Class Action Lawsuit Filed Against Fender

Discussion in 'Miscellaneous [BG]' started by FatStringer52, Aug 13, 2022.

  1. A class action lawsuit has been filed against Fender for over charging guitarists . . .



    The folks who hire lawyers in the music industry are sure getting their moneys worth these days!

    Hmmm, maybe I'll get a refund for the couple of basses I bought . . .
     
    DJ Bebop and scottm like this.
  2. viribus

    viribus Gold Supporting Member

    Jan 1, 2011
    Pacific Northwest
    I never actually learned to play very well
    Fender can charge $5000 for a guitar that costs them $500 to make as long as willing buyers will pay $5K. There are many alternative brands. Fender doesn’t have a monopoly.

    This lawsuit sounds ridiculous to me. ( I didn’t watch the clickbait video so I could be missing some nuance of the lawsuit.)
     
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  3. viribus

    viribus Gold Supporting Member

    Jan 1, 2011
    Pacific Northwest
    I never actually learned to play very well
    I have a question. I’m not trying to stir the pot or anything. (I would never do that ;) ).

    Suppose the direct cost to manufacture a quality high-end guitar is $500. That includes parts, labor, quality control, and packaging, and maybe shipping to a distributor.

    It doesn’t include indirect overhead expenses like utilities, taxes, the manufacturing space, tools and machinery, sales and marketing, or anything unrelated to actually building the instrument.

    What is a correct and fair MSRP for that guitar?
     
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  4. J Wilson

    J Wilson

    Apr 22, 2022
    An Undisclosed Location
    none
    The UK lawsuit regards Fender UK in an under-the-table fashion prompting UK dealers to adopt a MAP-like (Minimum Advertised Price) pricing system in the UK: The reason it was under-the-table is that MAP retail pricing schemes are illegal under UK law. It was adopted in the US as a way for local mom-and-pop businesses in most any retail industry to avoid getting eaten alive, originally by mail order, and then internet businesses.

    Her Majesty's government found enough evidence to win this case, and Fender UK is now in the position of having to pay the piper.

    I don't know how much of the UK situation affects American Fender's US business (though I'm sure it's in there somewhere), but supposedly (Hearsay, your Honor!) Musician's Friend/Guitar Center refused a large order/shipment from FMIC, and now Fender is up to its' ears in those not taken guitars, to the tune of several warehouses of those axes, and therefore, continuing production on two shifts was now overkill.

    This is why the on again, off again threat of Guitar Center / Musician's Friend is troubling, as if they went under, it would be as if a nuclear weapon went off at NAMM, there would be no other source to maintain the volume of sales for the many, many lines they sell.

    The general downturn of the Gold Rush for the retail musical instrument business has been expected, can't keep the inferno of demand/sales going now that things are cooling off both from the receding COVID threat, the steady restoration of the various supply chains, and basically, a lot of people that wanted a new guitar, bass, etc., bought one over the last 24 months, so now things are flattening out. Expect more of this around the manufacturers as it affects them as well.

    Fender has a 'Factory Sale' right now on many Squier models in their own online store, and a real 'tell' may be if they begin to include Fender-labeled instruments as well.

    To me, this whole thing is aggravated by Fender making too many 'me-too' versions of the same things across Squier, MIM, MiJ, America, and several levels in the Custom Shop, all in an attempt to offer the same axes in every price range imagineable, to where only a long-time Fender staffer could actually tell them apart: To me, this sort of thing REALLY blurs the reason why I'd want an American over a MIM, a Squier over a MIJ, and on and on.

    I get a headache just sorting out all different/same Precision Basses they offer, while not offering models to compete with Sadowsky and all the other premium FSO builders, and while the current Squiers are generally exceptional, they are lacking alongside Sire and others to enough customers to lose that business, just as they do in the medium and high-end price ranges.
     
    Last edited: Aug 13, 2022
  5. two fingers

    two fingers Opinionated blowhard. But not mad about it. Gold Supporting Member

    Feb 7, 2005
    Eastern NC USA
    This has been discussed to death in a previous thread. The layoffs and lawsuit are two completely different issues.
     
