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I've been doing this for like a year now.This sucks.
Guess I'll be buying used now.
Unfortunately, there is no such generalization on this subject. In other words; either can be true depending on the product, market, supply/demand relations, retailer goodwill, price, etc. People do complex calculations, iterations, optimizations and derivations/integrals to estimate the relationship between supply and demand.
A lot of time passed since I last think about these and I haven't been doing the job that I initially trained for, but I will try. Think of an curve (which looks like an extremely warped neck, you are looking at it from the side while the headstock is looking up and the body of the bass is lying on the bed. Now, that's wicked) where total sale is calculated by simply multiplying the value of the x and y of a specific point on that curve; x being price and y being quantity.
The bottom side of the curve (body till it reaches to the point where the neck begins to warp): Regardless of the price, relatively same quantity will be sold, because the market is limited by the total demand; i.e same number of MIA basses will be sold if CBS prices them as 10 dollars or 20 dollars. So the company can increase the price until it reaches to the neck warp, which only means increase in profits.
The neck is begining to make the curve upwards to the point where the headstock is horizantal while the body is vertical: Around this area, depending on the angle of the curve, it could go either way. For example the quantity sold can be 200 when the price is 1000, giving CBS the total sales of 200 grand. When you move up the price to 2000, CBS manages to sell let's say 130 basses, making the total revenue 260 grand. The increase the price to 3000, where the neck makes a sharp warp, they only will sell 50 basses; hence the number is 150 grand.
For those who are not interested to read all of these, here is the conclusion: There is no way to say estimate the profit margin for us, just by looking at the price; we have to know the relationship between the price and the quantity sold, which is determined by every imaginable condition and variable.
Boy, was I bored enough to write this message..
They went up $100 on their '62 RI P-Bass. I just bought mine from them last week at $1499...and the oly white one they had is now listed at $1599.
Expect to probably see more of this........
In economics, inflation or price inflation refers to a general rise in the level of prices of goods and services over a period of time. The term "inflation" originally referred to increases in the money supply (monetary inflation); however, debates regarding cause and effect have led to its primary use today in describing price inflation.Inflation can also be described as a decline in the real value of moneya loss of purchasing power.When the general level of prices rises, each unit of currency buys fewer goods and services. Price inflation is usually measured by calculating the inflation rate, which is the percentage change in a price index, such as the consumer price index.
Yes... Gibson is also like this but X3 IMO... I'd never buy a new, full-retail Gibson ANYTHING.. Now, it would seem that Fender is also closely following the Gibson Corp business model of all-out-greed...Isn't it funny how they almost never drop prices when the ecomomy and dollar is strong and the SECOND the dollar weakens, BANG they've hit you where it hurts!?!?

The Geddy Lee is now $999.00
The Mustang is $649.00
Marcus Miller is $1149.00
Mark Hoppus is $799.00
all at MF. Wasn't it like 3-4 years ago the Geddy was around $629.00?
Well, one BIG positive will be the increase in salaries and wages we will all receive because of the cost of living increase.![]()
Well, let's see:
The value of the US Dollar is dropping at the rate of gravity (32fps^2).
Increased manufacturing costs.
Increased energy costs.
Profit margins dropping raidly.
Etc...
It seems like a logical move to me: If I were the head of Fender, I'd be raising the prices even more to compensate for the loss in revenue.

Everything is getting more expensive. This is to be expected. That happens when the fundamentals are more expensive, especially energy costs. Energy costs affect EVERYONE and EVERYTHING.