Hong Kong Dealers
Khier
07-07-2009, 03:18 AM
How come that the prices are so low in Hong Kong? I found several 370Z kits for about 23 $US whereas the MRSP is around 36 $US.
jano11
07-07-2009, 03:31 AM
How come that the prices are so low in Hong Kong? I found several 370Z kits for about 23 $US whereas the MRSP is around 36 $US.
Who knows? Maybe Hong Kong sellers rather sell more kits for the same amount of profit?!
Who knows? Maybe Hong Kong sellers rather sell more kits for the same amount of profit?!
drunken monkey
07-07-2009, 06:45 AM
Lower taxes - Special rates for small businesses.
They pay less for importing from Japan (if the kits are even made there anymore - even less if kit is made in China).
Cheap secondary supplies (boxes, wrapping paper, tape, packing material etc).
They pay less for importing from Japan (if the kits are even made there anymore - even less if kit is made in China).
Cheap secondary supplies (boxes, wrapping paper, tape, packing material etc).
racer93
07-07-2009, 06:47 AM
Who knows? Maybe Hong Kong sellers rather sell more kits for the same amount of profit?!
I've wondered for a long time about this. I agree with Jano. I think it's pathetic the prices that some US dealers have. At one LHS here, they have a ZX-RR Moto GP bike. I was salivating over it a few months ago until I saw the sticker price--$54.99! Yikes! I've seen the same bike for $24 with $9 shipping from HK. The kit has been sitting on the shelf for almost 6 months now. I've told him if he lowers the price to ~$35, I'd buy it today. He won't. Idiot.
FWIW, in the US, mark up is generally 50% from wholesale. (For example, the above kit probably wholesaled for $27.50, so retail would be $55.)
I recently bought a front fork kit from a dealer in HK for almost half the cheapest price in the US. (And that is with shipping...) I really don't get it unless it is simply trying to squeeze us for as much profit as the can get. There will be a point where I won't (or can't) buy kits from a US dealer. I think that point is close...
Daniel
I've wondered for a long time about this. I agree with Jano. I think it's pathetic the prices that some US dealers have. At one LHS here, they have a ZX-RR Moto GP bike. I was salivating over it a few months ago until I saw the sticker price--$54.99! Yikes! I've seen the same bike for $24 with $9 shipping from HK. The kit has been sitting on the shelf for almost 6 months now. I've told him if he lowers the price to ~$35, I'd buy it today. He won't. Idiot.
FWIW, in the US, mark up is generally 50% from wholesale. (For example, the above kit probably wholesaled for $27.50, so retail would be $55.)
I recently bought a front fork kit from a dealer in HK for almost half the cheapest price in the US. (And that is with shipping...) I really don't get it unless it is simply trying to squeeze us for as much profit as the can get. There will be a point where I won't (or can't) buy kits from a US dealer. I think that point is close...
Daniel
Khier
07-07-2009, 07:24 AM
I've wondered for a long time about this. I agree with Jano. ......
The problem is their prices are lower than the manufacturer (not the importer) prices. You can read these prices on the side of the box by Japanese kits. This means the kits in Hong Kong are cheaper than in the Japanese shops. How do they do that? At first I thought it was stolen or wholesale marchndise. But there are well established HK sellers on Ebay who sell regularly there.
The problem is their prices are lower than the manufacturer (not the importer) prices. You can read these prices on the side of the box by Japanese kits. This means the kits in Hong Kong are cheaper than in the Japanese shops. How do they do that? At first I thought it was stolen or wholesale marchndise. But there are well established HK sellers on Ebay who sell regularly there.
ZoomZoomMX-5
07-07-2009, 07:27 AM
How come that the prices are so low in Hong Kong? I found several 370Z kits for about 23 $US whereas the MRSP is around 36 $US.
Actually, US MSRP on the 370Z is $56 in the US.
And shipping from HK is very steep compared to shipping from Japan; as well as items are usually shipped in a far inferior manner. If one buys from HLJ, they ultimately pay little difference as the shipping is cheaper and more reliable, so the low MSRP for the HK item isn't a bargain at all.
