It only 'costs too much' for folks who won't buy it. If they sell them, by definition it doesn't cost too much.
YOU think it costs too much (I do too, BTW) but that's not the same thing.
Larry
Actually, it is the same thing if a company wants to remain in business. Gibson would go bankrupt again if they relied on this business model for the bulk of their revenue. Too few people would buy their products.
If Gibson sells $20k guitars, it just means they sell them. It has no reflection on good business practices because it's all speculative. Lots of people are vulnerable to speculative marketing. And so consumers keep rewarding the foolishness Gibson keeps selling.
Gibson knows this. So, they make a limited number of guitars to 1) keep prices high and 2) they know they won't sell many because the price is too high and hence the market is small.
I guess the takeaway is there's a small number of foolish people with a lot of money. That seems contradictory, and yet true. Or perhaps they simply are wise with their money and would spend $20k the way someone else might spend $200.
That said, again, if they had to run Gibson, Inc. on this business model, they would go bankrupt yet again. They're competing not only against legal and illegal competitors, but also their own used products on the secondhand market. I'd love to see how many LTD LPs are sold per one Gibson, even used.
Gibson is shooting themselves in the foot with all six shots in the revolver, IMO. But people keep drinking the Kool-Aid just because it's Gibson. I much prefer how Fender does business.
I can understand paying a fortune for a guitar with a history--there's only one Peter Green guitar and Kirk owns it.
That said, I'd never buy a reproduction for thousands, especially when I've seen sites that create visual reproductions of famous guitars (rock star guitars of a certain album/tour cycle) for fairly modest prices.
Plus it comes down to the "heritage brand" thing and whether one thinks that's worth anything.
To me, Gibson = Harley Davidson of guitars. I was born in 1980. Gibsons are my parents' generation of guitars. Newer designs have come along with a better value to features ratio. I want black glossy things with angles, points, floating bridges, wiring options. BC Rich/ESP/Jackson/Ibanez territory. Not simplicity and "tone wood," what Gibson is selling.
Meanwhile over the past 3-4 years I've purchased perhaps 50 guitars used and plan to upgrade them for what that one Gibson reproduction costs.