Why are new SG Standards up in price?

Siamese

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Why are they up in price? The same reason everything is up in price.

Gibson can't just set their prices anywhere they want, despite what some have suggested. Way too much competition for that to happen. How many different manufacturers are there? If you include the small builders....hundreds.

If Gibsons were actually made with the level of quality we want, consistenly, they'd cost the same as the core models of PRS. That business model doesn't really work for PRS either, or they wouldn't need to make the S2's and the SE's
 

rabbit

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"The same reason everything is up in price"...

That doesn't really define a causal effect for increase other than placing things in the obscure definition of 'following market trends.' Cost of materials justify price increases, operational costs affect price, and expenses related to marketing raise prices. In the end a business wants to recoup on their initial investment and as a bonus receive a profit to distribute accordingly back into the business to provide growth and sustainability.

I work in Automotive for a Tier-1 supplier. Every year we are asked to consistently provide high-quality components at cheaper prices to the OEMs or else we lose the program. As a company we are continually forced to become more efficient in every respect so that the business relationship is maintained. If our costs go up we cannot simply charge more and so are forced to cut corners, usually in manpower. I would like to think that the goal is to ensure the end customer is paying the least amount for the best product, but the OEM has the final say in their 'Suggested Retail Price' which is then inflated by dealer costs/fees. True market value and retail price are not equal so yes, a company can specify whatever they want even without a reason. It's a very exhaustive process of determining actual value based on the entire supply chain, but in the end either you pay the asking price or not.

Without a company representative chiming in and and saying "we've had to raise prices because..." it's just speculation and bickering amongst confused customers. I'm on all your sides trying to understand the situation and thank you for your shared perspectives.
 

Siamese

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"The same reason everything is up in price"...

That doesn't really define a causal effect for increase other than placing things in the obscure definition of 'following market trends.' Cost of materials justify price increases, operational costs affect price, and expenses related to marketing raise prices. In the end a business wants to recoup on their initial investment and as a bonus receive a profit to distribute accordingly back into the business to provide growth and sustainability.

I work in Automotive for a Tier-1 supplier. Every year we are asked to consistently provide high-quality components at cheaper prices to the OEMs or else we lose the program. As a company we are continually forced to become more efficient in every respect so that the business relationship is maintained. If our costs go up we cannot simply charge more and so are forced to cut corners, usually in manpower. I would like to think that the goal is to ensure the end customer is paying the least amount for the best product, but the OEM has the final say in their 'Suggested Retail Price' which is then inflated by dealer costs/fees. True market value and retail price are not equal so yes, a company can specify whatever they want even without a reason. It's a very exhaustive process of determining actual value based on the entire supply chain, but in the end either you pay the asking price or not.

Without a company representative chiming in and and saying "we've had to raise prices because..." it's just speculation and bickering amongst confused customers. I'm on all your sides trying to understand the situation and thank you for your shared perspectives.
There a few fallacies in your response. Actually, Gibson prices are up for the same reason everything else is. Inflation. It's universal.

And, there are limits to how efficient any business can become. Ultimately, as labor and material costs rise, selling prices must rise or the business becomes insolvent.

We don't need a company rep to chime in. Gibson doesn't exist in a bubble. Fender, and many other guitar prices are up, too. Eggs are up. Gasoline and milk are up. Guitars are up.

There's nothing remarkable about Gibson prices being up. It would be remarkable if they weren't.
 

rabbit

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The OP asked for potential factors that would contribute to (validate) the price increases of the guitar they were interested in buying. It has been discussed and proven that only specific models have increased in asking prices but not all product lines share the same rate of increase. Universal inflation would mean even a $20 Gibson t-shirt should have risen in price.

I am excited to share in discussions that offer constructive criticism and opportunities to learn new information. Are you just wanting to be mean or right? or both?

We are all doing our best to help one another when asked. And I'm not the only one thankfully.
 

Siamese

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Hey, settle down, okay?

