This is good logic on the long term marketing effect (pun).Embenny wrote: ↑Sun Jun 18, 2023 7:38 amFender benefits massively, it's just in a more longterm sort of way.UlricvonCatalyst wrote: ↑Sun Jun 18, 2023 12:55 amFender don't benefit from driving secondary market prices up though (unless they kept back 500 of the 700 and used shills to sell them at inflated secondary prices)?
The main benefit I can see for them was they sold the whole batch in a matter of hours, but it's the scalpers who have got the big pay-day here.
They sold a ton of $500 pedals instantly. They probably made a much higher margin on this than anything else they sell - I wouldn't be surprised if each Shields Blender was as profitable for them as selling three or four $500 amps. By creating a hype/buying frenzy where people are now paying insane prices for the thing that was just released, they're trying to establish a FOMO culture the way Gibson has with their Mod Shop. If people are going nuts buying and selling the pedal on the secondary market, it contributes to the mystique of "limited edition Fender pedals", and they will cash in on that with future releases. Maybe the next one is $600 or $700, and people will think, "I gotta get that, even $700 is a deal after what happened with the Shields Blender!"
Fender will benefit more than any scalper. They just unlocked an entirely new revenue stream, collectible gear, with a higher profit margin than any guitar or amp. Whoever proposed this idea at FMIC is probably getting a big promotion after this.
It is important though to look at the math, $350k for the 700 pedals. R&D, payment to KS, parts, assembly, shipping, packaging, some marketing and likely Reverb got a % as well. Even if this was the long term gains of price creep, viral purchases, they didn’t make a ton of $ here. They would need to a regular trade edition in order to really clean up and most certainly they are off to a better start than the last FB reissue.
Still curious to see details of parts, such as quality of switches, pots, etc. The reissue FB parts and quality were horrible, but luckily easy to replace, repair.