AM4 more expensive in Europe

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Having looked at this closely lately, we found that G66 pricing was appropriate. It includes a 3-year warranty as required by European law, plus shipping, plus VAT and duties (which I don't fully understand, but one of my colleagues is working on a way to explain.) For their operation to be successful, they also have additional responsibilities, including EU/UK "cross-border" administration, multi-language sales and support, and repair service in multiple countries.
 
Having looked at this closely lately, we found that G66 pricing was appropriate. It includes a 3-year warranty as required by European law, plus shipping, plus VAT and duties (which I don't fully understand, but one of my colleagues is working on a way to explain.) For their operation to be successful, they also have additional responsibilities, including EU/UK "cross-border" administration, multi-language sales and support, and repair service in multiple countries.
I feel the price is totally justified.
They provide a stellar pre and post sale service
 
The European price is EUR 755.- excluding VAT and any duties, but incl. a 3-year warranty. (A 3 year warranty buying from Fractal in the US can be added, but is an additional USD 69.99.) Then see Matt’s post above for some additional reasons why it is still higher than a direct conversion of USD 699 (or USD 769 with extended warranty) to EUR.

Of course I wish it was a bit cheaper from G66 or that we could choose to buy directly from Fractal. But things are the way they are. So I’ve put in my order with G66.

(Edit: Do also keep in mind that many in the US will have to pay sales tax on top of the price shown on the Fractal site.)
 
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Having looked at this closely lately, we found that G66 pricing was appropriate. It includes a 3-year warranty as required by European law, plus shipping, plus VAT and duties (which I don't fully understand, but one of my colleagues is working on a way to explain.) For their operation to be successful, they also have additional responsibilities, including EU/UK "cross-border" administration, multi-language sales and support, and repair service in multiple countries.
G66 are great , no doubt !
 
They are not made in Europe.
If you take the current USD value, add taxes, shipping costs and customs fees it will be pretty much the same price.

A Diezel VH4 costs €2,899.00 in Europe and 4500 USD in the US.
It's just business as usual.. and fair.
Not saying the price is not justified, but they're not made in the US either.
 
Some info for this thread!

"Hey folks - Sukh here! (G66 UK and ZenRigs). I’ve only just joined so excuse the lack of input so far.

Some quick ones though - as we’re about to go heads down prepping for the first lot of AM4 orders, and I’m desperately in need of a kip.

1. I’ve worked for G66 for a little over 3 years now and can hand-on-heart say they are the nicest and most honest folks I’ve ever worked with. I’m constantly surprised at the lengths they go to in taking care of both their employees and, more importantly, their customers - even when there’s no obligation on their part to do so.

2. They are very careful with pricing - there’s a lot of speculation here - but the pricing is not random or inflated. There are various costs involved in getting product into the UK and then putting together the infrastructure to sell, support, store, market, manage warranty, multi-language translations, multi country servicing etc etc. The business has to run, and prices need to be able to support that business as a distributor.

3. We have a UK service centre (and sales) - there’s no shenanigans involved for UK warranty and servicing."

Source: https://thegearforum.com/threads/fractal-audio-systems-am4-amp-modeler.10317/post-440022
 
Price shown in US is without taxes.

Price shown in EU includes import duties, transportation, 3yrs warranty and EU taxes (VAT~+20% to be applied to the sum of previous ones),
and a delicious german chocolates box. :p

In US std warranty is 1 year non-transferrable (don't know why), for 70$ it's possible to extend it to 3 years, again, non-transferrable

In Europe, G66 provides 3 years of transferrable (*) warranty.

(*) Example:
I was able to sell my old FM9 still with 2 years warranty left... so it helped selling it fast, keeping the value high. Then I purchased the new one :).

From FAS website about 3 yrs warranty extension:

SmartSelect_20251214-212005_Chrome.jpg
 
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Perhaps Sukh could explain the profit and warranty arrangements? Does Fractal charge G66 the $699 per unit US price, meaning G66 has to charge profit on top of the US price? In other words, are they just a buyer reselling Fractal's products? That would be disappointing in a sole distributor arrangement. Otherwise I assume the additional costs are because of the warranty. Warranty in the UK is optional, not mandatory as it is in the EU, and could therefore be offered as optional to UK customers to ease the difference - could you consider that? Otherwise it amounts to mandatory insurance for UK customers.

For ease of reference, the US delivered price is around $787. In UK it is $1056 at current exchange rate. Even after duty, VAT and shipping there is a significant price difference.

And for those of you who might think I am a G66 basher, I am not - I bought my FM9 from them and was very happy with their service (despite the high price!) and Sukh has always been very polite, courteous and helpful. I am genuinely interested in what the costs are, due to the significant difference.
 
