Author Topic: Wingnuts free shipping to end  (Read 1554 times)

Offline Des

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Wingnuts free shipping to end
« on: March 04, 2016, 07:59:42 AM »
Here is an email sent to a member on LSP from Richard Alexander at Wingnuts, it is now official that the so called 'free' shipping is going to end this year, hence another kit price rise this year.

Richard Alexander has replied to an email I sent him, and I thought it would be useful to share it here:

"It's important to remember that the US$ to NZ$ exchange rate is just one
influence on our pricing. Also, it's possibly worth noting that at the
time Wingnut Wings opened in April 2009, US$1 would buy NZ$1.77, while
now US$1 will buy NZ$1.48. So while you are correct in that the US$ has
strengthened recently, it is not nearly as strong as it was 7 years ago
against the NZ$.

I appreciate your concern about the end of free shipping later this year
but please be assured that we are working on many possible options so
that we can provide the most cost effective postage solutions we can. We
will of course endeavour to provide as much forewarning as possible
before our free shipping comes to an end."


Des.
Late Founder of ww1aircraftmodels.com and forum.ww1aircraftmodels.com

Offline James

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Wingnuts free shipping to end
« Reply #1 on: March 04, 2016, 08:05:41 AM »
I wonder what later this year means for free shipping to end? Tomorrow? Next week? 6 months from now? Also, looking at many possible options, so could they be different amounts for shipping? The cheapest being you might get your kit in a month or something like that? I was kinda hoping with the price increase that shipping would be included in the price of the kit. Oh well, we had it good for quite sometime.

James
Axes Grind and Maces Clash

Offline jknaus

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Re: Wingnuts free shipping to end
« Reply #2 on: March 04, 2016, 08:59:50 AM »
Well not happy with that at all especially with our exchange rate. But maybe the shipping will improve and we wont have a week or two or three from time of sale to actually making into the postal system.
James

Offline Isitwindyyet

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Re: Wingnuts free shipping to end
« Reply #3 on: March 04, 2016, 11:22:15 AM »
Well that is really disappointing since it their only distribution channel. As with the price increase, this will significantly raise the total cost. Using simple high school economics, that will significantly reduce demand for me and many others too. I'm very fortunate that I have every kit that I actually want from their current catalogue, and there only a few kits that I still want them to produce. If and when they produce a camel, Dr. 1, and a Nieuport 17/23 I'll have all I want and price and shipping won't matter too much.

Offline Des

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Re: Wingnuts free shipping to end
« Reply #4 on: March 04, 2016, 05:54:25 PM »
Wingnuts have also mentioned that they may elect specific distributors/retailers for them in specific countries around the world, this will take the load off Wingnuts and put the shipping costs onto the distributors, could be a whole different kettle of fish but with certain price hikes.

Des.
Late Founder of ww1aircraftmodels.com and forum.ww1aircraftmodels.com

Offline iwik

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Re: Wingnuts free shipping to end
« Reply #5 on: March 04, 2016, 06:34:42 PM »
Hi y'all!
-attract customers with low prices competition can't afford to follow.
-kill the competition.
-raise your prices.
Wingnutwings IS a capitalist entreprise afterall?
Me who thought Wingnut Films could inject as much money as Peter Jackson wanted to offer modellers the best price possible...
And if they decide to have retailers around the world, prices will skyrocket once more.
May have to get a second job to buy me another one of their kit.
Maybe Roden will take the opportunity to come back on the market? If of a lesser quality, they can be built into superb kits.
Ciao
Iwik

Offline Russell

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Re: Wingnuts free shipping to end
« Reply #6 on: March 04, 2016, 07:24:11 PM »
My take on this is that WNW have been in effect subsidising the whole operation up until now - to our benefit - but are now putting themselves on an even keel financially.

But replacing free shipping with a retail operation will mean lower prices for WNW in the form of wholesale discounts, but higher prices for us in the form of retail margins.

From a personal perspective (in the UK) I’d prefer to keep buying direct from WnW even with additional shipping costs.

I agree with Kai - taking everything into account regarding the savings of bulk shipping verses per unit shipping; added distributor profit etc - I think it’s very unlikely I’d end up paying less (or the same) from a UK distributor/retailer than direct from WnW even if WnW charge extra for shipping. If anything I’d expect to have to pay more.

Even the saving due to bulk shipping is somewhat illusory as I’d still have to pay domestic postage on the kit as I’m unlikely to live close to a point of sale – at least whatever WnW may add for shipping in the future results in the kit arriving directly at my door.

Additionally – when buying from WnW if the kit is in production then it’s naturally in stock & an instant purchase – none of the ‘out of stock but coming in a month or two’ frustration that’s common with distributors.

Regards
Russell

Online macsporran

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Re: Wingnuts free shipping to end
« Reply #7 on: March 04, 2016, 07:33:10 PM »
My take on this is that WNW have been in effect subsidising the whole operation up until now - to our benefit - but are now putting themselves on an even keel financially.

