The $6,665 is the Street Price (or MAP). The MSRP (which no one sells for) is $9,409.
$200, eh? Hmmm....I wonder??? Let's get real about this.
What does a CNC machine cost these days? What about the Plek machines? And what do the guys who design the guitar make....the ones that did all the measuring of the Krieger guitar, and then the guys who do the CNC programming? More than minimum wage, I'm sure; as do the production managers and supervisors. And you don't just grab somebody off the street and hand him a can of black Krylon and tell him to go paint these guitars--it does take some skill.
COSTS? You've got your tooling, property expenses (assembly building--and wood drying and storage), equipment maintenance, your attorneys, your web designers, your ad department, sales reps, your financial, administrative support and accounting staff, spray booths, paint, sandpaper, shipping and transportation, your electricity bill, your property and liability insurance, Worker's Comp, employee benefits, paid sick leave and vacation time, state taxes, city taxes, federal taxes...and a management team to pay. And there's wastage--all those scrap bits and the sawdust on the floor. Don't forget the HVAC and all the crap you have to buy to meet ECO-laws and OHSA standards. And you HAVE to make a PROFIT, or you can't stay in business. Oh yeah...and computers and copiers and fax machines and desks and chairs and paper and the coffee machine and the band aids in the break room. All those things cost MONEY, and have to considered in the COST of making a product....ANY product.
And don't forget to pay the janitor!!!
With a MSRP of $9,409, Gibson probably sells that guitar to the dealer, with case and all the case candy, for about 50% of MSRP...$4,704. Big dealers, like Guitar Center, Sweetwater and Sam Ash probably get a little better deal, too. GC shows that guitar is discounted 29% from MSRP, at $6,665, so the retailer will make roughly $1,961 on the sale--which he needs to keep his lights on and the doors open.
Which means that Gibson, all told, will probably have a production cost of about 50% of what they sold the guitar to the dealer for; so 50% of $4,704 is $2,352. That might be high or low, but it's a ballpark figure, and a far cry from $200. Heck, a finished LP BODY (no neck) from Warmoth sells for $610--and that's a bolt neck, not a much more difficult to manufacture and fit mortise and tenon joint. And that's just wood, not even the 5-ply body body binding of a LP Custom, or any hardware--pickups, pots, tuners, switches or wiring. $200? Seriously?
Sure, you can look at the wood costs alone, but there's obviously more than $200 worth of wood, plastic and metal in the thing. And looking at just the wood as their SOLE cost of building a guitar...well, I don't want to be mean or confrontational, but this statement is just ignorant and indefensible, and shows a lack of real-world production costs.
I agree, the guitar is expensive, and not everyone needs this guitar or will be able to afford it. Personally, it is not a model I would buy, though I have several other Les Pauls. But please, stop the Gibson bashing and the whining. They are a business, and they are in business to make money. If you can't afford it, get a paper route, or get your band on MTV. Reality check--make it yourself and try to make a profit. After all, if it only cost you $200 to make this guitar, why aren't you in the guitar making business and making a fortune?
And after all, we know it only costs Seymour about $2.50 to make a pickup, right?
Bill
