Wikinvest Wire

A Depression-era guitar strategy

Monday, July 06, 2009

Here's an interesting story($) in the WSJ about a company that makes guitars in Nazareth, Pennsylvania, not far from where your humble editor grew up.

At a bustling factory on the outskirts of this eastern Pennsylvania town, one of the world's oldest guitar makers is using a Depression-era strategy to keep production flowing and avert layoffs.
IMAGE Workers at C.F Martin & Co. are putting finishing touches on the solid-wood 1 Series model, so named for its simplicity. It lacks inlay, as did the company's stripped-down 1930s model, and is expected to sell for less than $1,000, breaking a key price point and far less than its $100,000 limited-edition guitars made of Brazilian rosewood. More popular Martins generally sell for $2,000 to $3,000.
The family company was founded almost 200 years ago - they've seen a lot.

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Bruno T said...

Not sure the spin they put on this is accurate.

Who buys a $1000 guitar in a depression? First of all, good sounding guitars can be had for less than that, even new. Second, literally thousands of nice sounding guitars can be had used for a lot less. Unlike a blender or toaster, if cared for it sounds good even if it's 25 years old.

Third, those who DO have the cash to blow on a new guitar may not want the "depression special" model I'd think.

The theory works with necessities and items that wear out fast. But not guitars.

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