[quote name='MiltyG565' timestamp='1423268741' post='2683104']
It is an incredibly saturated market. One upside of that, though, is that it has pushed quality of cheaper brands up, while pushing the price down. You should see some of the £109 electric guitars we have. They aren't some Stagg crap, they're actually really good, and a £109 price tag doesn't do them justice.
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This is one of the issues I believe Fender (and many others) have to face up to. How hard is it to source reasonable timber, CNC machines and then apply excellent QC. Fender (and others) should be able build at lower prices, build to order and thus give the customer what they want and deliver quality. With CNC machines, custom pickguards, pickups, even body shapes etc are not a serious issue. I have several (recent model) cheapy basses, the quality certainly gives my USA / German / Luthier basses a good run for their money - 90% of the performance at 20% of the price?