EU prices?!

[krstko]

I'm buying a new bass. I was checking ebay and I found out that in USA you pay only half of EU price. Why can't you get a good bass cheap in EU too? It's so unfair...

[smcd]

3 words - Value Added Tax

[jabsys]

Originally Posted by smcd

3 words - Value Added Tax

We still pay more even without that extra 20% for VAT.

[ksandvik]

* Euro to dollar fluctuations.
* All kinds of import taxes various countries have.
* It costs to ship over the sea.
* US market concerning instruments is far bigger and companies here rely on big distribution centers shuffling products from one corner to another.
* Some European re-distributors thinks they need to add to the price just for the grace of selling certain brands.
* And N other issues.

Actually some time ago when the Euro was strong it made sense to purchase a ticket to USA, purchase the bass and take it back in. Cheaper than purchasing the same bass in Europe. You could get back to that point, but you just need to fix your Euro so it's strong again -- fix all those crazy deficits certain countries have dragging the rest of Europe to its knees.

[krstko]

Originally Posted by ksandvik

* Euro to dollar fluctuations.
* All kinds of import taxes various countries have.
* It costs to ship over the sea.
* US market concerning instruments is far bigger and companies here rely on big distribution centers shuffling products from one corner to another.
* Some European re-distributors thinks they need to add to the price just for the grace of selling certain brands.
* And N other issues.

Actually some time ago when the Euro was strong it made sense to purchase a ticket to USA, purchase the bass and take it back in. Cheaper than purchasing the same bass in Europe. You could get back to that point, but you just need to fix your Euro so it's strong again -- fix all those crazy deficits certain countries have dragging the rest of Europe to its knees.

And with all * I still don't get it where they get so expencive -.-'

I have friends from America who would be eable to send me my bass by post, but I think I would work because of the border...

[T-Bird]

Hi.

Originally Posted by krstko

Why can't you get a good bass cheap in EU too?

Define good.

You could define cheap as long as You're at it as well .

If it makes You feel any better, a great portion of European mfg gear is prohibitively expensive in US.

BTW, we are talking about new instruments, right?
With second hand ones the answer is a no-brainer really.

Regards
Sam

[darthplagis]

The best thing for us EU people is to buy EU basses.

Sandberg, Status-Graphite, Overwater and our very own ACG

All european all top notch basses and great prices for us in the EU as we dont have hefty import duties of USA made gear.

personally i have 2 basses from 2 of the above makers and given the chance/funds id have a bass/es from the otrher 2 too

[Shenry]

It's like that here in Australia too. Pedals that cost 400$ here (locally and online) can be usually shipped here from the US at about half the price.

[Floyd Eye]

Why is gasoline twice as expensive? Why is owning a car in the first place twice as expensive? Why is a cab ride, a steak dinner, a Heineken, or a pack of smokes more expensive? I would give you my theory, but it would be bound to get political.

[One Drop]

Besides some of the other reasons listed, generally higher margins on the side of the distributors, and also higher wages and social charges for employees that companies pay to the government.

[SoVeryTired]

Originally Posted by One Drop

Besides some of the other reasons listed, generally higher margins on the side of the distributors, and also higher wages and social charges for employees that companies pay to the government.

But the employees of American manufacturers aren't paid higher wages if their basses are shipped to Europe, neither are they subject to European payroll taxes...

[SoVeryTired]

But the simple answer can be found if you look at personally importing a bass from one country to another - freight, import duties and local sales taxes. Add in some profit for the importer/distributor and there's your price difference.

That's where buying locally pays off, except that there aren't any European manufacturers with the sort of economies of scale of Fender or Gibson. Mind you, the more people that buy locally, the bigger these companies will get and the greater the chance that manufacturing costs will come down in time.

[One Drop]

Originally Posted by SoVeryTired

But the employees of American manufacturers aren't paid higher wages if their basses are shipped to Europe, neither are they subject to European payroll taxes...

No, but the European distributors and vendors are, all adding up to the final price of the instrument. The cost of doing business, e.g. marketing, paying staff, paying for premises and storage, etc. etc. is higher in Europe than it is in the US.

Counter-intuitively, freight has the least impact on final prices, bulk shipping being surprisingly cheap.

Competition is more fierce in the US as well, hence margins are lower. As you mentioned the economies of scale are different as well- the US market is so large you can make money selling higher quantities rather than making a higher margin on lower sales. Markbass is a good illustration of the differences in margins and what the consumer will support paying between the two continents. Markbass gear is cheaper in the US than in Italy...

I was involved with a product that is sold in 20 countries around the world- each country has a different pricing structure, and it was left to the distributors to determine the final MRSP he would give as a guide to his resellers. Some countries were able to add a massive margin for themselves and others less so, depending on the perception of the product in each country, historical prices, the prices of the competition in each country, etc.

I know for a fact the UK is notorious for maintaining high margins in spite of other factors making it possible to lower consumer prices- for many years prices seemed to magically be identical in Pounds to the US Dollar prices for items available in both countries, no matter what the exchange rate or transport costs.

[pedroims]

Cost of living in Europe is higher , period. How many of you own a 200 square meter house, two big cars, 5 tvs, 2 fridges, four guns, 4 basses, two amps, three cabs and a bunch of pedals you dont use. This how is here for the most, it is good or bad? I dont know but I know few Americans that moved to Europe and hate the way you guys live so they are back in the states.

[SoVeryTired]

Originally Posted by One Drop

I was involved with a product that is sold in 20 countries around the world- each country has a different pricing structure, and it was left to the distributors to determine the final MRSP he would give as a guide to his resellers. Some countries were able to add a massive margin for themselves and others less so, depending on the perception of the product in each country, historical prices, the prices of the competition in each country, etc.

I know for a fact the UK is notorious for maintaining high margins in spite of other factors making it possible to lower consumer prices- for many years prices seemed to magically be identical in Pounds to the US Dollar prices for items available in both countries, no matter what the exchange rate or transport costs.

Very good points. A bass costs what people are prepared to pay for it and what the retailer can get away with. If the price gets so high that the buyer no longer thinks the bass is worth it, the retailer either has to cut their margins, push back to the distributor/manufacturer, or just stop selling the bass altogether.