Price Increases on PRS Custom 24?

JRod4928

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I bought my PRS new in 2013, and if I recall the prices were around 2500-3000 for a USA Custom 24. Now it seems the price has jumped up to 3500-4000 for a new USA Cu24? When did this happen and can someone explain why?

Was it because the introduction of the SE, S2, and CE models provided a more affordable price point that was too close to the old USA Cu22/24 prices, so they inflated the USA Cu22/24 prices to create more of a gap (and make more money)? Or did something else change in the USA Cu designs to justify this increase?

Infact, a few years ago I remember Guitar Center blowing out all of their old PRS USA Cu's, Modern Eagle, etc, at a fraction of the normal prices. Was this intentional to 'reset' the PRS inventory so they could flood in with these new models at new price points?

….I'm not complaining, because I think my Cu24 may have appreciated in value (not that I plan on selling it anyway). But just curious when/why this happened.
 
Lots of stuff can cause price increases and decreases. Material sources, taxes, overhead, shipping rates, utilities, and just general inflation are all commonplace in any business, and rarely do we see prices go back down significantly. Although, I think there was a thread somewhere that looked at pricing back in the 90's, compared it to what they are now, factored in inflation, and it showed that they were considerably more expensive back then than they are now...so who knows.

FWIW, I bought my 2012 Custom 24 new and, like yours, was considerably less than what they go for now.

On the other hand - not relating to guitars - video games seem to be impervious to price hikes, which blows me away considering how much goes into them these days. I mean, back in the early 90's a home console game would be designed and composed by a team of maybe 10 or 12 people who did everything in terms of programing, writing and design and go for $60 at retail price - the same price as they do now. However, games are made on massively larger budgets, huge-scale teams, famous actors, directors and writers, huge score composers and high-profile musicians...it just blows me away that they still go for the same price they did thirty years ago. Of course there are many other means to compensate and make up for that cost with microtransactions and memberships...but it still blows me away that the game itself hasn't gone up in price, compared to what goes into them these days.
 
S2 line was released in 2013. Guitar Center was blowing out PRS's in 2014-15. CE line released in 2016. Not sure when the USA Cu models price jumped... just laying out timeline for my logic that they intentionally reset the PRS price market

You're right though, could be due to many factors. I also heard recently Mahogany and Rosewood prices are increasing due to scarcity and environmental regulations - obviously that would affect nearly every PRS model. Inflation is legit too. 3% a year since we bought our guitars would get us to about 3500. However, other guitar manufacturers don't seem to have followed this trend. Wondering what else could be in play?
 
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Also consider that well-maintained vintage Cu22s/24s also have increased in value. It's like owning a classic car with all original parts that has been lovingly cared for. Alterations and modifications devalue original instruments. Ever consider selling a well-maintained vintage piece for less than its worth? What smart businessman would do that?

It's unlikely that vintage owners would consider selling their well-maintained gear, considering that the pieces they owned might be viewed as collectible.

Cu22/24 prices indeed have seen inflation and increasing costs of production materials. Factor in increasing transportation costs and improved technology to build, and there you are. It's not as easy to build better guitars when your technology is outdated, yes? This is why innovators keep designing and updating their technology so as to meet the needs of a growing demand for better quality products.

The caveat is, once you've created this technology you can use it only for only so long a time before the cost of the improved technology doesn't make a return on your sales profits. The problem is when the builder over prices a product because its new price far outweighs the justification for the increased cost to build.

It's actually a fine balancing act, between knowing how much one can charge (thinking there is a market for your product) and overestimating how much customer can or will pay for your product over lower cost alternatives, which may drive the market on your lower cost product line. The challenge occurs as customers desire better quality and realize they can only obtain that with higher priced product.
 
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Also consider that well-maintained vintage Cu22s/24s also have increased in value. It's like owning a classic car with all original parts that has been lovingly cared for. Alterations and modifications devalue original instruments. Ever consider selling a well-maintained vintage piece for less than its worth? What smart businessman would do that?

It's unlikely that vintage owners would consider selling their well-maintained gear, considering that the pieces they owned might be viewed as collectible.

Cu22/24 prices indeed have seen inflation and increasing costs of production materials. Factor in increasing transportation costs and improved technology to build, and there you are. It's not as easy to build better guitars when your technology is outdated, yes? This is why innovators keep designing and updating their technology so as to meet the needs of a growing demand for better quality products.

The caveat is, once you've created this technology you can use it only for only so long a time before the cost of the improved technology doesn't make a return on your sales profits. The problem is when the builder over prices a product because its new price far outweighs the justification for the increased cost to build.

It's actually a fine balancing act, between knowing how much one can charge (thinking there is a market for your product) and overestimating how much customer can or will pay for your product over lower cost alternatives, which may drive the market on your lower cost product line. The challenge occurs as customers desire better quality and realize they can only obtain that with higher priced product.

