Why Guitars have gotten so Expensive in 2024
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- Опубліковано 26 кві 2024
- Guitar prices have been increasing rapidly especially since 2020. It may be easy to blame Gibson, PRS and Fender for this, but the root cause is much larger than Guitar manufacturers itself. One needs to understand inflation, interest rates, consumer spend and the deeper undercurrents of the total economy
Great video, keep it up! Silver lining to this continued new guitar inflation is that the used market has softened a LOT here in the US over the last 6 months or so. There is a glut of gently used instruments after 2 years of ramped production and lots of people needing to offload due to money issues, impulsivity, etc. Barely used stuff is back to selling at 50-70% of new price, not 90%. Great time to buy used.
Yeah I’ve bought two sg’s and an American vintage 2 Strat for 3500 bucks… all barely touched and the Strat was still in its original packaging. I paid 1444 for a guitar that retails at 2200
@@misterknightowlandcoSame here. Got a like new Gibson SG standard with case for 1,100 and a LP Traditional for 1,300.
Great video. You are very good at explaining things that previously confused me. Thank you and I have subscribed. Excellent channel!
Thank you. I'm glad it was helpful
with the pace the guitar makers are going they will price themselves out for most consumers. Gibson in particular. To charge $5K and more for a mass produced guitars such as LP Custom is insane. I get the inflation, but to shell out that much money is becoming prohibitive. There are cheaper alternatives starting from used market to other makers who offer comparable or higher quality.
Even a little bit of inflation is a bad thing. We need a fixed currency.
Fantastic video. An explanation that I finally understood about inflation.
On the other hand, cheap guitars are built with AMAZING quality these days, it’s definitely the best time to be a guitarist
Just my point!
It's a great time to buy a decent guitar for a reasonable price...finding bandmates or a place to jam can be heII though
Thankyou, you have helped to ease my frustration regarding the recent price increases by providing some 'real world' logic instead of just blaming the obvious, which is company greed!
Don't be silly, you can get a good instrument for a really good price these days.
I was lucky enough to buy USA guitars (with "real" rosewood) brand new for fantastic prices back in the day (even counting inflation)
However the new prices should make us act more like musicians rather than consumers and try and be creative with what we have instead of being greedy wanting more instruments for no practical reason.
Record corporate profits equals greed, not inflation. Guitars are about the same price as they were in the 50s, except costs of manufacturing have been reduced significantly in the past 70 years. Instead of investing in their companies ,or reducing product cost , they have instead pocketed that cost as profit. 70 year old designs of wood and rudimentary electronics don't cost anywhere near they're prices sold. It's greed ,not economics.
If you compare old prices to an inflation calculator you'll see they're the same as always . For example a LP standard in 1983 was $999 which equals about $3200 in today's money
Exactly!
As expensive as ever.
Great video! I also postponed by collection trimming, it's a buyer's market in the used guitar sector right now, too much supply and takes forever to sell. Last time I counted 82 guitars in my collection and that was two years ago, only the very special ones will stay and I am willing to wait as long as I need to so I get a decent price, hoping I can get full return in some.
Used guitars are too high, because if you are looking at a Mex telecaster for $750.... used ones are going for $700 / $650.‼️ Why buy an used guitars when for a while more get a new guitar
What's interesting is that it seems like the used market is seeing reduced prices, making the new prices see way out of whack. So definitely a bad time to liquidate anything you have right now! More of a good time to buy I think.
I worked at a music shop in the 90s, and one thing I saw was retail used prices were the same as wholesale new prices. Except there was a lot more margin in used, wholesale used was half of the retail used.
Eg: New instrument costs $100 at wholesale, and shope would typically sell for $130. That same instrument would sell for $100 used, but a shop would only buy for $50
The knock on to this is you can generally know who much a new guitar cost a shop if you know the used market, and you can use that as your anchor point to determine what you feel is a fair deal for you and the shop.
Excellent video and de-dollarization gsinibg steam with the US debt at $35T, they only have one choice and it is to keep inflating. Thats the only way the debt becomes less burdensome. Keep those guitars. We haven't seen anything yet. The US will be hyperinflating all throughout the next 20 years
Thanks for the good work you are doing! I wanted to ask what opinions you might have on local retailers in Singapore and how they are and are not contributing to increasing prices of both guitar and guitar-related gear here. The biggest culprits for me here are Sweelee and Yamaha (and Yamaha-product sellers) but the situation is quite complex. Sweelee's markups on big brands like Fender (Mexico/Japan/America) seem excessive, it also quietly ignored the very big price cut that Neural DSP issued on the Quad Cortex. Yamaha products in Singapore seem to be excessively marked up for brands like Line 6.
