2016 Price Increases

[gs_triumph]

I too was a remain voter but that horse has bolted...
One good thing I think can come of it is that home produced goods will become more attractively priced versus their imported (tariffed) counterparts.
People might decide to buy a UK produced custom bass over a US built example.

Edited August 3, 2016 by gs_triumph

[BigRedX]

[quote name='gs_triumph' timestamp='1470242312' post='3104438']
I too was a remain voter but that horse has bolted...
One good thing I think can come of it is that home produced goods will become more attractively priced versus their imported (tariffed) counterparts.
People might decide to buy a UK produced custom bass over a US built example.
[/quote]

Unfortunately it will only work out cheaper if all the materials and components are also UK produced. Anything that has to be imported will bump up the price.

[Prime_BASS]

At the end of the day this in-store price rise is just bad. Bad for buyers and bad for sellers, especially on an already over choked market lace where people are more likely to buy online for cheaper anyway.

Even I've ended my reign of terror at my 32ND bass. But I have brought two cars this year haha.

As I understand oil is brought in USD or at least that's the benchmark and that's actually coming down on Monday, where I read a month or so ago it was feared it'd rise to 1.50gbp per litre with in the next year

[TrevorR]

[quote name='Dad3353' timestamp='1470236842' post='3104388']
The solution is blindingly obvious, of course. If employed, either ask for (and obtain...) a pay rise, or bid for (and obtain...) a higher-paid job. Those self-employed have only to raise their tarifs by an equivalent amount. Those with fixed income just stop spending (and therefore gain with no effort at all...). What's not to like..? The majority of the British populace are apparently happy enough to accept this modest price for having taken back control again, and have even dodged the 'Blond Bombshell for PM' bullet..! It's all good, surely..?
[/quote]

Dad, "You are Norman Tebbit, I am carrying a copy of the Daily Express and I claim my £10!"

Edited August 3, 2016 by TrevorR

[stingrayPete1977]

[quote name='tauzero' timestamp='1470219400' post='3104135']


So you wouldn't blame British Gas if it put up its prices 50% because wholesale gas prices had gone up 1%?
[/quote]

We know they are scumbags so partly yes and partly anyone who voted out.

When they let murderers out of prison after 8 years when they categorically declare that they will kill the first person they see, and they do, it's fair to say the murderer is still to blame but so is the idiot that signed them out early imo.

[ivansc]

[quote name='Raymondo' timestamp='1470219858' post='3104136']
Worth a look....

[url="http://fxtop.com/en/historical-exchange-rates.php?A=1&C1=GBP&C2=EUR&YA=1&DD1=03&MM1=08&YYYY1=2006&B=1&P=&I=1&DD2=03&MM2=08&YYYY2=2016&btnOK=Go%21"]http://fxtop.com/en/...016&btnOK=Go%21[/url]



Not sure if this will work but, if you take the average exchange rates of the £/euro for the last ten years, this years average is higher than any year since 2007 apart from 2015.
[/quote]

Now do the numbers up to say Oct 2015 & then compare that with from Nov 2015 to now.
In case I hadnt made it clear earlier, my whole life is bound up in the exchange rate between Euro, USD and GBP.
I get daily updates on the going rates and can obviously see exactly where the three currencies stand in relation to each other and why.

And remember that in the last ten years we have had TWO major dips and peaks. Just because it all evens out eventually doesnt mean there isnt a world of pain in store in the meantime. Just when we thought we had survived the financial collapse in 2006/7....

Edited August 3, 2016 by ivansc

[gary mac]

We don't want or need another Brexit thread, so to avoid this one being closed down, please get it back on track.

[drTStingray]

I was predicting and expecting a 20% hike in the price of US built equipment to match the currency change - I also predict it will no longer be cheaper to buy stuff from Thomann for similar reasons in relation to the Euro.

As someone in the process of buying an American bass I'm a bit pissed off.

As for why the exchange rate bombed in the last few weeks, then I really couldn't say, with my politically correct hat, why that is....but with my real life hat on its plainly obvious to anyone other than those in denial or challenged in some way why.

I thought this was a bass guitar forum so if the populace can't have a moan about a 20% price hike of many people's favourite equipment caused by a currency crash related to a highly political event - then I'm not sure the point of such a forum!!

