Ok...kinda stupid (maybe) but why do guitars cost so much?

Hey,
Like the subject says, might be a stupid question to you guys but I cant figure out the answer....why do guitars cost so much?

I mean i can understand that normal prices, I cant understand why one instrument compared to another instrument that has the same amount of knobs,levers and bells and whistles cost so much more?

I was at the Guitar shop today and some of the Fender and Gibson prices are just nuts...beautiful to look at and play though.

WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY????

I mean its not like a computer where you can see the difference in processing power, or memory or harddisk size...and even then the prices do not jump so much...whats the idea?

Thanks!

Originally Posted by: musicgu7Hey,
Like the subject says, might be a stupid question to you guys but I cant figure out the answer....why do guitars cost so much?

I mean i can understand that normal prices, I cant understand why one instrument compared to another instrument that has the same amount of knobs,levers and bells and whistles cost so much more?

I was at the Guitar shop today and some of the Fender and Gibson prices are just nuts...beautiful to look at and play though.

WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY???? WHY????

I mean its not like a computer where you can see the difference in processing power, or memory or harddisk size...and even then the prices do not jump so much...whats the idea?

Thanks!

Because the amount of bells and whistles is not the same thing as the QUALITY. Higher quality materials cost more to produce, thus raising the price of the guitar. Now is 3000 US dollars a fair price for a PRS? Hell no, but few guitars match up to the quality so the price remains as it is.

The simple answer would be, because you'll pay that much to get one.

Companies charge as much for their guitars... because they can.

Just me rambling but it is all corporate like said above...the finders and gibsons of the world charge this price because we(the consumer)allow it capitalism 101. Call is good business or call it robbing the aspiring musicians who most likely dont have thousands of $ to shell out...Thats my beef... :confused:

Originally Posted by: musicgu7Like the subject says, might be a stupid question to you guys but I cant figure out the answer....why do guitars cost so much?

Many reasons.
-Equipment costs. It costs a lot more the get the equipment to make a good guitar than it costs to just buy the guitar. The people who make guitars have to pay off these costs by adding them to their guitar's price tags.
-Name markup. Even if you had all the necessary skills and equipment you could not make a real gibson in your garage. Unless, of course, you work for gibson.
-I can guarantee you'll have a helluva time trying to buy all the parts to make a midrange guitar for cheaper than the whole guitar would cost from a factory like Cort.
-The top of every market has pretty much exponential markup. A custom PRS is not a dozen times better than the average professional quality guitar, but you have to pay as much as if it were because that's just how every luxury industry works.
-You're not just paying for the guitar, you're also paying for a lot of stuff on the side. Worker salaries at the factory, trucks and gas $$ to get the guitars from the factory to retailers, company promotion and advertising, etc.
-Profit. The company has no reason to make and sell guitars if they don't make a significant net profit.

Guitars cost so much because either the company can't afford to sell the guitar for less or because they love marking up for their name and prestige.

This thread makes me wanna go on a robbin'-spree. If I was a New Orleans looter I would of been hittin' up Guitar Center instead of Wal-Mart. Eazy E style!

Originally Posted by: LeedoggThis thread makes me wanna go on a robbin'-spree. If I was a New Orleans looter I would of been hittin' up Guitar Center instead of Wal-Mart. Eazy E style!

Rollin down the street in my 64

Originally Posted by: LeedoggThis thread makes me wanna go on a robbin'-spree. If I was a New Orleans looter I would of been hittin' up Guitar Center instead of Wal-Mart. Eazy E style!

my roommate already looked into that....guitar center had a steel grate cage in front of the doors and he wasn't as motivated as those looters who had a fork lift.

Originally Posted by: tehplatypusmy roommate already looked into that....guitar center had a steel grate cage in front of the doors and he wasn't as motivated as those looters who had a fork lift.

Where there's a will there's a way.. In this case the will takes the form of a fork lift.

Originally Posted by: LeedoggWhere there's a will there's a way.. In this case the will takes the form of a fork lift.

Wondertwin Powers Activate! Form of a forklift!

also realize that my friend works at guitar center's main competition in new orleans so he had other motives than just a guitar to want to get in there and mess stuff up/take a couple freebies.

Yep, it's just like pizza. Buy the components (ingredients in that case) in bulk, and make a big profit. I think the cost of making a pizza (to the big chains anyways) is under $2, yet they'll charge upwards of $10.

Hi Guys
When it comes to paying out you can find a few cheepo guitars about.
I just got a Shine telecaster for £60 with a free set of strings and it plays fine
One more for my collection couldn't pass it up could I :D

Hi Guys
When it comes to paying out you can find a few cheepo guitars about.
I just got a Shine telecaster for £60 with a free set of strings and it plays fine
One more for my collection couldn't pass it up could I :D

Rock n Roll Baby

Originally Posted by: PonyOnehonestly the overall price to make a higher-end mexican strat is substantially less than the selling price... think about it. a pot switch costs, what $2.50, maybe $4 if you're getting gouged. They order thousands upon thousands of the things; it probably costs them a few cents to make.

they own their own factory for stamping the metals to make trems, tuners, etc. so they cut out the middle man; it also probably only costs them a buck or so to make a trem, if that.

the other miscellaneous materials probably amount to no more than another five or six bucks. then there's the wood, which is CNC machined; you've got the blades and upkeep for the machines, but otherwise, they've been long amortized (paid off). so you have the cost of the wood, which they buy in huge numbers.... i'd doubt if they paid more than $10 a body.