Actually, US MSRP on the 370Z is $56 in the US.
And shipping from HK is very steep compared to shipping from Japan; as well as items are usually shipped in a far inferior manner. If one buys from HLJ, they ultimately pay little difference as the shipping is cheaper and more reliable, so the low MSRP for the HK item isn't a bargain at all.
jano11
07-07-2009, 07:39 AM
Actually, US MSRP on the 370Z is $56 in the US.
And shipping from HK is very steep compared to shipping from Japan; as well as items are usually shipped in a far inferior manner. If one buys from HLJ, they ultimately pay little difference as the shipping is cheaper and more reliable, so the low MSRP for the HK item isn't a bargain at all.
You got to be kidding.
Just an example:
Tamiya Porsche GT3 shipped from HK: 16 Euros.
Tamiya Porsche GT3 from HLJ: 25 Euros.
That's 56% more!
And shipping from HK is very steep compared to shipping from Japan; as well as items are usually shipped in a far inferior manner. If one buys from HLJ, they ultimately pay little difference as the shipping is cheaper and more reliable, so the low MSRP for the HK item isn't a bargain at all.
You got to be kidding.
Just an example:
Tamiya Porsche GT3 shipped from HK: 16 Euros.
Tamiya Porsche GT3 from HLJ: 25 Euros.
That's 56% more!
ZoomZoomMX-5
07-07-2009, 08:10 AM
You got to be kidding.
Just an example:
Tamiya Porsche GT3 shipped from HK: 16 Euros.
Tamiya Porsche GT3 from HLJ: 25 Euros.
That's 56% more!
Shipping to the US is less than Europe. We pay no import duties/taxes on anything coming from HLJ. That GT3 is ~ $9 shipped SAL, ~$19 shipped EMS. SAL gets here in about 14 days. EMS 2-3 days.
Shipping the 370Z is even less. HK sellers seem to be shipping the same as HLJ SAL, for $12-$14.50. Why so much more than HLJ? If I can wait a couple weeks, I can have just the Z car shipped to me for a grand total of $43.50. The HK prices for the same are between $32 and $40 shipped.
In other words, we get properly boxed and shipped models (not merely wrapped in paper) for considerably less shipping cost than from the HK sellers. If I got a kit delivered wrapped in paper, it would likely be damaged, and worth less than a properly boxed/shipped kit from HLJ. A lot of Ebay merchants lowball the kit price to pay smaller Ebay fees, and then gouge on shipping. The HK sellers make an art of such practice. Needless to say, I have no reason to buy from HK sellers on Ebay unless they had something that nobody else carries. I could attempt to save a few $ by purchasing from a nameless, faceless HK seller on Ebay and hope beyond reason that it's going to arrive unharmed, because if not it's a royal PITA to deal with the Ebay system and their merchants. I've only done one HK Ebay purchase, the kit arrived okay but a little crunched in the corners from the very careless paper shipping wrapper. No thanks...
Just an example:
Tamiya Porsche GT3 shipped from HK: 16 Euros.
Tamiya Porsche GT3 from HLJ: 25 Euros.
That's 56% more!
Shipping to the US is less than Europe. We pay no import duties/taxes on anything coming from HLJ. That GT3 is ~ $9 shipped SAL, ~$19 shipped EMS. SAL gets here in about 14 days. EMS 2-3 days.
Shipping the 370Z is even less. HK sellers seem to be shipping the same as HLJ SAL, for $12-$14.50. Why so much more than HLJ? If I can wait a couple weeks, I can have just the Z car shipped to me for a grand total of $43.50. The HK prices for the same are between $32 and $40 shipped.
