Ed, I have to question any post that brings up touchy or inflammatory subjects.
The pricing factors that govern the prices of the Busse – Germany items were explained in Dirks post some time ago. Is it ideal for our European hog brethren, no, but it is the price structure that must occur.
Further, I do not know the legal business relationship of Busse US (BU) to Busse Germany (BG). It may be that BG has to buy for BU outright. If so, then BU has a specific price that it must sell them to BG at to make the BU expected margin plus cover costs. Then, BG must sell at a price determined by their cost (BU sell price, plus shipping costs, any additional tariffs, fees, etc) plus their desired margin, which is used to cover their operating costs (payroll, rent, warehousing, utilities, etc.) PLUS make a profit. When they make a sale, I would assume there are additional taxes that are then added to that price due to various government regulations.
All of this was outlined in Dirk’s post as shown above.
Are the hogs not in the US paying more (in $US) than we are, it may appear so. Again, I do not know, relatively speaking, if they are or not. What is the relative price ratio of other similar products to our knives?
Of course, your post also caused the subject to be brought up of the decision to not ship from BU to European destinations. This was not something Jerry did flippantly or without regard to his business future. I do know that the shop had been deluged with requests from individuals to falsify documents related to pricing to attempt to skirt legal taxes in their country. I myself have had several individuals from other countries ask for the same “favor”, essentially “break a law so I can save a few units of my currency.”
Also, to the best of my knowledge, The Busse Company Store, owned by M&M Skunk, is in no way connected to the Busse Germany site/store, other than by product line. Their business decisions about shipping policies are theirs to make. I do not know the basis for these decisions. They would have to be asked. I know you did not ask this, but it came up as a result of your post, therefore needs to be addressed.
Not only this, but your statement that Jerry should lower his prices so he can make more unit sales, well, just doesn’t make sense. Price drives demand, lower price means increased demand, which to answer, means increased production, which means more production resources (machinery, people), which means increased production costs, which means prices have to rise to make a desired margin, which means that lower prices will no longer be available. A vicious circle, but basic econ.
Did you do anything wrong? I don’t know. That is why I asked your intent behind the posting. If it was to re-open the sensitive subject of overseas pricing, then yes. If not, then why?
Yes, on one level, I do owe you an explanation of my questions, but you too must understand my job as moderator.
When a topic is brought up that concerns a past sensitive issue, I have to question the post originator,
no matter who it is as to their intent.
That is what I don’t get paid for. Maybe this would fit into that post in the Swamp about most dangerous professions….
