pjmuck wrote:
The market value also jumped after Rickenbacker announced a price increase - nearly 40% above previous retail pricing, AND during the height of the worst economic recession in decades. I don't know how they managed that when you consider that other retailers were scrambling for customers and lowering pricing as an incentive to stimulate consumer purchasing again, but it seems the music retail industry did not follow suit as did other industries. So Rick jacked up pricing and created a limited supply, thus creating higher demand.
It's basic John Hall economics 101. John has stedfastly refused to increase production (and subsequently the employee head-count) over the last 8 to 10 years. There are many reasons for that decision, not the least among them that Ric Corp was not a "wood-whore-hoarder" when it was becoming obvious that wood supplies were dwindling. Just look at the wood quality on 381's and 660's now versus mid 80's to mid 90's production.
pjmuck wrote:
For years Ricks were undervalued, so I guess you could argue that they've caught up to the rest of the industry.
Very true indeed.
