Price Reduction

[29er]

I've seen in a couple of places that Heritage has reduced the price on Standard line models. Might be time to jump on something!

[DetroitBlues]

I’ve got a feeling the Standard USA model line is going away and only Custom Cores will be USA made…

[ElNumero]

On 4/24/2025 at 8:39 AM, DetroitBlues said:

I’ve got a feeling the Standard USA model line is going away and only Custom Cores will be USA made…

I would have to disagree and say that if they did that, it would be the dumbest marketing move they could possibly make! Why get rid of your bread and butter? Granted, the Standard line is not cheap anymore, but the CC line is stratospheric in price! I think having an Asian line, an affordable USA Standard line and the CC (for the snobs, just kidding of course) is the right direction to go in. But hey, I am not the bean counter for Heritage, so I know nuttin. 

[Spectrum13]

33 minutes ago, ElNumero said:

Why get rid of your bread and butter? 

Cause you can sell buttered bread for more that the ingredients alone. 

Take coffee: A bag of beans is $6 for 10 ounces.  Add hot waters and you can sell it for $5 for 12 ounces of mostly water. If you can make 30 cups out of 10 oz of beans that's $150 from a $6 investment.

 

[ElNumero]

15 minutes ago, Spectrum13 said:

Cause you can sell buttered bread for more that the ingredients alone. 

Take coffee: A bag of beans is $6 for 10 ounces.  Add hot waters and you can sell it for $5 for 12 ounces of mostly water. If you can make 30 cups out of 10 oz of beans that's $150 from a $6 investment.

 

That analogy is not completely accurate! As I said, I am not the bean counter for Heritage, but I would be willing to bet that their CC sales are less than 10% of their total sales. Now in terms of revenue, yes, they realize a larger profit margin % with the CC line. But think about all the international sales they do each month, and I am pretty sure they are mostly from the standard lineup. If you beg to differ, lets hear it!! 

Edited yesterday at 04:30 PM by ElNumero

[Spectrum13]

1 hour ago, ElNumero said:

That analogy is not completely accurate! As I said, I am not the bean counter for Heritage, but I would be willing to bet that their CC sales are less than 10% of their total sales. Now in terms of revenue, yes, they realize a larger profit margin % with the CC line. But think about all the international sales they do each month, and I am pretty sure they are mostly from the standard lineup. If you beg to differ, lets hear it!! 

You just demonstrated the difference between a CPA and MBA

 

(Me Being Amusing) =MBA

[DetroitBlues]

2 hours ago, ElNumero said:

I would have to disagree and say that if they did that, it would be the dumbest marketing move they could possibly make! Why get rid of your bread and butter? Granted, the Standard line is not cheap anymore, but the CC line is stratospheric in price! I think having an Asian line, an affordable USA Standard line and the CC (for the snobs, just kidding of course) is the right direction to go in. But hey, I am not the bean counter for Heritage, so I know nuttin. 

My guess is the Custom Shop Bespoke program and Custom Core line need the capacity to keep up with demand....

[TalismanRich]

From what Pete Farmer said in the Rich Severenson interview, the Bespoke program is really on hold unless you're an "established artist".

[HANGAR18]

5 hours ago, TalismanRich said:

From what Pete Farmer said in the Rich Severenson interview, the Bespoke program is really on hold unless you're an "established artist".

I'm an established guitar hoarder.

[Kuz]

19 hours ago, ElNumero said:

I would have to disagree and say that if they did that, it would be the dumbest marketing move they could possibly make! Why get rid of your bread and butter? Granted, the Standard line is not cheap anymore, but the CC line is stratospheric in price! I think having an Asian line, an affordable USA Standard line and the CC (for the snobs, just kidding of course) is the right direction to go in. But hey, I am not the bean counter for Heritage, so I know nuttin. 