At the same time, yes, shipping is a thing, and we in Singapore arguably still have it better than Australia where the markups are horrible. For certain brands like Boss and Ibanez, local prices are actually pretty good. And Sweelee/Bandlab's Heritage Ascent line is actually a very competitively priced range. So I know that we can't expect as competitive pricing as Sweetwater in the US or Kurosawa/Ishibashi in Japan. But the situation here has seriously put me off purchasing new gear from some of these companies. Most if not all of my guitars were shipped in from Japan at a more competitive price (even with shipping and GST), and I tend to buy brands that aren't readily available in Singapore anyway.
I'm very skeptical of Sweelee/Bandlab for how, imo, they've consistently pushed the lifestyle aspect of the store (Vinyl, Fashion, Coffee, etc) at the expense of competitively priced music gear. I have experienced major disappointments with Sweelee in the past: bad and poorly maintained stock, bad customer service, hostile return/refund policies. So I'm skeptical towards their snazzy rebranding that began with the opening of the Star Vista outlet. Anecdotally, myself and my musician friends always had the assumption that they're out to monopolise the market and push up prices. And that they also target less savvy consumers who would spend more with them and kind of get ripped off on an overpriced Fender and fail to consider the other options available.
I think I might have overly idealistic wants for the gear scene in Singapore. Like why can't we have a much richer diversity of brands, options and used gear like they do in Japan for example, compared to the tyranny of Fender/Gibson/Squier/Epiphone/PRS that seems to have dictated local tastes for a long time (but is hopefully slowly shifting). What do you think is a more reasonable view to take on the gear situation in Singapore?
Thank you for sharing. I do have a lot to say on the matter. I'm generally ok with Swee Lee but I do feel like I have a mercenary relationship, more than any fondness, and I do exactly what you do , which is ship from outside very often. The only thing I will say, which is important to recognise, is that Singapore is a tiny market. I'm surprised Swee Lee is as large and expanding as it is. It's most definitely bleeding money. I'm going to talk more about the scene in Singapore and Asia in future content
Blame minimum wage and too many people went Chinese..... it's not the problem with prices going up but quality and choice of colors, and what comes with the guitar
Im a cabinet maker here in America. Had a great year in 2020. Material prices skyrocketed at that time. Had to raise prices. Material prices due to supply chain disruption have not gone down. Interest rates went up. Housing demand dropped. Still trying to sort out this mess
Thank you very much, you are very good in explaining very complicated things (like economy) in a very clear and easy to understand way. I think you could be a great teacher. Thanks again for all your work, I am happy to have found your channel. There is always something good and interesting in your videos.
Thank you. I really appreciate your kind words
In terms of real cost, and adjusted for inflation, US production instruments are the same or slightly less expensive than back in Da Golden Age. What's happened has several aspects:
1) Musicians have MUCH less earning power, due partly to Baby Boomers aging out of consuming rock and roll, and partly due to the government cash-grab by way of imposing draconian DUI laws.
2) American instrument companies have outsourced much of their production to Communist China. As a slave state that nation has no problem with labor costs, no problem with "dumping", and no problem with counterfeiting, so the budget-level instruments from there look just like American at a fifth of the price. Makes domestic production look more expensive than it is.
3). Custom Shops. The American companies have always been willing to customize instruments at a substantial premium, but they didn't advertise it back in the day. Now they do advertise, and people will remember things like the reissue Korina Explorers at $10,000USD per. Musicians generally can't buy them, but doctors, dentists, and lawyers can and do.
Very informative post thank you ! Free money=inflation its just a fact here in the U.S. it just keeps getting worse 😢
Very informative video. Thanks Utkarsh.
Good video to give people a basic understanding of market dynamics and how it works
“Fun” drinking game- take a shot everytime he mentions in great detail a pernicious quality of capitalism and then says something like “but don’t get me wrong here- I’m not against capitalism!”
I wonder if Squire will increase their prices to the degree that Epiphone has done, or if they cannot realistically do so as the price differential between Epiphones and Gibson’s are much greater than Squier and Fenders.
Small suggestion my friend. . Background may look better with no cases. . Just guitars.
Inactually like he shows the cases. 😂
A lot of speculation that there will be a new car price crash in USA this summer so I’m hopeful it carries over into new guitars 😊
I suppose a bit of it has to do with manufacturing cost, along side the price bump that comes with Made in the USA legacy brands, but the majority of the reason is simple. When Gibson releases $20k guitars, they sell out immediately with PHENOMENAL fanfare, why WOULDN'T they keep doing it?
Dean guitars is an example of pure corporate greed, slapping the Dimebag Darrell Estate in the face by relessing Obvious Dimebag inspired guitars after their contract was over, then putting it under their "Zero F*ks given" ad campaign making it 100% a targeted attack. That is corporate greed
No not really How about the Toys R Us closure so no more Squier starter packs with guitar, amp, strap, gig bag for $100
Your videos are awesome.
