OFFICIAL MEET: Spartanburg Guitar Show, February 27 & 28, 2010

Discussion in 'MLP Meets' started by delawaregold, Feb 7, 2010.

  1. John Vasco

    John Vasco I'm with the band V.I.P. Member

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    So, by definition, hiking the prices up at guitar shows is a rip-off, then? It appears to be so in my book.
     
  2. delawaregold

    delawaregold _______Artie_______ Super Mod

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    Of course you are correct, John.
    Good thing everyone in America are dullards, and
    oblivious to this obvious scam. Surely if we had any
    intelligence we would catch flights over to England,
    where Les Paul’s are plentiful, and sold deeply discounted.
    How’s that working out for you?
     
  3. John Vasco

    John Vasco I'm with the band V.I.P. Member

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    Now, now, don't get upset because I simply pointed something out to you.

    Guitar prices (and amp prices) are rip-offs over here as well, as I'm sure you well know it. Is there any harm in standing up and saying that those vendors at those shows are ripping off the public good-style? Or are you taking umbrage at the fact that it's an Englishman pointing out the fact of what's going down in the States?

    You say this in reply to stondoubt: "...These addition costs must be passed on to the consumers. The dealers don’t see additional profit from their sales at the show, it simply offsets their additional expenses..." But when you agree that all those 'expenses' can be claimed against tax, and I ask is that not a rip-off of the public then, you turn all sarcastic on me.

    The fact of the matter is, in any country, if the cost of something is tax deductable, it's a rip-off if the identical 'cost of something' is passed on to the consumer. Both you and I know that, as do most others.

    In my opinion, Delawaregold, the post I quote above of yours does you a disservice.
     
  4. ACELUEK

    ACELUEK ACE FREHLEY'S BASTARD SON

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    If the buyer thinks the cost is too high, they should not purchase. Pretty simple. :hmm:
     
  5. delawaregold

    delawaregold _______Artie_______ Super Mod

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    No umbrage taken, John. The sarcasm expressed was because
    you think you are pointing out facts, when you are pointing out
    your opinion, and your opinion is wrong. A cost of doing business
    claim, is the claim of an expense made against your profit.
    You only pay tax on the profit you make.
    If it cost you more to bring an item to the point of sale, such as
    booth rental, transportation, electric, labor, and you sell the item
    for the same price, the chance you will make any profit is reduced,
    or even eliminated. If you don't make a profit, there is no base for
    you to claim a business expense. I will go over this again, so you
    don't think I'm trying anything shady. Expenses offset profits, if there
    are no profits, there is nothing for you to take expenses against.
    Since only a business expense can be written off against your profits,
    if you don't make a profit, you don't get to write off the expense.
    The more the item costs to sell, the less money is left over for profit.
    No profit, no write off. Simply put, cost offsets profit.
    This is true for guitars sold in England. It costs more to transport
    them, and pay the duty getting them into the country This all adds to the
    cost of the guitar. So the cost base is higher, but yet you sell the
    guitar for the same money. You have sold at a loss, so there is no
    tax base for which to claim your additional expenses.
    Neither businessman in America, or England are ripping anyone
    off, they are simply passing the cost of doing business on to the
    consumers. Also remember that the tax rate is only a percentage
    of your profit, so while you may reduce your tax burden by lets say
    $100 dollars, through a business expense, your tax rate is 25%, so
    you are actually paying only $25 dollars less in taxes for that $100
    dollar expense. Yes, it is a write off, but it is not dollar for dollar.
     
  6. John Vasco

    John Vasco I'm with the band V.I.P. Member

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    Delaware,

    I know all of that. I've been doing tax returns for the royalties on my books for close on 20 years now. And those offsets included a whole shoal of things, including the reproduction costs of photos for inclusion in the written works, and the cost to myself to collect said photos each time I had put in a new batch. Why? Because my Accountant said it could be claimed. So I am schooled up very well with tax matters here in the UK. In the UK however (apparently contrary to what you say halfway down your post regarding the US tax system), if you operate at a loss in one financial year, that operating loss is carried forward to the next tax year, and added to that next year's expenses to offset against any profit. Simple example (round figures for simplicity): In one tax year I get £200 royalties. In the same year I spend £500 on research. 'NIL' tax to pay, with £300 carried over to the next tax year to offset against any profit.

    Believe me, I'm not against any music company making a profit, as that is its lifeblood and keeps it in existence. But I'm not keen on rip-off merchants. The biggest example in recent times is Gibson itself. It removed Rosetti as its wholesaler here in the UK a year or so ago (thereby cutting a sizeable chunk out of the 'on-the-wall' price, one would think) and traded direct to outlets. But, we didn't see any price drop from the outlets at the time, no price drop worked its way into the new direct trade gear, and now new Gibsons are at an all-time high level over here. The words 'shafting the customer' come to mind.
     
  7. John Vasco

    John Vasco I'm with the band V.I.P. Member

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    I agree 100% with you. Locally, the main music shop has two lefty Les Pauls on the wall, a LP Standard with the PCB and funny jack socket etc., and a LP Traditional. £2099 and £1899 respectively. The righty models are £200 cheaper. I know the lads in the shop very well, and when I commented on the prices, one of them just smiled. I said, 'when they're still on the wall in a couple of years time with no movement in sight, I'll talk prices with you again'. He laughed and said he expected nothing less. That shop is staffed by players and giggers, good people, and they know more than anyone how tough it is with the present prices in a depression. Ther jobs are on the line to meet sales/commission targets. I hope they survive, but I do feel that some companies are living in cloud-cuckoo land.
     
  8. Boleskinehouse

    Boleskinehouse Senior Member

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    Not everything in there was ridiculously priced... Just what I noticed anyway, since I wasn't there to buy anything. I don't think any of us did. :laugh2: What I wanted was way beyond anything we could afford anyway. :laugh2::laugh2: That '55 Custom will haunt me forever I reckon!
     
  9. Cookie-boy

    Cookie-boy Senior Member

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    Bole, that 55 Custom was for me the star of the show. Call me what you like I would seriously take that over the '58.
     
  10. weirdotis

    weirdotis Senior Member

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    Next time there is a show on the mid-East coast, can someone let me know so I don't miss it like I did the Philly show? Looked like a blast.
     

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