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Is this the start of the tarriff increases?

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#1 Jeff Lee

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Posted 19 February 2019 - 11:55 AM

Just got an email from Astronomics that ES is raising its price March 1st between 10 and 36%. Yikes.

#2 csa/montana

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Posted 19 February 2019 - 12:22 PM

Moved to Equipment for better fit.



#3 rgsalinger

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Posted 19 February 2019 - 12:30 PM

The tariff on telescopes is 8 percent and has been this way since last April per this https://dataweb.usit...etails/90058040 US government website. So, any price increase probably reflects the fact that wages in China are rising quickly.

Rgrds-Ross



#4 gnowellsct

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Posted 19 February 2019 - 10:59 PM

The tariff on telescopes is 8 percent and has been this way since last April per this https://dataweb.usit...etails/90058040 US government website. So, any price increase probably reflects the fact that wages in China are rising quickly.

Rgrds-Ross

Not just wages.  A lot of commodities (setting aside oil).  There's quite a bit of competition for rare earths, which I think are a component of optics.

 

Greg N



#5 Edd Weninger

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Posted 20 February 2019 - 01:14 AM

Import duty was 8% when I imported my Rumak in 2012.



#6 edwincjones

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Posted 20 February 2019 - 07:23 AM

the one think we can count on with astro equipment

is that the price will keep going up so

cheaper today than tomorrow

aside from used and random sales

 

edj



#7 Jon Isaacs

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Posted 20 February 2019 - 07:31 AM

the one think we can count on with astro equipment

is that the price will keep going up so

cheaper today than tomorrow

aside from used and random sales

 

edj

Maybe, maybe not.  

 

The long term trend is that you get more for your inflation adjusted dollar. 

 

Jon


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#8 Eddgie

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Posted 20 February 2019 - 08:43 AM

Just got an email from Astronomics that ES is raising its price March 1st between 10 and 36%. Yikes.

The reality of business.   I seem to read a lot of posts that suggest that ES suffers a lot of warranty problems.  (This is not intended to be a slam of ES, but how can you talk about it if you can't speak the reality).

 

ES Model seemed to be a volume model driven by low prices.  This is a good model if you are selling tomatoes because you don't get a lot of tomatoes returned.

 

If though you are selling telescopes to a rather fussy group of consumers (and I would say that amateur astronomers fit this description) and the don't like something, they want their money back.

 

Today, the big cost in doing a return/replacement is shipping, so if they have to take a scope back and replace it, they eat a lot of what would be profit in shipping costs.

 

Look even here on CN.   A lot of people will now list things on CN for local pickup only because if they have to ship it, it greatly reduces the amount of money they will walk away from the sale with.  I sold a 2" diagonal last week for $55, and I had to pay $13 to ship it.

 

And shipping prices today are rising faster than the rate of inflation. (And inflation is lagging as businesses have been reluctant to raise prices, but a combination of factors today will soon lead to a much higher inflation rate than we have seen since the great recession.

 

So, my guess is that ES is maturing as a business and realizing that it is not as simply as putting a very low price on the scope and pocketing all of the "profit."  It probably was not as big of a profit as they thought it would be so to pay their expenses and to get the BMW they deserve, they have to charge more. 

 

Typical startup curve.  Give it away, then later, when you have to make some money to satisfy the investors, you charge more.


Edited by Eddgie, 20 February 2019 - 08:54 AM.

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#9 Eddgie

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Posted 20 February 2019 - 08:49 AM

And on my last post, I will tell everyone something that made me angry and sick to my stomach.  There was this guy on the beginner forum about 3-4 months ago... He as asking advice on the next telescope he should buy.  As the story goes, he would buy scopes and try to see things and failing that, he would return the scope to the dealer and go somewhere else and buy another scope.  As I recall, he was on his sixth telescope.  That's right. He would just buy and return, buy and return.

 

And when people do that, we all pay for it.

 

Amazon finally simply started dropping customers with too many returns.  That was their own maturing curve. At some point, returns simply become unsustainable without either price increases, or banning the customer.

 

Anyway, my guess is that ES is finding the holes in its pricing model and adjusting accordingly.  


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#10 NearVision

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Posted 20 February 2019 - 08:57 AM

With everyone placing orders before the price increase I foresee a lot of clouds in the forecast for the next few weeks.

 

This probably explains the weather system blanketing most of the country with snow and rain today.


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#11 dmgriff

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Posted 20 February 2019 - 10:51 AM

I noticed the Synta (PRC China) produced Vixen branded scopes (A70Lf and A80Mf, etc.) price went up about $50usd last year. Didn't notice a increase in the Vixen (Japan) made scopes.

 

Don't know if other PRC produced scopes increased similarly.

 

Assumed that this had something to do with tariffs and such.

 

Good viewing,

 

Dave


Edited by dmgriff, 20 February 2019 - 10:54 AM.


#12 gnowellsct

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Posted 20 February 2019 - 08:21 PM

the story goes, he would buy scopes and try to see things and failing that, he would return the scope to the dealer and go somewhere else and buy another scope. As I recall, he was on his sixth telescope.


I was getting hammered with a restocking fee on a return to Highpoint and I actually buy stuff from them. Home Depot finally had to do something about people buying chainsaws after a storm and then returning them a day later for full refund.

There arent that many astro vendors in U.S.though. It we old be interesting to see a complete list.

#13 George N

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Posted 21 February 2019 - 11:13 AM

…..

There arent that many astro vendors in U.S.though. It we old be interesting to see a complete list.

Do a Google search for any well-known item - say "Celestron C-8 for sale"

Within 10 minutes your social media feeds will be filled with adds from all the vendors.....  wink.gif 


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#14 Jeff Morgan

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Posted 21 February 2019 - 12:25 PM

Maybe, maybe not.  

 

The long term trend is that you get more for your inflation adjusted dollar. 

 

Jon

 

The long term trend is none of us are getting any younger. wink.gif


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