Why are expensive guitars expensive

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greatmuta

Strat-Talk Member
Oct 6, 2010
21
MD
Why are expensive guitars expensive? This is a serious question and not a confrontational one or one meant to give **** to name brand companies. What is it about expensive guitars that makes them expensive? I am willing to accept that the cheap guitars that I have and will buy aren't good compared to more expensive ones, but why are those better?

Body wood? Hardware? Pickups? General quality? Aesthetics?
At what point does something go from sounding "different" to sounding " better"?

Also, I don't want anything that's too hard to define or too subjective like " feel " ( which I guess refers specifically to the neck?).Straight up, objective fact is what I'm looking for. As a layman who has briefly compared the specs between some Agiles and Gibsons I don't see that much of a difference, nor do I hear it in videos comparing the two. It just sounds "different". I somewhat believe that there is a mysticism with guitars while I tend to believe "it's just a guitar". Or maybe most guitarists think that and only "cork sniffers" disagree.

Also, how does all of this coordinate with price? Are expensive guitars worth their price for the gap in quality? Is there are a reason why name brand guitars are more expensive? I am guessing the brand name and the cost of US workers factors in but that's a very cynical thought..

Keep in mind, I acknowledge that name brand companies can and do make excellent guitars, but are they really that much more excellent than cheaper ones? I do not want to be a fool and claim that they aren't if they are that much better.
 

rcole_sooner

Beach Bum
Silver Member
Mar 11, 2010
10,896
Norman, OK
I figure labor (salary, social security, unemployment, healthcare, retirement) and overhead (building, licenses, insurance, waste disposal, etc.) are the two biggest costs. Manufacture somewhere where one or both of these is lower, and the cost to manufacture drops.

Price range itself drives cost. For example, I can sell many more sub $1000 guitars than I can $5000 guitars. So the $5000 guitar stays at $5000, and maybe a few under $1000 can get costs cut even more, by making a large volume of them. The price for quality falls a little with the volume. But this won't work for over-the-top expensive guitars, so they stay up there.

So yes, you can buy more quality to a point, after that the amount of quality being purchased is not as great.
 

Teddy Watkins

Senior Stratmaster
Sep 25, 2009
4,782
Florida
I don't know that you can get straight up objective facts in a largely subjective craft. If I say wood type, electronics and hardware, someone will say birdseye maple is no better than regular, MIM pickups sound better than Texas Specials and a full size steel trem block doesn't make that much of a difference. In my opinion, in no particular order..

1. Age
2. Rarity
3. Materials
4. Endorsement
5. Craftsmanship (machine or hand crafted)
6. That intangible thing that makes you look at a guitar and go "It will be mine".

It is certainly not only practical.
 

Wayne D.

Senior Stratmaster
Nov 28, 2009
1,879
Pittsburgh, Pa.
Some of those Fender Signature guitars are way up there for no other reason than I guess the artist gets a small cut of the profits.
 

mw13068

Most Honored Senior Member
Jul 29, 2009
6,960
Ithaca, NY
Some of those Fender Signature guitars are way up there for no other reason than I guess the artist gets a small cut of the profits.

No, it's nothing so concrete as that.

Expensive guitars are expensive because they sometimes are made with better quality (or at least higher source cost) materials, but mostly because people will buy them at high prices.

If people stop buying Brand X Deluxe, then the manufacturer will either stop production (to maintain the perceived level of market distinction), or drop the price.
 

GreatPlainsVtg

Strat-Talker
Aug 28, 2009
495
Wichita, Kansas
Some of those Fender Signature guitars are way up there for no other reason than I guess the artist gets a small cut of the profits.

I would disagree, and just say that there are plenty of differences between most Fender Sigs and american standards. Most notibly types of pickup options and fretboard radius
 

Paulbiz

Senior Stratmaster
Sep 30, 2009
2,722
Northern, Virginia
In general:

1. Materials: Higher quality electronics, wood, finish, hardware, etc.

2. R & D: More expensive guitars usually have more research, product development, and higher quality control, this cost money.

3. Name brand/recognition: Sure some of this is psychological but when you keep in mind that most USA built Fenders/Gibsons meet 1 & 2 on my list its not hard to see why most professionals and hobbyist prefer the name brand guitars rather than the less expensive offerings. I do think Gibson USA LP's are overpriced though.

Im no cork-sniffer and I love my Squire Affinity (modded) but I wouldnt trade it for my USA Strat. Bottom line, one relatively good guitar (usually a more expensive guitar) will almost always out perform and give greater satisfaction than owning 10 cheap guitars...thats not a question of the cheaper guitars just being "different", they usually sound and play worse. Again, Im talking in general terms, some people will disagree, but I think most folks would prefer a well set-up Fender American Standard Strat over a Squier of MIM.
 

Ivan-Horvat

Strat-Talker
Jan 25, 2010
124
Croatia
I thing the product brand name adds a lot to the price. I mean, most of the guitars made by famed companies are well overpriced or if you want to put it the other way, some not-so-known brands have better quality for the price, but people buy the brand name because of it's tradition, they kind of trust them more.
 

