Know Your Gear Podcast - Episode: The Cheap Guitar Companies Are Eating Themselves

Host: Phillip McKnight
Date: February 12, 2026

Episode Overview

Phillip McKnight dives deep into the shifting landscape of cheap guitar companies, focusing on the recent departure of Harley Benton from the US market and the underlying causes beyond their official statement of "tariffs." The episode branches into wider industry insights regarding trade, market saturation, used gear value, the models of manufacturing and quality control, and the scene at the 2026 NAMM Show. Phillip infuses his signature humor, storytelling, and pragmatic analysis while referencing firsthand retail conversations, data research, and his experience at the Kiesel Connect event.

Key Topics and Insights

1. Harley Benton's US Exit & The State of Cheap Guitars (00:02–24:50)

• Harley Benton Withdraws from the US:
  Harley Benton ceases US sales via Reverb, citing tariffs as the main issue. Phillip questions if tariffs are the true reason, noting Harley Benton’s small-scale trial last year and its status as a major European retailer with resources to navigate such challenges.

• Broader Industry Claims:
  Multiple companies (e.g., Hofner, G&L, Guitar Center) have similarly cited external factors (tariffs, COVID) when facing difficulties.

  “It’s always easy to take the current factor of the market and say, 'Oh, this is why it’s not working.'” — Phillip (00:07)

• Smaller Brands’ Successes:
  Smaller brands like Firefly, Hills, and Tease Guitars, despite being tiny operations, have persisted and adapted, often offsetting tariffs through small batch ordering and pricing negotiations.

  “The fact that they are able to bob and weave and make it work doesn't mean it's an indictment on Harley Benton... If you want to, you can make it.” — Phillip (00:13)

• Used Market Woes:
  Music dealers and Guitar Centers increasingly refuse trades on Firefly and Harley Benton guitars because their resale value is volatile and often illogically priced above their new retail cost, due to stock shortages driving up used prices temporarily.

  “If you went into Guitar Center and spent $500, and this guitar is $230... the reason this is becoming a problem... all of these cheap guitar companies are in the same boat.” — Phillip (00:20)

• Market Saturation and “Stock Market” Mentality:
  The episodic stock of budget guitars has turned the market into a game of “buy low, sell high.” As soon as models are replenished, resale values plummet. There's also rampant copying among cheap brands—even copying each other’s unique models.

• Industry Analogy:
  The “buggy whip” analogy: Even the best in a dying market will eventually be left without customers.

  “You don’t want to be the best last of a dying market. It’s not where you want to be.” — Phillip (00:26)

2. The Realities of Tariffs & Manufacturing (24:51–43:21)

• How Tariffs Actually Work:
  Tariffs are assigned based on country of manufacture, not shipment. For Harley Benton, a guitar made in China but shipped from Germany faces Chinese tariffs.

  “Tariffs are assigned to the country of manufacture, not the country this product is shipped from.” — Phillip (00:34)

• Industry Adaptations:
  PRS moving SE model production from China to Indonesia to better navigate tariffs and consumer perceptions. Indonesian factories, especially Cortek, gain respect and can command higher prices than Chinese-made models.

• Changing Beginner Market:
  The spike in beginner and budget guitar sales during COVID is waning; many players have “had their bellies full of guitars.” This shrinks the newcomer market and contributes to market saturation.

3. Quality Control, Distribution, and Brand Practices (43:22–55:00)

• PRS SE Distribution Model:
  Every PRS SE for North American sale is shipped to Maryland for inspection and setup, then distributed further. Other regions get direct shipments, with spot checks or thorough distributor inspections.

  “At Cortek, every PRS SE made for North America is shipped to Maryland. Every single one. No exceptions.” — Phillip (00:46)

• Brands Who Check Everything:
  Companies like Schecter check every single imported guitar, tagging “B-stock” units and sending some to artists/influencers; not every brand is this thorough.

4. 2026 NAMM Show: New Gear, Trends, and Critique (55:01–1:38:00)

• Exciting/Notable NAMM Launches:

  • Reverend Roundhouse H90: Hum/P90, metallic “copper” (really bronze), priced $1299—Phillip jokes about color names and his own copper Strat story.
  • PRS S2 Vela Tremolo: Offset with new tremolo bridge.
  • Yamaha Pacifica Tele: Japanese-made, premium features.
  • Jackson Pro Origins 1985 San Dimas / Soloist: ’80s reissues.
  • Mini Amps & Processors: Boss GX1 modeling processor ($229), NUX new profiler ($500), Roland Cube Street Mini portable amp ($200).
  • Synergy SYN 20 Combo: Versatile, modular, no reverb (a dealbreaker for Phillip); insight into module co-design and pricing parity across brands.
  • Orange OR60 Head ($2500, Made in England), Ed Sheeran PRS Baritone Hollowbody, Neural DSP Quad Cortex Mini ($1400), Eastman Fullerton Offset, Kiesel Mark 66 Guitar.