Seems like it's electrics, 6-string that have inflated passed actual value. There's acoustics and basses I'd have no problem picking up on a whim.
Im sitting here thinking . he should light those guitars up brighter behind him !
Do you expect prices to drop after the current inflation has ended?
There may be temporary corrections due to supply and demand mismatches but average price is unlikely to come down. It’s correlated to overall inflation which means prices may stop rising but they rarely come down overall. If they start coming down, that’s actually more dangerous and threading into depression territory
Great Video, keep it up! :)
Agreed! Thanks for the short but comprehensive "Economic" class.🔥Law of supply and demand + Inflation really affected the guitar industry, Gibson Murphy Lab is now $8,000 upwards from $5,500 baseline, while Fender Master built is now $10K up depending on the builder, Ibanez J Customs sits around $5,000 to $7,000.
But the good thing is there's a "hidden market" where you can buy a "copy" of the very expensive or signature guitar for just "$200 to $500" and the difference is barely noticeable. I'd compare it with my very expensive guitars and the craftsmanship is almost the same, the only noticeable difference is the hardware, but once you upgrade it, I'd shock my friends when they saw the beauty of what I purchased.🎸But I'd rather not talk about it because it's out of topic and might be forbidden on UA-cam.🤭
Nice Guitar topics, Cheers Utkarsh.👌
I like the concise structure of your videos (together with a balanced, no-nonsense approach)
Too bad most Americans do not know how the economy works. I graduated High School in 1992, and we were only taught the very basics of Supply and Demand, save for one class that was the exception, were I was introduced to the idea of a Free Market and Austrian School as well as the Chicago School of Economics, but that was dismissed as the smart but crazy teacher class. I didn't learn more about this until college, were I was studying EE, and I happened to take a year US History and Political Science as my electives. Don't ask me why I took those classes, I just guess I have a thing for how things happened and how systems work. Anyhow, it was more Chicago School and Austrian School of Economics, and save for my interest in this matter, I would not have been exposed to any of this or any other Economic Schools, save for the Marxist dogma I was force fed. Mind you the majority of my public school education happened during the tail end of the Cold War, and the Socialist ran the schools back then. Now, if the 'long march through the institutions' is labeled a 'conspiracy theory'. Dark times are ahead, my friend, dark times.......
My sense is that it’s not so much that guitars have become more expensive but rather the countries where they are manufactured has changed. I can now buy a Classic Vibe Telecaster for the same price that not so long ago I would have paid for a Mexican Telecaster. I am guessing that most buyers would prefer the Classic Vibe given that the quality of Mexican instruments wasn’t as good back then as it is now.
Indeed Classic Vibe has proven to be on a par or even better than a Mexican Fender.
@@valdazis I wouldn't say it's as good as new Mexican Fender, but I think the new Mexican Fenders are better quality than those of ten years ago.
I’m heard the word “pandemic”, it was said! Can’t avoid it. 🤭
Does this “consensus” include any Austrian school economists?
ie Keynesian economics bites the world in the ass again
In the US runaway inflation, combined with record breaking profits in almost every industry. Fabricated supply "shortages" and the delusion that a brand recognition represents quality.
An 600$ Artcore with new tuners, pickups, electronics and a fret polish is going to play better than that rusted vintage 335, but do you look cool? Are you even a professional? Can you brag about it?
Decent DHgate knock off PRS have less fade and cloudiness than the real deal now.
As for customs with exotic woods, what's a piece of art worth? What is the value of say rare vintage furniture or clothing design?
It's all based on intrest rates, scarcity, brand recognition, and material costs.
in Russia, all this feels worse due to sanctions and the fall of the ruble, along with the cost of living, buying guitars and gear becomes almost impossible for the average person
Great video. I’m very interested in geo politics. I watch Peter Zeihan. Check him out if you get a chance. I think another factor in raising prices is manufacturing. Some companies like the ones based in China. China right now has an inverted work force,meaning they don’t have a younger generation to take the place of the aging workforce. Soooo these companies have to find an alternative place to build these guitars. There is a lot more but I hate typing.
By used new guitars suck no soul. Craig’s list ask friends, stay away from pawn shops quit cutting down trees for Christ sake. If you want to be a musician buy a turn table and go steal some songs. Leave guitars to old guys like me it me it took me 40 years to relic my #1 strat.
Not sure which planet you come from... The guitars got cheaper mate (!) and at better quality, wtf you are talking about? The segment you're referring is taking 2% of the whole guitar market. Majority of guitars of the market are bought in the lowest price segment. What are you referring to, is minority of the market - us, guitar maniacs and snobs, regularly checking specs and prices of guitars, watching reviews on youtube etc. Your "insights" have nothing to do with the whole guitar market mate, wake up.
