If is was MIC instead of Nashville how much would you pay?

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wildhawk1

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Using this cornerstone product in the link below and the ONLY difference would be production in Gibson's China factory instead of Nashville how much would you be willing to pay?

http://www.musiciansfriend.com/gibson-les-paul-studio

Plenty of financial woe stories about Gibson lately.

The offshore guitars are cheap mentality died years ago.

IMHO if Gibson kept a small custom shop in Nashville and moved production to the factory they own in China their unit sales and profit would increase substantially.

Again the overseas stigma is gone.

In the link above $1600 for a MIA Studio has a very small potential market.

$800 I have to believe they would get tons of buyers.
 

jdto

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shupe13

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I think they would loose money. The USA aspect is more than likely the only reason Gibson is still alive. People all over the world boast pridefully about their USA produced Gibson guitars as if they finally reached a pentacle in guitar status. If guitars bearing “Gibson” were produced overseas, the mystique and or ownership status would be gone. Too many other badass guitars are built with less flaws and for less money in the Asian market already.
 

Danomyte

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I think they would loose money. The USA aspect is more than likely the only reason Gibson is still alive.

Agree. No one is buying Gibsons for pure economic value. People pay for the prestige, the ineffable, the je ne sais quoi of a Made in the USA Lester. Just like Jimmy Page. Just like Slash. Just like Billy Gibbons. Just like Duane Allman. With every failed attempt at the Heartbreaker solo, at least I can find solace in that my guitar is like Jimmy's.

Not to mention, for Gibson to leave the USA-made market for China made would mean they would be changing their marketing strategy entirely. They would no longer be competing on grounds of product "differentiation", i.e. our product is different and special, so pay extra for it. Instead, they would be attempting to compete within the realm of cost leadership--obviously, the market for economically priced guitars is flooded and Gibson would suffer a slow, painful demise.

People buy Gibson Les Pauls because people want a Gibson Les Paul; a large part of the perceived value comes from the storied history, the legend. For the company to do anything to diminish the value of the name (including moving production to China) would be brand suicide.
 

wildhawk1

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Agree. No one is buying Gibsons for pure economic value. People pay for the prestige, the ineffable, the je ne sais quoi of a Made in the USA Lester. Just like Jimmy Page. Just like Slash. Just like Billy Gibbons. Just like Duane Allman. With every failed attempt at the Heartbreaker solo, at least I can find solace in that my guitar is like Jimmy's.

Not to mention, for Gibson to leave the USA-made market for China made would mean they would be changing their marketing strategy entirely. They would no longer be competing on grounds of product "differentiation", i.e. our product is different and special, so pay extra for it. Instead, they would be attempting to compete within the realm of cost leadership--obviously, the market for economically priced guitars is flooded and Gibson would suffer a slow, painful demise.

People buy Gibson Les Pauls because people want a Gibson Les Paul; a large part of the perceived value comes from the storied history, the legend. For the company to do anything to diminish the value of the name (including moving production to China) would be brand suicide.

So you're saying $800 Gibson Les Paul Studios made in China would bomb?

o_O
 

wildhawk1

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But isn't the $800 Les Paul already on the market in the form of Epiphone?

It is but people name chase big time.

And spend stupid amounts of money doing it.

Have Nashville start putting Epiphone headstocks on MIA guitars and people would never buy them. Why?

Put Gibson headstocks on Epiphones and the plant would work OT.
 

Oldskoolrob

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I love Gibson and would hate to see production leave the USA. That being said though, I'll probably never buy another Gibson new anyway, purely based on the fact that I can't afford too, and count myself lucky just to have my 94 LP standard.
 

Danomyte

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So you're saying $800 Gibson Les Paul Studios made in China would bomb?

Yup. That's what I'm saying. People would be unwilling to pay for it. Gibson makes that guitar. It's called an Epiphone Les Paul Studio. However, it costs $400. When you start making Gibsons in China, you lose the mark-up value of the name. If people were willing to pay more than the $400 for the foreign guitar, I promise, Gibson would charge more.

Accept the fact that many, many consumers are willing to pay more for the Gibson USA name... however illogical it seems to strike you. Just look at the popularity of this site.

If you need evidence, consider that there's an $800 difference between a MIM Standard Strat and an American Standard Strat. Are they pretty much the same guitar? Yes. Is the difference in price logical? No. Is it fair? No. It it just the way it is? Yep.

It's not a toothbrush. It's a guitar. It's not just about sending electric signals to make noise. It's about the spirit, the idea, the tradition, the romance. Stop looking at it like an accountant.
 

afjungemann

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I have little knowledge on the matter because of how much plays into success and failure on things like this but I would venture to guess like others have mentioned, they would lose their foothold.

The guitar market seems to be going through another era with quite a few boutique brands popping up and almost all are Asian made which means the market for Asian guitars is wildly flooded.

I think what is most likely is Gibson gets sold and the new owners try to compete on price again. I would have to imagine it is better to sell guitars at $1500 than not sell guitars at $3,000.

I would also have to guess they could step up the M2M program where it doesn’t cost $8K.

But again, I know almost nothing and I could probably drive Gibson into the ground faster than anyone else.
 

rjwilson37

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Yep, As a lot of people have already said it. My Gibson's would go way up in value because an American made Gibson would be worth a lot. Not right off the bat mind you, but after a few years, the used market for older USA Gibson guitars would be up quite a bit. I love my Gibson Les Paul's and have now reached that pinnacle status of owning some really great Gibson Les Paul guitars.

If Gibson Les Paul's were no longer made in the US, then the price would surely come down a lot and would possibly be harder to sell because there are so many other guitars that would fill there shoes.
 
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