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> Fender Price Retreat, Fender Price Retreat
Gary
post Mar 6 2010, 06:31 AM
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Last year at this time I was in the market for a new Strat. I was shocked that Fender increased prices nearly 30% overnight for the guitar I was in the market for. Fortunately I was able locate a shop that would sell me the guitar I wanted at the pre-increase price so I went ahead and grabbed it.

I remember being mystified as to what Fender was thinking at the time they initiated the price increase. Most major economies were either already in a recession or heading there quick. I quickly investigated if Fender was a publically traded company with the intention of shorting their stock, hoping to capitalize on what I believed to be horrendous business decision by Fender management. Turns out Fender is privately held so..no such luck. In the end though I had my guitar so I was happy.

I noticed today the prices on Strats have just been slashed to nearly pre-increase prices (at least at some on-line stores). This really sucks for those who bought at the inflated price. Had I been on of these folks I would be really unhappy right now mad.gif .. having to pay extra for Fenders failed price increase experiment. Note that Gibson had a large, across the board price increase back in the late nineties or early 2000.. however during this period ecomomies were trending up and discretionary spending was on the rise. Gibson was therefore successful with their price increase, Fender was not. Although I love Fender guitars I would have to say their management, at least in the area of pricing strategy, should take lessons from Gibson.

Gary

This post has been edited by Gary: Mar 8 2010, 02:34 AM
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Staffy
post Mar 6 2010, 08:41 AM
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I will say that this is correct Gary, although I trhink its not until the last 10 years none of them have developed a succesful prize-strategy - comparing to Ibanez, who always had been price-worthy. I bet the they sell twice as much guitars than Gibson & Fender together. It's not until now You can get a Fender or Gibson to a reasonable price - even that I think their NOS-Special-Masterbuilt-Selected-Signature-Customshop prizes are anything than ridiculous.

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Bogdan Radovic
post Mar 7 2010, 10:40 PM
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Yeah Fender price strategy is really weird and they rely too much on the brand and logo. Hopefully stores here will put Fenders on discount now that prices went down again.


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Ivan Milenkovic
post Mar 8 2010, 03:10 AM
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I hope the prices can drop so I can get me a reissue.


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Daniel Realpe
post Mar 10 2010, 01:25 AM
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I hope so too. I really want to get myself a Strat for some time now.


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Hammerhead
post Mar 10 2010, 06:53 AM
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Aloha Gary!
Yep you and I bought at the same time! In fact I was watching the price on the YJM strat when it went up almost %50 (from $1,300 to $2,000 increase). It happened on a weekend and I had to move money from one account to another and grabbed one of the last at the old prices on Saturday morning. By Monday all online stock of the guitars listed at the $2,000 price. huh.gif

I do LOVE this guitar... but for $2,000 I would have maybe looked at a Les Paul. I am glad that I got it, and feel like it was at the right price point. I'm glad to hear that the price is returning 'cause I don't think fender can compete in that higher range. I did see some ads for a new series of american made strats @ the $1,000 price and felt good about that. cool.gif
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Gary
post Mar 10 2010, 07:12 AM
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Aloha Robert!

She still looks pretty.. wink.gif haha. What's up with the Marshall cabinet and Randall head.. new equipment?

cheers!

Gary

Hi Ivan,

I first noticed that price drop at some of the bigger American based on line stores. I am sure this means others are soon to follow. The first place I saw it was AMS (americanmusicalsupply.com).

Cheers!

Gary
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Sensible Jones
post Mar 10 2010, 05:27 PM
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I've just read that Fender are releasing another new model. It'll be called the 'Fender American Special' (Strat and Tele) and will be the cheapest gloss-finished American-made instruments.

They are aimed at sitting above the 'Highway One' series and below the 'American Standard' series.
They come with large Frets on a 9.5" Radius Board and Texas Speial Pups!

RRP in the UK is £869

There is also an H-S-S model too!!
biggrin.gif biggrin.gif


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Crazy_Diamond
post Mar 10 2010, 07:40 PM
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I bought my Strat at the same time as you Gary.... It was in the last week before the price increased. I kind of deal the price with the seller. This rise in price was probably a big mistake from them....

Why don't they hire some wise guys like me laugh.gif laugh.gif laugh.gif


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Hammerhead
post Mar 11 2010, 07:21 AM
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QUOTE (Gary @ Mar 9 2010, 08:12 PM) *
Aloha Robert!

She still looks pretty.. wink.gif haha. What's up with the Marshall cabinet and Randall head.. new equipment?

cheers!

Gary

Hey Gary,
Thanks I've fallen in love with the color too. At first I wasn't crazy about the sonic blue, but now I would get another in this color. The amp (20 years) and the cab (1yr) have been with me. The Head had some issues, but a can of "tuner cleaner" and shes roaring again! I love this set up! Great sound, a bit of a hassle to lug around but worth it. Any word on your tuning issues? You were thinking about Sprezles no?

cool.gif


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Gary
post Mar 11 2010, 07:38 AM
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Aloha Robert..

Kind of put the Sperzels on the back burner. I went to the local shop to check them out and they did not have them in chrome finish.. the owner is supposed to call me when he gets them in. Everything has actually been put on the back burner lately as wife and I welcomed a new baby girl three weeks ago smile.gif . Getting a bit old for having kids so this should do it for me..haha rolleyes.gif

Cheers!
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Ivan Milenkovic
post Mar 11 2010, 03:05 PM
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Man, by reading this topic, all I can think of is I want to find a good piece of wood and make a Strat on my own. It would be so much cheaper and I would be completely satisfied with the tone. Unfortunately, no one is going to sell me a 50 year old wood platform of a vintage strat biggrin.gif


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Gary
post Mar 12 2010, 06:50 AM
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Ivan,
I am interested on your take.. old strat vs. new...or ash vs. alder. I have an all original 1979 strat that I bought when I was 2 (errr okay I was 15) and a new 09 Malmsteen. The ash strat is very heavy in comparison. I convinced myself the older strat would have better sustain but I am not so sure that is the case. The newer model has more punch to the sound and to be honest.. it is has great sustain..on top of all that it's way more comfortable to play.

Gary
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