Ever wonder why guitars cost so much?

[bombtek]

Especially the higher end guitars. Yeah Yeah I know the lower end guitars ...Squiers, Epiphones, and any others that average to less than $300 per unit DO use much cheaper components and materials, but if enough time is spent on these lower end guits, a decent setup, a little sandpaper here and there, they can be made to play JUST as well as the ones that cost on average $2000. I'm not comparing these lower end guits to CS models cuz those are a different animal all together with the care that's put into their production. I'm referring to the regular old production models that the big brand companies pump out at huge rate.
They use the same CNC machines to cut what needs to be cut/routed/drilled ...maybe not the exact same ones, but pretty much the same concept. program it into a computer and push a button I can see maybe ...MAYBE a $300 markup on these higher end units, but I just don't see justification for any more than that.

[PowerTube]

Well, that depends..... In the case of, for example, Fender American Strats vs. Mexican Strats, then yeah. I can see a Mexican Strat being made just as nice as the American version. I guess it depends on how "low" you start and how "high" you want to take it.

[dvscool]

Well, that depends..... In the case of, for example, Fender American Strats vs. Mexican Strats, then yeah. I can see a Mexican Strat being made just as nice as the American version. I guess it depends on how "low" you start and how "high" you want to take it.

After playing my Mexican strat for a 3 months it would be hard to justify the cost of an American one....that's just me...

I think the main thing I miss on the lower end guitars is the trem. The lower end Floyds just don't work. And if they do work, they don't for very long. Pick ups can be swapped out and sure you can do some work on a guitar to make it play well....but call me old school.....a polished turd....is still a turd. I think you need to spend 700-1000 to get a decent guitar....but thats just my humble opinion....I'm sure other players are fine with a 300$ axe.

[BlackRR]

Price is dependant on where the guitar is manufactured, If you got paid the same amount of money as the employee in the country where the guitar was made it would be the equivalent to the $2000 you pay for the guitar that is made in the US or Japan maybe more, $300 is a lot of money when you make $1 a day.

[pianoguyy]

The price of a new item is based on production cost, not quality. Its only the secondary market that gives a price based on value/quality.



There are so many things that go into manufacturing costs, sometimes it has nothing to do with quality.
That's why some companies make the high quality units where it would cost the most.
Would you pay 500 for a Starcaster made in the USA if you could get a top end Strat for 500 made in China.
So they make the cheap ones where it can be made cheaply.

[pianoguyy]

I remember reading an article about the cost of GM vehicles. Long before the bailout and all of the recent stuff.
60% of the cost of each vehicle was to pay the retirees.

[PowerTube]

After playing my Mexican strat for a 3 months it would be hard to justify the cost of an American one....that's just me...

Yeah. I've had my Mexican Strat for about 3-4 years now. It's blonde in color (think Yngwie!) and H-S-S. About a year after I got it, I bought an American Highway One Strat (S-S-S) and dropped a Duncan Hot Rails into the bridge position. It was nice, but I really didn't see where the price difference was justified so I traded it. I kept the Mexican and, in fact, I swapped the pickguard on it this weekend, back to the White Pearloid. I think the stock pups in these sound quite nice.

[Matt_B]

I dunno. For me, the type of guitar dictates where I want it built country-wise. I don't want Epiphones, I want Gibsons. I don't want a Mexi Strat, I want an American Strat. An Ibanez must be made in Japan, not India. A Charvel or Jackson must be made in the US. There's just a part of brain that makes me feel that way. In in the 12 years I worked in music retail I sold thousands of guitars so I know that good guitars don't have to be expensive or made in the US but the guitars I buy have to be made in certain countries. I wish I could buy less expensive guitars so I could have more of them but I've tried and in the end, I'm just not happy.

[xenophobe]

The price of a new item is based on production cost, not quality.

Disagree.

The price of a new item is based on what the manufacturer thinks it can sell for. Production cost is often meaningless. Often times the markup percentage on a cheap import is higher than on a more expensive item.

