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Can Fender Afford?
- Thread starter JAUQO III-X
- Start date
Is this news, or hypothetical? But I personally think they can't, in the sense that they would be missing out on profit that would end up going to other companies which produce in the same price range Squier inhabits and that Fender sits above.
No. Think about the number of CV, VM and Affinity sold compared to a Am. Standards & Deluxes. Fender would discontinue the CIJ lineup before Squier.
- Jun 28, 2005
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- Builder,mcdcustomguitars
Can they afford to give it up? Only their finincial dept could answer that. My guess is that they could. Not that they would ever want to. The Squier line does not compete with any of their other products, so I don't think the loss of Squier would have any effect on Fender's normal products. Now, if someone bought Squier and started making mid-price instruments like Fender's MIM line, then that could be a problem.
Rocky
Rocky
My guess would be, they probably could. But, why would they want to? It seems with the improvements to the Squier line, they have created a "new" cash cow...
No. Especially since they have pursued a strategy of hiking the prices of Fender branded instruments in order to make room for higher priced Squier lines and to add value to the Fender name.
As it is the online advertised price of the bottom level affinity series Squier P and J has gone up from $149 to $179 to now @ $199. This over a time period when the economy has been in trouble. Also from what I hear around here the $300-ish Squires have been selling like hotcakes.
Either they would have to say goodbye to everything below about $500 or they would have to drop the MIMs down to $299 and give up the low entry level. I don't see it happening. Lowering the price on Fender lines would re-cheapen the Fender name.
Shrug,
S
As it is the online advertised price of the bottom level affinity series Squier P and J has gone up from $149 to $179 to now @ $199. This over a time period when the economy has been in trouble. Also from what I hear around here the $300-ish Squires have been selling like hotcakes.
Either they would have to say goodbye to everything below about $500 or they would have to drop the MIMs down to $299 and give up the low entry level. I don't see it happening. Lowering the price on Fender lines would re-cheapen the Fender name.
Shrug,
S
yup.
At the same time they won't do either. The MIM is there for people attracted to the name more or less. Squier does to well for them to get rid of it.
They could afford to, but it wouldn't really make smart business sense
- Jun 28, 2005
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- Builder,mcdcustomguitars
Probably. But why would they?
I'm pretty sure they treat every model with a given business plan (sales$$, to hype the fender brand, introduction or different market segments, etc...) and when that product no longer serves its purpose they just drop it and put their money elsewhere. Same thing with what color options are available.
I highly doubt that fenders MIA models aren't profitable, or any of their other lines by the way.
I'm pretty sure they treat every model with a given business plan (sales$$, to hype the fender brand, introduction or different market segments, etc...) and when that product no longer serves its purpose they just drop it and put their money elsewhere. Same thing with what color options are available.
I highly doubt that fenders MIA models aren't profitable, or any of their other lines by the way.
If they did then they would need to downsize, which doesn't really make alot of sense. I can't really see them discontinuing Squier altogether. I think models will come and go within the Squier line, which is already happening.
I think it's more likely that they will let higher-end Squiers take over/replace MIMs, which doesn't really make alot of sense either since the MIMs are probably the most profitable bona fide "Fender" guitars and basses sold.
I think it's more likely that they will let higher-end Squiers take over/replace MIMs, which doesn't really make alot of sense either since the MIMs are probably the most profitable bona fide "Fender" guitars and basses sold.
I feel each company needs an affordable brand. Consider that every musician was a beginner at one time. At that time, we usually buy or we've been given an affordable instrument, then later buy the main player once we decide we're going to stick with it.
Actually, when I read the thread title "Can Fender Afford", I really thought there was going to be some discussion about sponsored musicians going elsewhere...
1. Fender dropped Stu Hamm's Urge line, prompting him to jump to Washburn.
2. Maybe I'm reading more into this than I should, but I received the latest Warwick newsletter this week. Steve Bailey produced and was highly featured during the Fuss on the Buss video. I didn't see any Fender products in the YouTube videos. Again, maybe I'm reading more into this than I should, but it looks like a product switch with Steve.
1. Fender dropped Stu Hamm's Urge line, prompting him to jump to Washburn.
2. Maybe I'm reading more into this than I should, but I received the latest Warwick newsletter this week. Steve Bailey produced and was highly featured during the Fuss on the Buss video. I didn't see any Fender products in the YouTube videos. Again, maybe I'm reading more into this than I should, but it looks like a product switch with Steve.
