I think this applies to large scale well known mass produced global brands. The instruments I play and love the most are built by two different one-man-shop American luthiers. There is no automation or large scale production. Assuming that material costs (wood, hardware, expendable tools) are roughly equal among this niche, the main factors affecting instrument costs to the consumer are the time it takes to build and the builder's reputation. We recently had a thread on
top-dollar builders that give an idea what the most sought after builders can get.
I don't think that my favorite luthiers spend appreciably less time and effort or use materials an order of magnitude cheaper than "the big guys", but I can get an awesome sounding, beautifully built custom instrument from them for $2k - $4k. The additional $16k - $18k I'd have to spend to get the most sought after brand is based mostly on reputation, which is based on what they sell for, which is based on scarcity, which drives cost, which builds reputation, which drives demand, which drives scarcity....
The article above doesn't discuss any of this.
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