Next thing we won't be able to talk about Fender's QC.......

[hubrad]

[quote name='BigRedX' timestamp='1470243492' post='3104452']
Unfortunately it will only work out cheaper if all the materials and components are also UK produced. Anything that has to be imported will bump up the price.
[/quote]
Not cheaper, rather not so much more expensive.

[gary mac]

U[quote name='drTStingray' timestamp='1470256696' post='3104597']


I thought this was a bass guitar forum so if the populace can't have a moan about a 20% price hike of many people's favourite equipment caused by a currency crash related to a highly political event - then I'm not sure the point of such a forum!!

Next thing we won't be able to talk about Fender's QC.......
[/quote]

Of course the price hike can be moaned about and it has been. We know the political situation has been a major factor and that has been discussed.

[tauzero]

[quote name='stingrayPete1977' timestamp='1470249804' post='3104510']
We know they are scumbags so partly yes and partly anyone who voted out.

When they let murderers out of prison after 8 years when they categorically declare that they will kill the first person they see, and they do, it's fair to say the murderer is still to blame but so is the idiot that signed them out early imo.
[/quote]

Ah, we're getting somewhere then. I'll try and make myself clearer - Brexit and all the uncertainty about it caused a fall in the pound's value. This fall is insufficient (by a factor of two or three) to account for the entirety of a 30% price hike. Therefore, although Brexit is partly the problem, it's also being used as an excuse to profiteer.

[Trueno]

[quote name='tauzero' timestamp='1470298298' post='3104800']


Ah, we're getting somewhere then. I'll try and make myself clearer - Brexit and all the uncertainty about it caused a fall in the pound's value. This fall is insufficient (by a factor of two or three) to account for the entirety of a 30% price hike. Therefore, although Brexit is partly the problem, it's also being used as an excuse to profiteer.
[/quote]

A good summary IMO

[project_c]

[quote name='Dad3353' timestamp='1470236842' post='3104388']
The solution is blindingly obvious, of course. If employed, either ask for (and obtain...) a pay rise, or bid for (and obtain...) a higher-paid job. Those self-employed have only to raise their tarifs by an equivalent amount. Those with fixed income just stop spending (and therefore gain with no effort at all...). What's not to like..? The majority of the British populace are apparently happy enough to accept this modest price for having taken back control again, and have even dodged the 'Blond Bombshell for PM' bullet..! It's all good, surely..?
[/quote]

Wow. I hope this was sarcasm.

"Hey, if you're poor, just ask for more money! If you're hungry, just eat some food!" if only the millions of hungry people living in poverty had your brains, they'd be fine.

[Misdee]

I too have absolutely no desire to get involved in a political discussion - I'm way past saturation point with all this Brexit business - and as someone else has pointed out, that horse has already bolted.

The fact is that the pound will not be recovering to pre -Brexit levels any time in the foreseeable future, not least of all because many in the financial markets believe that sterling was grossly over-valued for most of the last 35 years. They would see the current exchange rate as a far more accurate valuation of the pound, especially in relation to the US dollar. This is significant for the price of musical equipment not just from the USA but also from the Far East, where trade with the West is usually conducted in US dollars, regardless of the final destination of the goods.

The big question is whether, in the longer term, manufacturers will have to rethink their pricing structures for the UK market. Conceivably, there may come a point where American guitars become priced out of the market in Britain and sales fall off drastically. Companies like Fender will have to make a decision whether to cut profit margins or see their sales dwindle, leaving them with 100% of nothing.

I am brassed - off myself because I've been saving for a new MM Stingray and now can't even bring myself to find out what the post- Brexit prices are. My only hope is that Sterling Ball takes pity on America's closest ally and cuts us a special deal. I am not, however holding my breath!

[Count Bassy]

[quote name='BigRedX' timestamp='1470243492' post='3104452']
Unfortunately it will only work out cheaper if all the materials and components are also UK produced. Anything that has to be imported will bump up the price.
[/quote]

Yes, but the increased cost of imported parts will encourage the manufacturer to source his components in the UK, and so the effect will trickle down. Eventually, perhaps, parts that are only manufactured in abroad my start to be made in the UK again

[hubrad]

Just had an email from D'Addario to expect rises of 7-10 percent (tbc) across all their brands, probably 1st September.
This is by no means the first such advice we've received.

