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UK Distributors too greedy?


Moorlander

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I just noticed the official Tikka website is showing the USD prices , now I know the retail side of the UK gun trade rarely make a clear 20% margin so I was wondering how UK importers / distributors justify their large mark ups ?, theres no import duties due (currently anyway) on firearms from EU countries and shipping would be considerably less to the UK than to the US, just another case of rip off Britain? 

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Firstly ,US prices don't include sales tax as that is different per state. UK prices include VAT at 20%.

Secondly, shipping is actually less to the US because of the numbers involved. One full shipping container costs less per rifle than a container with a few dozen rifles and a lot of empty space.

There is a higher price to pay in the UK due to the smaller market but it's not actually that much higher when you understand the details.

Rip off Britain is a myth perpetuated by tabloid newspapers.

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1 hour ago, MrCetirizine said:

Firstly ,US prices don't include sales tax as that is different per state. UK prices include VAT at 20%.

Also, there is no proof law in the USA - the rifle is sold as received. Our distributors often have  to proof imported rifles and shotguns depending on their origins.

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If you've ever run a business and paid building rent, office furniture, computers, printers, photocopiers, business rates, wages, employers NI, pensions, utilities, security, large amounts of stock (just in case people want it, because they will always ask for the thing you don't have), and then also allow for the retailer's mark up - the actual margins for the wholesalers aren't great.

Unfortunately everyone wants something for nothing these days. You only have to look at wanted ads on shooting sites, where people write 'Wanted Cheap Good Quality Scope/Dies/Press/Mod/Widget etc etc. Or, the question 'What good quality 'X' can I buy cheap.

The enjoyment of owning something of quality always outlasts the euphoria of getting a bargain price!

 

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3 hours ago, MrCetirizine said:

Firstly ,US prices don't include sales tax as that is different per state. UK prices include VAT at 20%.

Secondly, shipping is actually less to the US because of the numbers involved. One full shipping container costs less per rifle than a container with a few dozen rifles and a lot of empty space.

There is a higher price to pay in the UK due to the smaller market but it's not actually that much higher when you understand the details.

Rip off Britain is a myth perpetuated by tabloid newspapers.

A lot of firearms are flown into the UK from the EU , around just £35.00  for one firearm so if a small distributor  in the UK only buys 10 it could come down to £25 ea, and with 20% VAT added those Tikkas would only be around £875.00 retail price , the current UK price seems to be a fraction under £1200.00 

Plus dont forget the prices on the Tikka site are MSRP so in the US they will no doubt be discounted further .

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1 hour ago, Roy W said:

If you've ever run a business and paid building rent, office furniture, computers, printers, photocopiers, business rates, wages, employers NI, pensions, utilities, security, large amounts of stock (just in case people want it, because they will always ask for the thing you don't have), and then also allow for the retailer's mark up - the actual margins for the wholesalers aren't great.

Unfortunately everyone wants something for nothing these days. You only have to look at wanted ads on shooting sites, where people write 'Wanted Cheap Good Quality Scope/Dies/Press/Mod/Widget etc etc. Or, the question 'What good quality 'X' can I buy cheap.

The enjoyment of owning something of quality always outlasts the euphoria of getting a bargain price!

 

Agreed but all that also applies to the US plus Ive waited six months for Tikka`s in the past so not always in the UK warehouse.

The Tikka distributor doesn't appear to be roughing it GMK

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Tikka T3x Tac A1 in Good ol' US of A $1900 https://www.tikka.fi/en-us/rifles/tikka-t3x/t3x-tac-a1

Tikka T3x Tac A1 in Not Rip Off France €2490 https://www.tikka.fi/en-us/rifles/tikka-t3x/t3x-tac-a1

Bon Voyage

Tikka T3x Tac 1 Deutschland Über Alles €2688 https://www.manfred-alberts.de/katalog/2019/#p=102

Auf Weidersehn

Tikka T3x A1 in Rip Off Britain £1710 https://www.guntrader.uk/guns/rifles/tikka/bolt-action/6-5mm-creedmoor/t3x-tac-181116140857001

God Save the Meghan Markle

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"The quality remains long after the tears over the price are forgotten".....................so they say.

Boyd's $137 stocks appear to be selling for £217+ at the distributor over here...........at  $1.2/£, that's close to 100% mark-up.

I'd much rather buy British, if only they made what I actually wanted..........

Pete

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56 minutes ago, bradders said:

Tikka T3x Tac A1 in Good ol' US of A $1900 https://www.tikka.fi/en-us/rifles/tikka-t3x/t3x-tac-a1

Tikka T3x Tac A1 in Not Rip Off France €2490 https://www.tikka.fi/en-us/rifles/tikka-t3x/t3x-tac-a1

Bon Voyage

Tikka T3x Tac 1 Deutschland Über Alles €2688 https://www.manfred-alberts.de/katalog/2019/#p=102

Auf Weidersehn

Tikka T3x A1 in Rip Off Britain £1710 https://www.guntrader.uk/guns/rifles/tikka/bolt-action/6-5mm-creedmoor/t3x-tac-181116140857001

God Save the Meghan Markle

That does make it look like Tikka/Sako are controlling/fixing distributor prices , guess who owns GMK ..... 

