New O Prices
Tommy M.
Posted 2006-01-27 7:49 AM (#267743)
Subject: New O Prices


Joined:
January 2004
Posts: 627

Location: Cherry Hill, NJ
Having received the latest Musicians Friend catalog, I noticed an increase in pricing of the LX offerings. Aparently, consumers must be noticing the quality and sound of the LX line, and Ovation is betting that they'll pay a little more for the quality. They still are quite a bargain IMHO, especially when the next page of the catalog shows low end Taylors for $1800. Just thumbing through the catalog, I got to wonder how these makers come up with prices.
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alpep
Posted 2006-01-27 8:58 AM (#267744 - in reply to #267743)
Subject: Re: New O Prices


Joined:
December 2001
Posts: 10582

Location: NJ
probably the same way you figured out how much you charged for a meal in your restaurant.
you figure in cost of the materials, labor, rent, utilities, the reputation of your restaurant and chef, the competition, and a fair profit.
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dmkozak
Posted 2006-01-27 9:06 AM (#267745 - in reply to #267743)
Subject: Re: New O Prices


Joined:
April 2004
Posts: 234

Location: Phoenix, AZ
Just because MF is charging more doesn't necessarily mean the Factory has raised wholesale prices. It may just mean MF is charging more, maybe because, as you've noted, demand for the LX's may have increased.

I have noticed many i-net retailers who note their discount from MSRP reducing their discount. Where many gave 25-30% discounts, they're now giving 15-20% discounts.

I spoke with one retailer who said as Gibson raises prices, which they have regularly done in the past few years, Fender follows suit, which they, also, have done regularly in the past few years. The retailer told me they're now selling fewer Gibsons and USA Fenders, and now selling more less expensive makes and imports than ever before.

Just be glad we have Al.
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moody, p.i.
Posted 2006-01-27 9:11 AM (#267746 - in reply to #267743)
Subject: Re: New O Prices


Joined:
March 2002
Posts: 15664

Location: SoCal
On the stuff I looked at in the '06 Ovation price list, prices were raised.....
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cliff
Posted 2006-01-27 9:19 AM (#267747 - in reply to #267743)
Subject: Re: New O Prices


Joined:
March 2002
Posts: 14842

Location: NJ
They gotta pay for all that stock they bought this year . . . :D
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dmkozak
Posted 2006-01-27 9:34 AM (#267748 - in reply to #267743)
Subject: Re: New O Prices


Joined:
April 2004
Posts: 234

Location: Phoenix, AZ
Originally posted by moody, p.i.:
On the stuff I looked at in the '06 Ovation price list, prices were raised.....
You mean at NAMM? Because the web site still shows the 2005 price list.

BTW, on another forum (I know, shame on me), someone noted he just ordered something from MF and asked them to match another i-net price. They gladly did so, and the sales person "hinted" MF has increased some prices because a lot of people don't price shop. If they do, MF will gladly match other prices. The burden has shifted from MF always being the lowest price to the consumer now having to ask for the lowest published price.
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cliff
Posted 2006-01-27 9:39 AM (#267749 - in reply to #267743)
Subject: Re: New O Prices


Joined:
March 2002
Posts: 14842

Location: NJ
It's all Moody's fault for saying that they don't charge enough . . .


The prices'll HAVE to go up . . . labor costs, employee benefits, insurance, etc., . . . not to mention the cost/availabilities of good wood.

I'd imagine EVERYONE'S prices've gone up . . .
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Tommy M.
Posted 2006-01-27 9:41 AM (#267750 - in reply to #267743)
Subject: Re: New O Prices


Joined:
January 2004
Posts: 627

Location: Cherry Hill, NJ
you figure in cost of the materials, labor, rent, utilities, the reputation of your restaurant and chef, the competition, and a fair profit.
Al, from a business point, you're absolutely correct. My reference was to some of the wild variations in guitars build with the same materials. Yes, I know about import priced guitars, but some pricing is extreme, at both ends.
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dmkozak
Posted 2006-01-27 10:02 AM (#267751 - in reply to #267743)
Subject: Re: New O Prices


Joined:
April 2004
Posts: 234

Location: Phoenix, AZ
I'd imagine EVERYONE'S prices've gone up . . .
How can that be? The government tells me inflation is negligible!
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Standingovation
Posted 2006-01-27 10:57 AM (#267752 - in reply to #267743)
Subject: Re: New O Prices



Joined:
June 2002
Posts: 6197

Location: Phoenix AZ
Europe is not immune from price increases either. Last I checked the ladies in Amsterdam had raised their prices from 25 Euro per 15 minutes to 30 Euros. Dave

PS - Sadly, there's no partial refund if you only use, oh I don't know, maybe 3 minutes ...
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Old Applause Owner
Posted 2006-01-27 11:36 AM (#267753 - in reply to #267743)
Subject: Re: New O Prices


Joined:
July 2003
Posts: 1922

Location: Canton (Detroit), MI
I had noticed that my local Guitar Center had raised their prices on their Os , roughly $75 to $100, since Christmas.

