The US economy is going to hell in a hand basket but some body within the Fender Corporation feels that the 25% - 30% increase will somehow attract customers. I was REALLY bummed today because I was looking to put a Fender 1970s Jazz Bass on lay-away.. it costs $699.99.. with the minimum 25% increase that Sam Ash was telling me about the price is going to rocket up to $875...
I never say this, but do a search. There have been 2 long threads this week about it. It's true, by the way...20% - 50% according to my (pissed off) Fender dealer.
I wonder if it's really true though. All the advance warning of the price increase was clearly designed to move products in the preceding weeks. Prices will go up tomorrow, but perhaps settle down after a while with all kinds of discounts?
I don't doubt it's true in the sense that prices are going up. But I doubt anyone knows what street prices will be in a few months.
Fender knows of course that they will sell fewer basses with this strategy. Sales must be down because of the economy already, and now they will go down even further, so price increases don't really make sense as a response to the economy.
On the other hand, it may be that Fender wants to encourage a shift in sales down to the cheaper Squier line, and this is part of the strategy.
Fender knows of course that they will sell fewer basses with this strategy. Sales must be down because of the economy already, and now they will go down even further, so price increases don't really make sense as a response to the economy.
On the other hand, it may be that Fender wants to encourage a shift in sales down to the cheaper Squier line, and this is part of the strategy.
Just Thumpin'
Commercial User
- Mar 7, 2008
- 4,534
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- Manager and Partner, Fodera Guitars (10/14/09 - 12/16/19)
A monumentally stupid idea. IMHO it shows company that has lost touch. In a time like this to be raising prices by that much with no material change / benefit for their customers is just absurd...
Guys, it isn't a matter of them raising prices to be parasites, they have to stay in business. Inflation is occurring at a quicker rate than ever before, they have to keep up or they will go under.
I know the everyone is upset by the price increase, but someone has stated in another thread, in time of economic slow downs necessities go down in price, while luxuries go up.
A bass is a luxury right now, and the price increase is probably to increase the profit margin. They know they will be selling less than they have been already, but they will end up making more dollar per bass. What they aren't making in volume, they will make up in price per bass.
And part of the reason they can increase prices for dealers, according to my local shop, is that they have minimums per year you must order to carry their line. Whether you can sell it or not, you have to purchase 20,000 worth of inventory from them per year.
A bass is a luxury right now, and the price increase is probably to increase the profit margin. They know they will be selling less than they have been already, but they will end up making more dollar per bass. What they aren't making in volume, they will make up in price per bass.
And part of the reason they can increase prices for dealers, according to my local shop, is that they have minimums per year you must order to carry their line. Whether you can sell it or not, you have to purchase 20,000 worth of inventory from them per year.
Rumor has it that Fender will also be making a change in their typical MSRP / street calculation (street = 70% of MSRP). Like I said, talk to a small Fender dealer. Fender is also trying to make their dealers carry more inventory. Smaller dealers are really upset. This happens in the musical instrument business. Gibson has done it in the past. This kind of stuff has always gone on, it is nothing new. Remember, Fender makes its money from the dealers; the dealers make their money from the customers. The dealers are the ones who are getting squeezed.
Raising prices is not a strategy for staying in business when the economy is bad and sales are down - it just means fewer sales. As above, it only makes sense to me if they are trying reduce production of certain higher end products, and shift sales to the cheaper models.
ugh.. fun fun fun...moral of the story is make friends in stores.. or at least this will really force us to. lol.
I wonder if this price increase is also going to make value go up.. doubt it. what about you guys?
I wonder if this price increase is also going to make value go up.. doubt it. what about you guys?
Just Thumpin'
Commercial User
- Mar 7, 2008
- 4,534
- 1,664
- Disclosures
- Manager and Partner, Fodera Guitars (10/14/09 - 12/16/19)
The reality is that at their new prices, you can do a lot better than a Fender...heck if you want a Fender-style instrument, you can now look at Sadowsky's Metro line, Fodera's NYC's, Lakland...all of which just blow Fender away in terms of quality....
Well if you were in the market for a Jazz bass this year the timing of this new JB from G&L is perfect. With many custom colors and neck options. As well as much better quality than Fender!
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