Fender price increases?

[markbunney]

Is it just me, or have the prices of Fender basses gone up today? I've just been looking at GAK and the USA standards seems to have gone up by £50ish (not including the Fender cashback offer they were running).

The USA standards are £1,121 now and I'm sure they were "only" £1,076 over the weekend, should have ordered one then

Off to the shop this afternoon so I'll see what they say there.

[KiOgon]

[url="http://bonners.cmail5.com/t/ViewEmail/y/0F6399439700A6E8/BE2EB16E0025AEE41D419C9787CC9684"]http://bonners.cmail5.com/t/ViewEmail/y/0F6399439700A6E8/BE2EB16E0025AEE41D419C9787CC9684[/url]
Bonners in Eastbourne have 15% of all on display - might be worth a look.

[neepheid]

Companies in general had better watch out, the more they increase prices (further pushing up inflation) while the disparity between inflation and salary increases continues, the less people will be able to afford the goods offered for sale. I'm no economist, so excuse my simplistic view of the situation but it seems like a slippery slope to me.

[Musky]

[quote name='neepheid' timestamp='1364811242' post='2031046']
Companies in general had better watch out, the more they increase prices (further pushing up inflation) while the disparity between inflation and salary increases continues, the less people will be able to afford the goods offered for sale. I'm no economist, so excuse my simplistic view of the situation but it seems like a slippery slope to me.
[/quote]
They probably don't have a great deal of choice if they want to continue selling imported instruments. The pound isn't doing too well against other currencies at the moment! Having said that I think I saw a passing mention that Fender were about to put their prices up.

[stingrayPete1977]

New finacial year brings with it new prices, old stock can probably be sold at the old price?

[molan]

Surely it's simple exchange rate stuff?

£ has weakened against both the $ and the €.

Prices of many US and European manufactured goods have risen recently

The retailers won't be making any extra profit if their core purchased instruments have risen in cost.

Of course, if they've put up prices of stock pre-price rise then they are looking to make a bit more profit.

[Musicman20]

People will stop buying, like I have. I'm still tempted to buy but I think carefully about it beforehand and usually realise I'm paying too much.

In 2010 ish, a mere three years ago, I bought the best American Fender P ive played for under £700, brand new, in the higher priced sunburst colour. It is the latest spec, and I count myself lucky.

Now, it would be £400+ extra. Why?!

[neepheid]

[quote name='Musky' timestamp='1364811853' post='2031055']
They probably don't have a great deal of choice if they want to continue selling imported instruments. The pound isn't doing too well against other currencies at the moment! Having said that I think I saw a passing mention that Fender were about to put their prices up.
[/quote]

They do have a choice - they choose to maintain (or increase) profit margins instead of taking a slight hit on margins in order to generate better profits through increased sales. They can't keep increasing the price faster than the average person's means. That is not sustainable.

[Musicman20]

[quote name='neepheid' timestamp='1364812947' post='2031077']


They do have a choice - they choose to maintain (or increase) profit margins instead of taking a slight hit on margins in order to generate better profits through increased sales. They can't keep increasing the price faster than the average person's means. That is not sustainable.
[/quote]

Agreed. This probably applies to many manufacturers in the guitar/bass market.

Edited April 1, 2013 by Musicman20

[Dingus]

Fender prices have gone up a lot in the States too in the same time frame . Everybody is complaining about it there , too . What all the guitar makers have realised since the recession took hold and pressure to increase prices has grown is that they can get away with higher prices and people will keep buying . Ultimately , more often than not someone who wants a Fender bass or any other make of bass will bite the bullet a fork out for the object of their desires , even at the inflated prices we have seen lately .

[Musky]

[quote name='neepheid' timestamp='1364812947' post='2031077']
They do have a choice - they choose to maintain (or increase) profit margins instead of taking a slight hit on margins in order to generate better profits through increased sales. They can't keep increasing the price faster than the average person's means. That is not sustainable.
[/quote]

Sure, but there's two things going on here - the retailers margins and the manufacturers. Fender seem to be positioning the US instruments at even more of a premium, as their prices have increased way above rates of general inflation. That's largely controllable by them, so if they've increased their prices they must be calculating that it will benefit their bottom line (even if it means pushing potential customers to cheaper lines or different brands altogether). Retailers on the other hand find themselves between a rock and a hard place. The market is very competitive and most of the large online operations are competing on price. If the cost to them rises they've little leeway on already tight margins.

There are plenty of others on here who are in a better position to talk about the retail environment at the moment, but I doubt the picture is very rosy for them at the moment.

