forum.ww1aircraftmodels.com
WW1 Aircraft Modeling => What's New => Topic started by: Dave W on August 31, 2015, 03:37:03 PM
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This today from Richard Alexander of Wingnut Wings:
We have received a few inquiries about how the rising US$ might affect pricing since we are located in New Zealand. It should be noted that, as of today, the US$ is still well below the value it was 6 & ½ years ago when we released our first 4 models. This, coupled with the fact that almost all our tooling & production expenses are charged in US$, means that there are currently no plans to re-evaluate pricing.
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).
-Work continues on our new model of the iconic Sopwith Camel which we hope to be able to release in 2016. We believe that the end result will be well worth the wait.
Dave Wilson
Gold Coast
Australia
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2016?! :P
Guy
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Apart from the Camel,
in his interview over at LSM, he also stated that there would be an end to free shipping. This year or early next year.
The end is near!!!! 8)
Stefan
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Hi!
I can hardly imagine the price for S&H of a kit coming from the other side of the world... :-\
On the other hand, if Peter Jackson could only release another blockbuster, maybe that would save us from paying S&H... 8)
Ciao
Iwik
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they said shipping was going to end the 2nd year they were in buisness, i will wait and see. perhaps they will do a flat rate like $10 for 1 kit and $5 for each additional kit.
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I received two Wingnut kits from the US last week and postage was $47US ($67AUD), this may give you some idea of the high cost of postage. If Wingnuts do introduce postage charges to their kits it will be in US dollars even though the parcels will be processed by NZ post in NZ dollars.
Des.
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If WNW takes until 2016 to finish the Camel, I'm good with that. They took quite a while for the DVII, and it is a real jewel. January will be in 2016....so maybe not too long to wait.
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The question that intrigues me is that if the Camel is not the Christmas/ surprise release for 2015, then what is the Christmas cracker this year?
Wingnuts always astounds the market with these end of year goodies so the excitement of anticipation should start about now. Like many I'm hoping for a Be2c which they would do an outstanding job on, but I'd also love a DH.5 among many others.
The one guarantee is that whatever WNW releases it will be a showstopper as always.
Dave Wilson
Gold Coast
Australia
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They certainly have a way of keeping us guessing!
Cheers,
Ernie :)
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If I buy one kit for about $69.00 I have to pay on arivel: 21% tax. Also about $15.00 handelingcost.Sometimes whe the amount is over the $150.00 a extra fee of $15.00. I know this count for a lot of buyers in the EU.
So I think, when paying the sending cost in the future, it will to expensive to buy a WnW kit! :(
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Mind you Gentlmen the pricing as it is now is inclusive transport costs around the world. WNW would probably reduce the advertised prices with transport costs. Bigger packages will be more economical so you might be seduced to make one big order instead of a few smaller ones. Import duties and handling are a fact of life. yYu could consider moving to KIWI land. i would expect that on average prices will remain the same. We all live about the same distance from Wellington so the cost of transport to EG Holland or Washinton will be about even.
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Mind you Gentlmen the pricing as it is now is inclusive transport costs around the world. WNW would probably reduce the advertised prices with transport costs. Bigger packages will be more economical so you might be seduced to make one big order instead of a few smaller ones. Import duties and handling are a fact of life. yYu could consider moving to KIWI land. i would expect that on average prices will remain the same. We all live about the same distance from Wellington so the cost of transport to EG Holland or Washinton will be about even.
Although I LIKE your optimistic view I don't think WNW will reduce the prices of their kits. If Shipping costs are built in to the pricing of kits would there be any reason to add shipping costs in 2016? You are most likely correct reference the multiple kit purchases making shipping more tolerable. JMHO,
RAGIII
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The obvious answer is to go to a conventional distribution model, selling wholesale to local market retail partners -- which they've indicated in fact they are starting to do.
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Mind you Gentlmen the pricing as it is now is inclusive transport costs around the world. WNW would probably reduce the advertised prices with transport costs. Bigger packages will be more economical so you might be seduced to make one big order instead of a few smaller ones. Import duties and handling are a fact of life. yYu could consider moving to KIWI land. i would expect that on average prices will remain the same. We all live about the same distance from Wellington so the cost of transport to EG Holland or Washinton will be about even.
Although I LIKE your optimistic view I don't think WNW will reduce the prices of their kits. If Shipping costs are built in to the pricing of kits would there be any reason to add shipping costs in 2016? You are most likely correct reference the multiple kit purchases making shipping more tolerable. JMHO,
RAGIII
So many contradictions. Didn't Richard at Wingnut Wings state there was no thought being given to price changes presently? My "read" is that the same prices will stand however a shipping fee will be implemented. No real matter as the Camel and, probably, a surprise spectacular release around Christmas time will sell like the proverbial "hotcakes" they will be. You get what you pay for, it is just going to hurt a little more..........
Happy shopping all! ;)
Cheers,
Lance
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The obvious answer is to go to a conventional distribution model, selling wholesale to local market retail partners -- which they've indicated in fact they are starting to do.
This is probably what will happen.
A wholesaler can buy several hundred kits and at that quantity the marginal cost of shipping drops massively. They can then add on a margin that is part funded by the cost of shipping they have saved compared to the charge WNW would make - which I'd guess would be quite high.
It should see WNW kits being far more widely available from retailers, and not at such higher costs than WNW, which retailers like Hannants currently offer.
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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.
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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
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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.
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A shift in modeling genres might be seen as a threat to WWII fighters, tanks, and jets.
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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.
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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.
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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
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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.
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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
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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.
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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
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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.
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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
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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.
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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.)
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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
Our version of VAT is GST (Goods and Services Tax) which is 15% on anything purchased and consumed within New Zealand. I am wondering (but not 100% sure) if kits which are exported are zero-rated for GST as they are not "consumed" within NZ. For example, if I book a flight from Christchurch to Auckland there is 15% GST on it, but if I book a flight fron Christchurch to Melbourne it is zero-rated as the service is not used within New Zealand.