Statement From Wingnuts re pricing

[FarEast]

Also he says:

-Wingnut Wings can now be purchased though hobby shops in New Zealand via our distributor Apex Hobbies (apex-hobbies.com) and in Japan via our distributor Beaver Corporation (FAX: 0283-85-8830).

Dave Wilson
Gold Coast
Australia

the problem with this is that already here in Japan they are charging a 'Bullshit' tax on the wingnut wing models and charge you for domestic shipping.

A DH.2 through them will cost you Y9,700 JPY or $89.00 USD, add shipping to that and you are looking close to $100 USD for a kit I can currently get for $69.00 with free shipping. Thee Twin seat aircraft and bigger have an even higher mark up. I really hope that they continue international shipping to countries that have a distributors because if they close direct sales for them It will really put a crimp on my purchases.

[dr 1 ace]

Also he says:

-Wingnut Wings can now be purchased though hobby shops in New Zealand via our distributor Apex Hobbies (apex-hobbies.com) and in Japan via our distributor Beaver Corporation (FAX: 0283-85-8830).

Dave Wilson
Gold Coast
Australia

the problem with this is that already here in Japan they are charging a 'Bullshit' tax on the wingnut wing models and charge you for domestic shipping.

A DH.2 through them will cost you Y9,700 JPY or $89.00 USD, add shipping to that and you are looking close to $100 USD for a kit I can currently get for $69.00 with free shipping. Thee Twin seat aircraft and bigger have an even higher mark up. I really hope that they continue international shipping to countries that have a distributors because if they close direct sales for them It will really put a crimp on my purchases.

Suggest that you buy all the ones you want asap; price increases and separate postage are sure to come.

Ed 

[Jim]

the problem with this is that already here in Japan they are charging a 'Bullshit' tax on the wingnut wing models and charge you for domestic shipping.

Might be apt to call that the 'Tamiya' tax...Countries are known to tax what they perceive threaten their own industries, even though it's hard to see how wnw competes with the likes of Tamiya/Hasegawa, which is focused on subjects from the ww2 era and beyond.

[mike in calif]

A shift in modeling genres might be seen as a threat to WWII fighters, tanks, and jets.

[Kai]

the problem with this is that already here in Japan they are charging a 'Bullshit' tax on the wingnut wing models and charge you for domestic shipping.

Might be apt to call that the 'Tamiya' tax...Countries are known to tax what they perceive threaten their own industries, even though it's hard to see how wnw competes with the likes of Tamiya/Hasegawa, which is focused on subjects from the ww2 era and beyond.

The 20% VAT attached to imports to the EU merely means that the imports are charged exactly the same tax as locally produced stuff - to not charge VAT would give WNW an unfair financial advantage compared to products produced in the EU or even imported into the EU.

It's nothing to do with protecting EU industries, it's just to allow a level playing field.

[Jim]

The 20% VAT attached to imports to the EU merely means that the imports are charged exactly the same tax as locally produced stuff - to not charge VAT would give WNW an unfair financial advantage compared to products produced in the EU or even imported into the EU.

It's nothing to do with protecting EU industries, it's just to allow a level playing field.

Kai - I was referring to import tax, not VAT, which in most cases simply protect local industries that aren't competitive.

[macsporran]

No, Kai, this wrong. The 20% import duty is being applied to the gross cost of the kits - ie already including local NZ taxes.
The process should be that the duty is applied to the nett cost. We are paying tax on tax!
S

[rhwinter]

I am completely lacking any merchand's genes, so I don't mind taxes too much: I feel that the state is making things with the taxes derived from busy people's hard earned money, I am WAY to lazy to care for myself by personal activity.

