Some very unusual observations on here.
HF is a very ruthless but fascinating operation. Seriously large buying power. Look up boardroom battles where son overthrows father. Look up employee dis-satisfaction threads, and within China, the fathers escapades are legendary, where private jets get special access to restricted airports, with presidential VIP treatment motorcades back in the 80s. At exhibitions, buyers go to sellers stands. In HFs case, they had/have their own stands sponsored as in paid for, by the city organising the exhibition, where sellers have to have appointments and meetings with the HF buyers on HFs stand. Such is their buying power. There are many powers which HF have which others in the U.S. and anywhere in the world don't. On the one hand, one can thank them for the cheap imports, and on the other, one can insult them for a lot of the crap they sell. It depends entirely on your point of view regarding product, price, principals and expectations. a little bit like Walmart.
Rip off Britain: depends on your point of view. Americans are accepting of more issues then Brits, and Australians are even less accepting, but still insist on the lowest price via predominantly eBay cheap cheap cheap sales. If we are to put the same 'quality' of certain machines on the U.K. market, issues will arise relating to 'not fit for purpose', and not complying with CE regulations (and I say this with positive interest). To comply, additional components are added to U.K. and European machines depending on how legitimate and legal the importer wants to be, which cost money, for components, as well as compliance. There is additional cost based on understanding of CE, and compliance in the language of member states. EU member states except for the U.K., have protectionism policies in this respect, to protect the importers in their own state. It is not as free circulation as we think, or as we are, as a trading island.
Volume of consumption: U.S. volume buying power is huge. I say this based on facts and figures which I have access to. It is thanks to them that we see what we see in Europe today. Again, you can see this in a positive or negative manner – 'costing us jobs' as some would say. Whilst the population of the EU is 30% more than the U.S., in the U.S. they speak one language, with one wall plug, with one method of learning, understanding, mentality, and thinking, in that language, for the majority. Not the same in Europe.
When comparing prices, those stated on U.S. sites are all excluding any tax. Prices in the U.K. include tax. Combine that with the buying power of an average importer in the U.S. in terms of volume. Now look at the geographical size of the U.S. with the number of 'real importers', and you will find a handful of importers serving an english speaking market which is geographically five times larger than the U.K.. In comparison, in U.K. there are around six importers serving may be a fifth of the American market size. So, one U.S. importer = about five U.K. importers? this of coarse excludes HF. No comparisons can be drawn against them with political interests on all sides!.
Keeping this in mind, we now deal with regulatory requirements in the U.K., to include overheads, property costs, rent, rates, taxes, which are in many respects higher than the U.S., all things considered. CE compliance, WEEE compliance are additional costs which the U.S. importers are not subjected to. These are serious costs, which some of our importers also choose to ignore.
One key issue I accept is that U.K. machine importers manuals are crap. Considering the competition within the U.K., and it is tough, given the market size, what incentive does one have to invest in them, when Grizzlys manuals are so great?. For example, many on here have purchased machines from our competitors, and referred to Dismantling guides from ARC. So what it didn't cost ARC any money to prepare them or to get them published?..Not a sour grapes issues, just economic sense. As far as risk assessments are concerned, in ARCs case, we consider compliance costs to be a greater issue. We may be wrong, but there we go. I accept that there is always room for improvement, and the answer is not so simple.
Trans-European operation: Clarke – Machine Mart are the nearest people to have adopted this model, semi-successfully. They have great buying power, but the collective European overheads for small shops in comparison with giant American warehouse outlets are different. Even they would find it difficult to buy and sell the volumes which the Americans dictate.
Other well known U.K. with European 'big brands' mentioned on this forum have tried to form Trans-European 'cartels' and failed. For commercial reasons, I cannot disclose who they are, but I can back-up the comments I make, wether you choose to believe me or not.
Profit margins with certain U.K. importers – legitimate, or ones who are failing to comply with the law, are still not as great as you think. However, you choose to believe what you want. We all have an opinion, this is a hobby, we can do as we please, be happy and buy from any dealer, eBay, or anywhere else.
Ketan at ARC.