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."