Universal inflation does not mean that the prices on all items in a manufacturer's lineup are going to be raised equally...that's another fallacy. Gibson needs to raise their prices to accommodate increases in materials and labor (inflation), but that doesn't mean they won't opt to do it strategically. Like any manufacturer, they'll pick and choose, and make increases where they believe there will be the least fallout.

Am I "just wanting to be mean or right? or both?". Well, I try to be right, don't you? Or, what's the point? And why on earth do you think people that disagree with you are doing it because they want to be mean?

1. I gave the OP my opinion
2. You quoted me and criticized my opinion. I'm good with that.
3. I quoted you and criticized your opinion, and you suggest I'm being "mean". That's a personal attack. Criticize the opinion...good. Criticize the person...not so good.
 

Juan Tumani

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The simple answer is Inflation.

Nothing has ever stayed the same price unless they lower the quality and keep the price the same. However, in reality that's the same thing.
 

ElChiguete

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WOW who would of thought that the recent GAS that I've gotten because I got together with some friends to once again do AC/DC tributes and me wanting to get an SG would end up in all this lol.
 

PermissionToLand

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I think you're both saying more or less the same thing but in different ways.
The same reason everything is up in price"...

That doesn't really define a causal effect for increase other than placing things in the obscure definition of 'following market trends.' Cost of materials justify price increases, operational costs affect price, and expenses related to marketing raise prices. In the end a business wants to recoup on their initial investment and as a bonus receive a profit to distribute accordingly back into the business to provide growth and sustainability.

I work in Automotive for a Tier-1 supplier. Every year we are asked to consistently provide high-quality components at cheaper prices to the OEMs or else we lose the program. As a company we are continually forced to become more efficient in every respect so that the business relationship is maintained. If our costs go up we cannot simply charge more and so are forced to cut corners, usually in manpower. I would like to think that the goal is to ensure the end customer is paying the least amount for the best product, but the OEM has the final say in their 'Suggested Retail Price' which is then inflated by dealer costs/fees. True market value and retail price are not equal so yes, a company can specify whatever they want even without a reason. It's a very exhaustive process of determining actual value based on the entire supply chain, but in the end either you pay the asking price or not.

Without a company representative chiming in and and saying "we've had to raise prices because..." it's just speculation and bickering amongst confused customers. I'm on all your sides trying to understand the situation and thank you for your shared perspectives.

I've heard similar stories about automotive parts suppliers. Similar ones as well from suppliers to big box stores like Walmart. Any situation where you have a highly consolidated market of buyers, they end up squeezing the suppliers to the brink.

The main difference is that Gibson doesn't rely on many other suppliers. They get hardware and pots/switches made for them and that's about it, AFAIK. They source their own wood. The hardware is probably sourced to the lowest bidder but the pots/switches are CTS and Switchcraft, and they don't need Gibson's contract to survive.

Even if Gibson did come out and say why, who knows if they'd be telling the truth. Walgreens lied about the reason they were closing stores in San Francisco recently.

Also, we all know landlords love to use "following market rates" as an excuse, so it could literally just be that simple, as far as we know.
 

papagayo

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I bought this 2016 SG '61 Reissue Proprietary Ltd Edition two months ago, I paid 1400 €uros shipping included, this price was my maximum. This is a great SG, I installed a wide bevel pickguard and brass saddles.
I bought 3 guitars new, 2015 €piphone Casino, 2015 SG Standard, 2017 Les Paul Tribute GT.

Gibson SG '61 Proprietary 60.JPG

With buffing finish, faux binding and black plastics this Les Paul Tribute looks pretty cool.

Les Paul T Gold Top 80.JPG
 
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papagayo

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Double post error.
 
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3bolt79

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I bought a new Marshall Origin 4x12 cab day before yesterday for $649. It Was $549.00 a few months ago. I am going to get one more with a slant top in a few months, hopefully I can get in before the next price hike.
 

MR D

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INFLATION is an unlegislated TAX...

so to speak......the Big Boys run the dance-hall and we all pay to get in...
 


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