Different pricing in the world?

[perlan]

Hi.

I've checked every dealer I've found in Europe and the cheapest available Axis starts at about $<edit>..
In comparison that same guitar would about cost half in the US (~$<edit>).
I know that customs duty, VAT and shipping costs adds about 42% for a retailer to import to Scandinavia but that can't eplain it all.

If the retailer sells it for <edit> one can guess that the EBMM will ship it from factory for less than that, otherwise the retailer won't earn any money.
Let's say they ship it for <edit> from factory, then add 42% handling costs to Europe + 20% retailer profit and that sums up to $<edit> but I'd tell you, there are no store that'll sell you an Axis to that price.

If I compare the prices for competitors, lets say Fender the pricing is about the same in Europe and US, when European shipping, VAT and customs duty are subtracted that is.

The only conclusion I can come up with is that EBMM use different price lists for different countries and retailers, if so - why?
I think a lot more people would buy EBMM products in the rest of the world if they would be priced the same as in US.

Am I missing something here?
Anybody with any insight that can put my wonder to rest?

Regards,
Perlan

 

[robelinda2]

its up to the individual countries to set retail prices in their country. this topic has been discussed here before at great length, try and find the thread, i think it was in the bass forum about 12 months ago.

 

[g_man]

As Rob said, this has been discussed many times.

I live in Norway, and I checked out a number of European countries, and they were all similar prices (I was worried the Norwegian importer was adding too much).

What you left out of your equation is that European stores do not deal directly with EBMM, as do U.S. stores, but with a distributor. So their overhead (office, storage, sales to stores, return issues, etc.) is added to all of this.

 

[Big Poppa]

What G Man said..,with the addendum that gross profit of 20% is not enough to make any net profit...

 

[puppyonacid]

On the other hand.........

In pretty much any country outside the US EBMM guitars will hold their value. A second EBMM in the UK is worth alot more than a second hand one in the US. Check Ebay out. I got My JP6 - Mystic Dream - piezo - matching HS - dot inlays at an insane price ( I shoulda been a pro hustler) and I was lucky. However, I've had it almost a year now and I could, at a pinch, pretty much sell it for what I paid for it. Why? Because if somebody wants one now they are in very limited supply here. So they may rather seek one out second hand than wait 3- 6 month for one to be made. And then still have to pay the additional shipping and over heads that we have to pay for outside the US. It's not so bad if you look at it that way. Most other leading brand guitars will depreciate very quickly over here because they can be sourced new quite easily.

I think it's a nice quirk of the way the business works. And they're aren't too many other big guitar companies this will occur with. In a sense, you're not losing much if anything at all by paying the extra fees which aren't really imposed by EBMM anyway.

 

[phatduckk]

Hi.

I've checked every dealer I've found in Europe and the cheapest available Axis starts at about $<edit>..
In comparison that same guitar would about cost half in the US (~$<edit>).
I know that customs duty, VAT and shipping costs adds about 42% for a retailer to import to Scandinavia but that can't eplain it all.

If the retailer sells it for <edit> one can guess that the EBMM will ship it from factory for less than that, otherwise the retailer won't earn any money.
Let's say they ship it for <edit> from factory, then add 42% handling costs to Europe + 20% retailer profit and that sums up to $<edit> but I'd tell you, there are no store that'll sell you an Axis to that price.

If I compare the prices for competitors, lets say Fender the pricing is about the same in Europe and US, when European shipping, VAT and customs duty are subtracted that is.

The only conclusion I can come up with is that EBMM use different price lists for different countries and retailers, if so - why?
I think a lot more people would buy EBMM products in the rest of the world if they would be priced the same as in US.

Am I missing something here?
Anybody with any insight that can put my wonder to rest?

Regards,
Perlan

i edited this post to remove implied street/dealer prices

Reminder: USED and RETAIL (MSRP) prices are ok to post on the forum. Dealer/street prices are not allowed

 

[Jommi]

Well, before i buyed my Axis from Larry, i checked out EBMM Axis price here in Finland. Even in Sweden there was not single one of them for sale - it should be ordered direct from factory without anykind of knowledge when they even could send it, and: new Axis is <edit> Euros in here Finland, that is <edit> USD (!!!!!)

Now im going to start planning new guitar - and that is going to be EVH signature model...

 

[DrKev]

Yep, as a general rule, double the price in dollars is roughly the price in euros. I'm seriously looking ordering in the US and flying over to get it. It would save me a lot of money. I do feel a little guilty about not working with a good store here in Paris but seeing as I have yet to find one that really gives a darn about my custom, none of them will order the picks I need, EB mandolin strings, and lots of the other stuff I want here, why should I bother?

 

[augustyn]

you can easily buy a used one in USA and import it by yourself. small flat world makes it possible.
BTW, european products (engl amps for example) are silly expensive in USA also.

 

[perlan]

So if I understand this correctly the "problem" is the distributor outside the US that adds a lot?
About my numbers they were not actual numbers, more of an estimate to have something to show.
But why aren't non-US citizens allowed to buy directly from retailers in US?
Every retailer I've contacted tells me I need an American address, howcome?

/Perlan

 

[Spudmurphy]

I believe thatto have an Ernie Ball franchise in the US, you have an obligation that you will only sell a new guitar to someone who has paid for it out of US funds and that it is shipped to a US (or US forces?) address.

There are US dealers on the forum who will know far more about it than me, but I think I have covered the gist of it.

 

[beej]

So if I understand this correctly the "problem" is the distributor outside the US that adds a lot?
About my numbers they were not actual numbers, more of an estimate to have something to show.
But why aren't non-US citizens allowed to buy directly from retailers in US?
Every retailer I've contacted tells me I need an American address, howcome?

/Perlan

I'm no expert, but here's my take on it. International distributors take on the risk/responsibility of importing, distributing and supporting EBMM products in their territory. This is no small feat, and there has to be enough profit to make it worth everybody's while. Accordingly, prices are higher outside of the USA. (Understandably so.)

All dealers have to stick to their territory. It's not fair to international distributors to then let USA dealers ship all over the world. In fact, were you to do that, you would wind up with no international distributors and so nobody to promote/distribute/support the product outside of the US.

Yes, it costs more overseas. That's the cost of doing business so everyone gets paid for their efforts and you get a great guitar.

 

[SteveB]

You should see what we pay for good German or Belgian beers in the USA!

 

[bovinehost]

Beej, while being 'no expert', covered the bases quite nicely.

As some of you are relatively new to the forum, I wouldn't expect that you would know the details on dealer agreements and overseas distributors and pricing and so on, but it is one of those subjects that has been done, overdone, and then done to death here.

So, without further fanfare or wailing and gnashing of teeth, we shall consider the question asked and answered and the thread done.

Thanks!

Jack