In other words, we get properly boxed and shipped models (not merely wrapped in paper) for considerably less shipping cost than from the HK sellers. If I got a kit delivered wrapped in paper, it would likely be damaged, and worth less than a properly boxed/shipped kit from HLJ. A lot of Ebay merchants lowball the kit price to pay smaller Ebay fees, and then gouge on shipping. The HK sellers make an art of such practice. Needless to say, I have no reason to buy from HK sellers on Ebay unless they had something that nobody else carries. I could attempt to save a few $ by purchasing from a nameless, faceless HK seller on Ebay and hope beyond reason that it's going to arrive unharmed, because if not it's a royal PITA to deal with the Ebay system and their merchants. I've only done one HK Ebay purchase, the kit arrived okay but a little crunched in the corners from the very careless paper shipping wrapper. No thanks...
jano11
07-07-2009, 09:13 AM
Shipping to the US is less than Europe. We pay no import duties/taxes on anything coming from HLJ. That GT3 is ~ $9 shipped SAL, ~$19 shipped EMS. SAL gets here in about 14 days. EMS 2-3 days.
I didn't include any taxes into the prices because I never paid taxes for items under 60 Euros.
And the shipping costs are about the same as to the US give or take 1 Euro.
Also I got the latest items from HK shipped in cardboard boxes, for 2 USD more! Still a lot (more than 40%) cheaper than from HLJ.
I think, as it was already pointed out by DM, it all boils down to taxes and also salaries.
A HK based seller has only himself to pay for while HLJ might have a few more guys to pay at a higher rate.
I didn't include any taxes into the prices because I never paid taxes for items under 60 Euros.
And the shipping costs are about the same as to the US give or take 1 Euro.
Also I got the latest items from HK shipped in cardboard boxes, for 2 USD more! Still a lot (more than 40%) cheaper than from HLJ.
I think, as it was already pointed out by DM, it all boils down to taxes and also salaries.
A HK based seller has only himself to pay for while HLJ might have a few more guys to pay at a higher rate.
racer93
07-07-2009, 09:54 AM
I didn't include any taxes into the prices because I never paid taxes for items under 60 Euros.
And the shipping costs are about the same as to the US give or take 1 Euro.
Also I got the latest items from HK shipped in cardboard boxes, for 2 USD more! Still a lot (more than 40%) cheaper than from HLJ.
I think, as it was already pointed out by DM, it all boils down to taxes and also salaries.
A HK based seller has only himself to pay for while HLJ might have a few more guys to pay at a higher rate.
I was going to buy a Pit Walk guide for MotoGP from HLJ, but luckily I possibly found one here in the US. Shipping for that (0.6kg) was $18 by EMS. Shipping from HK for a fork set was $3. Granted, the fork set was lighter and a bit smaller, but not that much. Plus, I had the fork set in about 10 days.
Daniel
And the shipping costs are about the same as to the US give or take 1 Euro.
Also I got the latest items from HK shipped in cardboard boxes, for 2 USD more! Still a lot (more than 40%) cheaper than from HLJ.
I think, as it was already pointed out by DM, it all boils down to taxes and also salaries.
A HK based seller has only himself to pay for while HLJ might have a few more guys to pay at a higher rate.
I was going to buy a Pit Walk guide for MotoGP from HLJ, but luckily I possibly found one here in the US. Shipping for that (0.6kg) was $18 by EMS. Shipping from HK for a fork set was $3. Granted, the fork set was lighter and a bit smaller, but not that much. Plus, I had the fork set in about 10 days.
Daniel
guiwee
07-07-2009, 01:25 PM
All of the above is the reason I very seldom buy kits from my lhs anymore.
Why buy from them when you can get same kit cheaper online + shipping.
I know the lhs are real tight for business.how can they compete with the
internet? I still go there for supplies and such but even then it can be costly.
One lhs near me sells tamiya white primer for $9.99 a can..another $7.39..
is he trying to stick me? $10 for a can of primer..jeez..His other tamiya sprays are $6.50 a can..the other one $4.99..why the disparity? The only reason I even go
to him anymore is if the cheaper store doesnt have what I need,,even then I hate
it!!! Just another reason to be distrusful of the hobby shops.
P.s. for those of you who know me Im back to work..(whoo-Hoo)
Why buy from them when you can get same kit cheaper online + shipping.
I know the lhs are real tight for business.how can they compete with the
internet? I still go there for supplies and such but even then it can be costly.