[bassace]

I've just ordered a new car made in Germany. I could wait until next year but I brought it forward because I'm sure there'll be a price rise of a few K. I just hope it doesn't kick in before Sept 21 delivery.

[skankdelvar]

[quote name='Misdee' timestamp='1470308825' post='3104928']
I too have absolutely no desire to get involved in a political discussion - I'm way past saturation point with all this Brexit business - and as someone else has pointed out, that horse has already bolted.

The fact is that the pound will not be recovering to pre -Brexit levels any time in the foreseeable future, not least of all because many in the financial markets believe that sterling was grossly over-valued for most of the last 35 years. They would see the current exchange rate as a far more accurate valuation of the pound, especially in relation to the US dollar. This is significant for the price of musical equipment not just from the USA but also from the Far East, where trade with the West is usually conducted in US dollars, regardless of the final destination of the goods.

The big question is whether, in the longer term, manufacturers will have to rethink their pricing structures for the UK market. Conceivably, there may come a point where American guitars become priced out of the market in Britain and sales fall off drastically. Companies like Fender will have to make a decision whether to cut profit margins or see their sales dwindle, leaving them with 100% of nothing.

I am brassed - off myself because I've been saving for a new MM Stingray and now can't even bring myself to find out what the post- Brexit prices are. My only hope is that Sterling Ball takes pity on America's closest ally and cuts us a special deal. I am not, however holding my breath!
[/quote]

Nice analysis, Sir.

IIRC, the IMF has for some time believed that the pound is overvalued. That august body recently suggested it would be better for the British economy were sterling to fall some distance below $1.30. We may therefore anticipate further currency-related price rises over the next while.

[Happy Jack]

God, you're all so bloody negative! Why not look at the up side?

Every used, second-hand, pre-owned Fender is now worth more too.

[Musicman20]

[quote name='Misdee' timestamp='1470308825' post='3104928']
The big question is whether, in the longer term, manufacturers will have to rethink their pricing structures for the UK market. Conceivably, there may come a point where American guitars become priced out of the market in Britain and sales fall off drastically. Companies like Fender will have to make a decision whether to cut profit margins or see their sales dwindle, leaving them with 100% of nothing.

I am brassed - off myself because I've been saving for a new MM Stingray and now can't even bring myself to find out what the post- Brexit prices are. My only hope is that Sterling Ball takes pity on America's closest ally and cuts us a special deal. I am not, however holding my breath!
[/quote]

I have no idea what will happen. If everyone takes a similar line to me, e.g. 'I'm not paying more for something just because of Brexit' (which I think is a justifiable argument) then eventually, the stores will suffer, the staff will suffer, the middle men dealers will suffer, and the manufacturers will suffer. So, there are many people who will just buy anyway, but I won't.

Luckily my instruments are brilliant. I just tend to get pedals now and I wait for the right price on Amazon.

I do however think high end mass produced lines like Musicman basses WILL suffer. They have risen fairly high anyway, but further price rises will put their instruments out of reach.

A big big shame for those who are starting to experiment with new instruments.

[crez5150]

I dont see an issue I think if someone is prepared to spend 1k plus on a bass the another 5-10% aint gonna put them off

Edited August 4, 2016 by crez5150

[project_c]

[quote name='Happy Jack' timestamp='1470323103' post='3105144']
God, you're all so bloody negative! Why not look at the up side?

Every used, second-hand, pre-owned Fender is now worth more too.


[/quote]

Doesn't look like second hand prices have increased at all here on bc or eBay tbh. if anything they're dropping.

[project_c]

[quote name='crez5150' timestamp='1470323785' post='3105153']
I dont see an issue I think if someone is prepared to spend 1k plus on a bass the another 5-10% aint gonna put them off
[/quote]

I think prices will increase by more than you think.

[Jazzneck]

I trust that the gear that was already in stock in the UK on 23rd June will remain at the old price in GBP.......

Oh, I'm very naive ain't I?

Edited August 4, 2016 by Jazzneck

[crez5150]

[quote name='project_c' timestamp='1470327459' post='3105189']
I think prices will increase by more than you think.
[/quote]

Not sure... We've just had to issue a 6% increase on USA and German products and thats now fixed for a year