Anybody else noticing the prices creeping up?

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timmysofttimmysoft Frets: 1962
Probably a Brexit related thing!

 I've been looking at pedals and guitars and even most of the MXR range are £100+ now, i think the last time i bought new pedals these were in the £60-80 region. The last OCD i bought (v1.7) was £105, now everywhere seems to be doing them at over £140! 

I know prices rise, that's a given, but i think that on pedals we might just be being taken advantage of. Boss pedals have only increased a little, so i'd still see them as being the best value on the market.

Maybe the influx of "boutique" brands into the market place has inflated the prices or made manufacturers think they were charging too little.

I also took a look at new PRS guitars, the last brand new PRS i bought was a CE22 20th Anniversary, it cost me £999 in 2007, new ones now all seem to be £1500+

So what are we seeing? Is it inflation, greed or demand?
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Comments

  • JezWyndJezWynd Frets: 6021
    The exchange rate is having the biggest and most immediate effect. So yes, fallout from Brexit.
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  • darthed1981darthed1981 Frets: 11673
    timmysoft said:

    So what are we seeing? Is it inflation, greed or demand?
    Weak pound with a bit of greed.  Inflation at the minute mostly as a result of increased commodity prices due to weak pound.

    Expect it to get worse not better.
    We have to be so very careful, what we believe in...
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  • WhitecatWhitecat Frets: 5378
    PRS, and others, raise their prices every year anyway. But the weak pound has made it all extra-painful, and I do agree that it's going to only get worse, and probably never better (because the prices always go up anyway, as mentioned). If you need something for the long haul, buy on offer and buy soon.
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  • crunchmancrunchman Frets: 11413
    A lot of it is down to the "weak" pound but that isn't entirely Brexit related.  The pound was previously very overvalued.

    From December 2015:

    http://www.telegraph.co.uk/finance/currency/12065157/Pound-is-most-overvalued-currency-in-the-world-analysts-claim.html

    From that article:
    It [Deutsche Bank] believes the pound could fall as low as $1.27 next year and $1.15 in 2017 from about $1.485 today if the US Federal Reserve continues to tighten monetary policy and the Bank of England leaves interest rates on hold.

    It's not just Deutsche Bank.  The same article refers to the IMF as well:
    Earlier this year, the International Monetary Fund said the pound was between 5pc and 15pc overvalued.

    Where we are now is pretty much in line with the Deutsche Bank forecast.  The Brexit vote undoubtedly played a part but it's been grotesquely overblown by the media.

    Conversely, there are those who are now saying that the pound is undervalued:

    http://www.independent.co.uk/news/business/news/pound-sterling-is-the-most-undervalued-world-currency-and-will-rebound-to-pre-brexit-levels-a7597666.html

    According to that Independent article, Morgan Stanley are predicting that the pound will be back at $1.45 by the end of 2018.

    That's not the only article saying the pound is now undervalued.  If you can be patient it might make sense to hold off any major purchase of US made gear.

    Having said that, even when the pound does go back up, don't expect prices to fall very quickly.  They will try to benefit by increased margins.
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  • RavenousRavenous Frets: 1484
    timmysoft said:

    I know prices rise, that's a given, but i think that on pedals we might just be being taken advantage of.

    Than don't buy those pedals. I mean they're toys for wealthy first-world types, nobody really needs them.

    You already mentioned a pedal brand whose price increases aren't as steep, buy theirs.

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  • impmannimpmann Frets: 12646
    I blame Trump and Brexit.
    Etc etc etc
    Never Ever Bloody Anything Ever.

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  • darthed1981darthed1981 Frets: 11673
    impmann said:
    I blame Trump and Brexit.
    Etc etc etc
    The Trump effect on the guitar industry, or at least Fender and Gibson, should be interesting.

    Both have quality made in USA lines and cheaper higher volume lines made in the Far East, both business models based on a globalised economy.

    "America First" policies and tariff's could have a very interesting effect.  Given the similarity in cost now between a low-end Gibbon and high-end Epi, what could happen there?


    We have to be so very careful, what we believe in...
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  • WhitecatWhitecat Frets: 5378
    impmann said:
    I blame Trump and Brexit.
    Etc etc etc
    The Trump effect on the guitar industry, or at least Fender and Gibson, should be interesting.

    Both have quality made in USA lines and cheaper higher volume lines made in the Far East, both business models based on a globalised economy.

    "America First" policies and tariff's could have a very interesting effect.  Given the similarity in cost now between a low-end Gibbon and high-end Epi, what could happen there?


    Funny thing is they can still export from those third party countries to everywhere else - just not the USA. So we could still have Mexican Fenders, Epiphones etc here in the UK, but those same guitars if sold stateside could all cost 25% more.

    Obviously that's simplifying it, because if the sales volume decreases significantly (the US is the biggest market, after all) then the price could go up anyway, but that's the crux...
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  • Check out the price of a Suhr Satin Modern.

    I think they were about £1599 - about 3.5 years ago... then they went up to £1699... then £1799... then £1899. Now, GuitarGuitar are listing their newly arrived ones for £2199.

    http://www.guitarguitar.co.uk/electric_guitars_detail.asp?stock=170313308715007-624940

    ... but the government tells us inflation has only just now risen to 2.3% per annum.

