Is $400 maybe a little too low? I suppose but a retailer also has to profit on the instrument. So, usually people think, well....mark it up $200 and call it a day.
This would be great if it were easy to sell something for $600 quickly. People don't always have that kind of cash around. Add to that if the retailer has to ask a higher price, the longer it take to sell.
On top of that, the economy ain't what she used to be and lots of people have just given up looking for work.
And.... inventory costs money to it around. You actually pay taxes on stuff just sittin' around. That's why you see 'INVENTORY REDUCTION SALE' stuff during the end of a business cycle. So, that guitar has a cost simply as inventory.
I think the store person was looking at from the prespective of how long they have to sit on it and the less they charge, the quicker they can move it.
Just some thoughts.