Klarinet Archive - Posting 000569.txt from 1998/09

From: "Dee D. Hays" <deerich@-----.net>
Subj: Re: [kl] Re: [Re: [kl] Crack warranty]
Date: Thu, 17 Sep 1998 02:08:57 -0400

-----Original Message-----
From: ROBERT ABRAHAM <rkabear@-----.net>
Date: Wednesday, September 16, 1998 10:03 AM
Subject: [kl] Re: [Re: [kl] Crack warranty]

>My Prestige was $1300 in 1987 and is $3400 in 1998. Do the math. Most
people on this list have seen their R13 clarinets go from below $900 from
the late 80's to $1800 - $2000 (depending on options) in 1998. That's at
least 110% in 10-12 years. That would make 30%-40% in 5 years
*CONSERVATIVE*.

Do the math using the correct procedure.

Yes you paid $1300 in 1897 and a new one is $3400 in 1998 BUT YOU CAN'T
SELL YOUR USED ONE FOR THE PRICE OF NEW. Appreciatation is usually defined
as the purchaser being able to sell his item for more than he paid for it
not the equivalent new price today. I would NEVER buy a used horn for the
same price as a new one goes for. For you to get $3400 out of your used
one, new ones would need to be around $8000. This would be an inflation
rate from 1987 to now of 600% for you to get

So given that a new Prestige is NOW $3400, a used one could bring around
$1700 (maybe a bit more) That would make appreciation 40% in the time
period of 1987 to now, a span of 11 years NOT 5 years. And if you factor
out inflation, there is no real appreciation in value.

Those who bought R-13's in the late 80's for $900 can sell them for $900 now
(maybe bit more) but they certainly can't sell them for $1800. So here the
appreciation is 0% and when factoring in inflation, the value has
diminished.

There is a major difference between re-sale value, appreciation, inflation,
and depreciation!

Dee Hays
Canton, SD

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