Buying from places like Guitar Center and musiciansfriend is pretty much buying used equipment anyways. That's why they can be that cheap - because they sell overstocks, blems, and used.
I'll be the first one to call Musician's Friend out on screw-ups (for example, they messed up a Custom Order of mine
majorly when they were moving locations in the Summer of '07, causing a doubling in the promised Delivery Time... but also to their credit gave me a *significant* discount for the trouble) but to say "they sell overstocks, blems and used" gear without any type of explanation is just a false statement, pure and simple. Any Overstocked or Clearanced gear is *clearly* stated... and the vast majority of the time, a fantastic deal as well: I purchased 2 midrange Yamahas at about 70% off each (bought the first one & loved it so much within a week I got the second to defret and have as a "sister" fretless, which were my "main players" for 4+ years) and an Ibanez "Prestige"-level bass that was absolutely *tricked out*
(Duncan Bassline SPB-3/SJB-3b "Quarter Pounder" passive P/J setup, BAII and Hipshot Ultralite tuners, 2-piece Alder body, Birdseye Maple-on-Maple neck, back-of-the-neck finish to die for, etc...) that would rival an production MIA Fender Precision for less than
1/3rd of it's original price... and is the
one bass that I've sold out of many that I wish I could have back
(it's clear in retrospect all I needed was a pickup change and I would still had a discounted piece of Fried Gold in my collection) They've also recently instituted a "Returned/Blem" System where you can purchase products either returned within their 45-day period or Blemished from the manufacturer, rated on a scale of 1 (very minimal play wear) to 5 (major damage/"parts only"). Granted, it's not the perfect system - IMO they don't discount enough for their "used" gear, but it's a start. I've purchased a large amount of gear from MF.com, and the vast majority have run smoothly with no issues from ordering to delivery (and "returning" the odd time that I've done so - no issues in that area as well).
I really think you're unfairly lumping in MF.com with Guitar Center, which
doesn't take off for player-dinged merch unless you introduce that fact into the Haggling Process, which can and does overcharge and price the same bass higher in different stores, that has horrid setups and
non-functioning instruments on their showroom floor (the vast majority you can't blame Musician's Friend for their setups, as they're sealed & double-boxed straight from the manufacture), and the vast majority of salepeople that quite simply
don't know how to sell! (whether it be "hovering" or the opposite of not checking-up on you, not knowing nearly enough about what they're selling, clearing denying/downplaying in-store playing dings and marks, and downright
lying but not well enough and getting caught in the process.) They may be owned by the same company, but they're two distinct stores.
If you're gonna buy from those places just buy used from someone else (omitting pawn shops: since you don't know where they came from and how they've been treated). I'd say, if you could, to always try to check the local music stores first. Support your local entity before you go wiring money to some gnomes out halfway across the country selling "new" goods.
Pawn Shops are
dead in terms of purchasing a decent instrument - the vast majority of people that would have sold to them back in the day now use Ebay, Craigslist, etc... and most, if not all shops use the Internets to research what they have on their hands and what it can be sold for. The days of finding a Sadowsky for $200 because some guy thought it was a no-name Asian Fender rip-off are
gone, and anyone that *can* find something more than "decent" is the exception that proves the rule IMO. As for local stores, I've found in my 20 years of playing a
marked decline in the quality and amount of gear they stock as well as the fabled "Local Store Customer Service". There have been *many* threads about this here, but I've been in
numerous (not just one or two outliers but a good sampling) stores that wouldn't let me PLAY a bass unless they "had cash in hand". Other examples include having salespeople quite literally stand "over" me while I play (and I'm not talking Fender Custom Shop, I'm talking MIA and even MIM basses), rufusing to order a piece of gear "because ordering from the company's
too hard", and generally having limited selections of low-end gear without even one or two pieces of higher-end basses for customers that might want that.
If you have better local/smaller shops by you, you have my sincere congratulations. As for me, I haven't come across a decent local store in at least 6 years off the top of my head. If that's the service I'm going to get I'd much rather send my money to "the gnomes", purchase through one of the great "bass only"/high-end stores with a good Internet presence and reputation, or better yet purchase used from fellow players here on TB - some of the best basses I've owned, and 2 of my 5 "Dream Basses" were purchased here along with countless pedals, parts and other items.