One lhs near me sells tamiya white primer for $9.99 a can..another $7.39..
is he trying to stick me? $10 for a can of primer..jeez..His other tamiya sprays are $6.50 a can..the other one $4.99..why the disparity? The only reason I even go
to him anymore is if the cheaper store doesnt have what I need,,even then I hate
it!!! Just another reason to be distrusful of the hobby shops.
P.s. for those of you who know me Im back to work..(whoo-Hoo)
hirofkd
07-07-2009, 06:25 PM
The problem is their prices are lower than the manufacturer (not the importer) prices. You can read these prices on the side of the box by Japanese kits. This means the kits in Hong Kong are cheaper than in the Japanese shops. How do they do that? At first I thought it was stolen or wholesale marchndise. But there are well established HK sellers on Ebay who sell regularly there.
Many Tamiya kits are made at their Philippines factory, and I believe those HK retailers get their kits directly from the factory, or through a local distributor who can offer a good discount rate. That way they can completely bypass expensive Japanese distribution channel.
Also the freight cost within Asia is generally cheaper, so Asian retailers can price goods at attractive prices.
A large nation like America involves extra shipping cost. For example if the international distributor is located somewhere in the west (closer to Japan), the shipping beyond Mississippi river becomes quite expensive. I've heard from a distributor that those extra shipping cost can't be offset by cheaper shipping cost within neighboring states, and such cost gets so high that it's almost logical to establish "two" warehouses that cover both sides of the nation.
Other problems are those investors who are buying Japanese Yen like crazy, or politicians (outside Japan) who support the policy of weak local currencies.
That said, I paid 2470 yen for a 370Z kit (and I'll probably pay $5 for surface mail), but that's because I have relatives in Japan.:smile:
Many Tamiya kits are made at their Philippines factory, and I believe those HK retailers get their kits directly from the factory, or through a local distributor who can offer a good discount rate. That way they can completely bypass expensive Japanese distribution channel.
Also the freight cost within Asia is generally cheaper, so Asian retailers can price goods at attractive prices.
A large nation like America involves extra shipping cost. For example if the international distributor is located somewhere in the west (closer to Japan), the shipping beyond Mississippi river becomes quite expensive. I've heard from a distributor that those extra shipping cost can't be offset by cheaper shipping cost within neighboring states, and such cost gets so high that it's almost logical to establish "two" warehouses that cover both sides of the nation.
Other problems are those investors who are buying Japanese Yen like crazy, or politicians (outside Japan) who support the policy of weak local currencies.
That said, I paid 2470 yen for a 370Z kit (and I'll probably pay $5 for surface mail), but that's because I have relatives in Japan.:smile:
Asmenoth
07-08-2009, 02:55 AM
"One lhs near me sells tamiya white primer for $9.99 a can..another $7.39..
is he trying to stick me? $10 for a can of primer..jeez..His other tamiya sprays are $6.50 a can..the other one $4.99..why the disparity? The only reason I even go "
It depends where they get it and on the discounts the distributors give them. The $10 can probably came from Steven's Hobby Supply and the cheaper can probably came from Great Plains (Tower Hobbies). Steven's is silly expensive on products...we only ordered from them when we had to (used to work for large Hobby Shop in Florida). Could also be how much the hobby shop is willing to add to the price they pay. I used to buy my Tamiya paint for about $2-2.50 a can...and that was 15% above cost.
:iceslolan
is he trying to stick me? $10 for a can of primer..jeez..His other tamiya sprays are $6.50 a can..the other one $4.99..why the disparity? The only reason I even go "
It depends where they get it and on the discounts the distributors give them. The $10 can probably came from Steven's Hobby Supply and the cheaper can probably came from Great Plains (Tower Hobbies). Steven's is silly expensive on products...we only ordered from them when we had to (used to work for large Hobby Shop in Florida). Could also be how much the hobby shop is willing to add to the price they pay. I used to buy my Tamiya paint for about $2-2.50 a can...and that was 15% above cost.
:iceslolan
Khier
07-08-2009, 08:22 AM
Many Tamiya kits ............for a 370Z kit (and I'll probably pay $5 for surface mail), but that's because I have relatives in Japan.:smile:
A bit off topic, I know, but are you going to update your web page?