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  • guitars4youguitars4you Frets: 14034
    tFB Trader
    There will always be price increases on the cost of goods leaving a factory, for many reasons - both materials and labour - but post Brexit we've seen serious changes to the exchange rate making it far worse

    What makes it also worse is that all prices are based on cost + a margin , as such price increases are compounded - ie if a pedal was a  £100  and a UK dealer added 35% (Dealer makes £35) - the pedal is now £135 - yet a 10% price increase on the cost of the pedal now makes it £110 - now add the 35% dealer profit (the dealer now makes £38.5) and it is £148.5 in the shops - Like wise the vat on £135 is less than the vat on £148.50 - so all prices are compounded as such

    Now add a falling £ v $ and it makes it far worse - and that is effectively were we are today

    even if the cost of a Strat had not gone up at the factory and the cost was say $1000 - UK cost ex any tax/shipping/import duty etc would have been £740 in 2015 - Today the same Strat costing $1000 would now be around £869 - Hence the price of the Strat leaving the factory can remain fixed, but it is now the cost of buying the dollars to pay for the guitar that has changed
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  • BlueingreenBlueingreen Frets: 2582
    I've notice big price hikes, most of which I'd put down to exchange rate.  Supply and demand though: you are not going to shift as many guitars at £3K as you did at £2.5K.  I reckon there'll be a lot of guys out there who were planning to make a purchase and have now put it on hold because they can no longer justify the price.

    Traders may need higher margins to compensate for fewer sales, which will only exacerbate the problem.

    If something doesn't happen to counterbalance this (eg a slump in the value of the dollar as people wake up to the realisation that the country is being run by a befuddled sociopath) I think we'll see the UK market for high end guitars shrink and more retailers go the wall.

    Small silver lining, UK makers may find the going a little easier.
    “To a man with a hammer every problem looks like a nail.”
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  • darthed1981darthed1981 Frets: 11673
    Whitecat said:
    Funny thing is they can still export from those third party countries to everywhere else - just not the USA. So we could still have Mexican Fenders, Epiphones etc here in the UK, but those same guitars if sold stateside could all cost 25% more.

    Obviously that's simplifying it, because if the sales volume decreases significantly (the US is the biggest market, after all) then the price could go up anyway, but that's the crux...
    Yes, you could end up with an interesting situation where Epiphone or Squier are allowed to make essentially the same quality of guitar as the USA because of the higher price, a net win for anyone who doesn't mind the name on the headstock.

    Arguably the quality of top-end Epis and Squiers is damn close to the US models anyhow, but I'll leave those worms in the can! :)
    We have to be so very careful, what we believe in...
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  • SkippedSkipped Frets: 2371
    I asked the assistant in a major UK supermaket about the alarming increases in Salmon prices.(I couldn't quite make out his name badge but it either said Fishmonger or Scaremonger).
    He told me that parasites have caused wholesale prices to increase by as much as 50%.

    I replied by saying that surely we should now stop the name calling because I heard Andrew Marr say that "we are all Brexiteers now".  :s

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  • EvilmagsEvilmags Frets: 5158
    Don´t worry somebody will overproduce and sell a glut of nice stuff at knocked down prices by the end of the year. 
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  • FelineGuitarsFelineGuitars Frets: 11496
    edited March 2017 tFB Trader
    Yes on exchange rate alone a pedal sold into the UK in dollars (so any MXR/Dunlop/Wampler etc)that sold pre Brexit fallout for £80 will be over £105 now

    Exchange rate was about £1:$1.6 and now is £1:$1.22 or thereabouts

    And even the USA electing the Cheetofuhrer hasn't reversed that...yet

    Many guitars have a re-sale value. Some you'll never want to sell.
    Stockist of: Earvana & Graphtech nuts, Faber Tonepros & Gotoh hardware, Fatcat bridges. Highwood Saddles.

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  • darthed1981darthed1981 Frets: 11673
    Skipped said:
    I asked the assistant in a major UK supermaket about the alarming increases in Salmon prices.(I couldn't quite make out his name badge but it either said Fishmonger or Scaremonger).
    He told me that parasites have caused wholesale prices to increase by as much as 50%.

    I replied by saying that surely we should now stop the name calling because I heard Andrew Marr say that "we are all Brexiteers now".  :s
    To be fair, Andrew Marr has been unwell...
    We have to be so very careful, what we believe in...
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  • JeremiahJeremiah Frets: 631
    Prices seem to have gone up way more than inflation though, including on British brands - though these are mostly not made in the uk.

    For example, a year ago the Laney L5 Studio was selling for £439 in most places. Now they are £509, an increase of 16%
    Similarly the Victory V40 has increased from £829 to £899.
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  • usedtobeusedtobe Frets: 3841
    One day, we'll look back on these as the good old days!
     so if you fancy a reissue of a guitar they never made in a colour they never used then it probably isn't too overpriced.

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  • guitars4youguitars4you Frets: 14034
    tFB Trader
    usedtobe said:
    One day, we'll look back on these as the good old days!
    wise words - I clearly recall a new Les Paul Deluxe for £365 and a Strat (there was only colour options, maple or r/wood or trem/stop in those days) for £299

    I have a good customer that I've known for nearly 40 years - He is  a similar age - left school around 1976, as a 16 year old - Gigging in bands and in 1978 purchased a new LP Custom for just over £400 -  His dad told him he was a fool - His dad is no longer around, yet he still has that guitar and he thinks I'm not so much a fool now

    Plus my dad paid under 3K for his first house in 1966 and could not afford the deposit so borrowed it from his boss
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  • thomasross20thomasross20 Frets: 4423
    Suhr and PRS have jumped quite a lot, though those are the ones I'd always had my eye on. 
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