What is the point of Manufacturer Restricted Shipping? Don't they want to sell stuff?

Discussion in 'Odds & Ends' started by IdrinkYourMilkshake, Mar 20, 2013.

  1. IdrinkYourMilkshake

    IdrinkYourMilkshake Rookie

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    Please someone explain it to me! Why can't I buy Tecnifibre X-One Tennis Balls in the U.S., but can in Europe? And why can't a guy in Australia buy a certain racquet in the U.S.? Is this because manufacturers sign agreements between themselves? What else is the reason for geographic restrictions?
     
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  2. Roger Wawrinka

    Roger Wawrinka Professional

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    It Probably costs too much for the manufactures
     
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  3. thundaga

    thundaga Rookie

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    Probably due to numerous reasons, but one would be to help support the local country's distributors, retailers and economy in general. I'm sure the Wilson distributors in Australia are/were losing a huge amount to sales to US online retailers, I'd imagine it would be frustrating knowing a main source of competition is coming from a different country, through the same brand's US division!

    I guess the primary reason people source overseas is for better prices, however many local businesses are aware of international competition and can often negotiate better prices if asked.
     
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  4. thejackal

    thejackal Hall of Fame

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    its to protect the local distributor and retailers

    taxes and duties levied by countries have a lot to do with this. canada for instance has a 17% duty on shoes coming from asia, so in theory everything costs at least 17% more here than in the US. it's hard to compete without some sort of help from the manufacturers, either in the form of a lower cost-price, or shipping restrictions.
     
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  5. stringertom

    stringertom G.O.A.T.

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    Gordon Gekko had it right 25 years ago..."Greed is good!"

    There is no other possible explanation why certain products are available in European markets for half the cost asked for by US online retailers "hammered" by greedy US distributors of the same products. The greedy depend on our laziness not to research open markets and available providers. Real estate in areas such as San Diego cannot be a justifiable business cost to inflate the value of said products by almost 100%, can they???
     
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  6. IdrinkYourMilkshake

    IdrinkYourMilkshake Rookie

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    I still don't get it. Some of what was said here makes sense regarding local distributors and retailers, but then I go back to the fact the manufacturer is NOT selling a product in a certain country to protect somebody's sales in another country, so why would the manufacturer care about that?

    Must be the case, what other explanation is there. They're willing to miss out selling to U.S. customers to rip off the rest of the world.

    TW U.S. sells the Wilson BLX Pro Staff 90 for $199 and TW Europe sells it for $237 in dollar terms.

    TW U.S. sells Luxilon 4g 16 (1.30) string for $16.95 and TW Europe sells it for $27.40 in dollar terms.

    TW U.S. sells Wilson U.S. Open 24 Can case of balls for 79.99 and TW Europe sells it for $117.59

    Nike doesn't want to carry the same stuff in both places, likely to hide their shinanigans. But similiar items, such as hats, do charge Europe more. Even towels have different sizes and logos. Large towels for Europe, Medium towels for the U.S. Only the ATP Logo towel is identical on both sites and they do charge about the same price in the U.S. vs. Europe.

    Babolat overgrips, the 30 pack Pro Tour package, it costs $10usd more in Europe.

    From looking at this, it looks like it's not about carrying something in one country over another, just flat charging more for certain countries. Some brands and products get slightly changed to avoid direct comparisons. Europe gets screwed. I assume Australia does too since I've seen many complaints regarding the high prices vs. the U.S.
     
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  7. Cindysphinx

    Cindysphinx G.O.A.T.

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    I have also wondered about this.

    I imagine the reason is that Retailer signs an agreement with Manufacturer to be Manufacturer's sole distributor in the U.S. Retailer makes many concessions and promises and guarantees to be the sole distributor.

    Retailer in turn wants the deal to say that Manufacturer cannot allow its distributors in the UK and Canada and Australia to ship to the US. This way, Retailer can charge whatever the US market will bear.

    Even if Retailer cannot win a deal to be the sole distributor, Retailer would certainly want terms that mean it only has to compete with other US competitors, not the whole friggin' world.

    I am totally pulling that out of my backside, but that is what I always figured.
     