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16 minutes ago, Roy W said:

GMK is owned by Beretta (60%) and 40% by the Waktare family

Beretta own Sako/Tikka

It's all cobblers though and is regularly used as a way to attack the gun trade and accuse them of being rip off merchants when the facts presented actually show us as being cheaper in many ways

Petrol in France is about 20p/litre more expensive than here and another good example is cars

A VW Golf R like mine has a basic OTR price of £31,395 in the UK. That includes VAT and 1st year road tax (about £500)

The same car in the US is $41,000, and with state tax of about 7% is £34,725 or so, not including £500 non applicable road tax, which would take the US cost to £35,225, or nearly £4k more

Also take into consideration that when you deduct VAT, transport, PDI and road tax, Distributor/importer and retailer mark-ups, that same car is roughly £14,000 OTD at the factory, so about 120% mark-up before it gets to your driveway....but we don't grumble about that 

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Neither the gun wholesaler or retailer should make a profit in the UK. we dont need to eat, shoe our kids or take foreign holidays , like everyone else. Neither do we need time off etc. we should work for nothing, and be damned grateful for it.

The british shooting public have thought this way for years....quiet laugable really.

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1 hour ago, baldie said:

Neither the gun wholesaler or retailer should make a profit in the UK. we dont need to eat, shoe our kids or take foreign holidays , like everyone else. Neither do we need time off etc. we should work for nothing, and be damned grateful for it.

The british shooting public have thought this way for years....quiet laugable really.

I've owned several retail businesses over the years and it does seem to be like you say in all retail, customers moan and say they can buy an item a pound cheaper from a shop 20 miles away and so on, however my point is about the importers / distributors of guns, there is no good reason why European made firearms should be more expensive in the UK/ Europe than they are in the US/Canada/Aussie who all have to pay import duties , I believe it's price fixing / controlling.

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The selling price isn't the only factor. In the car industry dealers make small margins (sometimes negative) but they make bonuses on volume. Could this be at work in the USA due to sales volume? Lower selling prices due to lower margins with other financial arrangements squaring the business?

Without a clear understanding of the whole of the business cycle it's not easy to see who's making what. I don't begrudge my local dealer making a decent living, I rely on him to be there when I need stuff and I know he's not gouging me.

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People are living in a Cloud Cuckoo Land, gun prices are only one aspect of things

I have been travelling to the US almost annually for the last 18 years, and we have seen the gradual increase in prices there to the extent that not much is cheaper in the States anymore

Take a 6 pack of Stella for example, here it's about £4.99 from Tescos, in the US you're looking at around $15...and Australia is about the same, if not more

Go into a shop in America and buy a bar of chocolate such as a Mars Bar, it'll cost you about $2, here you can get 4 for £1.50 in your local Supermarket

Yes some places and items here are more expensive than you would like, but you have the option of paying the extra or not buying it at all...no one is being forced

This is why I drive a Golf and not an expensive Aston Martin....although in its defence the Golf is a far better car 🙂

The cost of your Tikka rifle will pale into insignificance when you add up the cost of ammo you shoot through it in its lifetime

Tikka....around £1000, 6000rds Creedmoor ammo, about £7200

Arrividerci

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Personally I don't believe the issue lies with the local retailers, they're simply stocking items based on prices set by the main importer/distributor. In many instances their hands are tied. Of course your local retailer has to make a living. Their margins are usually very small, so I begrudge them nothing and do support where possible.

However I do believe the issue lies at heart with the main importer/distributor, in our case it's GMK for many products brought into the UK. Through their Beretta ownership and influence they also happen to be a key European distributor, giving them a huge monopoly share and control over most goods bought and sold.

Because they are the monopoly, they set the prices and through their influence, remove the  possibility for competition to work with manufactures and source products directly for the consumer.

GMK has no concern for the consumer, like your friendly local retailer does, they're simply in it for the profit. I've noticed on the continent some key distributors do offer products at lower prices than here in the U.K. Most of the time that's due to the ability to buy in bulk. But this is quickly being discouraged or simply no longer an option in the UK because there's more profit to be had by not selling in bulk. Powder is a good example. You used to get  Viht powders in 20kg bags for dealers or 3.5kg pots for the end customer, but this has now all gone - it's all 1kg tubs now. More profit to be had in 1kg tubs - the importer clearly removing the option for savings to be passed on to the consumer through bulk buying. 

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8 minutes ago, bradders said:

Take a 6 pack of Stella for example, here it's about £4.99 from Tescos, in the US you're looking at around $15...and Australia is about the same, if not more

But that's because for some reason people in the US believe Stella to be the holy grail of imported beers and so market and cost it as such, not realising it's actually just pi$$ water.

But coming from a country that loves Bud, Coors and their respective 'lite' versions...what can one expect! 😂

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