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2. They are very careful with pricing - there’s a lot of speculation here - but the pricing is not random or inflated. There are various costs involved in getting product into the UK and then putting together the infrastructure to sell, support, store, market, manage warranty, multi-language translations, multi country servicing etc etc. The business has to run, and prices need to be able to support that business as a distributor.
This point alone should explain the discrepancy. These aren’t built in the UK. They are shipped from the US to the UK. Add the cost of doing business, which is not trivial, and the reason for the difference in price is obvious.
 
I thought Fractal did the design of their AM4 and VP4 in the USA but they were manufactured in China? Can someone from Fractal chime in here and let us know where they are made.
The units are also much more expensive in Australia (1 year warranty) and sold by IMI for $AU1683.00 which is pretty much the same price as in Europe. In Europe its Euro925.00 which is close enough to $AU1630.00.
Just checked my VP4 packaging and it states Designed in USA and Assembled in China. I haven't received my AM4 yet so dont know if its the same story for it.
 
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Perhaps Sukh could explain the profit and warranty arrangements? Does Fractal charge G66 the $699 per unit US price, meaning G66 has to charge profit on top of the US price? In other words, are they just a buyer reselling Fractal's products? That would be disappointing in a sole distributor arrangement. Otherwise I assume the additional costs are because of the warranty. Warranty in the UK is optional, not mandatory as it is in the EU, and could therefore be offered as optional to UK customers to ease the difference - could you consider that? Otherwise it amounts to mandatory insurance for UK customers.

For ease of reference, the US delivered price is around $787. In UK it is $1056 at current exchange rate. Even after duty, VAT and shipping there is a significant price difference.

And for those of you who might think I am a G66 basher, I am not - I bought my FM9 from them and was very happy with their service (despite the high price!) and Sukh has always been very polite, courteous and helpful. I am genuinely interested in what the costs are, due to the significant difference.

I believe I’ve already outlined the main reasons for the price difference, but to revisit your calculation above: the US price you quoted is $787. Once you add 20% VAT—which is unavoidable for UK retail—that becomes $944.40. And that still doesn’t include freight, import duties, currency exchange fees, business operating costs, or after-sales support. Simply converting USD to GBP doesn’t reflect what it actually costs to bring a product into the UK or Europe and support it properly.

Having lived in the US for a few years and having run a UK software business for many years that relied on importing components, I’ve experienced first-hand that products from overseas will always be more expensive once they reach the UK, because of those costs. This is true for every distributor, not just us.

Providing a good service is also more than just adding a margin. Reliable stock management, fast shipping, genuine multi-country/multi-language customer support, and handling issues transparently all add real cost. Not every distributor approaches this the same way, and a recent experience I had illustrated that clearly.

Last week I bought a new wireless system - I won't say where from, but from an authorised reseller/distributor NOT based in the UK (but they ship across Europe). I did it this way as the UK retailers were all out of stock until mid-December at the earliest and I needed it for some upcoming gigs with my band (having cleverly sold my rack based wireless setup before securing a replacement!). I got an immediate order confirmation and it arrived about 5 days after ordering in a brand-new box that was sealed. When I opened it up, I was shocked to find the unit covered in fingerprints and there were scuff marks on the bottom. It had obviously been used/returned by someone but put back in the box without properly checking it over and resold as new. To make things worse, it came with a European plug and no adapter. I thought, OK.... Adding insult to this (after stealing an adapter from my wife's hair straightening irons) when I plugged it in, it didn't work! I emailed the distributor and waited 2 days... no reply (to be fair it was over the weekend, but still…). In frustration, I tracked down a 3rd party PSU among a box of old spares I had in my shed to see if the issue was with the power or the unit and the unit came to life; the issue was the power supply. I'm fairly chill in general so accepted this and figured the distributor would put things right somehow, now that I had done the troubleshooting for them.

Two more days passed and no word from the distributor (it was now Tuesday), so I called them, left a message, emailed them again and also left a message via their online chat to explain the situation, that I had done some trouble shooting and found the issue was the PSU, but that I was very disappointed to have received what appears to be a used item, sold at new price. That hadn't been tested. The NEXT day (now 5 days since receiving the package), they emailed and said "oh, we're so sorry you received it in that way - we get these new from XXXX and then ship them out - they shouldn't arrive like that. We're very sorry for the experience you had". That was it!!! No offer to replace, fix, send a plug, look into it, buy me some cider and flowers...NOTHING. I informed them I would be returning the item for a refund (including shipping both ways) and would wait to buy from a UK retailer (albeit for a higher price). It's been a few days and I still don't have a refund, so a call to my CC company is happening today.

I can’t speak to how that distributor operates internally (I would speculate they get units at £X, slap on a margin and then ship out at £Y and that's their business model - but really that’s not my concern – all I need to know is I am paying £Y and then expect to get product+service), but I can say this: businesses like G66 - and my own ZenRigs - invest heavily in doing things properly. That includes ensuring products are new, properly set-up, tested, supported, and backed by real customer service across multiple countries and (in the case of G66) languages. Those things have costs attached, and they’re part of what you pay for when buying from a reputable distributor.
 