A bit off topic, I know, but are you going to update your web page?
scale auto style
07-08-2009, 04:00 PM
one the reason why HK dealer are so cheap VS US and CANAD lhs is simple. here in north america we have only 1 or 2 major distributor for import kit. ex: in US Aoshima is MRC, Trumpeter is Steven tamiya Steven etc..
in canada it's borgfeldt.. the price is so high because these guy took more profit than a hobby shop when it's supposed to be the inverse.
like you know i'm the new owner of SAS but i'm also a hobby-shop ( with a store front ) and i know what i'm talking about. i import my japan kit direct from the manufacturer ( except tamiya because borgfeldt sign an exclusive distribution with them and i's i sel something else then his product i will be bring in court and wil pay a minimum of 20000$ to borgfeldt) this is not a joke it happen to somebody i know.
just to gave you an idea of the cost. a fujimi CRX is supposed to sell 1000 yen it's about 12$ canadian. you my cost is as a hobby shop from borgfeldt the Major distributor... guess it.. 24.00$ canadian so i need to sell it with a minimum of 40% to pay all my overhead in the store so retail is 40.00$ canadian i know it's expensive but this is due to the importor.
now by the way i do... i import direct. so at price the fujimi kit cost me with the freight i'm able to sell it at 25$ canadian NET all local tax included ( we are talking about 15.5% taxes)
so now you know who make money in the industy... it's not the hobby shop.
in US go see MRC http://www.modelrec.com/all-brands/aoshima.asp
and see the price by your self... it's a major distributor.. retail price 45$US for a hilux truck when it's 2200 yen ( 22$US ) the hobby shop will get a discount of 40% on 45$ so will cost 27$ 5$ more than the real retail.
the y will say it cost a lot of $$ in freight... BUL.....T a full containe 40ft long cost RIGHT NOW 2000$ to import from japan. 3 years ago the cost was 5000$ it's look hi but do you know how many kit fit in a container??? exactly 15200 it's less than 3$/kit in freight so..
@#$@%#%@ it make me ... HARGggg i will stop writting i will eat my short.....
anyway... HAPPY MODELLING
yours
in canada it's borgfeldt.. the price is so high because these guy took more profit than a hobby shop when it's supposed to be the inverse.
like you know i'm the new owner of SAS but i'm also a hobby-shop ( with a store front ) and i know what i'm talking about. i import my japan kit direct from the manufacturer ( except tamiya because borgfeldt sign an exclusive distribution with them and i's i sel something else then his product i will be bring in court and wil pay a minimum of 20000$ to borgfeldt) this is not a joke it happen to somebody i know.
just to gave you an idea of the cost. a fujimi CRX is supposed to sell 1000 yen it's about 12$ canadian. you my cost is as a hobby shop from borgfeldt the Major distributor... guess it.. 24.00$ canadian so i need to sell it with a minimum of 40% to pay all my overhead in the store so retail is 40.00$ canadian i know it's expensive but this is due to the importor.
now by the way i do... i import direct. so at price the fujimi kit cost me with the freight i'm able to sell it at 25$ canadian NET all local tax included ( we are talking about 15.5% taxes)
so now you know who make money in the industy... it's not the hobby shop.
in US go see MRC http://www.modelrec.com/all-brands/aoshima.asp
and see the price by your self... it's a major distributor.. retail price 45$US for a hilux truck when it's 2200 yen ( 22$US ) the hobby shop will get a discount of 40% on 45$ so will cost 27$ 5$ more than the real retail.
the y will say it cost a lot of $$ in freight... BUL.....T a full containe 40ft long cost RIGHT NOW 2000$ to import from japan. 3 years ago the cost was 5000$ it's look hi but do you know how many kit fit in a container??? exactly 15200 it's less than 3$/kit in freight so..
@#$@%#%@ it make me ... HARGggg i will stop writting i will eat my short.....
anyway... HAPPY MODELLING
yours
jano11
07-08-2009, 04:18 PM
in canada it's borgfeldt.. the price is so high because these guy took more profit than a hobby shop when it's supposed to be the inverse.
I agree with the majority of your post but I don't really understand why ' it's supposed to be the inverse ' ?!