You bring up a very good point, as well....one that I wanted (but forgot) to mention. Often times, if a business wants to expand - which means more resources and personnel committed to R&D - it's no doubt your costs will also go way up. So, as a business, you have to figure where those margins can be compensated, which often times means price increases to your main product line. PRS has quite a large product line today compared to what they had ten years ago. A larger bevy of SE's, the S2 Line, and new Artist Endorsed models undoubtedly commanded a higher cost.

Factor in all that with the previously mentioned talking points, and it's actually pretty surprising (to me) that they aren't much more expensive than they are - considering the price-point ten years ago, versus today. To me, this speaks quite well for the marketing and management team at PRS for being able to grow like they have all while keeping the price-point where it is for all of their models and product lines, all while maintaining a respectable quality threshold.
 
You bring up a very good point, as well....one that I wanted (but forgot) to mention. Often times, if a business wants to expand - which means more resources and personnel committed to R&D - it's no doubt your costs will also go way up. So, as a business, you have to figure where those margins can be compensated, which often times means price increases to your main product line. PRS has quite a large product line today compared to what they had ten years ago. A larger bevy of SE's, the S2 Line, and new Artist Endorsed models undoubtedly commanded a higher cost.

Factor in all that with the previously mentioned talking points, and it's actually pretty surprising (to me) that they aren't much more expensive than they are - considering the price-point ten years ago, versus today. To me, this speaks quite well for the marketing and management team at PRS for being able to grow like they have all while keeping the price-point where it is for all of their models and product lines, all while maintaining a respectable quality threshold.

Yup. My feeling is that we get caught up either way...either we don't understand the logic and are left out in the cold, or we do, and we realize we've been "suckered" into paying more for the improved technology and the product that is the result of the technology. It is an exercise in futility on the part of the consumers, and a game that businesses must play in order to remain competitive.

We really have no choice in the matter...businesses always try to maintain an edge on their competition by trying various legal tricks (the same way a football team uses special teams and trick plays) so that their product is still marketable, even though the higher prices are passed along to consumers with the higher quality.

IMO, when a business wishes to expand, it typically acquires a 3rd party entity from which already established products can be built (e.g. Gibson acquiring Mesa). Sometimes these acquisitions can be profitable, if they're well-managed. Other times, they become unprofitable and the acquisition is divested and sold. Unless a business can expand its products lines without acquiring outside entities that could foreseeably cause division among a stronger business, it would make more sense if the business could do better working within itself and develop better technology and products as the parent company.

Perhaps that's what makes this such an interesting and intriguing discussion point...why do we pay more for higher quality gear if the technology designed to make it will only be obsolete once new technology is created? Perhaps that's why the SE and S2 products are part of the PRS line...so as to assist funding R&D and make PRS a sustainable business into the future...o_O
 
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Perhaps that's what makes this such an interesting and intriguing discussion point...why do we pay more for higher quality gear if the technology designed to make it will only be obsolete once new technology is created? Perhaps that's why the SE and S2 products are part of the PRS line...so as to assist funding R&D and make PRS a sustainable business into the future...o_O

This is exactly what I was thinking. Creates a new revenue stream outside of the USA Custom flagship model that can be poured into R&D. I'm glad that PRS operates this way - pouring back into their products to make them even better. It also creates FOMO for those of us who already have a PRS's and want to get the 'latest' technology … now where's my checkbook....
 
This is exactly what I was thinking. Creates a new revenue stream outside of the USA Custom flagship model that can be poured into R&D. I'm glad that PRS operates this way - pouring back into their products to make them even better. It also creates FOMO for those of us who already have a PRS's and want to get the 'latest' technology … now where's my checkbook....

From a good business viewpoint the concept works correctly. Rather than describe it as FOMO, I prefer to call it "cultured musicians" who prefer PRS because of the attention to detail, the quality workmanship, etc.

Regards fear of missing out, the media uses that ploy whenever we step away from watching TV or using the internet for a time. Because we can be tracked easily online, "big brother" knows when we're both on or offline. Perhaps much of this has to do with insuring a healthy economy, so media caters to our interests so we keep buying stuff we may want, but not need.

Note to self - Grocery list: Bread for toast, eggs, butter, jam, and spam. (Back to our regularly scheduled fun and games.)

Have to say that this year started off better financially for me than last year, and if calculations serve me well, it might be possible to check out a McCarty SC S2 594 sometime soon. Depending on whether the "legs and toes" are up to it, it might be worth investing in. You might see a nice PRS S2 SC Antique White in excellent condition make its way back into someone else's hands and a satisfied customer receiving a good deal.
 
I work in the optical business. Since 2013, the price of quality goods has risen about 25% to buy. You can always get cheap crap to compensate, but what ultimately happens to any business that diminishes their quality? People need to be paid a living wage, benefits costs are increasing, so prices have to increase, or you get to follow Brooks Brothers and close your doors.
 
Someone will eventually get out the torches-and-pitchforks Frankenstein movie meme.