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  6. Think of a stainless screw at a hardware store bulk bin. It costs me $0.23 to buy. How much would it cost me to make that same screw?
     
  7. legalbass

    legalbass

    Jul 2, 2020
    Chicago
    The lawsuit is proceeding pursuant to the laws of the UNITED KINGDOM.

    Nothing any American thinks about this is remotely relevant.
     
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  8. Spidey2112

    Spidey2112

    Aug 3, 2016
    Thank God for the First Amendment, which allows us the right to speak... sometimes without relevancy, but we still speak! Viva la pants!
     
  9. prowla

    prowla

    Aug 19, 2004
    You can speak - it's just not relevant!
    :)
     
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  10. legalbass

    legalbass

    Jul 2, 2020
    Chicago
    We Americans are awfully apt to doing a whole lot of speaking without a whole lot of correlated thinking :}

    ...Or reading, for that matter
     
  11. Nebadon2000

    Nebadon2000 Supporting Member

    Sep 20, 2005
    North Carolina
    1ST Amendment allows you to speakout against Government without retaliation/consequence but not on Talkbass:)

    Sure anybody can say what they want; Go up to Mike Tyson and call him a Jerk with 'Free Speech' see what happens:)
     
  12. Thebiggestjerk

    Thebiggestjerk

    Mar 29, 2017
    I was looking over Fender’s financials since they’re a public company and it was stated that Guitar Center Corp. is severely indebted to Fender and very worrisome to the shareholders. It’s starting to make sense why GC in store inventory is skeleton of what it used to be. I wouldn’t want to be in Fender’s position either if GC continues it’s course.
     
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  13. Hounddog409

    Hounddog409

    Oct 27, 2015
    ohio
    So, we cant have an opinion? Stupid take.
     
  14. rashrader

    rashrader

    Mar 4, 2004
    Baltimore, MD
    I am Endorsed by BrownAmps.com
    How long until this thread gets shutdown? Happy Sunday Funday to ya, friends!!
     
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  15. HaphAsSard

    HaphAsSard

    Dec 1, 2013
    Italia
    On the one hand, I feel "liking" this is a bit in poor taste on my part. On the other, well...
     
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  16. J-Bass RMR

    J-Bass RMR Supporting Member

    One thing has nothing to do with the other / nothing to see here...

    Companies (whose product you use daily) adjust their workforce all the time, due to supply & demand and other reasons.
    I've said it before; does anyone here think Fender will continue to see the demand they did during the pandemic lock-down?

    In my job, I see class-action lawsuits against major companies all the time.
    They typically settle to avoid costly court action, and the consumer ends up seeing a pittance.
    See if you can guess where the rest of the $ goes...

    You're citing information (and drawing conclusions) from their preliminary prospectus from about 10 years ago - before Fender "pulled the plug" on their IPO. Fender is a privately held company.
     
    Last edited: Aug 14, 2022
  17. Bonafide

    Bonafide The Adventures Of Fusion Chicken Gold Supporting Member

    Oct 15, 2002
    Central TX
    LOL, gee thanks for setting us straight here hoss. As a gear industry nerd, I was about to engage in relevant thinking about this (on an international gear forum) before I saw your post. Whew...just in time :D
     
  18. jnewmark

    jnewmark Just wanna play the groove. Supporting Member

    Aug 31, 2006
    Stax 1966
    Third St. Cigar Records staff musician.
    Not even the owners of Fender ?
     
  19. yodedude2

    yodedude2 Supporting Member

    Nov 19, 2005
    san antonio, texas
    it's gone on too long already :cool: sunday funday to you !
     
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  20. Nebadon2000

    Nebadon2000 Supporting Member

    Sep 20, 2005
    North Carolina
    From what I understand most 'Class Action Lawsuits' are like a group buy Lottery ticket for Lawyer's and Judge's with rigged winning results. 'Pittance' is a good word for what actual victim's receive.