I agree with the majority of your post but I don't really understand why ' it's supposed to be the inverse ' ?!
scale auto style
07-08-2009, 05:05 PM
I agree with the majority of your post but I don't really understand why ' it's supposed to be the inverse ' ?!
normally the importor will took in average 25% of profit. ( due to the large volume he sell he will do a lot of money. also his overhead is a lot smaller than a hobbyshop. an overview of my overhead. i have 800 square foot of floor. i pay 1200$ / month for the place. ( it's VERY CHEAP) if i go in a SUPER STORE) it can cost me for the same floor over 6000$ / month.
i have a ware house of 75000 square foot too ( no choice to stock all my importation... the price / month is 250$ + electricity of course. it cost nothing to get a warehouse. so a 20% of profit is VERY reasonable. the cost of a major distributor is usually 65% off the retail so... took the CRX
12.35retail - 65% = 4.33 add 20% profit.. price will be for the wholesaler 5.42 and add 25% profit for the wholesaler = 7.22.. this is what my cost is supposed to be. 7.22$ now add 40% and it's= at... 12.03$
if we talk about % of profit. the manufacturer took the less +-10% in average ( this is for the industrial production.... not the cottage industry THIS is an other thing., the major distributor from 15-20%, the distributor 25-30% the hobby-shop minimum 40%
PS: ALL expense... freigth, taxes, duty the importer pay are refund OR deduct in the expense of the company at 100% so they don't came in point for the retail price.
yours
normally the importor will took in average 25% of profit. ( due to the large volume he sell he will do a lot of money. also his overhead is a lot smaller than a hobbyshop. an overview of my overhead. i have 800 square foot of floor. i pay 1200$ / month for the place. ( it's VERY CHEAP) if i go in a SUPER STORE) it can cost me for the same floor over 6000$ / month.
i have a ware house of 75000 square foot too ( no choice to stock all my importation... the price / month is 250$ + electricity of course. it cost nothing to get a warehouse. so a 20% of profit is VERY reasonable. the cost of a major distributor is usually 65% off the retail so... took the CRX
12.35retail - 65% = 4.33 add 20% profit.. price will be for the wholesaler 5.42 and add 25% profit for the wholesaler = 7.22.. this is what my cost is supposed to be. 7.22$ now add 40% and it's= at... 12.03$
if we talk about % of profit. the manufacturer took the less +-10% in average ( this is for the industrial production.... not the cottage industry THIS is an other thing., the major distributor from 15-20%, the distributor 25-30% the hobby-shop minimum 40%
PS: ALL expense... freigth, taxes, duty the importer pay are refund OR deduct in the expense of the company at 100% so they don't came in point for the retail price.
yours
Khier
07-09-2009, 04:52 AM
....containe 40ft long cost RIGHT NOW 2000$ to import from japan. 3 years ago the cost was 5000$ it's look hi but do you know how many kit fit in a container??? exactly 15200 it's less than 3$/kit in freight so..
That makes less than 1/7 $ a kit. How do you come to 3?
That makes less than 1/7 $ a kit. How do you come to 3?
jano11
07-09-2009, 05:47 AM
That makes less than 1/7 $ a kit. How do you come to 3?
A sign of things to come?! ;)
A sign of things to come?! ;)
scale auto style
07-09-2009, 06:44 AM
That makes less than 1/7 $ a kit. How do you come to 3?
yeah sorry a bit of frustration i invert the number of qty and the $ amount. .. I'm human not a machine... i have some emotion when then this can in fact that i can do some error time to time.
thank's for the advise.
HAPPY MODELLING
yours
yeah sorry a bit of frustration i invert the number of qty and the $ amount. .. I'm human not a machine... i have some emotion when then this can in fact that i can do some error time to time.
thank's for the advise.
HAPPY MODELLING
yours
Khier
07-09-2009, 08:20 AM
y..........I'm human not a machine... i have some emotion when then this can in fact that i can do some error time to time......
It is Ok, I just wanted to make sure I understood your comments properly
It is Ok, I just wanted to make sure I understood your comments properly
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