Price of gear (new or used)

[lars]

Has anybody else noticed that the asking (and often selling) prices for new or used guitar gear has suddenly taken a massive increase? We're talking 50% or more increases! It was just this last fall (October) I bought a Fender HRD amp for only $200, and it had sat on OfferUp for a while at that price with zero interest. The guy even threw in a nice crybaby wah that I ended up selling for $40, so I really got the amp for $160. Now, I see used Fender HRDs going for $500+, and there's not that many out there for sale. New pedals are being listed for beyond MSRP on Ebay and Reverb.
I tried to sell my mid 80's MIJ Fender Strat at the beginning of 2020 for only $400. I had absolutely zero interest then. Now they're selling on Reverb for $800+. I'm glad it didn't sell back then, my guitar is now worth more than double what it was just a year and a half ago.
It's getting to the point where I have to worry that somebody will want to steal my FX90! (you couldn't hardly give those things away in 2017)

[pickdropper]

Has anybody else noticed that the asking (and often selling) prices for new or used guitar gear has suddenly taken a massive increase? We're talking 50% or more increases! It was just this last fall (October) I bought a Fender HRD amp for only $200, and it had sat on OfferUp for a while at that price with zero interest. The guy even threw in a nice crybaby wah that I ended up selling for $40, so I really got the amp for $160. Now, I see used Fender HRDs going for $500+, and there's not that many out there for sale. New pedals are being listed for beyond MSRP on Ebay and Reverb.
I tried to sell my mid 80's MIJ Fender Strat at the beginning of 2020 for only $400. I had absolutely zero interest then. Now they're selling on Reverb for $800+. I'm glad it didn't sell back then, my guitar is now worth more than double what it was just a year and a half ago.
It's getting to the point where I have to worry that somebody will want to steal my FX90! (you couldn't hardly give those things away in 2017)

A couple of things, I think.

1.) Asking price isn't selling price.  During the pandemic, gear prices soared as folks that were not negatively impacted had more disposable income due to lack of spending on vacations, eating out, etc.  plus they also received stimulus checks that they may not have actually needed.  I don't think the current market supports those massively inflated prices, but I think sellers are still trying to keep the prices high.  But that doesn't mean that they are selling.

2.) Both Reverb and eBay have started issuing 1099s for sales above a certain threshold ($600, I believe).  Now, this isn't a new tax, but many, if not most, sellers weren't paying it, so this now presents a hit to their bottom line.  Many have increased their selling price to account for this.  Of course, they really only owe tax on any profit that they've made, so many of the transactions aren't taxable.  But now the onus is on them to prove that they didn't make money, which may be tough if they don't have a receipt.

I've noticed the pricing has been insane as well.  Just for giggles, I was looking at Gibson R9s and Customs.  Many sellers on Reverb have them for more than I can get a new one from a dealer for.  That doesn't really work for me.

[fair.child]

I think this is also related to the global situation. A couple of things here and there.

1. Supply chain issue
The container fees to transport some guitar materials are 3x-5x higher than before. This affects the brand new guitar prices. Manufacturers get an impact on their production and economy of scale prices that used to be fairly accounted toward the supply chain. I think manufacturing industries get impacted by this issue. Shipping is the main challenge.

2. Brand new guitar prices vs used guitars
Since the production rate or projection production rate for new guitars will likely go down and price increase, then there will be adjusted future price of the goods for sale (in this case; a guitar). Guitar players would likely go find a used guitar to compensate for what they are looking for. Similar to the used car market and classic supply/demand situation, the price will go up based on certain scarcity.

3. Taxes
I want to revamp again what pickdropper mentioned. Indeed, taxes need to be accounted for when you list online now. It gives another layer of adjusted asking price for an instrument. I think Craigslist or selling locally is the way to go but again, sometimes we might need cash and want to do flip, etc. Depends on the situation and it really looks more into taxes circumstances.

4. A Luxury to play an instrument
There will be times when all the necessities become scarce and musical instruments will not become affordable. It becomes more of a luxurious thing to have. It is hard these days if you're not working in the music industry as your daily job and having a great instrument as an accomplishment or more emotional support to the user. It becomes a privilege to own an expensive gear or sort of luxury club. This mainly is driven by the Russia Ukraine war, COVID, and inflation. Think about the food scarcity that will come next after oil is skyrocketing. When the economy isn't doing well, are we still considering buying gear or bringing food to the table? Let's say this is more in people who are not in the music business/industries.

5. Parts/Tubes/Semiconductors
I mean this is very obvious that related to chip shortage, tube shortage, and wood/material shortage to make cabinets. I mean which one is more important wood material to build houses or build a cabinet. Chips material to make an EV or make an amplifier switching or pedals? I mean this really boils down to the priority of the suppliers and manufacturers relationship.

With all these elements, we can forecast that there will be an impact on prices for used gear. It will also include retails. I think either they will be out of business or adapt to the current situation.

[pickdropper]

I think this is also related to the global situation. A couple of things here and there.

1. Supply chain issue
The container fees to transport some guitar materials are 3x-5x higher than before. This affects the brand new guitar prices. Manufacturers get an impact on their production and economy of scale prices that used to be fairly accounted toward the supply chain. I think manufacturing industries get impacted by this issue. Shipping is the main challenge.

2. Brand new guitar prices vs used guitars
Since the production rate or projection production rate for new guitars will likely go down and price increase, then there will be adjusted future price of the goods for sale (in this case; a guitar). Guitar players would likely go find a used guitar to compensate for what they are looking for. Similar to the used car market and classic supply/demand situation, the price will go up based on certain scarcity.

3. Taxes
I want to revamp again what pickdropper mentioned. Indeed, taxes need to be accounted for when you list online now. It gives another layer of adjusted asking price for an instrument. I think Craigslist or selling locally is the way to go but again, sometimes we might need cash and want to do flip, etc. Depends on the situation and it really looks more into taxes circumstances.

4. A Luxury to play an instrument
There will be times when all the necessities become scarce and musical instruments will not become affordable. It becomes more of a luxurious thing to have. It is hard these days if you're not working in the music industry as your daily job and having a great instrument as an accomplishment or more emotional support to the user. It becomes a privilege to own an expensive gear or sort of luxury club. This mainly is driven by the Russia Ukraine war, COVID, and inflation. Think about the food scarcity that will come next after oil is skyrocketing. When the economy isn't doing well, are we still considering buying gear or bringing food to the table? Let's say this is more in people who are not in the music business/industries.

5. Parts/Tubes/Semiconductors
I mean this is very obvious that related to chip shortage, tube shortage, and wood/material shortage to make cabinets. I mean which one is more important wood material to build houses or build a cabinet. Chips material to make an EV or make an amplifier switching or pedals? I mean this really boils down to the priority of the suppliers and manufacturers relationship.

With all these elements, we can forecast that there will be an impact on prices for used gear. It will also include retails. I think either they will be out of business or adapt to the current situation.

All valid market observations, although #4 really should drive pricing down if folks aren't buying guitars because they are now considered a luxury item and not necessary.  Long term this could drive pricing up if manufacturers cut production, but there would likely need to be notable excess supply before that happened.

[culturejam]

I don't know about new gear, but used gear in some cases has gotten really silly in terms of asking price. Selling price is another thing, but if all the asking prices are higher, it's bound to mean the final selling price is also at least somewhat elevated.

I took a hit on taxes for 2021 because I got a 1099 from Reverb. I didn't keep paperwork on my costs, so I couldn't deduct anything other than shipping cost and seller fees. I am keeping meticulous records this year.