I’m a bit torn over this as a former guitar store manager. Before they did this, there were retailers who priced everything up to be £25-50 a box profit. That’s all the way to US models. e.g customer pays £1050, store makes £25. They’d rather sell you any other brand to try and make the rent and pay their staff a wage.
Basically they were destroying any realistic margin for any retailer for the brand, which isn’t sustainable. Dealers were going under, were dropping the brand etc as there was literally no point in selling Fender guitars. I honestly prefer keeping pricing level, meaning people shop for the best service and experience and not just on price.