Fractal discount in EU?

Sauro_on_guitar

Inspired
Vendor
is there a precise reason why in Europe we cannot have the same offers (discounts) as in the USA? I know very well that in Europe distribution is given to G66 (and the staff at G66 are simply fantastic, both in communication and in customer service) and of course they must have their share of the profit, but I wonder if when Fractal does special discounts in the USA it would not be fair for them to put distributors who sell in the rest of the world in the same opportunity to do so. Other brands have almost the same price all over the planet ...
 
It’s all a question of choice. I bought through G66 and haven’t regretted it. The same applies for cars and other products in that it can vary from country to country. Whether it’s acceptable to you is a personal decision.
 
G66 is a business, and not expected to sell at cost or minimal profit. Likely the price for G66 pays for the gear they set by a contract, and doesn't change from month to month.
 
Fractal is the manufacturer, it‘s allways cheaper to buy from the manufacturer then a retailer.
G66 has to pay shipping, 19% Vat. and import taxes on the product and the shipping.
And for the European law, G66 has to enhance the warranty.
And their customers support is outstanding.
I never regret dealing with them.

It‘s the same with products like Mesa Boogie, Music Man guitars etc.
They are around 1000 bucks more in EU than in USA.
 
for the records Helix, Kemper and Quad Cortex have more or less the same price in US and UE. So those who speaks about custom duties, taxation, VAT etc should maybe consider the possibility that FAS is a good manufacturer of modelers but maybe not the status of the art for pricing and marketing
 
The issue is that we own the distribution in the US. There's no middleman. If we sold through Sweetwater, GC, etc. the price would be higher and inline with the price in other markets (adjusted for exchange rate, etc.).

In foreign markets there's a middleman who has to mark up the cost to cover his costs and, of course, make a profit.
 
They also provide their own support, customer service, warehousing, and potentially do their own QC and firmware updates which all also need to be covered by that profit.
 
for the records Helix, Kemper and Quad Cortex have more or less the same price in US and UE. So those who speaks about custom duties, taxation, VAT etc should maybe consider the possibility that FAS is a good manufacturer of modelers but maybe not the status of the art for pricing and marketing
Which is another way of saying the obvious, their US sales are far more profitable on a per unit basis. You can’t lower the EU costs, so if all else is equal......
 
Hello everyone, I would like to make some clarifications; I never intended to devalue the great work G66 has done, is doing, and will do.
I just wanted to ask the reason for something and if for this thing there was a way, on the part of the home company, to be able to remedy or mitigate it.
 
The issue is that we own the distribution in the US. There's no middleman. If we sold through Sweetwater, GC, etc. the price would be higher and inline with the price in other markets (adjusted for exchange rate, etc.).

In foreign markets there's a middleman who has to mark up the cost to cover his costs and, of course, make a profit.

Axe is the greatest product I have ever seen, but why not sell it directly to customers around the world? Just official online store + global shipment. Are there any legal restrictions? Ok, if a global shipment is a problem, why just can't buy AXE FX in the US using my non US plastic card and send it to mail forward service that will ship the purchased item directly to me? This trick works well with other stores that not officially ship items outside the US (store.google.com or BestBuy).

When I was buying an AX8 ($1099.99 + shipment $29.91) in 2018 I have to pay additionally:
  • $112.99 to intermediary US person for buying it on the official store
  • $108.35 for shipping
  • $36.25 for shipment insurance
  • $10 for mail forwarding service
  • 7% for currency conversion and other bank fees
  • about 120$ customs fee

But after all, I bought my AX8 much cheaper (approx $1600 vs $2100 from a local reseller). Besides very often items were out of stock at the local reseller at all. If there will be an option to buy direct from Fractal Audio it will be much easy, less risky, and costs less than it was in my case.

But things going worse in terms of FM3 - I can't buy it from a local reseller at all and it even still has no price for the local market.

