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how is it that people with no jobs, during a time when we have the worst inflation in 40 years, are buying more of EVERYTHING than ever before? how is it that we suddenly forgot, pretty much over night - how to ship items around the country? fender claims to be selling more than ever before, and yet they also have a major price increase. i won't be lining anyone's pockets to buy anything other than strings until all this shakes out. there's a major scam going on with all this.

do any of you smoke, or did you ever? did you notice that when you know you can't smoke later, you'll smoke more when you can? that's what is happening right now. they are artificially choking supply to induce panic buying. i'm not going to play along, and neither should you
 

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Thankfully for me the only guitar on my radar is a Strat that L&M has in stock used. I don't have anything new in sight at all at this point.
 

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Well, every factory we deal with is heavily delayed. They cite raw material shortages, and shipping delays getting their materials. Their costs are going up and demand exceeds production capacity, so they're raising their prices. Many are in areas where they have the same COVID-related issues we do, causing them to operate on a slightly reduced capacity.

Shipping is taking 2-3X as long as it used to and also costs up to 10X as much, depending on the method and origin, so that factors into the price increases. Insurance is increasing a lot.

Rent for small warehouse space has increased significantly due to the high demand. Many home-based internet businesses BOOMED when the pandemic hit, and they are all flooding into the commercial small warehouse spaces.

Look up "The Great Resignation". People are leaving low wage jobs in droves, in search of something "better". Businesses can't hire/keep low skill/low wage workers right now. Not to mention, anytime people have the sniffles they aren't allowed to go to work. Specifically to Fender, they are in California, which has some of the most strict COVID regulations in the US. I imagine that also has an impact. I'm stuck at home today because my daughter has the sniffles. That reduces Next Gen's capacity by 50-60% (yes, I count as 2-3 ppl because I'm that awesome 😜). I've got two young kids, so this happens a lot.

As a side note, and somewhat related, China has introduced new environmental regulations that have a significant impact on their manufacturing sector. I received word months ago from a factory we deal with that their production capacity will be at roughly 50% during certain times of the year due to the new regulations.

There are a ton of other examples I can give. Also, all these issues are getting worse, not better. We're not Fender. Not even close... But, we're seeing massive delays, significantly increased costs, and reduction of work capacity during an increase in demand. Scale works both ways. You know the saying, more money more problems. They have all the same problems, just with many more $zeros behind them.

I've asked the same question as you... Where are people getting the money for all this purchasing? Turns out, gov checks, savings, and increased debt. A lot of increased debt.

The next 5 years will be very interesting.
 

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I've got a couple more guitars on my radar as I prepare for retirement in the next 5 or 6 years. A les paul and a strat or strat like guitar. I'm not in a hurry so I'll wait till all this craziness ends. If it never happens I'm content going in to retirement with what I have.
 

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how is it that people with no jobs, during a time when we have the worst inflation in 40 years, are buying more of EVERYTHING than ever before? how is it that we suddenly forgot, pretty much over night - how to ship items around the country? fender claims to be selling more than ever before, and yet they also have a major price increase. i won't be lining anyone's pockets to buy anything other than strings until all this shakes out. there's a major scam going on with all this.

do any of you smoke, or did you ever? did you notice that when you know you can't smoke later, you'll smoke more when you can? that's what is happening right now. they are artificially choking supply to induce panic buying. i'm not going to play along, and neither should you
This whole pandemic is a freaking scam! Trying to scare, manipulate and break the people! “Go get your vaccines and you can what you’ve always been able to do if not you can’t do anything” destroying our economy like people in my lifetime have never saw before!
 

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We tend to forget that "raw materials" don't harvest, package, and ship themselves. Even if Fender's employee attendance in its various facilities was 100%, somebody had to go into theforest and cut the trees. Somebody had to trim and saw them. Somebody had to drive he lumber to Fender's wood-prep facilities. Somebody had to make the plastic usedfor Strat pickup covers. Somebody had to operate the facility where trem blocks are cast.

There are a lot of building blocks that allow things we see hanging in the store with a price tag to come into being. A labour shortage in any one of them gums up the works. It won't necessarily stop production, but it will slow it down. Witness the current reduced car manufacturing because of a chip shortage.
 

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Supply chain issues are EVERYWHERE. And it is a chain. If one link breaks, then there are issues down the line. Go and try to find a new car in the States. The semi-conductor shortage means that some lots have no cars to sell.

It's simple supply and demand. Inflation is up big time around the world because people want stuff, and there is less of it due to the supply chain. I wouldn't be shocked if the atmospheric river event cutting the port of Vancouver off from the rest of Canada impacted things quite a bit.

And yes, demand has increased. People who are sitting at home think "hey, maybe I should learn guitar." Take the commute out of the equation for those working from home, and you have more disposable income and more time. Less going out to shop means more income and more time. And so it goes.
 

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buy used, folks.
Bigger 'scam' than buying new right now! :( I see artificially inflated prices like I've never seen before. There used to be the odd listings out to lunch. With what I'm seeing throughout much of the used market, I'd rather buy new. You're saving minimal, or paying even less because some local seller has determined his used gear is 'rare' now.
 

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Bigger 'scam' than buying new right now! :( I see artificially inflated prices like I've never seen before. There used to be the odd listings out to lunch. With what I'm seeing throughout much of the used market, I'd rather buy new. You're saving minimal, or paying even less because some local seller has determined his used gear is 'rare' now.
"asking" prices.
 
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When I see a ridiculously high asking price I don't even want to engage in any negotiation with that seller.
then they aren't too motivated to sell i guess... lots of fish in the sea.
 

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We have 40 job openings in the midwest USA, white collar jobs, we are having a hard time filling. People's expectations are apparently ridiculous. And some of them must be getting what they're after - we were just raided by a competitor, who took back people we raided from them in the first place, paying huge dough to take them back. Just more inflation, it's in everything.
 

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If the pricing is too high on a used item, I just think "oh well" and move along. I don't see used pricing as a scam, just opportunists see an advantage. Like anything....if it's higher than you want to pay, go find one elsewhere. pay the high price, or wait until you can get one you find priced within your expectancy.
 

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There is someone in Ottawa that has been trying to sell an old Hamer Slammer superstrat for years at the same price: $420. Nowadays, they might get it.
 

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I think Jon nailed it with his post, it's only going to get worse. "Interesting" in the next five years might be a euphemism for crappy times coming. I personally think the good times are in the past for now and won't be back until at least the later part of the 2020s. Fender is just caught in the same thing many companies are in already, though guaranteed there's some extra panic hype with an announcement like that.

What many don't realize is we're in a silent war w/ China, and not just a trade war. Along with the recent twisted economic policies of governments, it's a perfect storm for some rough times ahead.
 
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