[gcn]

No, Kai, this wrong. The 20% import duty is being applied to the gross cost of the kits - ie already including local NZ taxes.
The process should be that the duty is applied to the nett cost. We are paying tax on tax!
S

Kai is correct wnw will not be paying or receiving any tax on their export sales. They will be getting the full price charged, the NZ tax office is going empty handed. VAT is only charged once. You are not paying tax on tax

[Kai]

No, Kai, this wrong. The 20% import duty is being applied to the gross cost of the kits - ie already including local NZ taxes.
The process should be that the duty is applied to the nett cost. We are paying tax on tax!
S

Tax on tax happens in the UK.

Petrol (or gas to our American cousins, who may wish to make sure they are seated before reading on) costs around 32p per litre in the UK before tax.

Then petrol duty is added - 58p per litre - and then 20% VAT is added to the already taxed figure! So the final cost is around £1.08 per litre (which is lower than its been in a few years). This works out at around $6.30 per US Gallon.

This is why UK cars tend to have very high miles per gallon compared to US vehicles!

It's also correct that WNW don't charge any tax on imports, as happens when EU companies export outside the EU.

[macsporran]

The point is tax on tax happens IN the UK. ie within the one country.
The export/import situation is entirely different. Normally retail goods are not subjected to any form of export tax before leaving the country. But in the WNW case the full, tax-inclusive NZ price is being used to calculate UK import duty. (Of course gcn is correct in that WNW are keeping the tax element for themselves and none of it goes to their country's excise dept!)

I don't know what the NZ equivalent of VAT is, but if we assume a 20% figure for the sake of argument, then a $99 kit sold locally would net $82.50 for the manufacturer and $16.50 for the NZ taxman. The normal rules of export would be that the kit would leave the country without any VAT, ie at $82.50 and then import duty and/or VAT would be applied by the new country's tax man.
So in the UK The kit should cost $82.50 + $16.50(UK VAT) +£8 (UK import handling charge).
But in fact it is $82.50 + $16.50(NZ "tax" not actually paid) + $19.80 (UK VAT) +£8.00 import duty.

Don't you think we have just found out how WNW justifies and accounts for its free worldwide shipping policy. They perhaps regard the NZ "tax" contained in export sale prices as a contribution to shipping costs. The only country actually getting free shipping is NZ itself!

I expect any international agents appointed will refuse to pay the bogus tax and perhaps export purchases via these channels may be considerably less than charged by Hannants at present?
S

[Des]

I've been wondering, if Wingnuts are going to start stocking model shops around the world with their kits, are they going to sell the kits to the shops at a discounted wholesale price or will they sell them at the regular retail price and make the shops add their own mark-up to make a profit.

When I owned my own model shop way back, I was buying kits from the manufacturers at a highly reduced wholesale price, with my mark up I was selling them for roughly the same price as the manufacturers which put us all on an even footing, by the way, mark up back then was 33.3%.

Des.

[Pgtaylorart]

I highly doubt that most hobby shops would be willing to stock WnW kits if they didn't get the customary wholesale discount. The shops need to be able to sell the kits at equal to or lower than buying them direct, or the customer will not buy them from the hobby shop. In fact, it's considered bad practice for a manufacturer to retail his product directly for less than a store is able to sell it.

George

[Kai]

As Des said, very interesing to see how WNW approaches pricing for wholesalers, especially once they drop free shipping.

If they offer the "normal" wholesale discount, they may well price at the same level as WNW - this would then mean that there would be no benefit at all in ordering direct from WNW.

So I'd be surprised if they wanted that. They like the direct sales model, it seems to work for them.

Personally, I think they'll offer them at the same price as they sell direct, but the shipping price will allow wholesalers to add a margin, albeit not large.

Will be interesting to see what happens.

[uncletony]

So I'd be surprised if they wanted that. They like the direct sales model, it seems to work for them.

Certainly it seems to have worked for them to date... but the question is: have they outgrown it? Reading between the lines of the Dave Johnson interview leaves me with the impression that they indeed might have.

Their reputation is established, they have a worldwide, rabid following -- it's hard now to understand what benefit they are gaining from their 1:1 sales model. (Whereas before, when they were an unknown quantity, it made all the sense in the world.)