Why Are Some Acoustic Guitars so Expensive?

Smellyfingers

Tannin said:

Kilgore said:

Tannin said:

One reason put forward with almost religious mania by Americans is worth mentioning just because it is so completely wrong. This is that "American labor is so much more expensive than foreign labor". And American workers are indeed paid more than workers in (say) China or Nigeria.

But that isn't the actual question, which is why are American guitars so much more expensive than guitars made in every other First World nation, even though American wages are no higher, and very often lower than wages in Germany, Japan, Australia, the UK, Canada, and other places? Hell, the minimum wage in Korea is higher than the minimum wage in most US states. And the US prides itself (mostly incorrectly) as having lower taxes than anywhere "foreign". 

So why are American guitars so expensive? It's not wages. It's not taxes. It's not expenses (running a business in Germany or Australia or the UK costs big money too). And it's certainly not quality - at any given price point, guitars made in the UK, Japan, Australia, Germany, and several other places are of at least equal and usually even higher quality. 

Is it massive profit margins? Maybe, I don't have the numbers on that. Or is it simply inefficient, bloated production techniques long past due for reassessment? Having seen American cars, that's where I'd put my money. But it's only a guess, of course. I don't know the real reason.

Even if US hourly wages aren't significantly more, how much does US employee health insurance increase costs for US business?

.How much does German unemployment insurance increase costs for German businesses?

How much does the Australian superannuation levy increase costs for Australian businesses? (Actually, I can answer that one off the top of my head. It's 12%. Plus another 10% in GST. Not to mention payroll tax.

How much does British Value Added Tax increase costs for British businesses? (Ans: 20%.)

How much do employer taxes increase costs for Japanese businesses? (Ans: 12%. Plus 10% consumption tax.)

And so on.

In any case, US hourly wages aren't "significantly more", they are significantly less than in most of the competing countries.

The "it costs more to make guitars (or anything else) in the USA because wages" bullshit is just that: pure 24 carat bullshit. It's time they were called out on it.

Although you are probably right that in purely monetary terms US wages maybe the same or even less than competing countries because Us employers don’t have to pay payroll taxes to the government, that in itself  does not factor in the fact that US workers have to fend themselves on things like pensions and healthcare. 

So in order to give an American a good steady job with healthcare and pension, does actually cost the employer more than in other delevoped countries.

But of course if the US the guitar maker is using casual labour that does not apply.

malcolmkindness

It depends what price point you are talking about when you say "so expensive". It is unrealistic to expect a craftsman in a western style economy to produce a quality instrument for less than €2,700. So if that is too expensive you must go to China, where an instrument of similar quality will be about €1,300. Below that you are taking a chance on a factory production line made instrument, which is probably OK for most people. Now, if you mean over €10,000, which of course some people will pay, then it is largely because that luthier is well respected enough to justify that charge. Interestingly most of the makers in this price bracket have long waiting lists.

bertie

guitarjack66 said:

bertie said:

guitarjack66 said:

  I'm just looking to be educated 

so,  ( car derailment aside) have you been ? 

No,but I've stimulated some debate at least!

oh no you havent

guitarjack66

bertie said:

guitarjack66 said:

bertie said:

guitarjack66 said:

  I'm just looking to be educated 

so,  ( car derailment aside) have you been ? 

No,but I've stimulated some debate at least!

oh no you havent

It's behind you!

SlopeSoarer

Oh no it's not!

Timcito

Tannin said:

One reason put forward with almost religious mania by Americans is worth mentioning just because it is so completely wrong. This is that "American labor is so much more expensive than foreign labor". And American workers are indeed paid more than workers in (say) China or Nigeria.

But that isn't the actual question, which is why are American guitars so much more expensive than guitars made in every other First World nation, even though American wages are no higher, and very often lower than wages in Germany, Japan, Australia, the UK, Canada, and other places? Hell, the minimum wage in Korea is higher than the minimum wage in most US states. And the US prides itself (mostly incorrectly) as having lower taxes than anywhere "foreign". 

So why are American guitars so expensive? It's not wages. It's not taxes. It's not expenses (running a business in Germany or Australia or the UK costs big money too). And it's certainly not quality - at any given price point, guitars made in the UK, Japan, Australia, Germany, and several other places are of at least equal and usually even higher quality. 

Is it massive profit margins? Maybe, I don't have the numbers on that. Or is it simply inefficient, bloated production techniques long past due for reassessment? Having seen American cars, that's where I'd put my money. But it's only a guess, of course. I don't know the real reason.

When I started buying guitars here in the US in 2007, it was possible to buy a really good but unfancy American-made guitar for around $1,000. The Taylor 314/312, plus the GC3 and 4, and GA 3 and 4 series and the Larrivee 03 series spring immediately to mind. For those interested in plugging in and/or playing nylon, Godin did some great stuff in the Multiac series for around the same price.

But that was then. Prices on virtually all new US guitars have soared but salaries have remained about the same. .