Models from China

Assuming we are talking about importing into the US, I agree with your math. The cost to Goldvarg would be $112 with the $50 starting point.

You bring up a good point, Mike. Any tariff imposed would be on the wholesale price of the model, not its retail price. So, the retail price would not increase to twice its usual retail price. Allowing for an acceptable profit margin for the dealers, that would probably put the adjusted retail price somewhere around $175-$195. I know none of us likes to pay a higher price. But, how much is too much? When do we decide to pull back? Do we stop collecting or just buy fewer models?

@jkuvakas I don't know what your equivalent of VAT is in the US John, or whether it can vary from state to state, but in the UK its 20% so on an imported price of $112, 20% vat would make it $134, and on that basis, depending on what a dealers margin would be, but for arguments sake, applying the standard model in the UK of half on cost, a third on turnover, a model would cost around $200. This is only a generalisation as many dealers accept a lesser margin. Let's hope things settle down to a less draconian tariff regime.

@mike-coupe, that certainly makes a difference. We have nothing like VAT over here...yet.

Costs killed 1/24 models from the mints.  Will tariffs kill 1/43?.  With what little I know about wholesale pricing on models I'm hoping that the end cost to collectors will be more like $150-$160.  We shall see pretty soon as model makers have several things in the pipeline that should start appearing for sale soon.  I have a couple things on order and I'm fearful of what the final cost will be.   

Well......   I've been sitting on this ***** * *  tariff * for a while now.  I could speak to this intelligently almost indefinitely, but I won't, other than to say this:

- Useless & unnecessary.

- China rarely is "outbid."   Generally speaking, if a, say, 25% tariff is imposed, they find ways to lower their costs by 25% thereby remaining competitive so that no one can "outbid"  them.   However, if there is no other competition, then all bets are off - chances are, some way, somehow, retail prices will rise.   Which may or may not provide greater mark-ups for dealers/sellers.    As always, consumers have the final word.     Stay tuned, right? 

@jkuvakas VAT replaced purchase tax when we joined the EU, but it remained after Brexit. Is there not a similar post sales tax in the US or do individual states create their own means of raising revenue from sales?

@mike-coupe 

In the US sales tax is common. It can be done at state, county, and/or city level.

Posted by: @ed-davis

↑

@mike-coupe 

In the US sales tax is common. It can be done at state, county, and/or city level.

And all large internet companies (eBay, Amazon, etc) charge state sales tax based on your address.  Several are nearly 10%; we are at 6%.

@jkuvakas We pay about $120.00 at the actual retail price for the Chinese models. US retailers will in same time take this occasion to raise their markups to compensate for expected lower sale volume. It's not unreasonable to figure that a model will cost close to $200.00 in the near future plus shipping. How many of these retailers will be able to survive is the big question.

The whole tariff issue seems to be on indefinite hold. Perhaps it will never happen. I guess we'll see.  

@jkuvakas Yes JK it is very early and there will be much more very important posturing and negotiating of course.  Bottom line for me (without getting political here) is that I will, as best I can, continue to support Goldvarg, GLM/Stamp and a few others who may be deeply affected in the long term.  IMHO they deserve our support; I'm sure most of us agree on that.

@jack-dodds, well said. Our dealers need our support as well.

@jack-dodds I'm with you Jack.