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My fav is the two guys who buy a $20k logging truck and spend all winter in the woods logging. When they are done they make $20k. They are annoyed because they didn't make any money. So the one guy goes "guess we are going to need a bigger truck!". Has implications for Lutherie as well.
If you're making -$200 per guitar, all you have to do is make more of them to make less money.
Paul,
While this is not a direct useful answer as there seems to be some resistance to the city (and as a luthier - it would be stupid hard to find shop space at an affordable rate). I'd put NY and the NYC metro as one of the best scenes for gypsy jazz in the USA - the top dogs from Europe come often enough (I've hosted Moignard, Sebastien, Matthieu, Julien Cattiaux, Dennis, Titi Baumgarner and most recently Sandro Lorier). You can see great groups playing this music quite often; and all of the 'big' tours stop here as well . . . (Django all stars at Birdland for at least a week a year and Django a Go Go). It is an amazing scene for sure. Others as previously mentioned and IMHO Baltimore, San Fran, LA. Upstate NY seems to be cool and growing - but is a large area geographically (Woodstock is a fair drive from buffalo!). Anyway - I'd stand up for NYC - I tried moving away, but came back for several reasons, but it is a hub (wine) for my other profession and for straight ahead jazz and arts in general. I love not having to drive everywhere every day; I am writing this on a subway to manhattan to go walk in central park . . . and then hang with a great piano player and shed a bit). I find the city is perfectly safe with some attention to your surroundings, but then I grew up in DC in the late 80s and early 90s so . . It's very expensive, but you can not beat certain aspects of it.
Would be curious to hear where you land and what you think of it. Perhaps it will inspire me to finally by a place (as doing so in the city is well . . . to damn expensive!)