They just got in a new 1773LX, priced at $1499.

Roger
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Weaser P
Posted 2006-01-27 11:40 AM (#267754 - in reply to #267743)
Subject: Re: New O Prices


Joined:
October 2005
Posts: 5329

Location: Cicero, NY
I think Cliff already mentioned the "shortage of good wood" issue, Dave...
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Erniewan
Posted 2006-01-27 1:42 PM (#267755 - in reply to #267743)
Subject: Re: New O Prices


Joined:
June 2004
Posts: 375

Location: Rocky River, Ohio
similar price increases for Gibson electrics...

some guitars like ESP have gone up even higher in the last year.

ovation is still a steal for what you get.
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Slipkid
Posted 2006-01-27 2:16 PM (#267756 - in reply to #267743)
Subject: Re: New O Prices



Joined:
September 2003
Posts: 9301

Location: south east Michigan
ernie....sshhhh.. ex-nay on the eal-sta talk.
They might read this.
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ignimbyte
Posted 2006-01-28 3:16 AM (#267757 - in reply to #267743)
Subject: Re: New O Prices


Joined:
July 2004
Posts: 812

Location: Hicksville, NY
Retailers (especially the big box ones) claim that they will beat their competitor's prices. Does that include price quotes e-mailed by the competition?

In the past, I've used catalog prices from MF and Music 123, and retailers such as SA and GC have always beat them by between 5 to 20%.

As for the Ovation price increases ... well, it's bound to happen, for it has remain unchanged for the past 2 1/2 years I'd been receiving the MF catalog in the mail.
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Jeff W.
Posted 2006-01-28 7:07 AM (#267758 - in reply to #267743)
Subject: Re: New O Prices


Joined:
November 2003
Posts: 11039

Location: Earth·SolarSystem·LocalInterstellarCloud·Local Bub
Stamps went up to.
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willard
Posted 2006-01-28 8:42 AM (#267759 - in reply to #267743)
Subject: Re: New O Prices


Joined:
November 2002
Posts: 1300

Location: Madison, Wisconsin
Resin prices have also increased dramatically this past year which accounts for maybe 65% of Ovations.
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Prairie Dog
Posted 2006-01-28 9:58 AM (#267760 - in reply to #267743)
Subject: Re: New O Prices


Joined:
July 2005
Posts: 150

Location: Las Vegas, Nevada
Looks like no one has stated that there is a new Ovation Prices and Specifications booklet that is dated "effective January 1, 2006". Nice combination catalog with list prices and specs. Ovation has not yet posted the price changes on the website. After a quick review, it looks like Kaman has had about a 10% across-the-board price increase on the retail list prices and you can be sure that dealer costs have also changed, so it's logical that retailers have updated pricing. As with any other consumer goods, prices change for any number of reasons; increased costs of raw materials, salaries, and don't forget that transportation costs have gone up--new rates from UPS and FedEx, not to mention other freight carriers because of the petroleum prices rising. (The company I work for manages a dozen lines of high-end pro audio products, some domestic and some from Europe--exchange rates for currency have a huge effect on prices both ways, foreign and domestic and it's a constant task to keep pricing correct not only from a profit standpoint, but also to keep it realistic so customers will buy). If the goods, for example you are selling in the US come from Europe and we in the US import them paying for them in EUROS, it's a challenge as the exchange rates have not been in our favor the past few years. The real reason, most likely, that Ovation prices have changed in stores and internet seller's sites is simply that the factory had a price change. By the way, it does not appear that some of us know that Musician's Friend is the internet division of Guitar Center and they really don't compete with each other for obvious reasons. Musician's Friend used to have retail stores, but when they joined the Guitar Center fold, the stores either closed or became Guitar Center locations like our store in Las Vegas at Tropicana and Pecos. For a long time, they had both names on the Marquee sign at the shopping center where it is located. It's common sense regarding a retailer's business to "work with a customer" and try to make the sale, thus price matches and whatever it takes to make us reach for our billfolds and walk out the door with a product. In my past, I have not only managed retail music stores for independent companies, but also have worked for huge chains so this is familiar ground for me. I have worked for a couple of the "big box" music retailers often discussed in the forum. It does look like consumers are becoming a little more aware of Ovation guitars and the value they represent. I have watched used prices in stores here in Las Vegas and for that matter around the country, as well as on eBay, go up a little lately as more consumers are willing to pay a little more, so guess that is good and bad at the same time.
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dmkozak
Posted 2006-01-28 10:15 AM (#267761 - in reply to #267743)
Subject: Re: New O Prices


