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Why is the les paul prices raising in this economy?


jrseriel

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I would like to know and hope there is a good reason.

 

We've covered this ground in other threads, probably -- but the main reason is that most price increases were set in stone as of a year ago, before all this crap hit. Remember that was when gas prices were heading well past $4 a gallon and costs on everything that needed to be shipped were going up. The way the retail system works, the manufacturers figure their costs and then tell the distributors who then tell the merchants. But all of this starts a year or more before they actually hit the stores.

 

Manufacturers are usually slower to decrease their prices than they are to raise them, so when it becomes apparent that the retailers aren't selling things as quickly as before and that new orders are going to tank, this will start the ball rolling for some price rollbacks. But don't expect those to show up for nearly a year from now <G>.

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It seems like ppl. are now losing their jobs at Gibson as a result of the price hike and general economic downturn. Perhaps addressing the price hikes could have prevented some job losses. I know I would buy Gibsons if they were priced more reasonably (in my mind).

-J

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Gibson has raised prices every year since dinosaurs roamed the earth, sometimes twice a year.

 

They've faced tough markets before and had production levels dropped to a trickle - prices went up anyway.

Selling fewer guitars means a larger profit is required on each one.

 

Gibson also sells guitars to high rollers who will buy a guitar no matter what the market does.

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The MFer's (as I like to call them) buy in bulk.

They place huge orders and fix the price per unit, so the price increases don't matter to them.

 

Now, have you noticed this....?

 

Pick a guitar - any guitar - and see the MFer's advertise something like this;

 

CLEARANCE!!!

Get 'em while they last!

 

Blow out prices!!!

Get one before they're ALL GONE!!!

 

They did this a couple years ago on the SG 61 and everybody FREAKED OUT thinking Gibson quit building them.

 

Um, no.....

 

 

 

The MFer's were pushing out the last of their inventory and seeing how the market would act.

They're gonna order a new batch from Gibson, and it will take months (even a couple years?) for them all to be built.

They will all cost the same, they KNOW how much their inventory will cost them after Gibson shoots them a price.

 

They need to establish a feel for the market before they decide how many to order this time....

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It seems like ppl. are now losing their jobs at Gibson as a result of the price hike and general economic downturn. Perhaps addressing the price hikes could have prevented some job losses. I know I would buy Gibsons if they were priced more reasonably (in my mind).

-J

 

To supplement your point' date=' I add to following hyperlink about the layoffs at Gibson:

 

"Music Row" Brief Article on Gibson Layoffs

 

 

cheers,

--Professor Chaos

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