Slow down. When I say $150, I mean new retail cost, not a deal on a used one. I have a friend that got a Gibson LP Studio off a buddy for $200. An entry-level $150 guitar has cheap everything on it, and you can sink $500 of upgrades in it, and it's still a $150 guitar. It's not just a common sense financial decision, if the average player is going to spend that $650 on a guitar, as a musician it makes infinitely more sense to get a $500 guitar and put $150 of upgrades in that, than a $150 one and put $500 into it. You get better foundation of materials and workmanship to build on; it sounds better, it plays better. There's a price point at which a manufacturer has to scrimp on everything to be able to make money on a bottom end guitar. Those are the ones to avoid. I've seen them, they're horrible. You don't get 'playability and quality' on a guitar that retails for $150. As a guitarist, it does you little good to buy a pine/plywood guitar with the cheapest imaginable PU's and hardware. What's the point? And to put hundreds of dollars into it? That's not a business decision. Unless you're a luthier who likes to putter around with projects like that, it's a horrble investment for a young guy. If his money's so tight that he has to settle for an entry-level guitar, he sure as hell shouldn't be pouring hundreds of dollars of upgrades into it, at any point. The average player can't even swap out PU's or a pot, so he's got to pay someone to do it for him, which only adds to the cost. Only a small percentage of players can do any kind of a set up, some can't even change their own strings. These are not handy guys to be buying a fixer-upper guitar. They probably don't even know how to adjust the action. For them it's a black hole and a losing proposition. Obviously you have some luthiery skills and this thread doesn't apply to those guys, I thought that was obvious. All bets are off with luthiers. This is about average guys who don't have the skills, experience, or equipment to do this stuff, and for them it's buying new PU's, hardware, tuners, vibrato bar, etc at full retail, and spending much more on that than the guitar cost new.