"We build our own version of an ES-335 and put our Chinese-made version of [boutique brand pickup] in there. If I’m street pricing that guitar for $500, that means I have to sell it to the dealer for $320, so there’s enough profit in it for them. I need to be making it for $150, and certainly under $200, to make it profitable for me,” he says.
“If I put actual USA-made boutique pickups in, they cost almost as much as the guitar itself. Even if they give me those pickups for $100, that brings my cost from $150 to $250, and I have to almost double my price to the dealer,” he explains. “Then the dealer has to sell it for almost $900, just because I added $100 pickups. It’s just the distribution model. That’s why you rarely see guitars with boutique pickups for less than $1,500."
His final word of advice was to upgrade those pickups yourself.