@SFCRetired beat me to it. Many businesses are a balancing act: You have to sell what pays the rent. I'd bet a high percentage of customers at GC are first time buyers, and many of those abandon the instrument within the first few years of ownership. Granted, a better instrument may provide a smoother glide path for continuance, but I suspect there's a lot of pushback on price when uncertainty is in play.
Those who have played for a while and continue with the instrument aren't beating down the doors of GC every day looking to upgrade. So, GC has to satisfy the person walking through the door. And, I suspect, most of them aren't in the market for a $3K+ instrument.
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I own 41 guitars. Most are made of wood. Some are not.
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