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  8. PureAlph4

    PureAlph4 Semi-Pro

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    Are sales taxes applicable on top of the website listed prices on TW? Or is it just for Californians? TWE sales to all consumers / non-VAT registered businesses in the EU attract Germany's 19% VAT rate (value added tax, similar to a sales tax), and that is included in the listed prices.

    Most things are relatively more expensive in Europe / UK than the US. A large part of the difference is due to higher VAT / sales taxes being applied on the sale of goods, and the much higher cost of fuel that impacts transport / delivery costs (again, due to very high fuel taxes and VAT - in the UK unleaded petrol is about USD 7.70 / US gallon, with tax constituting 160%+ of the raw fuel cost).

    In the US you also have, as far as I recall, no tariffs on the import of sporting goods from Europe. In the UK there is a 4.7% duty (an EU-wide customs duty on non-EU produced goods) and 20% VAT for any sporting goods imported.

    So I think most of the price differences are due to much higher taxes in Europe, which obviously are funding, whether you agree with it or not, universal public health care and a much more 'generous' safety net than elsewhere.
     
    Last edited: Mar 21, 2013
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  9. IdrinkYourMilkshake

    IdrinkYourMilkshake Rookie

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    ^^ Californians pay state sales tax on TW, not sure what it is though. Everybody else no, (for now). I selected France to get the Euro price on TW Europe, but taxes should be added in at the end, so it should be a direct comparison of pricing. Whatever they pay for shipping and extra tax makes the high price even more uncalled for. But wages are higher too from what I understand, so I guess people can afford it over there they figure.
     
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  10. gavna

    gavna Hall of Fame

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    Well the answer to the first question is the USA market is glutted with tennis balls........there is VERY VERY little mark up on tennis balls and in truth for many almost a front end loser. Tecnifibre sees no profit in dumping another brand to compete with $1.99 Wilson's and Penns in large box stores when they get 3 to 4 times that in Europe.

    As for manufacturers not allowing international sales its simple.......they are trying to protect their individual markets. Happens in EVERY industry not just tennis - not fair to have a vendor in Australia who has to deal with taxes, duties, costs to operate locally then have to deal with companies in the USA who don't have same issues and this undercut his costs. Also companies need to protect their local distribution and marketing........again not fair to a company that sets up local supply chain to have a firm do mail order and undercut local supply.

    Nothing wrong with a company protecting its markets
     
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  11. PureAlph4

    PureAlph4 Semi-Pro

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    Not really. The US is still a remarkably wealthy place.

    http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita

    Subtract the small, very wealthy European nations like Luxembourg (absolutely tiny, with big financial sector), Norway (vast oil / gas reserves and small population - haven't wasted their 'gift from God' like Britain has with North Sea oil / gas) and Switzerland, and individuals within the major European economies of Germany (the powerhouse of the EU), France, the UK, Italy and Spain have quite a lot less purchasing power than Americans (though still obviously being very wealthy places).
     
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  12. gavna

    gavna Hall of Fame

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    Cannot compare USA to Europe on direct costs....you are not counting the VAT as an example - USA local sales tax runs around 8% on avg and not included in the TW pricing. VAT runs from 16% to what - over 20% in some countries! You are not comparing apples to apples.
     
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  13. IdrinkYourMilkshake

    IdrinkYourMilkshake Rookie

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    All prices include VAT for the customer. If there is another tax for wherever TW Europe exists when they import to the warehouse then that's a reason for higher prices. If they really only had higher prices in each european country because of things like vat tax and shipping, then they shouldn't care that TW US ship a certain product to those countries because everything else being equal, there would be no financial gain. The vat on shipped imports would be applied then too. I think they are getting away with charging Europeans more.
     
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  14. Oz_Rocket

    Oz_Rocket Semi-Pro

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    The problem is like it or not we live in a global market place. These same companies have no problems moving all their manufacturing to China to take advantage of it. But then when people try to have the same freedom to buy retail from a different country the manufacturers claim it is unfair and puts pressure on retailers to stop it?

    Seems like wanting to have your cake and eating it to.
     
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