What is going on with Ibanez pricing? - Jemsite
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post #1 of 33 (permalink) Old 05-05-2011, 05:27 PM Thread Starter
 
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Angry What is going on with Ibanez pricing?

There was a conversation going on in another thread recently about the RG1570 being an overall value leader in the prestige line, which got me thinking about it. I happened to pull up the 2011 ibanez pricelist for the first time today and noticed the list price as it stands now and I just about fell out of my chair.

Going back over the last few years of history, comparing Ibanez's US catalog "list price" (apples to apples), the RG1570 list pricing looks like this:
2007 - $1,000
2008 - $1,200 (20% increase)
2009 (summer) - $1,333 (11% increase)
2010 - $1,333
2011 - $1,479 (11% increase)

Compared to 2007, we've had an overall price increase of 48%!!!!! Say WHAT?!

I don't know about you guys, but I sure as hell haven't had a 48% increase in salary over the last 4 years. Nowhere even close to that. (And I have a career in the oil industry).

And this is just one example, one model from Ibanez's lineup. I'm sure we could draw on similar examples.

What the heck justifies such HUGE jumps in Ibanez's pricing over the last 4 years? Have their operating expenses really increased that much to justify it? Do they think they are that much more upmarket that they can just charge whatever and we will keep buying their guitars up?
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post #2 of 33 (permalink) Old 05-05-2011, 05:30 PM
 
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Re: What is going on with Ibanez pricing?

I think everything has gone up in price drastically, at least it has done where I live.
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post #3 of 33 (permalink) Old 05-05-2011, 05:30 PM
 
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Re: What is going on with Ibanez pricing?

The reason is the dollar is getting weaker vs the yen and most all other currencies so we will get less for our dollars and they will charge more til the dollar gets stronger or they find ways to make them cheaper.
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post #4 of 33 (permalink) Old 05-05-2011, 05:33 PM Thread Starter
 
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Re: What is going on with Ibanez pricing?

Interestingly, I decided to check the JS1200CA for a comparison. In that same time period (2007-2011) its only gone up 20%. ($2400 now, vs. $2000 in 2007. List vs. list).

BTW, the US$ vs Yen argument would suggest that pricing has not gone up as sharply in Japan. Is that in fact true? I have no knowledge of the Ibanez pricing within the Japan market over the same time period.

Also the value of our CDN$ has improved significantly over the US$ in the last 4 years and I don't think Ibanez's CDN$ list pricing reflects that.
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post #5 of 33 (permalink) Old 05-05-2011, 05:35 PM
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Re: What is going on with Ibanez pricing?

They raised the List pricing on the 1000 series but held MAP as a fixed, it's the same as last year.
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post #6 of 33 (permalink) Old 05-05-2011, 05:37 PM Thread Starter
 
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Re: What is going on with Ibanez pricing?

What's MAP?
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post #7 of 33 (permalink) Old 05-05-2011, 05:37 PM
 
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Re: What is going on with Ibanez pricing?

Quote:
Originally Posted by corpraider69 View Post
The reason is the dollar is getting weaker vs the yen and most all other currencies so we will get less for our dollars and they will charge more til the dollar gets stronger or they find ways to make them cheaper.
Nope.. That can't be it b/c it make too much sense...

or perhaps ..


I think they are trying to put a higher premium on their Prestige line to be more in line with the PRS's, Gibsons and USA strats in that space...
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post #8 of 33 (permalink) Old 05-05-2011, 05:38 PM
 
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Re: What is going on with Ibanez pricing?

I just assume everybody is from the US my bad. Yes the canadian dollar has been much stronger.
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post #9 of 33 (permalink) Old 05-05-2011, 05:45 PM
 
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Re: What is going on with Ibanez pricing?

Quote:
Originally Posted by Inzane View Post
What's MAP?
Minimum Advertised Pricing or something like that.
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post #10 of 33 (permalink) Old 05-05-2011, 05:48 PM
 
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Re: What is going on with Ibanez pricing?

I think they are trying to put a higher premium on their Prestige line to be more in line with the PRS's, Gibsons and USA strats in that space...[/QUOTE]


Wow like the if $50 haircut is good $100 one must be better.The higher price snob pricing system I hate that. Makes older used 550,560,570,565,750,760,770 look like the ultimate bargains even more then ever.Im fine with buying all older used guitars and never buying a new ibby ever again if thats there new pricing strategy.Cause now that a new RG1570
is gonna list for 2011 - $1,479 (11% increase) is must be like closer to a Suhr or a Jackson Custom shop Soloist.Just cause they raised the price.Ughhh!!!
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post #11 of 33 (permalink) Old 05-05-2011, 05:51 PM Thread Starter
 
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Re: What is going on with Ibanez pricing?

Well, curiosity got the better of me and I looked up historical exchange rates.

In 2007 1 USD = ~ 120 Yen.
In 2011 1 USD = ~ 80 Yen.

A price increase to $1,479 from $1,000 actually does correlate very well to the US vs. Yen exchange rate.

Huh. Thanks. And that really sucks. The recession.... real estate values in north america dropping over the last few years... salaries frozen or reduced... and yet pricing driven higher by external market forces.

Aww, to be living in 2007 again.
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post #12 of 33 (permalink) Old 05-05-2011, 05:58 PM
 
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Re: What is going on with Ibanez pricing?

The dollar and the yen are diverging. The Yen's value was going up while the dollar was going in the crapper. Ibanez, or Hoshino rather, wants to make money as a whole. If their sales tank in the US they'll try to squeeze more out of another market; Canada for example. That's my theory anyway.
Also, the yen argument shouldn't apply to the Indo's but prices have gone up on them here and there, probably to make up for losses on, say, the 1000 series RG's. I was shocked when the ICT700 went up $100 street in one year. Why did this happen? I'm betting because Ibanez can charge this price and get you to pay it - which is the second part of this issue.
I'm betting they're squeezed on some of the midrange models like the RG1570, which is why it's now made an appearance in the Premium line as the RG870; or a cousin of the 1570 anyway.
At the end of the day Ibanez will charge what they can get.
This is why you should hope the $900 Charvel So Cal with real Dimarzios can eat Ibanez's lunch. Good competition = pricing pressure downward.
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post #13 of 33 (permalink) Old 05-05-2011, 06:03 PM Thread Starter
 
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Re: What is going on with Ibanez pricing?

So in 2007 when I first joined the Ibanez fray, I bought an RG20th (RFR). That guitar had a "list" price of $1200 at that time (and a street price of $900).

If that exact guitar was released now, I guess it would be listed in the $1700-1800 range. Does that sound about right?

That's kind of making the JS line sound like a BARGAIN right now, on a relative basis.
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post #14 of 33 (permalink) Old 05-05-2011, 06:09 PM
 
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Re: What is going on with Ibanez pricing?

Really they could atleast put some real Dimazios in the Rg1570 as an excuse or atleast to have some kinda justification for the big price rise.Maybe they could charge the same and just make the guitar smaller like they do with ice cream conatainer at the grocery store.Or leave parts off like you get 1 pickup a big empy slot for the neck pickup and some missing knobs.Hows that for the suggestion box Ibanez??
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post #15 of 33 (permalink) Old 05-05-2011, 06:19 PM
 
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Re: What is going on with Ibanez pricing?

If you think that's bad, just look at gas prices!!! They have had a much larger price jump in terms of %.
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