RX42B motor prices

From a dealers perspective there are many reasons why this particular item may be so much cheaper from overseas.
I'm sure the OP knows exactly how the distribution / retail supply chain works and what type of mark ups are common.
But there can be mitigating circumstances and ligitimate reasons for extreme variance in pricing.
Possible reasons could be:

Exchange rates do fluctuate and do have an impact on pricing.

Shipping costs from manufacturer to distributor. China - USA direct, China - Spain - UK is more expensive.

Manufacturers also price their products more/less expensive for different markets, if for example SCX want to sell into a particular country they may offer more favourable pricing to that distributor, we also see a varying degree of mark up from distributors which also effect end prices.

Overstock by the distributor, being released to the shops at reduced prices.

Is the part unpackaged, ie not blister packed as released by SCX? if so the motors could be stripped from cars which were released cheap into the USA, or even cars returned as seconds. If the supplier Brian used is stripping cars and selling parts separately it is quite easy to sell parts at knock down pricing.

Buying from the US, i presume the dealer also deducted sales tax for you, just as we do for overseas customers outside of the EU, this has a dramatic effect on the end price customers pay, if we were to deduct VAT from a £12 motor - you would pay £10.

It is not so very long ago, you could have (and possibly did) purchase any amount of COMPLETE cars at £10. All due to stock being off loaded by SCX to the UK distributor. I didn't hear too many complaints then that the prices were too cheap.

I really don't think this is a case of 'rip of Britain'. Just an example of something that happens to be cheaper elsewhere, as a results of one or more of the above reasons.

Sean

Brian, thanks for the clarification.

In this case i would suggest that either:
Overstock by the US distributor, being released to the shops at reduced prices.
or
Manufacturers also price their products more/less expensive for different markets, if for example SCX want to sell into a particular country they may offer more favourable pricing to that distributor, we also see a varying degree of mark up from distributors which also effect end prices.

Apply in this case.

FYI. As a dealer of SCX my trade price to purchase these motors - assuming stock was available is more than the price you are paying from America, then we pay VAT on top !
As for no stock available in the UK at the moment, i think that is for the UK distributor to answer.

Sean

QUOTE Why are you paying VAT ? Surely your turnover warrants being VAT registered. As such, you should be claiming the VAT back.

Yes, of course we are VAT registered. My point was that when i purchase something from a UK distributor my purchase price is trade plus VAT. So yes i do pay VAT.
We do then claim VAT back which is paid out for purchases but then we pay HMRC VAT collected on their behalf for everything we sell.

QUOTE Interestingly, a quick look on the slot32.de site shows the Racer Zakspeed Capri currently priced at €65. This is in line with the £50 it has been selling for in the UK. But they also show the upcoming Mampe version at a fraction under €50. Will that one be priced at £40 in the UK when it arrives ? If not, why not ?

I doubt many places in the UK will sell it for £40, although it is an acheivable price. We advertise this car at £45, which could be reduced to £40.50 for Slot Forum plus members 10% discount.

Sean

QUOTE Anyway, back to topic - yes I bought from a "bricks and mortar" store and I had a choice of several selling at the same price. Stripping out tax from the equation, the fact remains that a UK dealer will pay the distributor £6.60 for an RX42B and his American counterpart can sell the same item at £5 and, presumably, make a profit. As far as I am aware there is no import duty payable by the UK distributor as we are part of the E.U. as is Spain.

Nobody has yet given me a satisfactory explanation for the discrepancy.

Have you not answered your own question?

I doubt if anyone from SCX will answer on a public forum the reason for the price differences.
I also doubt wether the UK distributor will publish his buying prices.
At the end of the day, the UK has had some exceptionally good offers on SCX in the past year or so. Perhaps similar questions were being asked in the US why cars were so cheap on this side of the pond.

I just don't buy into the whole 'rip off Britain' suggestion.

Sean