Big difference between 'commodity' guitars and 'fine instrument' level guitars, that is correct. I don't have number data so will accept yours as correct too. The big factor in anything like this is labor.
While I agree some prices have lowered, as you say, it is at the cheap end, and a lot of that has to do with factory automation, CNC machines, etc. as well as MOVING JOBS to the lowest cost countries.
A guitar model I paid $245 for in 1971 new (GIbson J-50) is now over $3000. They are still made in USA. A similar (sort of) Asian guitar today might be close to what I paid all those years ago. But with cheaper wood and less well done finish work on many.
lol prices have gone up across the board. If you are saying those unplayable $99 Amazon guitars count for something, they really don’t. $300 for a squire was never a thing let alone $500.
The fact is very clear: due to development in technology and less need in hand labour, guitars are way cheaper and higher quality in comparison to 20-30 years ago. The accuracy of machines is proven and stunning. Squiers are on a par with Mexican Fenders, Epiphones vs lower end Gibsons, I am not talking about the value for money you get from the likes of Harley Benton and larger business' eg. Andertons, PMT orders, even PRS SE has taken a highway with their $499 issues that proved to be amazing value for money instruments that can easily be work horses for gigging musicians, and these products are selling like hotcakes online. The blabber that author of this vid is referring to, is for a narrow and niche audience and has nothing to do with the whole market of guitar instruments. You might feel sad about this (as one is being able to buy a guitar just to play "nothing else matters" intro before their friends), but guitars are affordable these days and even cheap ones can be actually quite well made. However if you want to dive into the segment of branding and luxury - it's a different story. You can get a Sekonda or Citizen if you need a watch, but it's a different conversation if you want to go for Omega or Rolex, man. Those markets are different and the size of audience is non comparable. It's important to understand what you are talking about and general finance waffling about guitars and the market is just laughable. I'd prefer the author of this channel to demonstrate his guitar playing skills than talking rubbish.
@@valdazis Your last sentence if off base. Harley bentons are complete trash. Every one that I've worked on had critical issues that I had to try to compesate for. I don't find the newer cheap guitars are better than the older ones. My charvel CX290 I got when I was 15 was pretty good for an entry guitar. Also I do not gig the cheap guitars of today...for me they are lacking to say the least. I am a guitar tech as well as gigging/studio musician. You make lots of uneducated assumptions...basically regurgitating internet forum talking points. I mean if you don't like a video, then don't watch it. Very easy. As someone who has bought and sold over 200 guitars in the past 10 years I see the value in the content of this channel. Maybe you don't. That's fine. Just know not everyone is going to feel that way.
@@ehiracheta just watch latest John Nathan Cordy vid, mate, about the 499 PRS SE and it will answer all your questions my friend. In 1990 $200 is equivalent to $477 today. Compare the difference of quality of instrument you got then and now - equation completed. I'll take the criticism for my last sentence as you said, but in all honesty, if you're talking financial nonsense at least back it up with some nice playing, it will at least make some balance to the vid.
Unfortunately I can't follow your explanations. Mainly because I believe in greed. Your video does not mention greed as an explanation so please let me help you out.
There are lots of diamonds in the ground of this world, but there are only digged as much as you need to keep the price stable. Same with wood. There has never been a time when more wood was harvested and there also was no time when it was expensive as it is today. The reason for this is greed.
A custom Gibson cost the equvalent of 12 pounds of pure silver. But it is made by low-wagers just from just wood and metal. A brand like Vintage does the same guitar for a tenth of that. How comes? Greed!
There never has been a crisis around 2020 that has not been made for the sake of greed. Greed has been a partner for a long time in the music biz. Everything was expensive. Pedals, amps, whatever. When you open them up you find the same cheap electronic components you find in a consumer radio. Multieffect boards are so expensive because of the highly advanced chips in them? Haha! 1 GHz for some 10 bucks in them. And multieffectboards were getting more expensive every year. So we are around 2 grands nearly now (Shitty Fender Tonemaster). How does this relate to whats inside theses units?
More and more guitars have replacement woods, chambered bodies, cheap hardware, stock pickups, bad craftmanship but are around 2 grands (Hello Solar!) They just ain't woth that! Guess the answer? Greed!
And then there are all the spare parts and the small parts. In this biz you can order some screws, wires, strings, etc and loose a fortune. Greed!
A Dimarzio pickup was around 80 bucks before 2020 and is around 120 now. Greed! Boss raised their prices for everything around 30%? Why? Greed!
And so on! Bad quality, false promises, bullshit reasons, low wages, greed greed greed.
And people got aware of this. Interest in guitars dropped rapidly. Industry still making everything even more expensive!
And then came IK Multimedia and showed to the world what this crap really is worth. Boom!
Bye, bye amps, pedals, bye bye greed!