Then you have the cost of paying the workers; in Mexico, that isn't much. Overall, I'd guess the cost for each guitar is maybe $35, depending on finish and electronics, and other miscellaneous gizmos from guitar to guitar.

When a company buys bulk, they get a pretty good deal on the guitars too. I remember back in '01, my friend and I stumbled upon the Fender Japan's "secure" dealer ordering site, and you could buy a dozen '52 Reissue Teles for $750 each; 100 for $550. If a company like guitar center buys them, how much do you think they'll sell them for?

yes, but keep in mind, with guitars like gibsons, they undergo a full inspection for intonation, action, truss rod... etc. before they ship out, so people need to be paid to do that... also, with gibson guitars, they are half machine built (with things that are better done by machine, such as cutting out the body shape) and half hand built (with things better done by hand, such as fret filing) so they gotta pay for all that, plus, expensive guitars usually have paint jobs that take lots of time and money to put on. plus the company needs to make a profit... now, in my opinion, does a $3000 guitar sound better then a $1000 guitar? not usually, at least not enough to make a noticable difference.

Hi Guys,
Sorry, I am the original poster/starter of this thread and I thought i was subscribed to this thread...but I was'nt so missed your replies...anyway:

First, thanks for all your replies
second, I think a few of you guys got a bit sidetracked from the question but...hey...guitars dont have to be a totally serious business :-)

I think some of you also misunderstood my question, coz I know I am paying for "the name", workmanship, wood quality,Worker salaries ,trucks and gas $$,company promotion and advertising etc (as some of you have pointed out)

and even though some very good points were raised on how costs just tumble down when buying parts in bulk or making your own parts (as Fender and I think Gibson do) I wont go there...

what I cant understand is:
The $700 guitar is made in the same factory that makes the $3000 guitars, made by the same workers,same machines (that carve out the 300$ guitars carve out the $3000 ones) a little better wood quality (I presume, lets add a very very generous 100$ for the better wood quality there), trucks and gas from the factories -> I think its logical they use the same trucks and same pumps to pump the gas from the factory to whereever they send it out, as for company promotion and advertising...I think that again includes all the guitars...

as you might have guessed, my point is...they are using the same stuff (more or less) to produce 500$ guitars and $3000 guitars....whats the big diff?
Dont get me wrong, I am not haggleing or ranting, its just that I am new to this and want to buy my first electric soon...so I want to know what I'm missing out on as YOU guys are muchhhh more experienced than me in playing, "tonation" and knowing a quality guitar...right now it does not seem very logical to me.

I tried googleing for the answer, but I didnt get anything there either other than ...well.....greed :(

Thanks!

been said already...


cause people are willing to pay for it...
its like shoes.... Nikes and Basics use the same damn materials and use the same machines to make em, but Nikes cost more. WHY YOU ASK....Your just paying for the name....

But dont get me wrong...some guitars are better then others...Rate like cars... You have neons and then you have Mercedes and then you have Ferraris...

Originally Posted by: musicgu7what I cant understand is:
The $700 guitar is made in the same factory that makes the $3000 guitars, made by the same workers,same machines (that carve out the 300$ guitars carve out the $3000 ones) a little better wood quality (I presume, lets add a very very generous 100$ for the better wood quality there), trucks and gas from the factories -> I think its logical they use the same trucks and same pumps to pump the gas from the factory to whereever they send it out, as for company promotion and advertising...I think that again includes all the guitars...

Let's add $300 for the wood in the $3000 guitar. That's a bit more accurate. Better electronics, we'll add $200 for that. Better bits and bobs (tuning machines, bridge, knobs, etc.) that's $150 (costs $60 for a decent set of tuning machines anyhow). Now those nice abalone inlays, or perhaps mother of pearl, we'll add $25. The Rosewood fretboard or whatever is another $100 extra from the piece of crap one they pawn off on the cheaper guitar. That makes 775 extra dollars, which brings our total to: $1,475. Now let's put the letters "PRS" on there. That's an extra thousand dollars right there. Now you have a $2,475 guitar. I think that's how the math is done.

Carvin guitars, for example, are just as good as these mama jammas, but they cost about 1000 less (for the high end ones vs high end PRS). Probably because they don't tote the name "PRS."

Originally Posted by: Jolly McJollysonLet's add $300 for the wood in the $3000 guitar. That's a bit more accurate. Better electronics, we'll add $200 for that. Better bits and bobs (tuning machines, bridge, knobs, etc.) that's $150 (costs $60 for a decent set of tuning machines anyhow). Now those nice abalone inlays, or perhaps mother of pearl, we'll add $25. The Rosewood fretboard or whatever is another $100 extra from the piece of crap one they pawn off on the cheaper guitar. That makes 775 extra dollars, which brings our total to: $1,475. Now let's put the letters "PRS" on there. That's an extra thousand dollars right there. Now you have a $2,475 guitar. I think that's how the math is done.

Carvin guitars, for example, are just as good as these mama jammas, but they cost about 1000 less (for the high end ones vs high end PRS). Probably because they don't tote the name "PRS."

Well said Man....

Just like everything, it's President Bush's fault :rolleyes: