by geoff1711 » Sun Mar 04, 2012 6:39 pm
I have always worked in door hardware, known as architectural ironmongery, 100% mark up was always the norm, in fact for retail it was 110% and trade got a 10% discount, which probably works out to a 99% mark up.
But don't think it's ancient history, the mark up on most goods at a well known DIY chain, no names but think of orange buckets and a 10% discount to old gits (I'm one of those) on Wednesday, as I say the mark up on many goods would make your eyes water.
But it's not only guitars which have devalued, in 1964 a set of brass Georgian style lever handles would have cost you £20 a set, even contract range levers would only have been around a pound, but these days you can pick up brass Georgian levers for well under £20 and contract levers now £2 or £3 a set, not at the orange bucket company of course.
In the 90's I worked for probably the premier ironmonger, you'll see our levers all over most UK airports, a certain address in Vauxhall, nice building with green windows, the old intenational terminal at Waterloo, and at that time a set of stainless steel levers would have cost around £50.00 a set, but now, thanks to all those high quality Chinese imports (yeah right) you're lucky to get a 1/5 of that.
And in fact the BRITISH manufacturer I work for sell our basic door closer to the trade for around the same price as a similar but well known brand had at it's full list price when launched around 1964, but our sales are slaughtered by Chinese imports, which we know, do not have full CE certification, or tell porkies about it, but under cut us by 50%
The point of this, we should consider ourselves very lucky that the quality of our entry and mid range instruments have improved so much, and the price dropped so far because it certainly bucks the trend.
The losers? the local music shops who, I would think, struggle to make a reasonable living, with slow moving products like an electric guitar or amplifier, I would think, you need a 100% mark up to cover those which don't sell, those which get damaged or stolen, and even the length of time even the fast movers hang on the wall.
But then like everybody I always look for the bargain.
In fact given that so many things are much cheaper, wages and even the state pension higher in real terms than back in the 60's, why are we so much poorer??? perhaps we all just want much more, 1 guitar used to be enough, I bet there's not many of our number with only 1 guitar these days.
Geoff