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There are some who think that, but someone recently made a guitar from concrete. Guess what? Sounded like a strat... I'd not have noticed it wasn't made of wood, let alone tonewood, from the recording through a clean amp.
Fwiw I do think wood etc does play a role, and especially in the only bit that does truly matter - does the player enjoy it?
I'm only talking about solid and thinline electrics. Acoustics are a different ballgame, more like pianos where there is a lot more happening...
The Vintera range isn't one I'm familiar with but my "around a grand" point really refers to the American Standard/Professional point; I paid a grand for mine a couple of years ago and they could be had for that price commonly or not much more. Until, of course, Fender has now decided to hike the price massively hence this thread.
If there's anything a Custom Shop model has over the American Standard (or equivalent) that actually makes it a functionally better guitar, what is it?
It has other things that don't make it a functionally better guitar that some people desire and are happy to pay for. But my point was never that no one ever benefits from buying more expensive guitars, just that people who only care about functionality don't. People who desire things for reasons other than function (in general, not just guitars) are probably the majority of people so there's no reason for anyone to feel defensive for desiring a guitar for reasons other than its functionality.
Two beliefs held:
1] I'm no fool
2] Custom Shop Fenders are better than Mexican Fenders and totally worth the extra price
Then: Custom Shop Fender is bought and experienced as only marginally better than a Mexican Fender, so why did I spend all that hard earned cash on it? = Cognitive dissonance, the two beliefs are now in conflict. (Note: The CS might be 'experienced' as better, which avoids the dissonance arising).
Possible resolutions:
1] I'm a fool, and totally wasted my money, what an idiot!
2] Something needs to change regarding the Custom Shop Fender, e.g. 'Well, it'll hold it's resale value much better, so it's an investment really...' (And endless other possibilities) The point is that it's generally much easier to change beliefs about the world than beliefs about the self - so Cognitive Dissonance tends to cause changes to those types of beliefs.
Let me buy you a theoretical beer.
A fundamental example is sponsorship; e.g.:
I love/admire Cristiano Ronaldo
Ronaldo only uses this specific type of football boot
Disagreeing about how good those boots are causes a form of cognitive dissonance which we always try to avoid so the easier option is to go along with his apparent view that they're good.
A lot of it is largely subconscious but that's a big part of sponsorship and product placement etc.
@Bigsby, I agree those are both ways in which cognitive dissonance could be relevant here. Again, I quoted someone else’s term.
@crunchman, definitely there are brand premiums involved. I wasn’t really adjusting for that within my own perspectives and compared within Fender Co. But yeah, if two guitars are identical save for a name on the headstock then the more expensive one is over priced (from a purely functional standpoint). Speaking hypothetically though, being an instrument and means of producing art, it’s possible a player could fulfill they’re musical potential more on the premium branded version due to subconscious factors. Or just feel generally happier with it...which might be worth the premium to that person.
Now you have.
Take a couple of guitars in your 500-800 range - the Schecter Nick Johnston and the PRS SE 245. I don't think anyone would be able to explain what is lacking on those that a guitar costing double has.
A completely possible reason someone would believe something's better but not be able to say why is that they expect it to be better because it costs more so have a psychosomatic interpretation where it is actually better (hence not being able to say why).
But if they were handed 2 guitars they didn't know which was 800 and which was 2 grand (and nothing on the guitars gave that away visually) would they feel the 2 grand guitar was better? I really don't think so.
My first proper Strat was an American Standard, my second was a Player and the only thing better about the American was that the fretboard edges were rolled. If they did that on the Player and charged a tenner extra or whatever, it would be equal.
Edit: long post cut short. I regret getting embroiled in this! Bias on all sides. If you’re happiest with the cheaper option, play on.
With the pots it's literally about a fiver for the set and pickups you're talking 200 quid even for the fanciest.
Can you really say it eats up a lot of the price difference to upgrade those parts? It's really a fraction of the price difference.
The other things you mention are aesthetic things and the aesthetic differences do change right the way up the price ladder, up to insane prices, it just depends what you like the look of. It was specifically the functional aspect that doesn't improve after that price, the aesthetic aspect quite clearly changes.