• NAMM Overall Impressions:

  • The show felt smaller, fewer booths, more focus on top sellers than whole lineups.
  • Best content: walking tours (shoutout to Aaron Short Music) over influencer selfie content.
  • Some companies are leaning into shock-factor products/content just for viral buzz rather than utility or musicality (e.g., 880W amp, “guitar sex toys”), which concerns Phillip.

• Synergy Modules Explained:

  “It’s the best fake amp you can get... The companies believe it’s the best copy you can get. Marshall put their name on a module.” — Phillip (01:17:00)

5. Kiesel Connect Event Highlights (1:38:01–1:54:00)

• In-Person Community:
  Phillip relays camaraderie with viewers and artists at the Kiesel Connect event, sharing specific thanks to Kiesel staff and musicians he met.

• New Kiesel Releases:
  Kiesel Mark 66 model, a vintage-inspired offset as a tribute to Mark Kiesel, released at a competitive price ($1,699+), marking a positioning against models like PRS Vela.

• Memorable Moments:

  • Shared time with other YouTube creators.
  • Makers' stories: Mark Kiesel saved Carvin's guitar division in the ‘70s; Jeff and Mark did so again in 2015 by spinning off Kiesel Guitars.
  • After-hours: Enjoying bespoke high-proof bourbon at Jeff Kiesel’s with other artists (“talking in cursive,” 1:53:00).

6. Industry Reflections, Guitar World Covers, & Viewer Q&A (1:54:01–end)

• Guitar World Epiphany:
  Phillip realizes that every artist signature guitar he’s kept was on the cover of Guitar World and that this magazine deeply shaped his gear preferences.

  “Guitar World programmed my brain and I'm stuck as a middle-aged man, stuck just thinking about what it is they did.” — Phillip (1:59:20)

• Lively Discussion:

  • He shares a personal anecdote of receiving cover shoot photos from Larry DiMarzio.
  • Discusses the value/limits of gear upgrades and when cheaper options (“just good enough”) win out.
  • Recommends buying used cabs locally or from Guitar Center for best deals on speaker cabinets.
  • Rapid-fire answers about fretboard recommendations, the impact of NAMM, and more.

Notable Quotes & Moments

• On Harley Benton’s exit:

  “You want Harley Benton to hear this: If you want to, you can make it... a tariff doesn't mean you can't sell. It just means it's going to add cost.” — Phillip (00:13)

• On shifting trends:

  “All of these cheap guitar companies are in the same boat... What happens is they sell us a guitar, it’s pretty good, really cheap, then they buy them all up, and then people start putting on Reverb for more money.” (00:23)

• On the “stock market” mentality of cheap guitars:

  “Buy low, sell high. Oh, did you sell your Firefly at the right time? Good for you. Oh no, you got the Firefly and now it’s back in stock. Now it’s worth nothing again.” (00:25)

• On NAMM coverage:

  “To me, the NAMM show is not a party… It’s about seeing the stuff. What’s new, what am I gonna want? Or how, you know, what is new, exciting?” (1:07:05)

• On Synergy modular amps:

  “How close is the compromise? I believe it’s close. I believe it’s the closest you can get and get those companies to sign off on it.” (1:18:50)

• On Guitar World covers:

  “Every artist guitar that I own, that I’ve had for any length of time… was on the cover of Guitar World.” (1:59:12)

• On quality control and transparency:

  “The better a company does and the harder it works to make a great product for us, the more they want me to see it…” (00:53)

Timestamps for Important Segments

• Harley Benton US withdrawal & tariff debate: 00:02–00:26
• Used market issues & volatility for budget guitars: 00:20–00:26
• How tariffs actually affect guitar imports: 00:34–00:39
• PRS SE inspection and global supply/distribution: 00:46–00:53
• NAMM Show gear highlights: 00:56–1:38:00
• Synergy Amps/Mini Head explanation: 01:11–1:17
• Kiesel Connect recap & new Mark 66 launch: 1:38–1:54
• Guitar World “epiphany,” industry influence on taste: 1:54–1:59

Tone and Style

Phillip stays conversational, blending grounded skepticism (“I want Harley Benton to hear this…”) with humor (“I made $200. So if I lost $200, I flatlined it really happy. But when I lose a thousand dollar item, I’m like, holy crap…”), and candid storytelling. He’s self-aware about his influences, often digressing with side stories, and is quick to praise transparency and thoroughness in companies while calling out market or media hype.

Conclusion

Phillip delivers a candid, data-driven take on the instability of the cheap guitar market, the scapegoating of tariffs, and the significant shifts in the industry post-pandemic. He both celebrates and critiques new NAMM launches, shares behind-the-scenes perspectives from Kiesel Connect, and offers both advice and introspection on the culture of guitar buying, quality, and aspiration—anchoring it all in the community and nostalgia that continues to shape the guitar world.