I'm not hoping that it will be able to ship units globally from the official store for the same price that in the US. But I hope that someday I will be able to buy the device directly. Hope that a relatively cheap floor unit will not cost for the global market as a flagship rack unit in the US or even more. I hope fo fair price for the global market. I will be happy if the additional price will go to Cliff directly instead of the reseller pocket.

P.S. I really want to buy an FM3 in a couple of months but I can't do it either through a reseller or official store.
 
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Decisions may not be based on money. Global shipping is a pain in the ass. Returns would be worse. Plus thousands more emails. More people to hire etc. More time spent on things other than upgrades and new products. It seems like Fractal really have a passion for what they do. As mentioned above the goal may not be to push out as many units as possible.

There has to be some sort of balance between creating and developing vs. sales and distribution I would think and also time to just play guitar and have a life lol. I do not want anyone at Fractal to get burned out or overwhelmed. Do what is needed to stay balanced and creative.

Having G66 assist with what they do probably makes more time for the fun stuff.

Marshall Amplification does not let USA buyers buy direct and % wise its a lot more to buy a Marshall amp in the USA compared to England than to get a Fractal piece from G66.

I get the request though. I can appreciate it. I can relate with the Marshall amps. But its just the way it is and probably will be for important reasons.

These are just my opinions and guesses. I know nothing.
 
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G66 takes 2,499 Euros for an Axe FX III that's 3,027 USD
and 829 Euros for the FC-12 => 1,004 USD

so in total 4,031 USD - compared to the current fractal Us package deal of $2,729 for both units

That's a difference of 1,302 USD + extra shipping

I know they have extra costs and 2 years of warranty - but the primary question was if Fractal could pass their package deals to G66 so they they could offer similar sales packages from time to time?
 
G66 takes 2,499 Euros for an Axe FX III that's 3,027 USD
and 829 Euros for the FC-12 => 1,004 USD

so in total 4,031 USD - compared to the current fractal Us package deal of $2,729 for both units

That's a difference of 1,302 USD + extra shipping

I know they have extra costs and 2 years of warranty - but the primary question was if Fractal could pass their package deals to G66 so they they could offer similar sales packages from time to time?
You are assuming G66 pays retail. I’m sure they don’t.
 
The package deal was $70 USD off last time I looked.

I am guessing the units G66 has were already purchased by G66 and the ones for USA and Canada were not yet. That would seem to complicate things. Maybe Fractal does not want to tell G66 when to run a sales etc. Maybe G66 does not want to be told when to run sales etc.

I do not know all or any of the answers. I mean no disrespect at all I can appreciate the question and not wanting to pay too much for gear looking for better options and hoping for a change. That being said it is just the way it is and will probably remain that way.
 
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I understand that global shipping might be a pain in the ass, but I don't understand why they reject my order if I pay money for an item and want to send it to a US warehouse from which I will organize shipment to my region by myself.

All I want is at least to be able to purchase an item from the official US store using a foreign plastic card (Visa or MasterCard) and that Fractal Audio will be able to send it to the US warehouse address provided in the order details.
 
They also provide their own support, customer service, warehousing, and potentially do their own QC and firmware updates which all also need to be covered by that profit.

That's right and they do a superb job, which anyone who has an issue with one of their products will find out. G66 are worth every penny they make. Imagine trying to get a replacement within a couple of days if you bought in Europe from the US and something went wrong. They sent a replacement and took my faulty unit away within 48 hours, what sort of price would you need to pay for that kind of insurance?
 
Well one reason I could think of is that in the case of shipping damage and returns there is a big difference dealing with a USA resident and delivery compared to if it goes to a place in the USA and then gets transferred to somewhere else in the world. More chance for shipping damage and issues. More times the unit gets slammed in the package from shippers.

I am not trying to be a bummer or negative. I sell a lot of gear on Ebay and Reverb and have for years. Whenever I get a similar request I decline for the reasons above and when I used to do it there was always a way higher percentage of issues than if I just stuck to USA only.
 
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