Know Your Gear Podcast: The Internet's Reaction to the $2K PRS SE Guitar

Host: Phillip McKnight
Episode: 434
Date: October 15, 2025

Overview

In this high-energy episode, Phillip McKnight dives deep into the internet's passionate—and sometimes intense—reaction to the new $2,000 PRS SE Herman Lee "Cleo" signature guitar. Drawing from his own experiences at SE and Cort factories, Phil unpacks the pricing debate, industry trends, exclusive behind-the-scenes insights, and answers a wide range of user questions about guitar gear, model comparisons, and market changes.

Main Theme

Topic: Why is the new PRS SE Herman Lee "Cleo" $2,000, and what does the online community think of it?
Phil explores the complex components behind import guitar pricing, how tariffs and cost structure have changed in recent years, market responses, and where the Cleo fits in the PRS lineup and wider guitar world.

Key Discussion Points and Insights

1. PRS SE Factory Tour and Cleo Release (00:01–08:00)

• Phil recently toured the PRS SE factory in Indonesia, capturing extensive footage—only releasing what’s allowed.
• New PRS Herman Lee "Cleo" SE was unveiled; the price ($1,999) sparked immediate debate online.
• Phil had the SE "for months," with rumored early prices at $1,800, then $2,200, finally settling at $1,999.
• “A lot of people are like speculating about the price. Why is it $2,000?” – Phil (04:30)

2. Breaking Down The $2K Price Tag (08:00–21:00)

• Import Pricing Rules: Traditionally, import guitars are 25-35% the price of their U.S. equivalent (e.g., SE vs U.S. Core).
• Example Calculation:
  • $6,900 (Core Clio) x 25% = $1,725
  • $6,900 x 35% = $2,415
• Recent trend: Closer to 35% target, driven by factors like cost increases and tariffs.
• Tariff Impact: “The new tariffs rolled out literally right before I went to Indonesia… It added basically another 10% or 11%.” – Phil (13:20)
• Other markets (like UK) have similar prices despite different tariff regimes, further complicating cost vs. price narratives.
• Quantity isn’t the goal: “I don’t think they looked at this guitar… as the next Silver Sky. I just don’t think they thought they had a mass market appeal like that. This is really just—they wanted to do something unique and crazy.” – Phil (18:15)
• PRS’s internal perspective: Not even sure they’ll "break even" on the Clio, emphasizes PRS’s willingness to experiment for fun and reputation, not just profit.

3. Anatomy of the Clio SE: Components & Expectations (21:00–28:00)

• Discussion of hardware: Fishman Fluence pickups ($350 retail), Floyd Rose 1000 trem, custom jigs and parts.
• “...Trying to break down the component costs is missing the point. They made a guitar for fun, not for mass appeal or profit.” – Phil (22:01)
• Teased that more price “shocks” are coming; deep dives on upcoming high-priced guitars from various brands.

4. Import Guitars and Pricing Trends (28:00–33:00)

• Other recent SE and import guitars launched at higher price points.
• “We're going to see a lot of that. It’s coming from every direction.” – Phil (32:10)

5. Insights from Factory Tours and PRS Strategy (33:00–42:00)

• PRS SE guitars are directly boxed and shipped per country, not routed through the US for global distribution.
• Special runs and exclusives are prepared for different global markets (e.g., Japan, Germany).
• Some footage is “off the record,” with factories protecting proprietary processes.
• Phil shares the importance of understanding company decisions from both a business and enthusiast perspective.

Community Q&A Highlights

Why do PRS SE bolt-ons (other than artist models) all have wide-thin necks? (46:00)

• “They just pick all the hottest selling combinations and go, let’s do that… Majority rules.” – Phil (47:40)
• Options and configurations are expensive to manage; companies often standardize to simplify operations.

Is an Eastwood guitar worth $1,500+? (55:00)

• “It’s worth what you’re willing to pay for it… Sometimes you want to pay more than something’s worth because you want it.” – Phil (57:50)
• Phil shares personal anecdotes of paying a premium for specific gear because it matched exactly what he was searching for.

$2,000 Guitar Value Argument (1:02:00)

• “It’s not a deal if you didn’t want it before it was a deal.” – Phil’s “ism” about not being lured solely by discounts.

“The heart wants what the heart wants. Maybe that’s what we need— just give the guitar the old ‘it’s not you, it’s me’!” – Phil (1:05:45)

Comparing SE Silver Sky vs. Fender American Strat (1:11:00)

• SE Silver Sky is a high-quality guitar but tailored to John Mayer’s specs, not Phil’s own preferences.
• “At the end of the day… that’s John Mayer’s guitar.” – Phil (1:13:10)

Clio Core vs SE: Bolt-on vs Set-neck (1:18:00)

• Fit & Finish: Core is “like a private stock”—ultra-refined, while the SE is extremely playable, more “practical.”
• “I’ve 10x played the SE over the Core. It’s just way more… practical.” – Phil (1:21:00)

Thin Line Strats and Telecasters (1:40:00)

• Origin in attempts to weight-relieve heavy ash bodies.
• Thin Line Strats less popular due to unique look and arm contour issues, not due to sound differences.

Memorable Moments & Quotes

• “I have at least five more deep dives before the end of the year that will be just as shocking, if not more shocking… when you see the prices.” – Phil (31:34)
• “Jack [Higginbotham] told me at PRS, ‘I don’t even know if we’ll ever break even on the Clio.’ ...It wasn’t a woe-is-me, it was just, ‘this was fun.’” – Phil (19:50)
• On buying for passion, not just value: “It’s not a deal if you didn’t want it before it was a deal.” (1:02:00)
• Iconic quote on guitar romance: “The heart wants what the heart wants… Maybe that’s what we need, just give the guitar the old ‘it’s not you, it’s me’.” (1:05:45)

Notable Segments & Timestamps

• PRS SE Herman Lee "Cleo" Price Analysis: 04:30–15:00
• Tariffs & International Pricing Discussion: 13:20–19:10
• Inside the PRS Factory—Shipping, Exclusives: 33:00–38:00
• Q&A on Custom Neck Profiles & Silver Sky Debate: 46:00–54:00, 1:11:00–1:14:30
• Practicality vs Collectibility in Guitars: 1:18:00–1:22:00
• Vintage Pickup Chat (Eric Johnson, Screamin Demon): 1:28:00–1:35:00

The Podcast’s Tone and Community Vibe

• Energetic, playful, and honest with a hint of self-deprecation.
• Phil weaves technical explanations with humor and relatable “real world” analogies.
• The show’s wide-ranging Q&A reflects a strong, close-knit listener community engaging over every facet of guitar ownership and gear trends.

Takeaways

• The $2K PRS SE "Cleo" is a symbol of rising costs and changing expectations for import guitars, not a cash grab.
• Market, tariffs, niche specs, and the “fun” of unique artist models all play into pricing.
• Guitar buying is personal: value is subjective, passion always wins.
• Big changes and more price “shocks” are coming in the mid-tier guitar market.
• Phil’s first-hand insights from factory floors offer rare, candid perspectives on how gear really gets made and distributed.

For more:
Check out Phil’s PRS SE factory tour video and upcoming Cort factory mini-documentary; follow the Know Your Gear Podcast for more deep-dive discussions and unfiltered Q&A sessions.