Anybody notice a sudden price jump in guitars? I know they have been rising

capo4th

Well put it is obviously nothing to do with Brexit .........

capo4th

How could people even begin to draw such a conclusion....

Funkfingers

In May, I purchased a NOS 2014 Squier VM Precision Bass for £265. i.e. the 2014 MSRP. 

A reputable South of England music store is currently asking £375 BNIB. Another, cheekier, outlet is phishing for £475. 

guitars4you

chrisj1602 said:

Musicman20 said:

Kylef said:

I never usually notice these things, but I got the fright of my life when I saw how much it costs for a Johnny Marr Jaguar now. £1489 to £1919 in less than 2 years. 

Its hard to see where it has come from, even with the exchange rates. You can see the list on  both UK and US Fender websites... UK £1,999 and US $1,799. I don't think I have seen such a gap before... Unless it's £600 for a CITES certificate?

$1799 nearly equates to £1999 when import duty/tax, vat and shipping are brought into play

$1799 at 1.3 exchange rate (assuming you can actually get that rate) is £1383 - if you had it shipped from the USA then now add £120 = £1503 - add around 4% import duty (might be higher) so now £1563 - now add vat so £1875

chrisj1602

It's just depressing because I want a Marr Jaguar and they'll be over £2k soon enough.

SteveRobinson

capo4th said:

Blame Philip Hammond

Yes, he's not even a real hamster

Neil

guitars4you said:

chrisj1602 said:

Musicman20 said:

Kylef said:

I never usually notice these things, but I got the fright of my life when I saw how much it costs for a Johnny Marr Jaguar now. £1489 to £1919 in less than 2 years. 

Its hard to see where it has come from, even with the exchange rates. You can see the list on  both UK and US Fender websites... UK £1,999 and US $1,799. I don't think I have seen such a gap before... Unless it's £600 for a CITES certificate?

$1799 nearly equates to £1999 when import duty/tax, vat and shipping are brought into play

$1799 at 1.3 exchange rate (assuming you can actually get that rate) is £1383 - if you had it shipped from the USA then now add £120 = £1503 - add around 4% import duty (might be higher) so now £1563 - now add vat so £1875

£120 to ship a guitar from the US? 

guitars4you

Neil said:

guitars4you said:

$1799 nearly equates to £1999 when import duty/tax, vat and shipping are brought into play

$1799 at 1.3 exchange rate (assuming you can actually get that rate) is £1383 - if you had it shipped from the USA then now add £120 = £1503 - add around 4% import duty (might be higher) so now £1563 - now add vat so £1875

£120 to ship a guitar from the US? 

one guitar  ?- yes - based on you buying from a USA dealer and having it shipped/insured to your door - might be a touch more now - and if a rosewood guitar then cost of a CITES certificate to leave the USA and a similar EU version to arrive in the EU

Obviously Fender will have a multiple shipment of guitars in a container so different costs for them - but then distribution centre costs to pay - EU + UK office to staff etc

bobliefeld

WE GOT OUR COUNTRY BACK GET OVER IT

WE ALL KNEW THAT THINGS WOULD GET WORSE BUT THATS A PRICE WORTH PAYING FOR SOVEREIGNTY

BUT NOW THINGS ARE GETTING WORSE ITS NOT ANYTHING TO DO WITH BREXIT ACTUALLY

Musicman20

The way to react is just to not buy unless a crazy deal hits. Or buy used. I always love a brand new guitar or bass but I won't be paying the recent prices.

darthed1981

Funkfingers said:

In May, I purchased a NOS 2014 Squier VM Precision Bass for £265. i.e. the 2014 MSRP. 

A reputable South of England music store is currently asking £375 BNIB. Another, cheekier, outlet is phishing for £475. 

What I would find interesting is the way stores pay for their stock.

i.e. do they buy it, or does it get purchased on a sale or return basis?

If they own it outright, the regular sticker changes in store with currency fluctuations are, well, arguably, opportunistic profiteering.  If they have another arrangement, then it is more understandable.

