Why the Bid Price Gap

[JCAZ]

Question,

 

Does anyone know why an FSQ85 in Japan sells for $1,000 less than in the U.S.  - where I live.  I know there can be some variances between markets, but $1,000?

[Mr niall]

Well they're Japanese for a start. And they're high ticket items which means that, Takahashi being relatively small, a limited distribution network probably means dealers have to buy the scopes and then sell them on rather than acquiring them through a sale or return deal that the sellers of more mass-market scopes enjoy. And that means a higher amount of risk - especially for warranty returns etc etc.

Once you add shipping, import taxes, the relative strength / weakness of the yen vs the dollar, distributor mark up, sale and then the dealer overheads of actually holding these things then you usually end up with a relatively small markup even for a higher price. 

As a Japanese seller or distributor you probably bypass a lot of that. A lot a lot.

But... the relative scarcity of Tak's and their reputation, means that some people might be "pushing the envelope" in terms of markup. Conversely they may be expecting to sell lower despite the advertised price.

I remember when it happened here in the 90's with Levi's and Nike Jordans. We were paying like double US prices. It happened with cars here too in the mid-90s. 

Edit: Have you tried asking them? They might give you an honest answer.

Edited August 17, 2019 by Mr niall

[JCAZ]

41 minutes ago, Mr niall said:

Well they're Japanese for a start. And they're high ticket items which means that, Takahashi being relatively small, a limited distribution network probably means dealers have to buy the scopes and then sell them on rather than acquiring them through a sale or return deal that the sellers of more mass-market scopes enjoy. And that means a higher amount of risk - especially for warranty returns etc etc.

Once you add shipping, import taxes, the relative strength / weakness of the yen vs the dollar, distributor mark up, sale and then the dealer overheads of actually holding these things then you usually end up with a relatively small markup even for a higher price. 

As a Japanese seller or distributor you probably bypass a lot of that. A lot a lot.

But... the relative scarcity of Tak's and their reputation, means that some people might be "pushing the envelope" in terms of markup. Conversely they may be expecting to sell lower despite the advertised price.

I remember when it happened here in the 90's with Levi's and Nike Jordans. We were paying like double US prices. It happened with cars here too in the mid-90s. 

Edit: Have you tried asking them? They might give you an honest answer.

Thanks for the reply.  Ya, I am familiar with Takahashi as a company.  My question was why was this specific scope is marked up so much higher than others.  I will Texas Nautical a call and see what I can find out.

[JCAZ]

Well,

 

According to folks at Texas nautical, the FSQ85 comes "Ocean Shipped", while other scope may come by air.  SO for some reason this scope is shipped differently, and so that difference in shipping makes the scope $1,000 more in the U.S. then in Japan, but apparently only this particular model.  

[Mr niall]

1 hour ago, JCAZ said:

Well,

 

According to folks at Texas nautical, the FSQ85 comes "Ocean Shipped", while other scope may come by air.  SO for some reason this scope is shipped differently, and so that difference in shipping makes the scope $1,000 more in the U.S. then in Japan, but apparently only this particular model.  

You'd think that would make it much cheaper....

[JamesF]

4 minutes ago, Mr niall said:

You'd think that would make it much cheaper....

Indeed you would.  Air freight is so much more expensive.  Unless someone has managed to drop a container-load of Taks off the side of a cargo ship during a storm :)

Perhaps they got it the wrong way around, and the FSQ85 is the one that's air-freighted?

James

[JCAZ]

I agree.  There's some funny stuff going on in with the way Tak gets distributed in north america.  I certainly understand market entry and warranty service have value, but a scope going from $2700 t $3,800, ah, no.

So I guess i will either buy direct from Japan, or look at something else.

[nicoscy]

Many just buy direct from Japan. However I do not know if TNR will repair the scope if something wrong / out of collimation.

It has been discussed many times in other forums - this price discrepancy - and other than TNR apparently needing a higher margin, nothing else makes sense...