Quote:
Originally Posted by TRF_Tastic
I think that point Im trying to make with the quote of the prices is the following, if it can be shipped to USA and sold there at a profit for £200 why is it £270 over here and dont give me sales tax or any other excuse. There is still a vast profit being made be A the manufacturer, B the Shop.
Sorry if this sounds like a rant, but I am fed up with rip off UK, we are taxed then taxed some more for our luck and then whatever we think we have left is taxed as well. I know shops have to make a profit and so do distributers so its not all your fault however, I do think that margins can be cut a little and not hurt anyone too badly, you never know you might sell more.
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Shops over here are usually struggling to make money, they aren't ripping anyone off. Based on those prices if you take off the VAT in the UK then factor in rent, rates and staff wages (US minimum wages work out at £2.60 per hour at the moment) you would probably find the US shops are paying the same trade price as the UK shops for the kit but they will actually be making a bigger profit even though the retail prices are much less.
Yes, profit margins for the distributors can easily be cut, dropping all driver sponsorship and discounting and not bothering with customer support would reduce their outgoings easily. A bit difficult to cut down on the rent, rates, utilities, wages and taxes.
Tamiya can be commended, they discount the prices in Europe so it means it costs roughly the same to buy them in the UK as it does from Japan.