Another thing we have to consider is there's no middle man here.
Thomann ship direct from the factory and the business model is for decent instruments at cheap prices. Higher volumes of sales at a lower profit margin also mean
less capital tied up in stock.
As far as the woods used, rosewood is grown in Asia and mahogany was transplanted to India in the late 90s are the CITES act. Most mahogany these days comes from India,Indonesia
and Bangladesh, all from farmed estates same goes for the rosewood.All easier sourced than bringing from South America and cheaper too,with no lawsuits against like Gibson had for
illegally importing mahogany from Brazil.
Nowaday America imports it's mahogany from Peru and estimates are 80% is illegally harvested.Something to think about I imagine when buying American made these days.
Where do they source their timber ? no-one ever asks.
So labour costs are cheaper,materials are cheaper,no middle man to pay ( Fender dealership conditions are quite harsh) and most importantly no brand name. Brand names probably
add 15 - 20% to the cost.
When I bought my 1st Harley Benton the same question ran through my mind " How can they do it so cheap " so I had a think and did a bit digging and that's what I came up with.
One really cool thing was a Chinese double bass builder who uses bridge pilings and support beams from buildings 100s of years old and condemned. That's recycling sure beats
kiln or air dried timber.
Damn AT you beat me to it again