Ah, don’t feel bad. It’s not like they go out of their way to advertise the fact. Incidentally, Music123.com is also a MF/GC company. It’s become pretty widely accepted (from what I gather) that the MF price is about the lowest you’re going to find from a retailer. As a result, even local mom 'n pop shops have been forced to lower their prices to compete with MF. Their price is generally considered the base street price for any given piece of gear.
One major failing with GC/MF, however: they don’t take particularly good care of their instruments or amps, lots and lots of people beat them to heck, and they basically take the stuff out of the factory boxes and throw them out on the sales floor. They don’t do a whole lot of “value added” things like setting up/intonating their guitars. Mom and pop shops do this kind of thing routinely, and are able to remain competitive because of it. My favorite local music store won’t let you out the door without a complete setup, truss rod adjustment, intonation, etc. They usually also throw in some extra stuff, like strings and/or a strap.
I strongly advocate letting some local shop try to get your business, rather than just going with Guitar Center off the bat.
And no, I don’t know of any resource that will let you know what the factory prices of gear are. Profit margins in this business vary widely, but I usually go in with the basic retail profit margin in mind: I assume that they’re looking for about 40% profit across the board. And I assume that the GC/MF price is set mostly around that figure.
Be sure to look for blemishes, scratches, uneven frets, etc. Those can be your ticket to getting a better price, and they are all easy to fix or to live with.
That’s an extremely annoying thing about GC. You go in to look at a BIG SALE, and it’s “we’ve slashed all our DJ gear 5%”! Yay.
On the other hand, Guitar Center is a big chain that moves a lot of equipment, so if they have gear models sitting around that aren’t selling, occasionally they will have a genuine mega-blowout on whatever’s not moving. Normally, you only catch a deal like that one one particular piece of gear at a time, however.
For instance, last year, they were having trouble getting the rest of their rosewood-fingerboard Fender “60th Anniversary” Highway One strats and teles out the door. So they priced them all down to $388 apiece. I picked one (a strat) up, and am extremely happy with it.
Another time, they were blowing Peavey Classic 50 combos out for something like $250. I wish I had grabbed one.
Sometimes, also, GC will let things fall through the cracks. I know one guy who picked up a Custom Shop Highway One strat, with surf green paint, matching headstock, and Custom 69 (very nice) pickups for the $388 blowout price. They definitely weren’t supposed to let that one go for the sale price, but they did.
So GC/MF is worth keeping an eye on, but for most purchases, I’d go to my boys down at Highland Music. I trust them, and I’d rather help keep a local business alive than feed money to the WalMart of the music gear world.