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Wood inlay strips are about 1/16" thick, and you need a router bit to cut a 1/16" ledge for the inlays. Here is a router bit that serves two purposes: Flush Trimming and Inlaying.
Use the 1/2" router bit with 1/2" bearing to trim off excess soundboard flush with sides of the instrument. Then change the bearing to the 3/8" size to cut a 1/16" ledge around the circumference of the instrument for the inlay banding strips.