New mando prices

[John Hill]

I had a chance to check out some mandos yesterday and about fell over at the price increases that I saw. Particularly the Gibson lineup....not a flame, just an observation. The sale (not the MSRP) price for the F-9 made me choke...all that and no dots http://www.mandolincafe.net/iB_html/non-cgi/emoticons/biggrin.gif.

Although I do have to say that I played a new F5-Fern that had to be one of the best mandolins that I've ever heard, let alone played. But it seems to me that the attractive feature of the "less appointed" Gibsons was the price and now having to shell out nearly $5000 for an F-5G just seems a bit much. But that is just my opinion & wallet talking.

John

[ronlane3]

This horse has been beaten to dead, search for "Gibson Price Increase", the last I saw it was something like 9 pages on this topic.

[mikeh]

You should have been here a month or so ago. http://www.mandolincafe.net/iB_html/non-cgi/emoticons/tounge.gif

[Jasper]

Actually, after we beat the horse into an unrecognizable mass of gelatinous goo, we burned it, and scattered its ashes!

[John Hill]

Guess I should have been here a month ago http://www.mandolincafe.net/iB_html/non-cgi/emoticons/sad.gif. I'll do the search.

[jim simpson]

It gets a bit confusing when prices are discussed. There is the MSRP and the store price. When I read some guitar mags reviews, they give the MSRP and the "street" price which I believe is the price most of us would expect to pay. Can anyone here state what the "street" price would be for some of models from Gibson, Weber, etc.?

[Steve Farling]

The "street price" of my F5-G in the middle of October, was $2648.00 with free shipping and a free Gibson Mandolin T-shirt! I guess it's what ever you manage to find.

[jim simpson]

Thanks Mandy-Man!
I think that's a great price even without the t-shirt and free shipping!
Jim

[fatt-dad]

I think that the "street" price is in the range of 10 percent less on Gibson and Collings, not sure about Weber (not sure about anything really, just what I think).

f-d

[acousticphd]

I think that the "street" price is in the range of 10 percent less on Gibson and Collings, not sure about Weber (not sure about anything really, just what I think).

Wow, I hope not. From my acquaintance with a guitar shop owner, I understand that certain makers set a limit on the dealer discount. But my take from seeing list and sale/street prices for various instruments is that the street price is *usually* in the range of 65%-75% of new list. In some cases, this may only suggest that the list price is inflated to begin with.

[fatt-dad]

HERE (http://www.elderly.com/new_instruments/items/MF5N.htm) is the link to a Collings MF5 at Elderly. They show a MSRP of $8000.00 and a sale price of $7,200.00. This has been their pricing for the entire line of Collings mandolins for a while (refer to web page and catalog). I don't think you will find a published sale price for the current Gibson retailers, but from what I've seen here at the 'cafe, the notion is 10 percent under MSRP. Now if you are referring to the Johnson lineup, yeah, maybe 30 to 50 percent under MSRP is more typical - ha.

f-d

[Chris Baird]

There are a good number of ex-Gibson dealers these days with stock still priced as it was before the price fix.

[jlb]

Actually, I've noticed a couple ex-Gibson dealers (who dealt in guitars only, unfortunately) who are blowing out there Gibson stock at pre-price increase discounts. I was able to talk a guy down to 50% old list on a guitar.

[fatt-dad]

Any reference on my part to Gibson prices is purely speculative (from discussion right here). That said, I have the impression that the 10 percent off MSRP would be more related to the Gibson OAI (original acoustic instrument) lineup, which is the line that is under more restricted retail policy (again, I think).

f-d

[Chip Booth]

I just heard from the owner of the store where I teach that at the first of the year Weber is going to a new policy of 10% max discount from MSRP. Not a necessarily a list price increase but it does mean street prices will go up since I bet you can easily find dealers selling at 25% off or more at the moment. Weber hardly goes into the price gouging category, but thought you might wanna know.

[Andrew Werner]

Well, I work for the guy's who used to own the Guitar Shack chain here in Chi town, Guitar Center put em under, claims the following; #1 How much you buy, #2 When you buy it, #3 how much you're willing to make. On premium instruments like Gibson, you really don't have all that much room for a mark down, but it's still much less than MSRP. I would go not a penny more that $1900.00 on a F-9 my two cents worth Drew.

A mandolin is a terrible thing to taste http://www.mandolincafe.net/iB_html/non-cgi/emoticons/mandosmiley.gif

[atetone]

I know absolutely nothing about retail and I can prove it.
Here is my totally uneducated question,,, could someone explain to me why the manufacturer cares so much about what price the retail outlet is selling the product for?
The manufacturer is receiving their set wholesale price so if the retailer is willing to lower the list price and take less profit what is the concern?
I assume that the only concern would be that the product becomes somewhat undervalued? Is that it?
Be kind to me,,, I told you I could prove it!

[Professor PT]

Just another reason to make me smile about my F-9. I'm so glad I bought mine at cost from Guitar Center. I can play the thing while I'm still relatively young! If I were going to pay three grand, it would take me quite a long time to save up the money( and the wife wouldn't allow it anyway ). I've inherited my father's "cheap" genes; I just love getting a deal.

[fatt-dad]

could someone explain to me why the manufacturer cares so much about what price the retail outlet is selling the product for?
I think it has something to do with the market that the manufacturer is appealing to. For example, if you want to be considered the "best" instrument (quailty, sound, setup, etc.) allowing a retail free-for-all would tempt the retailers to undersale each other and forego service, setup, inventory and other point of sale luxuries (sp). If the prices are fixed and the point of sale is made exclusive, the customer gets the same price/service wherever they go (supposedly).

Even though this is what I think, I'm not sure. Also, there is a part of me that wonders exactly the same thing.

f-d

[Chip Booth]

Quote (atetone @ Dec. 07 2004, 00:19)
could someone explain to me why the manufacturer cares so much about what price the retail outlet is selling the product for?

Another piece of the puzzle is that if manufactures don't put some control on how people price things then the large chains will quickly drive away the small dealer. At our our store the first thing we think about when we look at a new product line is "does Musician's Friend sell it". If so, we likely cannot compete with their prices and so the product line is no good to us. Responsible manufacturers would prefer to see their product in a wide variety of markets, not just online and in a few chain stores. It seems like small manufacturers are generally more responsive to the needs of small dealers and so they often strictly regulate minimum prices. Our store looks for those kinds of companies. They're not out to harm the customer, but rather encourage fair business.