Day Traders
Fastest selling 345 on the planet is a “first rack” ’59 ES-345. These don’t last a week when I get them. Sometimes not even an hour.
I received an email from a reader who likened the buying and selling of vintage guitars-specifically my guitars-to day trading. He mentioned that they seem to sell very quickly on a “last in-first out” basis. That can be true but to liken the guitar business to day trading is a little off the mark, I think. From a business perspective, you can look at guitar buying and selling from a few diverging viewpoints.
If you’re a player and you want a tool for your playing, you will likely be less concerned about whether you get your money out of the guitar many years down the road. Your emphasis is on playability and tone-not investment potential, although they aren’t mutually exclusive. That’s why “player grade” guitars are such a large part of the guitar business. Unfortunately, player grade has often come to mean beat up and modified (regardless of how it plays) as opposed to a great playing, great sounding guitar that isn’t collector clean or 100% original. I, unfortunately, don’t control the vast nomenclature of the guitar universe. If I did, the term “sustains for days” would not exist. Frequently, a “player grade” guitar will sell very quickly as it affords a newcomer to vintage or someone who just doesn’t have the resources for a “collector grade” guitar access to these great old instruments. It is not unusual for a 60’s ES model to sell for a figure that approaches the reissue Gibsons. Granted, you won’t see dot necks in that neighborhood but I’ve seen plenty of Bigsby 345’s – even some from 64 or earlier-that will cost you about what you’ll pay for a new high end 335. You can argue which one is better among yourselves. I like some of the new ones but it isn’t my field of expertise nor is it my market. Player grade guitars aren’t particularly good investments from a growth standpoint but they are very liquid. I can sell a player grade 64 much faster than I can sell a near mint dot neck. Bigger market by a mile and less hassle too. The cleaner and more original a guitar is, the more scrutiny it requires to make a sale and to make the buyer happy. That’s fine but it will slow down the process.
So, what made my reader make the day trader comment? I think it is due to the fact that some guitars show up on my site and are gone in a day or less. There are two very good reasons for that. One is that I keep a list of buyers who are looking for a specific year and model. They are notified-usually even before I have the guitar in hand-that the guitar they seek is coming in. Usually, those buyers see the photos and description at the same time as everyone else-when I post the guitar for sale. That’s just fairness. Often, the guitar is gone in five minutes and it looks a lot like day trading. I never, ever engage clients in a bidding war. If I list a guitar at $15000 and someone makes me an offer of $14000 and I accept it, the deal is done. If buyer number two the offers $16000, it’s too late. If buyer number one commits and then can’t pay, that’s another story. One note-most guitars show up first on Gbase and occasionally on Twitter if I remember to post them. If there is a particular year you are after, let me know and I’ll try to remember to give you a heads up when it is on my radar. I do occasionally have a guitar that is sold before I even get it in my hands. But then I post it as a hold or sold right away. That probably looks a lot like day trading. There are also guitars that I buy specifically for a particular buyer . Those never make the listings.
At the risk of tooting my horn, which I am generally loathe to do, I price my guitars to sell. If you do a search of a particular model and year 335/345/355, you will find, more often than not, that I have the lowest price apples to apples. The philosophy here is not so much magnanimity but practicality. I’d rather make a small profit on five guitars and have five very happy customers who feel they got a good deal, than have one customer who paid top dollar or more (after I perhaps sat on the guitar for a year or more waiting for that one buyer at that high price) who may or may not be happy with the price. It seems to work and it allows me to acquire more guitars and serve more clients. I suppose I could make the same profit buying one or two bursts a year and selling them at stupid high prices. It wouldn’t be much fun and wouldn’t keep me that busy. Then I would have to fix stuff around the house that my wife points out on a regular basis (I live in a 300 year old house). “Sorry, dear, I’ve got to go to the shop and sell some guitars…”
Mono 355’s don’t hang around long either
The biggest, fastest seller of all-a red 64 “player grade”. These are often gone before I get them. This one might be a little above a player grade but you get the idea.
Yes, I can attest to the resonableness of Charlie’s prices and his philosophy is a good one proved by his always excellent inventory and guitars moving through it unlike some dealers we could name but won’t (smile!) And, from the buyer’s perspective, if you see a guitar you like and it is at a fair price, better jump on it before someone else does! They aren’t making any more ’58-64 Classic Year ES fiddles folks, despite the reissues…
I agree, RAB. Charlie’s reasonable prices keep the inventory flowing, which keeps my eye on his gbase store.
Hi USA and Charles,
I would say by using the term day-trading that the market is in your hands !
and not some bad words, because you are, charles, the specialist in es-3XX golden area ‘s ones.
By the way, you describe on your article with accuracy the differents segmentations of the market.
I can find myself in your description !
I was a fund manager, and, to my point of view, you are the market maker on thoses guitars.
The most serious vintage guitars shop in Paris, Pigalle, says the same.
I am in love with the blues, and despite of the rate exchange in euros, I want a es-3XX guitar from your shop, for sure !
If you’re in Paris, I deliver it in person. I haven’t been in twenty years and it’s time for another visit
WOW! Now that’s customer service!
In was in Paris in the summer of 1965 and ventured into the Pigalle neighborhood. I did not see any guitars but had some excellent customer service.
In ’65? What were you 12??
Eighteen and just graduated high school. Spent some weeks in Paris by myself before joining up with relatives. Saw John Coltrane in a small club and spent years trying to emulate him on guitar.