TreRocker

Strat-O-Master
Sep 5, 2009
587
Gone
partly materials
partly labor
partly overhead costs
partly consumer perception of value

Yeah, that. And on the last one, sometimes it's justified, sometimes not. I don't think I'd ever get a deluxe from fender, but I'd probably get an MIA Standard. They've been the same price for a long time, around the same price anyway, which leads me to believe it stays in line with inflation, etc.

ETA: basically I'm saying that some expensive have always been expensive. Guitar is kind of an expensive hobby. Even if you get a Squier and mod it and get a different neck and tremolo and the right gauge strings, etc. you could be out as much if not more than a well set up MIM.
 

fenson

----------------------
Jan 11, 2009
6,559
Canada
I thing the product brand name adds a lot to the price. I mean, most of the guitars made by famed companies are well overpriced or if you want to put it the other way, some not-so-known brands have better quality for the price, but people buy the brand name because of it's tradition, they kind of trust them more.

depends on what type of guitar ,some independant builders of especially acoustic guitars here in Canada. Have a waiting list and get thousands of $ for them. Same I guess with any electric guys but IMO the acoustic builder charge and get far more. Not all of them but!!

over 6000$ used 07
http://www.12fret.com/used/Barry_OM CW Braz_07.jpg
 

sumran

Fan of Leo
Mar 7, 2010
3,742
Gainesville, FL
Building a partscaster is a good way to answer your question. When you start making choices about what components to include, there are multiple quality levels available on every part. If you opt for top quality on every part of the guitar you will end up near $1,000. Just for parts, no labor, no profit. A manufacturer would get better pricing but the principle still applies. If you want flame grain or other special touches it is even more. Unless you are pulling out all the stops to make something really special, you make compromises to save money.

If you are going to buy a custom guitar, you add in the labor cost of a highly skilled technician/luthier.

Cheaper guitars (generally) opt for more compromises to keep the price down. When you first bring out a new line you might give a better value to build demand.

Every guitar has a personality, notwithstanding the components that make it up. Some call it voodoo. Some call it luck, some quality control. A very good guitar designed for a cheaper price might be better than a not so good guitar designed for a higher price.
 

OlderEveryday

Strat-Talk Member
Sep 3, 2010
42
Louisiana
I'm in a good position regarding this question.... for myself.

I happen to be handier than most, in being able to work guitars.
Work in electronics, plastics, woods, in times past, transfers well to the task.

I won't pay the price for a production line guitar in the upper hundreds, thousands. Just won't.
If I were so inclined to pay a substantial sum for a guitar, it would be a custom job from an indie builder. Maybe. Two that come to mind, http://logancustoms.blogspot.com/, http://www.melanconguitars.com/index.shtml.

In a sense, the, "mystery," of guitars was taken away quite some time ago, replaced by a practical pragmatism.

Case in point.
Yesterday, the wife arrived at a conclusion that I was missing the color orange in guitars. Ain't that just like a woman, to be into the color collection thing... She even insisted in stopping at a local shop to look.

There is something, along practical lines, in making a new acrylic guard for it myself and loading it with specific pickups I already have on hand, that I for-see will actually fill a need in some upcoming recordings (if/when I get around to them, LORD willing).

I showed her a range of Gretsch orangies on the net, ranging from 700 to 12,000.
In the end, I satisfied her need to get me an orange something at GFS, less than two bills.

"Save your money, baby," I told her. "You can't live in a guitar or eat a guitar, and you never know what might be up the road."

Practical, pragmatic.

And an experienced player (1st guitar, 1958..) as well as worker of guitars.

This approach works for me.

After going through the physical and web search, then noting the guitars I have, the wife's last words on the subject: "We don't need to spend a lot of money on guitars. You know what you're doing and make them into something really nice."

Yeah, baby, that's right, I do.

An important knack for me, which I have, is in knowing a diamond in the rough from a sow's ear. I know well the sonic neighborhoods particular types of pickups hang out/live in... and their interactions/expressions with/in differing construction parameters. And I know what I need for whatever purpose(s).... Rounded out by the fact that I am my own favorite guitar player who views guitars as Tools.

YMMV... I suspect that for most it will.

This is not intended to bluntly answer the initial question for any reading, though I have satisfactorily answered it for my self.

There are some things that are nice about waking up and finding yourself.... OLD.
The above has been one of them.
 
Last edited:

Mchu86

Strat-O-Master
Nov 1, 2010
706
China
The most costly components in a guitar for the large manufacturers are cost of labor and the "overhead" the cost of the stuff needed to have a manufacturing facility... that includes the building, parking, taxes, payoffs to the local whoevers, freight, cost of getting rolling in a foreign country... talk about payoffs.. and whatever it takes to be in business in the first place...

After all that... an expensive guitar requires much more "hand labor" . . that alone costs more than the sum total of all the parts.... that's it...

Ron Kirn

Well said.

Cheers,
Michael
 

adamjn

Strat-Talker
Jan 13, 2010
390
Toms River, NJ
I would hope greater quality control as well, although I've had personal experiences trying Les Pauls that were just awful, especially considering the price.
 
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