This. They sold 700 pedals @ $500 with a big margin in a few hours. That’s unbelievable business.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.
And the hype train for any future limited editions is real.
Yes, they underestimated the market. But that’s not surprising. If you’re paying to build and store them, lower us better than higher. Nothing worse than having 2000 & 1300 are left sitting in a warehouse for two years.