[pianoguyy]

Disagree.

The price of a new item is based on what the manufacturer thinks it can sell for. Production cost is often meaningless. Often times the markup percentage on a cheap import is higher than on a more expensive item.

Yes, a starcaster has a profit margin so high, if it was made in America, Obama would criticize it.
But you don't make a product for ten grand and sell it for 5.

Perhaps my statement was a bit simplistic and generalizing, but its right.
That doesn't make you wrong. You're just going deeper than I was.

[xenophobe]

Cheap is where all the profit is at. These days quality is mostly meaningless to an America where everything is disposable these days. Compare Walmart to Macy's or whatever.

[bombtek]

I'll put in MY perspective:
The Japanese Fender I just bought brand new is an absolutely gorgeous guitar. 71' Reissue Walnut stained ash body walnut stained maple neck with a rosewood board. Acoustically RINGS out no matter where on the neck you play damn near to acoustic guitar levels. SINGS when amplified and is a dream to play. You can literally feel the quality of this guitar the first time you touch it. It's plain and simple a damn fine guitar.
On the other hand my 2001 Shoreline gold Squier strat that I've had but not really touched for years now is just a simple beginner to advanced novice electric guitar.
To someone that did not know any different, they'd think that I own two nearly identical guitars though. (minus the color) Both have that 70's CBS headstock, both are strats with 3 single coils. Both have tremolos. They do in fact look very similar.
But
The Squier does NOT ooze that quality that the Fender does....whatsoever.
Does that justify to me the difference in cost?
After I worked on the Squier fine tuning EVERYTHING that I could on it to the point of counting how many turns each and every screw is threaded in. Using digital calipers to set every measurement I could. Sanding the nut (top) to ensure that approx. 5/8 of the diameter of each string is above the nut slots. Lubricating each and every moving part to include the anywhere a guitar string makes contact with anything (used nut sauce on those string areas).
My answer is NO. The Fender, even though it FEELS much MUCH higher in quality and sounds so much fuller acoustically, and just plain sounds BETTER by a long shot electrically than the Squier, it does NOT play any better than the Squier does now (not the case before I did all that work). The Squier is a rock solid player now. Change out the electronic components, and you'd have one HELL of a guitar here.
The Fender cost me about $750 brand new ...not all that much in guitar land
The Squier sold for I THINK somewhere in the $150-$175 range back when new in 2001.
Does the Fender play 5X better than the Squier?
Nope not any more.
At the most it is a guitar that is 3X better in my eyes. If that Squier had another $350 put into it for better quality components it would rival the Fender all day.
And honestly I am WAAAAAAY biased towards the Fender because it is damn near my dream guitar...I'm just trying to be honest on this.

[pianoguyy]

Bombtek, at the production level, what you did would add hundreds of dollars to the retail price.
So, you're no longer comparing 250 to 700.

Sometimes it is the little things, like having a setup man at the end of production lines that make a difference.
Sometimes it the mop inlays that go from the top of the board all the way to the bottom, instead of having just one thin layer on top of the board.

Can it also be the cost of liability insurance that is required in America that isn't elsewhere. You got people working with power tools. Chainsaw accidents cost employers big bucks which get tacked onto the price.
Now we have medical insurance that is going to raise every employees wage expense. An employers has to recoup that money somewhere.

Its not always quality that dictates production costs.

[bombtek]

OK fair enough, but....does all of that make the more expensive guitar WORTH that much more than the cheaper one? IMO the answer is a resounding NO!

[PowerTube]

The Japanese Fender I just bought brand new is an absolutely gorgeous guitar. 71' Reissue Walnut stained ash body walnut stained maple neck with a rosewood board.

Interesting. I thought Fender discontinued the Japanese-made Strats. I also heard that they did it because the quality was so high that it cut into sales of the American-made stuff. But I might have heard wrong.

I'm somewhat in the market for a used American one. And specifically, like yours, I want the 1970's-style wide headstock. I just think it looks better. But this time it'll be at pawn shop prices if I can find one.