The Resale Price is Right
Guitar amps can offer something many other MI products cannot: resale value. The used market for amps is booming. Although you can’t guarantee amps will appreciate in price, you can mention amps tend to retain value well. That can be an attractive sales tip for a customer planning to upgrade in the future or one who is unsure they will stick with guitars. “That’s a good point,” said Warrick. “You can come in on the low end as a customer and trade yourself up as time goes on.”
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However, while Delaney said there is a “used amp market that is viable and out there;” and “resale value is a factor,” he also mentioned he doesn’t think too many people buy an amp, sell it off, and trade up. “I see a lot more people who buy an amp and then want something else, so they buy another one. That’s how they build collections. People keep amassing gear in their studios.”
Smith had a slightly different view of the used market. “I’ve noticed the used value has skyrocketed for 1950s, ‘60s, and ‘70s amps,” he said. “Some are in the $20,000 to $30,000 range. But what has happened is some really cool gear is now out of the reach of some really good players. What we’ve seen in the used market is collectors have taken over and there’s less and less really great stuff available inexpensively. I actually believe it’s driving more people toward new amp sales. Six to 10 years ago, you could find a great classic amp for $500. You’re not going to find it for $500 today. It’s now $2,000 or $3,000.”
Smith added it’s unknown if Chinese-made, sub-$500 amps will appreciate in value. “The jury’s out on whether they will benefit from the same appreciation that the early valve amps did.”
Price vs. Technology
One of the greatest challenges today for any manufacturer is to reduce price points and maintain the same quality. And of course, new technology innovations don’t hurt either. Suppliers have a goal to do both at the same time. But is the amp market experiencing technological breakthroughs? “The newest thing I’ve seen, at least on the tube amp side,” said Warrick, “is an effort to combine more programmable effects with a tube and better switching capabilities. Now you can have MIDI memory in a tube guitar amp where you can set up hundreds of patches—hundreds of different settings of that amp, and recall it more like how a digital effects piece would be. As far as modeling goes, it’s pretty much hit a plateau. I don’t see too many new things there at this point. But with overseas manufacturing, you are seeing lower-cost tube amps, which you didn’t see in the last five or six years.”
“I haven’t seen huge advances in amplifier technology,” said Delaney. “The boutique market is proof of that. There have been positive advancements in modeling and emulating different sounds, but the basics of a guitar or bass amp are pretty much the same. It’s more about offering standard classic features and reliability at a classic price point.”
“For a decade now,” said Smith, “we’ve been focused on providing the experience a customer wants out of a $1,000 or $2,000 amp for much less money. We’ve seen a proliferation last year and this year in the production of Chinese-made sound amplifiers—tube amps—into our market. That’s radically affected the market.
“The other trend that’s been powerful is the overall quality of modeling technologies has gone up and matched the tonal expectations of the market.”
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