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"Sorry mate, prices have gone up, it's that bloody Brexit causing it". Customer nods, everyone knows that's true, and the credit card takes a bit more damage.
I'm not claiming that Brexit has had no effect. There is the extra hassle (and therefore cost) for trading between UK and Europe, but it can be done (see Thomann). The relatively small size of the UK market (vs internal EU) might make it too much hassle for too little return for smaller businesses, and VAT complications (for non-registered companies and used goods) add to that hassle.
But, overall, I'd say that there are much more significant factors affected the s/h guitar market.
The main one is that the last few years experienced a short-term price boost which now has to correct back to sensible levels. Unfortunately, that short-term boost brought a few "it's easy money" bedroom flippers into the market who (a) have no memory of pre-Covid normal and (b) are now sitting on stock that they over-paid (against pre-Covid normal) for and don't want to recognise that loss.
Add onto the above that finances for many are tighter now (Covid boost has gone, inflation has hurt many), so the market is quiet other than at the extremes (wealthy collectors and the true bargains).
You can point to your casual chat with a retailer as evidence that prices have increased because of Brexit, however if this was the case it would be quite easy to find a few examples of us paying more (on average) than EU or US retailers. I find it a bit strange you were more than happy to post an example you found suggesting "a quick search" found examples, yet when it's been pointed out that example actually shows no difference in price you're saying 'well why should we trust experts eh".
Not sure about you but if I get told something, I like to question it and see if there's any evidence to back it up.
I'm not in the loop now as to stock levels at the appropriate UK/EU distribution warehouses with the likes of Fender and Gibson - But i still speak, on a regular basis to the PRS team - EU/UK is still one distribution warehouse via Cambridge - Stock level of USA guitars is close to zero and has been like this for nigh on 4 years - Everything is just about sold as/when it arrives - To the point that the warehouse is just about always empty
Brexit has had an impact with regards to the used Market - Not an issue for the manufactures - Not really a big issue for companies like Anderton's, Guitar Guitar or Thomann as the bulk of their business is new stock - But the vat element has changed on used sales if/when you ship out of your customs border - So EU to UK or UK to EU - Today there is no actual vat when I sell a guitar to you in the UK (Okay there is a vat element within the profit, known as the margin scheme - But not in the way that vat is applied, at 20%, to sit on top of the dealers selling price - So effectively ignore this margin scheme) - Likewise no vat when a German store sells to a EU/German customer - But now if I sell to the EU, or indeed the EU sells to the UK, then VAT has to be applied at 20%
ie - My Les Paul is £2000 to you in the UK - A similar Les Paul in Germany is around 2330 Euros (ie £2k) to a German/EU customer - But now if I sell that £2000 to a customer in France/EU etc it becomes £2400 upon passing customs borders - Ditto for that 2330 Euro LP, which now becomes 2796 Euros upon leaving Germany to come to Derby - Bottom line is that it has just about killed used sales between the UK and EU and/or EU and UK - So a pain to the 'smaller guy' but hardly worth a lost wink of a night's sleep to Rishi or Keir
I'm as anti-Brexit as they come, I still think it was a stupid own goal that should probably be reversed in time, at least as far as single market membership. But I'm also realistic about causes and effects...
Appreciate your advice on taking it to the PM, but I think I'll pass thanks, maybe if you find something tedious, ignore it....
In the guitar industry, probably the 2 biggest factors to have an impact on pricing concerns fuel/electric and cost of wood + other raw materials
Fuel + Electric - Be it shipping goods or indeed the cost of operating the factory - Be it climate control for storage, or running a host of machines + of course lighting - Either way it has been a big factor with regards to manufacturing + distribution costs
Wood issues are a big factor for many - Forest fires and termites/pests are all having a major impact on pricing and supply chains - Flooding in some cases - This applies to many different species of woods - Different issues are having an impact on both 'standing/living trees' as well as lumbered trees/blanks that are 'sat' in huge lumber mills - Yet both are been attacked by various bugs etc and ruining so much wood - Different USA or Canadian states are having to attend to different threats, as such different species are under threat - Same applies to Central and South America - But ECCO, fires and termites is a massive problem - I'm not familiar with the whole global issue of wood supply in say Asia and Africa but hard not to see similar problems
Yet none of this touches the initial OP's question as to why they can't sell their used guitar
You have a Good Friday too.
It has absolutely devastated the grassroots touring industry though, and also made a significant cut into the availability of our backline services. I can't say whether that will change any time soon but probably not.
Right now I tend to price most things slightly lower than the cheapest option on eBay/reverb & seems to work well for anything up to around £500. Gear that’s north of £1k is really hard to move (especially £3k left handed guitars).
On manufacturer price hikes: besides materials & production costs rising, the prices we’re seeing now probably include the effect of margin recovery from insane shipping costs during COVID etc. And if you’re laden with debt, a 1% increase to interest rates can sink your business, so cost of borrowing will definitely impact retail prices.
Added to this the touring industry used our repair services ... and with fewer smaller tours going out - we still have to remain solvent ... so up go prices.
Touring won't fully recover till we have proper freedom of movement and go back to low friction borders. And that probably won't be in my lifetime. Thanks a bunch Little Brits ...
Formerly TheGuitarWeasel ... Oil City Pickups ... Oil City Blog 7 String.org profile and message
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