Well, considering there are not a lot of manufacturing differences for Heritage between the standard line and the custom core line, and considering they are pricing the custom core line anywhere from 1/2 to 1/3 more than the standards,... then I would say Heritage's profit margin is MUCH higher with the custom core line.  And thus, fewer custom core guitars need to be sold to keep a higher profit over the standard line.  Also, I think the custom core line has been a HUGE success.  Of all the Heritage guitar owners groups forums (obviously here at HOC and on Facebook), the number of owners reporting a new custom core Heritage purchase BY FAR out weighs the number of new standard line Heritage purchases.  

For me, the lighter weight on my Custom Core 150 has justified it's price. Last night, I played the Aged CC 150 comparing it to my Murphy Ultra Lite aged R9.  Other than the different frets on the CC 150, I am not so sure the CC 150 is not a better guitar.... again, validating the price of the custom core line.

[ElNumero]

19 hours ago, Spectrum13 said:

You just demonstrated the difference between a CPA and MBA

 

(Me Being Amusing) =MBA

I have both Dan!!!

[ElNumero]

2 hours ago, Kuz said:

Well, considering there are not a lot of manufacturing differences for Heritage between the standard line and the custom core line, and considering they are pricing the custom core line anywhere from 1/2 to 1/3 more than the standards,... then I would say Heritage's profit margin is MUCH higher with the custom core line.  And thus, fewer custom core guitars need to be sold to keep a higher profit over the standard line.  Also, I think the custom core line has been a HUGE success.  Of all the Heritage guitar owners groups forums (obviously here at HOC and on Facebook), the number of owners reporting a new custom core Heritage purchase BY FAR out weighs the number of new standard line Heritage purchases.  

For me, the lighter weight on my Custom Core 150 has justified it's price. Last night, I played the Aged CC 150 comparing it to my Murphy Ultra Lite aged R9.  Other than the different frets on the CC 150, I am not so sure the CC 150 is not a better guitar.... again, validating the price of the custom core line.

I am happy they are selling robustly!  And I am glad you are enjoying yours as well. I just hope Heritage keeps manufacturing their standard line as I believe there is a market, they are great guitars in their own right. If I could afford a CC I would buy one. But being retired and on a fixed income has its limitations

[DetroitBlues]

2 hours ago, Kuz said:

Well, considering there are not a lot of manufacturing differences for Heritage between the standard line and the custom core line, and considering they are pricing the custom core line anywhere from 1/2 to 1/3 more than the standards,... then I would say Heritage's profit margin is MUCH higher with the custom core line.  And thus, fewer custom core guitars need to be sold to keep a higher profit over the standard line.  Also, I think the custom core line has been a HUGE success.  Of all the Heritage guitar owners groups forums (obviously here at HOC and on Facebook), the number of owners reporting a new custom core Heritage purchase BY FAR out weighs the number of new standard line Heritage purchases.  

For me, the lighter weight on my Custom Core 150 has justified it's price. Last night, I played the Aged CC 150 comparing it to my Murphy Ultra Lite aged R9.  Other than the different frets on the CC 150, I am not so sure the CC 150 is not a better guitar.... again, validating the price of the custom core line.

Well said Kuz!

Almost every new guitar I see on the three different Heritage FB pages I follow/moderate, people are buying the Custom Core models and loving them.  I think Heritage has shown the CC line is fine instrument for the money.  Heritage maybe following the PRS business model making their USA models as their high-end and the budget models being the SE lineup (and the SE's have drastically bridged the gap to be gig worthy guitars that closer resemble their USA made counter-parts0

[nuke]

I guess we'll see. 

F-brand and G-brand still continue their made in USA standard lines, at the apex of their standard lines. 

It is undeniable that inexpensive guitars sell in higher volume and make up the bulk of revenue, at much thinner margins. 

The lure of inexpensive off-shore products is undeniable. Pretty much everyone with some volume is doing it. I think it waters down the brand, especially if not clearly labeled in a way that is clear what it is. 

Strangely, Gibson will make some Epiphone models in the US from time to time, despite its position as their off-shore less-expensive line.