I don't recall prices being as low in 2013 as the OP does. The last time I recall seeing prices that low (except for big sales events) was during the 2008 recession. But my memory could be wrong.

PRS has done some things recently that sure make the guitars sound improved, including the TCI pickups, the nitro finishes, and many other tweaks here and there. The question isn't why prices have gone up; inflation makes sure that over an 8 year period, prices are certain to go up.

The question is whether the guitars are worth the cost. That's a question that only the prospective buyer can decide. For me, they still are, although I got my first one in 1991, when they were much less expensive than they were in 2013.

"Then you should really be bitching about it, Les."

"Nah. There are more important things to worry about."
 
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I bought my PRS new in 2013, and if I recall the prices were around 2500-3000 for a USA Custom 24. Now it seems the price has jumped up to 3500-4000 for a new USA Cu24? When did this happen and can someone explain why?

Was it because the introduction of the SE, S2, and CE models provided a more affordable price point that was too close to the old USA Cu22/24 prices, so they inflated the USA Cu22/24 prices to create more of a gap (and make more money)? Or did something else change in the USA Cu designs to justify this increase?

Infact, a few years ago I remember Guitar Center blowing out all of their old PRS USA Cu's, Modern Eagle, etc, at a fraction of the normal prices. Was this intentional to 'reset' the PRS inventory so they could flood in with these new models at new price points?

….I'm not complaining, because I think my Cu24 may have appreciated in value (not that I plan on selling it anyway). But just curious when/why this happened.

You observe correctly. Prices are going up everywhere but I'm sure it isn't because PRS is raising prices just because they want to make more money. I feel like I could provide a technical and factually correct answer but I'm not sure I could do so without scraping up against some rule somewhere. So here are some terms to look up on your own. There is a LOT of technical stuff that go on in the background involving money. Yes, "inflation" but that too is rather vague. Look up that word as well as "Quantitative easing", understand how the Federal Reserve system works (or doesn't work from a different perspective) how money is created and what happens to the value of ANY country's money when their debt level goes WAY up. ie Learn the difference between "The Deficit" and "The National Debt". They are not the same. The short answer is that when the value of the US dollar goes down, all those other countries from whom PRS buys stuff from will want more US dollars for the same exact goods to compensate. Then that cost gets passed along to you, the guitar buyer.
 

I suppose you can't ask inquisitive questions around here without being accused of blasphemy against the company.

I've been here for 8 years, have loved the company, it's products, its style, everything. I believe PRS is the best guitar manufacturer and tell every one of my guitar playing friends the same thing. But to anglicize them as a company who doesn't care about profits is a logical fallacy. The root of my question was why other manufacturer prices aren't increasing as fast as PRS's and, observing/commenting on what PRS has done over time with their models which are evidence of their business strategy.

There have been many great points made in this thread and I will consider and look into them. Thanks all - I think for the sake of "forum rules" and in the interest in keeping peace, I'ma head out.
 
You observe correctly. Prices are going up everywhere but I'm sure it isn't because PRS is raising prices just because they want to make more money. I feel like I could provide a technical and factually correct answer but I'm not sure I could do so without scraping up against some rule somewhere. So here are some terms to look up on your own. There is a LOT of technical stuff that go on in the background involving money. Yes, "inflation" but that too is rather vague. Look up that word as well as "Quantitative easing", understand how the Federal Reserve system works (or doesn't work from a different perspective) how money is created and what happens to the value of ANY country's money when their debt level goes WAY up. ie Learn the difference between "The Deficit" and "The National Debt". They are not the same. The short answer is that when the value of the US dollar goes down, all those other countries from whom PRS buys stuff from will want more US dollars for the same exact goods to compensate. Then that cost gets passed along to you, the guitar buyer.

I tried some “Quantitative Easing” last year. My wife told me to keep my hands to myself, rolled over and started snoring!
 
I don't recall prices being as low in 2013 as the OP does. The last time I recall seeing prices that low (except for big sales events) was during the 2008 recession. But my memory could be wrong.

"

I often use the 2011 year as a benchmark since that is when I got permanently bit by the PRS bug and officially made the switch. Back then a core model Custom 24 was $2700.00. Nowadays, only 10 years later, the cheapest core model is a thousand dollars higher. I often use Sweetwater as a price measuring stick because they mark their guitars for sale at the full street price and basically don't budge on that price.
 
I often use the 2011 year as a benchmark since that is when I got permanently bit by the PRS bug and officially made the switch. Back then a core model Custom 24 was $2700.00. Nowadays, only 10 years later, the cheapest core model is a thousand dollars higher. I often use Sweetwater as a price measuring stick because they mark their guitars for sale at the full street price and basically don't budge on that price.

Good info, thanks!

Perhaps this article is useful in evaluating things. I'm no economist. I do think PRS' prices aren't an unusual phenomenon, and the guitars are, to me, worth the money.

https://www.theguardian.com/business/2011/feb/11/manufacturing-materials-costs-rise-inflation
 
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