Originally Posted by rowuk

The problem is not labor costs or even the quality of the instruments. It is the consumer that accepts that a $200.00 trumpet is good enough.
Even with the compensation package, do you think that those employees or their families will ever buy Yamaha instruments again? Yamaha just lost at least 500 customers.
Remembering back into the 70's, Yamaha did exactly the same thing - came in cheap, made a reputation and raised the prices to match the rest. The Chinese are up to bat now. If I am not mistaken, they still have a most favored nation status keeping the import duties low. Great way to finance the loss of jobs in the states in the name of "free market".
My advice: there are enough great instruments out there, if you care - buy something else!