How many years do guitsr models stay in store after they are realesd?
- Thread starter Wayne27
- Start date
GuitarStv
Sock Market Trader
. . . to a point. I think there's a floor on how low they'll go.
A year is a long time. Not a simple question with lots of variables. Is it a popular current model or niche model or discontinued? Some places do drop the price but others happy to play the its "New Old Stock collectible" worth more than new card.
Just like last years model cars, a lot of times dealers have to get rid of inventory to make room for new stuff they have limited space or have to show creditors and investors cash flow. Sometimes manufacturers compel them too. I can think of one major brand known to tell dealers you must buy 10% more guitars this year than last year or your dealer status is revoked. Then they dump the old stuff at near cost. These dumps are also a source of the brand new parted out guitar phenomenon on eBay.
Just like last years model cars, a lot of times dealers have to get rid of inventory to make room for new stuff they have limited space or have to show creditors and investors cash flow. Sometimes manufacturers compel them too. I can think of one major brand known to tell dealers you must buy 10% more guitars this year than last year or your dealer status is revoked. Then they dump the old stuff at near cost. These dumps are also a source of the brand new parted out guitar phenomenon on eBay.
But now, the market is international. Even $10 below 'market price' will probably sell instantly on Reverb.
Chris Pile
Well-known member
Many dealers stock their guitar lines by using a financing program (called floor planning) whereby they make partial payments to the lender, with the full amount for each guitar to be paid within one year from delivery to the store. If the guitar gets sold - the dealer pays off that guitar. So the longer the dealers have the guitar, the more likely they are to push them to customers even with deep discounts. Many dealerships sell their stock to other stores as the end of that year approaches. The second store can then finance that purchase with their lender, starting the process all over again.
It is possible to buy NOS guitars at stores that can't sell them. I once bought a Dean E'Lite (now called Cadillac) that hung in the store for 8 years. For years, I kept telling the salesguy "Hey, when the owner is ready to sell it - I'll pop for $100". He'd laugh and say "okay". One day the owner walked through and asked, "How long have we had that damn guitar? Get rid of it!". The salesguy immediately called me, telling me it was now or never. I drove over right then and handed over $100. The store owner was glad it was sold within the hour. I got a spanking new Dean (with a bit of shop wear) with case and case candy. Dean flipped when I sent the warranty card to them. They called the dealer - "Was this guitar stolen?". "No, we finally sold it for $100". Obviously, the store made only one order from Dean.
It is possible to buy NOS guitars at stores that can't sell them. I once bought a Dean E'Lite (now called Cadillac) that hung in the store for 8 years. For years, I kept telling the salesguy "Hey, when the owner is ready to sell it - I'll pop for $100". He'd laugh and say "okay". One day the owner walked through and asked, "How long have we had that damn guitar? Get rid of it!". The salesguy immediately called me, telling me it was now or never. I drove over right then and handed over $100. The store owner was glad it was sold within the hour. I got a spanking new Dean (with a bit of shop wear) with case and case candy. Dean flipped when I sent the warranty card to them. They called the dealer - "Was this guitar stolen?". "No, we finally sold it for $100". Obviously, the store made only one order from Dean.
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