I did go into one local store where someone tried to sell me a damaged Epi Wildkat for £375.  I pointed out that brand new ones on their website were £299 - they didn't get it.

On the other hand, the guitar eventually sold, and I never bought a Wildkat, so someone somewhere presumably paid the asking price!

Whitecat

Things may have changed but back when my family had their toes in the MI biz you bought stuff on 30 day credit terms, then you paid for it in full, often out of an overdraft if you were a newish company. So you'd make the most money by shifting it at full price quickly, vs having it for a long time and potentially paying interest on it (depreciating the value of the inventory itself in the process). The older stock gets the more incentive you have to discount to get rid of it as it helps cash flow and credit/debt ratios. Sadly, some retailers, esp small ones don't seem to understand that part and if the sticker price is £xxxx they won't sell for a penny less because they think they have to recoup all of it. 

guitars4you

^^^^^^^ to both @Whitecat and @darthed1981 ;

yes stock is purchased by the retailer - To maximise the price and take settlement it is often 5-10 days to pay, so very rarely do you sell the item before you pay for it - many items can take 3-6 months before the are sold and after paying the supplier - If you don't take settlement then most companies require payment within 30 days

Ref changing sticker prices - I dare say different retailers adopt a different policy on different products and brands - In some cases the price is influenced by the MRP or SRP that is dictated/suggested by the supplier - And yes I dare say at times a dealer might increase the price of an existing item that is in stock - But what happens when the dealer has to respond to an Amazon promotion and reduce the price of his stock - Or indeed when the supplier reduces the item in price when an end of  line job out deal comes into play - In this case the dealer will often have to sell at less than trade price or close to trade price - No sob story but it is a swings and roundabouts issue

darthed1981

guitars4you said:

^^^^^^^ to both @Whitecat and @darthed1981 ;

yes stock is purchased by the retailer - To maximise the price and take settlement it is often 5-10 days to pay, so very rarely do you sell the item before you pay for it - many items can take 3-6 months before the are sold and after paying the supplier - If you don't take settlement then most companies require payment within 30 days

Ref changing sticker prices - I dare say different retailers adopt a different policy on different products and brands - In some cases the price is influenced by the MRP or SRP that is dictated/suggested by the supplier - And yes I dare say at times a dealer might increase the price of an existing item that is in stock - But what happens when the dealer has to respond to an Amazon promotion and reduce the price of his stock - Or indeed when the supplier reduces the item in price when an end of  line job out deal comes into play - In this case the dealer will often have to sell at less than trade price or close to trade price - No sob story but it is a swings and roundabouts issue

Thanks both for the response and the explanation, it's very enlightening.

Please don't take it as a slight on any dealer who posts here, or any dealer full stop, that I asked the question, as @Whitecat said, I've found some shops to be a bit infexible when it comes to pricing, its definitely cost them sales from me in the past.

guitars4you

darthed1981 said:

guitars4you said:

^^^^^^^ to both @Whitecat and @darthed1981 ;

yes stock is purchased by the retailer - To maximise the price and take settlement it is often 5-10 days to pay, so very rarely do you sell the item before you pay for it - many items can take 3-6 months before the are sold and after paying the supplier - If you don't take settlement then most companies require payment within 30 days

Ref changing sticker prices - I dare say different retailers adopt a different policy on different products and brands - In some cases the price is influenced by the MRP or SRP that is dictated/suggested by the supplier - And yes I dare say at times a dealer might increase the price of an existing item that is in stock - But what happens when the dealer has to respond to an Amazon promotion and reduce the price of his stock - Or indeed when the supplier reduces the item in price when an end of  line job out deal comes into play - In this case the dealer will often have to sell at less than trade price or close to trade price - No sob story but it is a swings and roundabouts issue

Thanks both for the response and the explanation, it's very enlightening.

Please don't take it as a slight on any dealer who posts here, or any dealer full stop, that I asked the question, as @Whitecat said, I've found some shops to be a bit infexible when it comes to pricing, its definitely cost them sales from me in the past.

thanks for last comment - appreciate it - I think to be fair there is not a fixed policy within the trade on this and you'll always get on better with one store than another, for whatever reason