One of the questions we get asked many times by customers is why is the Uk pricing of Uneekor products is higher than what is seen in America. Now when comparing any pricing structure with the States its important to remember that VAT is not included in any America pricing and their sales tax (where relevant) is always added at checkout.

We appreciate that it would still be cheaper to import a device from America, pay the shipping, pay import duty and vat (which would get added by Uk customs) and it would still be cheaper than UK pricing.

However Uneekor is structured very differently and many customers are not aware of the implementations that are imposed on Resellers outside of America….let us explain.

Firstly many customers are aware that Uneekor devices are made in Korea, not America. But many don’t know that the company that sells the devices is in fact QED Golf. Uneekor in America have a very strong relationship with QED Golf and hence why America can brand the devices under the name Uneekor. So when a new device is made, Uneekor in the US negotiate a price to buy X amount of devices and those are shipped we assume by container and by boat to the states. They negotiate their own wholesale price for the volume ordered.

Now this is where the difference lies significantly for UK/Europe. For our region we have a European distributor based in Austria. They negotiate a wholesale price based on the volume ordered, which will always be lower than the American wholesale price. We simply can’t compete in Uk/Europe for sim sales compared to America. Then those units are shipped by AIR and insured to get them from Korea to Austria. This is significantly more expensive than by boat shipping and a first currency exchange rate is processed to pay for them.

Once the units arrive in Austria, import duties are paid and the units are warehoused. The European distributor then creates a wholesale price for European and UK resellers which resellers then buy at. Another exchange rate change to buy the units from GBP to EUR is then in place, along with AIR shipping and insurance to send the units to the UK. Once they arrive in the UK, import duties are then charged again (blame Brexit for that additional one) and the units arrive with us.

As you can see this route of infrastructure is significantly different to how units arrive in America. For this reason it’s clear to understand why Unit pricing in Uk/Europe is significantly higher than America. Units are also region locked for two reasons. It protects the resellers in said regions and it also insures that all taxes are paid for and correct.

Now we’d love to be on a level pricing basis compared to America. Units would probably sell much more and we would welcome that. But whilst this infrastructure remains in place we think its important for all customers to fully understand why the pricing is set how it is.

Related posts