Kraton Why such price differences?

[sharkyenergy]

Hi ya all... I admint, i am a newbie and don't know much about Arrma...

But one thing is not clear to me.. As far as I understood, Arrma is based in the UK. So why you see several users get the car for prices that are way below the european? Here you can find now a "old" version Kraton for 950€.. (1050 US $) if you buy the less erquested color.. (orange) if you want it green you still pay the full price of 1000€ (1100 US $)

As far as i understood in the US you get it listed at 1000 USD, and some fet it for 900 USD... thats a lot less than here.. and its a european company..

Why?

Regards

Igor

 

[bicketybam]

Hi ya all... I admint, i am a newbie and don't know much about Arrma...

But one thing is not clear to me.. As far as I understood, Arrma is based in the UK. So why you see several users get the car for prices that are way below the european? Here you can find now a "old" version Kraton for 950€.. (1050 US $) if you buy the less erquested color.. (orange) if you want it green you still pay the full price of 1000€ (1100 US $)

As far as i understood in the US you get it listed at 1000 USD, and some fet it for 900 USD... thats a lot less than here.. and its a european company..

Why?

Regards

Igor

It's $899 here in the US. Arrma may be a UK company but they are owned by Horizon Hobby which is a US based company.

 

[3d-rc.myshopify.com]

Supply and demand help as well. I bet 90% of them are sold in the states.

 

[sharkyenergy]

Wow thats a price difference... Thanks guys...

 

[JvG]

They are made in China (i guess?) and production costs are similar.
So the difference will be in shipping costs, import fees, taxes, wholesale and retailer margins.

 

[SrC]

Currency exchange rate is probably the biggest factor. So price is relative.

 

[slick2500]

Currency exchange rate is probably the biggest factor. So price is relative.

A global currency is really needed but I don't really see a way for it to work easily.

 

[r4nd0m]

Its always been the case that global prices were based on local currency not actual conversion rates so typically its price X in local currency no matter what the conversion rates are between currency unless its huge differences like in Yen, Rupees etc where same price in local currency doesn't work

 

[bicketybam]

Its always been the case that global prices were based on local currency not actual conversion rates so typically its price X in local currency no matter what the conversion rates are between currency unless its huge differences like in Yen, Rupees etc where same price in local currency doesn't work

Add the Australian dollar to the mix because those guys are getting humped right now. A 6S rig is close approximately $850.

 

[r4nd0m]

Add the Australian dollar to the mix because those guys are getting humped right now. A 6S rig is close approximately $850.

may be for some I seem to remember when converting Vas 8S price he paid less than I did here in the UK but generally AUS is also an applicable currency here agreed

 

[bicketybam]

may be for some I seem to remember when converting Vas 8S price he paid less than I did here in the UK but generally AUS is also an applicable currency here agreed

He got the truck for free ?

 

[r4nd0m]

He got the truck for free ?

but he quoted the price in one of the videos maybe the complaint one which was I think AUS1400 which was less than the price here at the conversion rate that day ...

 

[nino]

Stuff is cheaper in the US. Doesn't really matter if Arrma is based in UK or Bangladesh.

 

[bicketybam]

but he quoted the price in one of the videos maybe the complaint one which was I think AUS1400 which was less than the price here at the conversion rate that day ...

It's $1600 AUD.

 

[Tremonti]

Import tax, duties and all kinds of trade variables contribute to the price difference. You often see products prices the same amount in different currencies, “PS4 now 299 €/$/$” for example. It looks the same, but it obviously isn’t. It also depends on the supply chain. If the Kratons are directly imported into Europe via Horizon Hobby Germany, the European import duties and taxes are included. If the Kratons go to the HH HQ in the US first, and then gets shipped to Europe, both US and European duties and taxes are included. The latter is unlikely. The 8S goes for €999 in Europe, some shops offer them for €899. Which is $1103, quite the difference from the $899 it goes for at HH USA. If you choose to order the K8S from HH USA as an European the price suddenly rises to $956, not including taxes/duties or shipping. $57 difference just by selecting an European country and currency. Shipping is €200 ($220) and taxes €224 ($247), resulting in a grand total of €1291 ($1492).

Like someone else already said, its probably also because the US market is bigger than the EU market. The EU generally has higher taxes for both consumer and supplier. I was lucky to get it for €899, and the LHS still made money on it. So you can imagine how much €€€ they’re raking in when people get it for €999.

 

[nino]

For example, if I order something from China or US (outside the EU) above 20ish $, I have to pay at least 25% VAT. Depending on the value and type of merchandise, it can go up to 50% with import tariffs (not sure of the right terminology but you get it).

Similarly, for a monthly salary of say 2000$, my employer has to pay out almost double - income tax, mandatory state health and pension insurance and a couple other things. There are better and worse countries regarding this, but usually it's way above what the government steals in the US to feed the bureaucracy.