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I believe I’ve already outlined the main reasons for the price difference, but to revisit your calculation above: the US price you quoted is $787. Once you add 20% VAT—which is unavoidable for UK retail—that becomes $944.40. And that still doesn’t include freight, import duties, currency exchange fees, business operating costs, or after-sales support. Simply converting USD to GBP doesn’t reflect what it actually costs to bring a product into the UK or Europe and support it properly.

Having lived in the US for a few years and having run a UK software business for many years that relied on importing components, I’ve experienced first-hand that products from overseas will always be more expensive once they reach the UK, because of those costs. This is true for every distributor, not just us.

Providing a good service is also more than just adding a margin. Reliable stock management, fast shipping, genuine multi-country/multi-language customer support, and handling issues transparently all add real cost. Not every distributor approaches this the same way, and a recent experience I had illustrated that clearly.

Last week I bought a new wireless system - I won't say where from, but from an authorised reseller/distributor NOT based in the UK (but they ship across Europe). I did it this way as the UK retailers were all out of stock until mid-December at the earliest and I needed it for some upcoming gigs with my band (having cleverly sold my rack based wireless setup before securing a replacement!). I got an immediate order confirmation and it arrived about 5 days after ordering in a brand-new box that was sealed. When I opened it up, I was shocked to find the unit covered in fingerprints and there were scuff marks on the bottom. It had obviously been used/returned by someone but put back in the box without properly checking it over and resold as new. To make things worse, it came with a European plug and no adapter. I thought, OK.... Adding insult to this (after stealing an adapter from my wife's hair straightening irons) when I plugged it in, it didn't work! I emailed the distributor and waited 2 days... no reply (to be fair it was over the weekend, but still…). In frustration, I tracked down a 3rd party PSU among a box of old spares I had in my shed to see if the issue was with the power or the unit and the unit came to life; the issue was the power supply. I'm fairly chill in general so accepted this and figured the distributor would put things right somehow, now that I had done the troubleshooting for them.

Two more days passed and no word from the distributor (it was now Tuesday), so I called them, left a message, emailed them again and also left a message via their online chat to explain the situation, that I had done some trouble shooting and found the issue was the PSU, but that I was very disappointed to have received what appears to be a used item, sold at new price. That hadn't been tested. The NEXT day (now 5 days since receiving the package), they emailed and said "oh, we're so sorry you received it in that way - we get these new from XXXX and then ship them out - they shouldn't arrive like that. We're very sorry for the experience you had". That was it!!! No offer to replace, fix, send a plug, look into it, buy me some cider and flowers...NOTHING. I informed them I would be returning the item for a refund (including shipping both ways) and would wait to buy from a UK retailer (albeit for a higher price). It's been a few days and I still don't have a refund, so a call to my CC company is happening today.

I can’t speak to how that distributor operates internally (I would speculate they get units at £X, slap on a margin and then ship out at £Y and that's their business model - but really that’s not my concern – all I need to know is I am paying £Y and then expect to get product+service), but I can say this: businesses like G66 - and my own ZenRigs - invest heavily in doing things properly. That includes ensuring products are new, properly set-up, tested, supported, and backed by real customer service across multiple countries and (in the case of G66) languages. Those things have costs attached, and they’re part of what you pay for when buying from a reputable distributor.
Thanks Sukh - agreed on the business running points, and there is absolutely no criticism intended. The $787 price is of course the delivered in US, including State Tax and delivery, price. The base price is $699. When you put in duty and VAT in UK that adds 12% and 20%, so that gets you to $923. Which is £691. I have definitely gotten used to paying dollar:GBP equivalence for US kit. But adding a bit for delivery still doesn't get us to £789, so that's why I was asking about your status with Fractal - if you have to buy Fractal products at their sales price in the US, before you can even start to make a return here, then I can see there is nowhere else to cover business costs before margin. Again, not complaining about your service or helpfulness, which are always exemplary, and of course you don't owe anybody an explanation if you don't wish to! Thanks for taking the time to engage.
 
Thanks Sukh - agreed on the business running points, and there is absolutely no criticism intended. The $787 price is of course the delivered in US, including State Tax and delivery, price. The base price is $699. When you put in duty and VAT in UK that adds 12% and 20%, so that gets you to $923. Which is £691. I have definitely gotten used to paying dollar:GBP equivalence for US kit. But adding a bit for delivery still doesn't get us to £789, so that's why I was asking about your status with Fractal - if you have to buy Fractal products at their sales price in the US, before you can even start to make a return here, then I can see there is nowhere else to cover business costs before margin. Again, not complaining about your service or helpfulness, which are always exemplary, and of course you don't owe anybody an explanation if you don't wish to! Thanks for taking the time to engage.
G66 is a company that wants to make money on selling Fractal gear, we are talking about a £100 difference. Does not sound reasonable to me to expect a company to disclose details on their cost structure
 
I'm just glad I got the VP4 while it was available for a much lower price for a few weeks until the AM4 came out :)
 
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