Joined:
April 2004
Posts: 234

Location: Phoenix, AZ
Originally posted by Prairie Dog:
By the way, it does not appear that some of us know that Musician's Friend is the internet division of Guitar Center and they really don't compete with each other for obvious reasons. Musician's Friend used to have retail stores, but when they joined the Guitar Center fold, the stores either closed or became Guitar Center locations like our store in Las Vegas at Tropicana and Pecos. For a long time, they had both names on the Marquee sign at the shopping center where it is located.
Just a slight "technical" correctin. MF is NOT the i-net division of GC. Yes, MF was a primarily i-net retailer with local stores around the U.S. They attempted to compete with GC by using an i-net to launch brick and mortar stores in certain select states (so the state sales taxes the i-net seller would have to charge buyers in those states wouldn't have much of an impact on the i-net sales). Then, GC acquired MF, but did not merge it into GC. MF remains a separate wholly-owned subsidiary of GC. It is not GC's i-net division. It was acquired to give GC the ability to make i-net sales without negatively affecting local GC sales. Yes, GC will match the MF price. But, GC will also match all the other posted i-net prices as well.
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Englishplayer
Posted 2006-01-28 11:21 AM (#267762 - in reply to #267743)
Subject: Re: New O Prices


Joined:
August 2003
Posts: 396

Yes, I believe Dmkozak is correct. This explains why when you buy from MF you do not pay state income taxes in states with GC stores.

As for the price increase, Research and development, rising prices for parts, paying American based workers all lead to an increase. The higher the prices go, the less the bargain. I bought an 1861 Balladeer a few years back for $699 from MF. Good bargain, I still believe, and I have no inclination to sell it. I believe they have it now for $829. If I didn't own it would I buy it at this price? Probably not. I bought my lx elite through MF for 959.00, they gave me an extra fifty off because of a past screw-up. Great value and worth the price. It's now $1250.00 (or 1225.00). Would I buy it at this price? Probably not, at least not automatically, and I'd be checking out the competition to a much higher degree. It's not that the guitars aren't good, nor is it a matter of what the guitars are worth. It's just that the "bargain" value may have left the building.
I was considering buying the new "cat's eye" Adamas as my next purchase. The new prices really took that out of my ballpark. When I'm ready I'll contact Al and see what he can do on pricing, but even at 40% off its list price I'm not sure if I can swing it. The new Koa collector at 1999.00?? Wasn't last year's at $1300-1400? I thought the previous year's collector was good but not all that amazing for the price. I'll hold judgement on the Koa collector until I play one. I'm an Ovation fan, so I don't need to be convinced about quality of the instruments. I wonder how the non-Ovation fans are to be convinced as the bargain value decreases by rising prices.
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45flint
Posted 2006-01-28 1:16 PM (#267763 - in reply to #267743)
Subject: Re: New O Prices


Joined:
March 2003
Posts: 555

Location: Wooster, Ohio
When looking at price increases it is interesting to see what an old ovation would cost given inflation. I found a inflation adjustor on google and the 1987 Collectors I purchase used had a store tag in the case of $1465. In 2005 prices that is equal to $2500. If they had to charge that today I think they would have a hard time selling them. Todays prices don't seem as bad by comparison.
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leftovertion
Posted 2006-01-28 4:51 PM (#267764 - in reply to #267743)
Subject: Re: New O Prices


Joined:
July 2004
Posts: 338

Location: Omaha
When you adjust for inflation, this is true of almost every American made guitar (that was around 25-35-45 years ago and is still sold today), not to mention cars, gas, most foods (much cheaper today) and other manufactured goods...

...we live in an era when we have LOTS MORE disposable income (in spite of things like health insurance, higher taxes, etc.), why else would the average (non-pro/gigging) guitarist have MANY MORE instruments than his contemporary did 25-35-45 years ago...

...oh, yeah, it's that Musician's Friend Credit Card...

:D
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