[Platypus]

[quote name='markbunney' timestamp='1364809520' post='2031015']
The USA standards are £1,121 now and I'm sure they were "only" £1,076 over the weekend, should have ordered one then
[/quote]
Still £1076 at GuitarGuitar

http://www.guitarguitar.co.uk/bass_guitars.asp?brandname=Fender&offset=28

Or a few at £899 also:
http://www.guitarguitar.co.uk/bass_guitars_detail.asp?stock=10121611271314

Edited April 1, 2013 by Platypus

[Marvin]

I've noticed that Ibanez seem to have reduced their prices. An SR300 is about the same price as I paid for mine 3 years ago after it'd gone up to £280 last year.
Yamaha seem to be keeping a firm grip on prices as well.

[jackers]

Also, it is worth bearing in mind that most online retailers will do deals. I got 100 quid off my 2012 USA Precision along with free delivery and a free set of DR strings when I ordered.

[drTStingray]

[sub][size=4]Probably exchange rate stuff - last time I looked (regarding a used purchase) I was horrified. $1.49 = £1. When you consider it was 1.6 or 1.65 not long ago, it's not surprising prices are rising - manufacturers are also putting prices up.[/size][/sub]

Edited April 2, 2013 by drTStingray

[niceguyhomer]

I guess this means secondhand prices will become even more ridiculous if that's possible. 5 years ago when we all had jobs and money, you could buy a secondhand USA Jazz or Precision on here for £5-600. Now that we're all skint, you see people asking £8xx and even £9xx for them. Sheesh.

[markbunney]

well i had a look in the shop and the usa standard p was still £1,076, so maybe its just new orders that have gone up.

didnt get chance to speak to the guy in the bass dept about it though as someone was trying out an electric double bass at ear bursting volumes!

[great harry]

I bought a Modern Player Jazz Bass last week for £410.00 from Dawson. The same guitar is £428.00 today. Looks like its an across the board increase.

[Musicman20]

Makes the current Stingray prices seem a little more realistic.

[markbunney]

Strange that Fender finish their cashback offer one day and increase prices the next. A new USA standard P hass effectively gone up £125 overnight

[oggiesnr]

[quote name='neepheid' timestamp='1364811242' post='2031046']
Companies in general had better watch out, the more they increase prices (further pushing up inflation) while the disparity between inflation and salary increases continues, the less people will be able to afford the goods offered for sale. I'm no economist, so excuse my simplistic view of the situation but it seems like a slippery slope to me.
[/quote]

The converse being that if companies don't make a profit they go bust. In some businesses there are other options, change product lines, manufacturers etc, but if someone wants a Fender they're probably not likely to accept a substitute so as a retailer you're between a rock and a hard place. Running a business costs money and there's only so much margin you can squeeze before you no longer have a business. A weak pound means that, irrespective of what Fender do, dollar goods are becoming more expensive and at some point that has to be passed on.

Steve

[Musicman20]

[quote name='markbunney' timestamp='1364885248' post='2032081']
Strange that Fender finish their cashback offer one day and increase prices the next. A new USA standard P hass effectively gone up £125 overnight
[/quote]

Yeah...that's not great

[neepheid]

[quote name='oggiesnr' timestamp='1364887647' post='2032101']
The converse being that if companies don't make a profit they go bust. In some businesses there are other options, change product lines, manufacturers etc, but if someone wants a Fender they're probably not likely to accept a substitute so as a retailer you're between a rock and a hard place. Running a business costs money and there's only so much margin you can squeeze before you no longer have a business. A weak pound means that, irrespective of what Fender do, dollar goods are becoming more expensive and at some point that has to be passed on.

Steve
[/quote]

All I'm saying is that above inflation price rises are not sustainable in the current economic environment, regardless of their motivation or cause. This point is particularly important for retailers of non-essential goods (into this category, much as we might protest, musical instruments fall), as these are the first to get cut back on when the axe has to fall. Who knows how long this economic stupor will last?

[oggiesnr]

[quote name='neepheid' timestamp='1364901024' post='2032287']
All I'm saying is that above inflation price rises are not sustainable in the current economic environment, regardless of their motivation or cause. This point is particularly important for retailers of non-essential goods (into this category, much as we might protest, musical instruments fall), as these are the first to get cut back on when the axe has to fall. Who knows how long this economic stupor will last?
[/quote]

It's a Catch 22. There comes a time when you have to put your prices up or you go under. Shops are under the same inflationary pressure as everyone else. There's no point selling basses (or in my case jigsaws) if you're making a loss. Most shops have done the obvious cost reductions by now, laying off staff, reducing inventory etc etc, in the end you can be left with little option.

Steve

[neepheid]

[quote name='oggiesnr' timestamp='1364904823' post='2032355']
It's a Catch 22. There comes a time when you have to put your prices up or you go under. Shops are under the same inflationary pressure as everyone else. There's no point selling basses (or in my case jigsaws) if you're making a loss. Most shops have done the obvious cost reductions by now, laying off staff, reducing inventory etc etc, in the end you can be left with little option.

Steve
[/quote]

Tough times. It'll probably end up being a case of survival of the most conservative during the boom years. By the way, I never said anything about making a loss. That would be daft.