Price Increases and more to come

Danielsguitars

Different wood substitutes have to be looked at now, I'm already trying to use less mahogany than I would've plus other woods, I'm lucky that I have a stash that will keep me going for quite along time and picking up here and there but I won't use it unless it's a must.

Getting away from a pure vintage build has been the best thing I've done in along time, now I can pick and choose woods I like.

I'm doing a workshop extension and makeover now and the raw wood costs have gone up hugely even from this year, I'm only talking CLS stud work etc.

Litterick

PBS: 'An annual report released Thursday by the International Monetary Fund projects that the U.S. economy will grow roughly 7% this year as federal stimulus programs fuel consumer spending — but that growth raises the risk of inflation.'

NYT: 'As the pandemic is receding in the U.S., demand for goods and services is rebounding more quickly than the supply of those same goods and services. And when demand outpaces supply, prices rise.'

AP: ' When inflation averages less than 2% , as it did from 2010 to 2020, it would take more than 35 years for prices to double. When inflation averages 5%, which was the annualized rate reported in May, prices would double in less than 15 years.' 

impmann

Wait til you see what Chipaggeddon is going to do to amp prices/parts supply...

Musicman20

Thank god I'm happy with what I have. I'll keep an eye out for sales but from now on it's mostly pedals. 

jeromegreenday

I sit next to the buyer of our company and she tells me all the price increases in timber per cubic meter... It's eye watering.
Prices in building materials, timber and metal work etc have been 40-150%
All of our suppliers have resulted in using the small print in our contracts "force majeure" - unforeseeable circumstances, act of god, to justify the price increases and we have to swallow it.

LPManic

If you are thinking of buying something, and even if you think it's a bit beyond what you want to pay, buy it now. Prices will only keep going up.

HandwrittenHero

LPManic said:

If you are thinking of buying something, and even if you think it's a bit beyond what you want to pay, buy it now. Prices will only keep going up.

Slightly reluctant to give this message since it then fuels price increases itself but I get where you’re coming from.

Voxman

A bit depressing but not unexpected.   Silver lining (of sorts) is it will likely curb many (but not all, of course) folks 'GAS' - probably for both new and used gear, as prices for used gear will also likely reflect these increases from a supply & demand perspective.   

Downside is if used gear values noticeably go up, for those of us who insure our gear, we need to keep an eye on prices as our sums assured might need to be upped and that likely means higher premiums.   

ronnyb

jeromegreenday said:

I sit next to the buyer of our company and she tells me all the price increases in timber per cubic meter... It's eye watering.
Prices in building materials, timber and metal work etc have been 40-150%
All of our suppliers have resulted in using the small print in our contracts "force majeure" - unforeseeable circumstances, act of god, to justify the price increases and we have to swallow it.

So does she swallow it. The price increases?

Musicman20

chris78 said:

I've mentioned before but the model of guitar shops is moving more towards finance as happened with cars.
A £4k guitar is a very significant purchase for most. 
£166 per month on 2 years interest free, much less so

Problem is, we are moving to a model of 'actually you don't really own this yet' and lists and lists of monthly payments. It's one reason I've not converted to the hire purchase/rent/finance on cars. I do not want to see £300 going every month for a car I'll be bored of in 6 months. 

Gerz6558

LPManic said:

If you are thinking of buying something, and even if you think it's a bit beyond what you want to pay, buy it now. Prices will only keep going up.

I think that's where I'm at. I was after a decent acoustic and think I will sort that and call it a day!

scrumhalf

There was a thread on here a while back about second hand equipment and prices in the post-pandemic era.

If there's not enough new equipment and too much secondhand gear then it's going to be interesting. 

HandwrittenHero

Hopefully we do start to see more new stuff flowing and that in turn puts pressure on second hand prices, because some are taking the piss really with how close they are against new/equivalent.

I’ve admittedly been pretty fortunate in recent years to be able to buy and not necessarily sell, but that might be what changes. Controversial but it’s maybe a good thing to make do with what you have rather than get a new toy, or to have to balance it against the cost including giving up a good guitar to make the maths work. Frankly I’d sooner be that way than buy now pay later.

crunchman

Musicman20 said:

chris78 said:

I've mentioned before but the model of guitar shops is moving more towards finance as happened with cars.
A £4k guitar is a very significant purchase for most. 
£166 per month on 2 years interest free, much less so

Problem is, we are moving to a model of 'actually you don't really own this yet' and lists and lists of monthly payments. It's one reason I've not converted to the hire purchase/rent/finance on cars. I do not want to see £300 going every month for a car I'll be bored of in 6 months. 

We got a loan from the bank for our car.  The interest rate is about a third of what the car finance people were offering.

HandwrittenHero

The car buying analogy really is a discussion of it’s own. The more we head that road though the worse it is for us as consumers since all PCP has done is numb plenty of people to how silly the sticker prices get. 

That’s on top of the ridiculous shell game antics of juggling the used value of your trade in, amount car nominally is, up sell options and finance as the dealer is trying to bamboozle you into not really realising what you’re actually paying. The numbers move on any of those but the house always wins.

Rob1742

Although not guitar related, there is a huge issue with cardboard. Supply is so tight promotions on food will cease as manufacturers are struggling to put food into boxes. Likely to last 6 months, driven in part by takeaway food and online purchases through the pandemic. This will have significant impact on cost of food. 

Shipping costs have gone up 5 fold.

I have just seen Fender masterbuilt has gone up from £6k to £7k. 

Everyone knows how much building materials have increased, due to demand and shipping costs 

UnclePsychosis

Call me pessimistic but I think the last eighteen months has only accelerated the seemingly inevitable.

The global supply chain is delicate, turns out that the usage rate of rare metals, raw timber, etc. just isn't sustainable given any disruption at all. My real worry is that the effects of us pissing away our planet's rare resources on disposable crap are about to be felt even sooner thanks to the madness that has been the last two years.

As for guitars - the big boys have long since moved into the rich man's toys market for their flagship models.

This opinion won't win me friends round here but if the days of bedroom guitarists owning a dozen guitars are on the way out then I can't pretend I'm sad about it. Maybe guitar can be about music again and not about collecting. 

DefaultM

Don't think I've ever bought a new guitar in my life, and I don't even know how many I've currently got so I think I'll be fine not buying more.

Blaendulais

After every crisis it seems there is a boom during which the rich get richer and the rest get poorer. 

dazzajl

Blaendulais said:

After every crisis it seems there is a boom during which the rich get richer and the rest get poorer. 

It’s not just after a crisis anymore, it’s just built into current world economics. The combined wealth of the eight richest men is the same as the four billion poorest people and as long as those of us in the middle are relatively comfortable, it’s not going to change.