#1
anyone used to work at a guitar store? How much are guitars marked up?

heres my theory, im gonna use the epiphone les paul std plus as an example:

its made in a third world country for about 150bucks

epiphone sells it to guitar center for 350.

guitar center sells it to you for 550 plus tax


so basically, my theory is you pay 400 dollars more than its made. now i understand everything you buy, your paying more cause people have to make a profit, but i still think guitars are wayy overpriced.

what do you guys think??

and is there anyway to get it straight from the manufacturer??

if not then how much is a decent discount to ask for at guitar center?
#2
Any guitar you buy is worth 10p in materials, depending on what brand it is the retail price you're paying is anywhere from 80-95% for the logo on the headstock, the rest goes towards 3rd world slave labour.

True story. Probably more accurate than I like to think.
#3
Well, if your not happy don't buy overpriced guitars that are made in the 3rd world, buy a handmade guitar for the same price, and yes does exist, look at my sig
#4
When you order directly from the manufacture, it's always way more expensive in my experience.

The reason you don't get a $1000 guitar for $100 from GC, is that the manufacture has to make a nice profit to cover their own overhead, then GC has to make a profit to cover their overhead also (got to pay for the staff, the utilities, the rent etc.). Therefore increasing the price. The most you can get off from anywhere unless they are having some blow out sale in my attempts is around 20%...I've been able to get 25% once. But sometimes you get lucky and stores are trying to get rid of stuff and you get it for 50%, just look at Fender friday.
#5
Yes, it's true. Try out a Xaviere guitar sometime. They cost next to nothing and are the same quality as an Epiphone.
#6
Agile. I rest my case.

Edit:: Gibson. Need I continue?
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#7
With chinese labor its probably less than 150 in materials and labor to build an epi. BUT there is more to the cost than pure materials and labor. There is overhead to add in, building a factory buying machines etc. And of course there is the cost of shipping and distributing, whats it cost to send a guitar 7000 miles from china to your local music store. And there is the cost of advertising. Plus all the other costs a major corporation has. And yes at some point epi does need to turn a profit or they go out of business. Just as places like GC need to turn a profit to stay in business.

Are they overcharging, maybe, probably not. A decent guitar costs money, just the way things are. There has to be some sort of fair price people are willing to pay. Everything cant be walmart way with lower prices everyday, when we as workers demand more wages and benefits from our employers.
#8
Fender mexi standards go for €600 locally (and i live in a city not the back of nowhere). They are also the highest quality guitars you can hope to find in Ireland without ordering a guitar from abroad.

EDIT: I imagine it would cost ~€75 (parts + labour) to build a fender mexi
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#9
Bugeras cost 50,000 INR in India. Thats $1000 US. Steve Vai sig guitar is 114000 INR. 2 grand in USD. We're paying almost double the price here. AND the used market in India(or anywhere inAsia for that matter) sucks ass.
#10
u forgot to account travel, and the TIME it takes to make a guitar. it takes a lot longer than u think, even manufactured low end crap.

go try to make ur own and tell me its not worth the price tag. (not to mention, GC is slightly over priced anyway)
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#11
no need to make multiple threads in multiple forums.
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#13
40% is a common gross margin that is tossed around in the musical world.....I'm just sayin....
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#14
Dude...They have to make money, they can't sell it to you for the price it's been made...
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#15
Quote by HeavyReverb
Fender mexi standards go for €600 locally (and i live in a city not the back of nowhere). They are also the highest quality guitars you can hope to find in Ireland without ordering a guitar from abroad.

EDIT: I imagine it would cost ~€75 (parts + labour) to build a fender mexi


Really? I've seen US Standards. There's US Strat in Cash Connectors in Cork though it's a little scratched.
#16
Its always expected for it to be like this. One of the reasons to prefer buying in store is to seek this discounting opportunities.

They would profit for about 40% of what the bought, thats without including the extra they would add just because people wont mind and pay for it anyways (this said *points at everyone with a gibson*).
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#17
most guitars cost so little to make because the materials are purchased by the manufacturer in bulk, now stfu and get on with playing the effing thing
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#18
they're guitars cost 150 bucks in material because they have the economies of scale

they can buy large quantities of brazilian rosewood... african mahogany at damn low prices.

they can buy large quantities of DiMarzio Tone zones at damn low prices.

they can buy large quantities of Floyd Rose's at damn low prices.

that's the way the market works. they have the economies of scale and that's why their material cost that low. if we were to individually gather pieces of wood, hardware, and electronics together, it would easily cost us twice as much as it cost ibanez to make.
#20
right, cause I can be arsed now, reported for double multiple threads
Quote by Demonikk
'Practice amp' = amp you practice with? In my case, Peavey 6505+ and 4x12
I don't do things small


Except children.
#22
Quote by dave_molina
anyone used to work at a guitar store? How much are guitars marked up?

heres my theory, im gonna use the epiphone les paul std plus as an example:

its made in a third world country for about 150bucks

epiphone sells it to guitar center for 350.

guitar center sells it to you for 550 plus tax


so basically, my theory is you pay 400 dollars more than its made. now i understand everything you buy, your paying more cause people have to make a profit, but i still think guitars are wayy overpriced.

what do you guys think??

and is there anyway to get it straight from the manufacturer??

if not then how much is a decent discount to ask for at guitar center?




No. Think about it realistically.
Factory expenses:
Wages
Power
Rent
Maintenance
Raw materials + Shipping costs for raw materials

Transport expenses:
Wages
Power
Fuel
Maintenance

Warehouse expenses:
Wages
Power
Heat
Maintenance
Rent

Transport again to get it to the store.

Store Expenses:
Wages
Power
Heat
Rent

All of that has to be paid for, where the hell do you think that money is going to come from? There's probably a load more that I've missed as well thats just a basic overview of what comes into this. So yes materials will be cheap because they buy in bulk but there's a hell of a lot goes into getting that guitar to you so you can sit and bitch about how much it cost you.
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