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I just found out that Fender musical instruments is laying off 109 workers June-15. Probably due to them raising the prices. http://www.sacbee.com/1098/story/1505207.html

KRamone27 wrote:I just found out that Fender musical instruments is laying off 109 workers June-15. Probably due to them raising the prices. http://www.sacbee.com/1098/story/1505207.html

Kev, that's pretty sad, but I also agree with the responses from the Forum Members.

Ouch! Another round of cuts.
Cut payroll and raise prices. Looks like Fender's strategy is away from fast nickels and more towards slow quarters.

Who knows, when I talked to my GC sales folks they say that the price increase has not impact their Fender sales. Basically if someone was going to buy Fender in the first place they just complain about the price but still buy.

Plus it wouldn't surprise me if they are using this as a employee restructuring plan. Right now with the way the economy is no one is really surprised if you cut your work force so now is a great time to cut loose subpar employees that in a typical environment would be difficult to let go or fire.

However I agree with everyone that the price increase for guitars that are not perfect right out of the box isn't right. You would think that Fender would mean some type of quality. If I didn't have a dad that was a freaking phenomenal lutheran I am not sure what I would have done.

What is really sad is you take a Ibanez or Schecter off the self at GC and they feel amazing. Now it may have been that the samples I picked up were just good ones (I have run across some good Fenders too) but it's just disappointing. Especially now that a MIM Start is over $500 and the American Standard around $1300...

Duane...

No surprise. This current world economy sucks like a three-ton mega-leech.

When one is laid off, separated, just graduated and can't get employed, facing foreclosure...

...buying a new guitar or amp is rather low on the priority list.

Symathies to all who have it tough.

Fender is slowly pricing themselves out of the market and have been for years. I worked for a Fender dealer for 5 years and once the Am. Strat hit a Grand, it was very, very hard to move. I would spend 2 weeks trying to sell a player into an Am. Guitar just to have him show up with the Deal he got on Ebay!!! Gibsons are even worse, well over 2 Grand for a Standard!!! It has taken the Am. Guitars out of the hands of working players. The rise of Relic Builders like Nash Guitars forced Fender to come out with a Relic under a Grand. They want every niche in the market they can get. I hate to see people lose their jobs, especially when it could have been avoided by keeping prices down and production up. Just my opinion.

...sounds like a healthy opinion to me

Not to mention that companies like Gibson and Fender have had the unenviable position of having to compete with their own products from the past half-century - a competition they can't win. A similar dilemma drove the Music Industry to file countless lawsuits against record stores when compact discs first began appearing on the used market.

thunderhead wrote:Fender is slowly pricing themselves out of the market and have been for years. I worked for a Fender dealer for 5 years and once the Am. Strat hit a Grand, it was very, very hard to move. I would spend 2 weeks trying to sell a player into an Am. Guitar just to have him show up with the Deal he got on Ebay!!! Gibsons are even worse, well over 2 Grand for a Standard!!! It has taken the Am. Guitars out of the hands of working players. The rise of Relic Builders like Nash Guitars forced Fender to come out with a Relic under a Grand. They want every niche in the market they can get. I hate to see people lose their jobs, especially when it could have been avoided by keeping prices down and production up. Just my opinion.

You know that's a really good point... Even with the economy if they would keep prices down if folks did have some spare cash they might consider it - but as the price creeps up it harder and harder to justify. Speaking of ebay I am watching a few American's there right now just to see what they are going for...