I think you are absolutely right there Kai.

However I would welcome a proper UK distributor channel (not just Nigel Hannant adding anything he likes to the dollar price.)

My beef has always been how much it costs to get these superb wonderful models delivered to my door. If I lived in many parts of the US I would still be delighted after the recent price rises. I could order, say a DH9, for 129USD and that would be the total cost. If however I order it in the UK, it will cost me 165USD to get it delivered to my door. The import costs adds 25-28% to the dollar price - and something similar for most other EU and other countries.
If, above that, I had to fork out another 20USD, say to get it shipped, then I would buy very, very few more WNW kits.

However if we look at the retail model, I would expect any loss of gross margin to WNW would be balanced out by access to much larger markets (now they have established the brand themselves) and larger sales volumes. Many people fight shy of ordering direct from abroad, I don't know why, but Nigel H makes his margins.)
(WNW might even change from "limited run" to normal batch production - which I'm sure we'd all welcome.) Their sales forecasts and shipping would become much simpler to manage

For me, the consumer, I would expect market forces to come into effect such as they do with all mainstream kits. I mean when did you pay full whack for a Roden kit? I've got the whole series of 1/32 WWI subjects and have paid between 20 and 30GBP for each including shipping. (RRP here is over 40GBP.)
The big Tamiya Mosquito is regularly available here with a 20% price discount.

Even paying top price I'd be happy that I was paying the same as elsewhere in the world and my government wasn't taking happy advantage of WNW's current pricing policy to stiff me for a bullshit import fee!

There is an anomaly in WNW pricing in that my invoices always show the full dollar price for goods - but GST (NZ tax) at 0%. Since (I believe) they sell at the same price internally in NZ, the dollar price must include 15% GST - so there already exists an, NZ-only, goods price lower than the export price. If nothing else this price could be used to sell to distributors, still resulting in a UK price no higher than we're paying at the moment, if we assumed a 30% dealer mark-up.

I'd better hide from the wrath of the stateside guys now, as this would of course not work for them - but maybe WNW just keeps the direct sales line for countries where the tax people don't fillet the customer.

All in all I'm just glad I have over 30 WNWs in the stash, including all the ones I want, and I few that I probably won't ever get round to building. Hey I might even sell them and make a profit!!!

Sorry for the ramble.
Sandy




 
« Last Edit: March 04, 2016, 07:40:53 PM by macsporran »

Offline bobs_buckles

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Re: Wingnuts free shipping to end
« Reply #8 on: March 04, 2016, 08:22:11 PM »
Well, I'm not too fussed one way or the other to be truthful. It just means WNW kits become the 'gift' and not the 'norm' for me from now on.

vB  :)



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Offline Russell

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Re: Wingnuts free shipping to end
« Reply #9 on: March 04, 2016, 08:34:20 PM »

My beef has always been how much it costs to get these superb wonderful models delivered to my door. If I lived in many parts of the US I would still be delighted after the recent price rises. I could order, say a DH9, for 129USD and that would be the total cost. If however I order it in the UK, it will cost me 165USD to get it delivered to my door. The import costs adds 25-28% to the dollar price - and something similar for most other EU and other countries.
If, above that, I had to fork out another 20USD, say to get it shipped, then I would buy very, very few more WNW kits.


Sandy,

As you no doubt realise - most of the increase from 129 USD to 165USD is due to VAT which you'd have to pay even if purchased from a UK distributor. There's no escape from it.

Certainly you'd save £8 Parcel Force handling charge but the domestic postage cost of the UK distributor/retailer sending the kit to you (unless you live within walking distance) would eat up most or all of that.

Meaningful savings in direct import relative to distributor import are sadly not there.

We may hope that WnW becomes a large scale producer & lowers kit prices but there's no reason to suspect this is intended nor is possible in reality.

I find it difficult to image any realistic scenario where I'd end up paying any less or even the same to get a kit through the door (no matter what retail model they adopt) compared to buying direct from WnW (even with extra postage) .

It's a good point you make about the NZ 0% sales tax for exported kits not resulting in a lower price compared to NZ domestic sales which have 15% tax included - I assume the 15% WnW pockets on exports is what really pays for the 'free' shipping.

Regards
Russell


Offline Ernie

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Re: Wingnuts free shipping to end
« Reply #10 on: March 04, 2016, 10:08:31 PM »
Well, I'm not too fussed one way or the other to be truthful. It just means WNW kits become the 'gift' and not the 'norm' for me from now on.

vB  :)

I'm with you, Von Bob.  I will leave all the figures to WnW. I have no say in the matter anyway,
other than a personal boycott of their goodies, and I doubt they would even notice. :D  For me
they have certainly ruled out any impulse buying and now it is "when and if" I can afford it,
especially if the shipping is another price rise. :)

Cheers,
Ernie :)
The new old guy, take two...