Einsteins 640....Dec??

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Archive 2009 · Einsteins 640....Dec??

Paul Buff
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p.20 #1 · Einsteins 640....Dec??

Alphabug wrote:
kenyee wrote:
Alphabug wrote:
Also, why are the products so much more expensive (after allowing for the USD=>AUD conversion) here "Downunder then they are in the USA ?

You can thank your taxes and import duties

We have import duties ?? I wasn't aware of that !!

And taxes....You guys in Massachusetts don't have a 6.25% state sales tax ?

Downunder we have a 10% "federal" tax, and no state taxes.

AB.

There's more to it than that. AU does have duties (not terrible high) and you are paying two profits - mine and the importer. You are also paying extremely expensive air freight to get the product from here to there (in some cases, as much as the product cost) plus your national sales tax. And, of course, the currency exchange rate.

Yes, our states have sales taxes from 6 to 10% but (for the moment) they don't have to pay the tax if the product is shipped from another state. So all of our domestic sales, except those to Tennessee, are free of sales tax. This will probably change very soon under the current administration.

I love Aussies and New Zealanders, but these are the realities of the big ocean between us and of government policies.

Mar 09, 2010 at 06:17 PM

E-Vener
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p.20 #2 · Einsteins 640....Dec??

Yes, our states have sales taxes from 6 to 10% but (for the moment) they don't have to pay the tax if the product is shipped from another state. So all of our domestic sales, except those to Tennessee, are free of sales tax. This will probably change very soon under the current administration.

No matter which party is in the White House or running (not well) the two houses of Congress this is a likely possibility. The poorer states (like CA, GA, TN, AL, FL, NV, etc.) will jump on it lickety split if they can. They want that revenue stream.

Mar 09, 2010 at 07:58 PM

bacilonur
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p.20 #3 · Einsteins 640....Dec??

That's it, I'm moving to Oregon.

Mar 09, 2010 at 08:00 PM

kenyee
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p.20 #4 · Einsteins 640....Dec??

Alphabug wrote:
And taxes....You guys in Massachusetts don't have a 6.25% state sales tax ?

Don't get me started on that. Our income tax was raised "temporarily" to 5.95% to save the state from a budget crisis w/ a promise it'd be dropped back to 5% when the crisis was over (only went back down to 5.3% despite a ballot that should have forced them to honor their word). They claimed the sales tax had to be cranked up to 6.25% to prevent dire consequences to govt service to us plebs, but hardly cut back at all despite losing income during the recession (don't you wish private companies worked that way?). The shenanigans I'm sure are familiar to anyone (and any country) who has had politicians in office longer than ticks on a dog

And yes, I forgot to mention the middleman...you're dealing w/ another company when you buy AB gear outside the US/Canada (the duties are buried in their pricing usually). Same thing over here when we buy Elinchrom/Profoto gear...

Mar 09, 2010 at 08:08 PM

RDKirk
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p.20 #5 · Einsteins 640....Dec??

E-Vener wrote:
Yes, our states have sales taxes from 6 to 10% but (for the moment) they don't have to pay the tax if the product is shipped from another state. So all of our domestic sales, except those to Tennessee, are free of sales tax. This will probably change very soon under the current administration.

No matter which party is in the White House or running (not well) the two houses of Congress this is a likely possibility. The poorer states (like CA, GA, TN, AL, FL, NV, etc.) will jump on it lickety split if they can. They want that revenue stream.

This has been bubbling for quite a while now. All the states with sales taxes want to recover taxes from over-the-border sales because they all need more revenue. Moreover, all the sales tax states already have laws that require people to pay "use taxes" on anything they import over the border anyway--and those laws were in place 'way before Internet sales came into existence. They just haven't found a way to put a finger on Internet sales.

There has been an "Internet lobby" that has so far fought back the issue, but the proponents of "Internet should be free" are actually in the current Administration.

Mar 09, 2010 at 08:41 PM

Paul Buff
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p.20 #6 · Einsteins 640....Dec??

I fear the current administration will grab sales tax across state line and the states will get little if any of it. Actually, TN is one of the most tax friendly states in the US - no personal income tax by constitution. But it's eventually coming though. I'm hoping Texas and others will secede, or at least declare the federal actions unconstitutional and refuse to honor them. . . . oh crap, now I'm probably on the WH enemies list

Mar 09, 2010 at 09:19 PM

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p.20 #7 · Einsteins 640....Dec??

Internet should be free and cross boundary sales tax collection are two different issues.
Legally, anyone purchasing an item outside their state of residence is obligated to include the state's sales tax when paying their state income tax. As pointed out, its uncommon for anyone to actually do that.

Paul's quickly business model description is a clear description of the difference between single, double and triple tiered distribution. Every layer adds cost. Paul has additional costs because he chooses to sell direct. They do not equate to the cost of adding a layer of distribution.

I suspect the reason he has been unable to successfully find a distributer for the EU is because the cost structure would make his products similarly priced to European products and there is no benefit to adding that competitive layer and distribution cost.

Mar 09, 2010 at 09:22 PM

BrianO
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p.20 #8 · Einsteins 640....Dec??

Paul Buff wrote: ...I'm hoping Texas and others will secede...

You have just lost a potential customer, and I will recommend to all I know to boycott your company.

Mar 10, 2010 at 01:14 AM

RDKirk
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p.20 #9 · Einsteins 640....Dec??

BrianO wrote:
Paul Buff wrote: ...I'm hoping Texas and others will secede...

You have just lost a potential customer, and I will recommend to all I know to boycott your company.

I disagree with Paul on that, but unless his opinions go farther than his Constitutional right to spout them and vote for them, I don't see any reason to boycott his products. He handles his business in a way I heartily approve...if I were king, I'd make everyone do business his way. But he'd probably object to that, and I'd object to the king that did.

If I boycotted the products of everyone I politically disagreed with, I'd be reduced to buying practically nothing...heck, I politically disagree with the Chinese and the Japanese, too. And with the president of my bank. And every automobile president--jeez, I'd have been totally stymied in Henry Ford's day...I liked his open hiring policies but despised his opinion of Jews. I don't think I've ever been a member of an organization in which I politically agreed with everyone in it--and I don't think I'd want to be a member of an organization that was that narrow-minded.

Mar 10, 2010 at 01:22 AM

Paul Buff
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p.20 #10 · Einsteins 640....Dec??

BrianO wrote:
Paul Buff wrote: ...I'm hoping Texas and others will secede...

You have just lost a potential customer, and I will recommend to all I know to boycott your company.
That's you choice . . . nice thing about America up until recently - freedom of choice. I've enjoyed 73 years of that and we are about to lose it. If we don't change our direction fast you will be buying your equipment from GPE - that's Government Photo Equipment. Of course, if you don't work for the government, you won't have a job to provide the money for your purchase.

Mar 10, 2010 at 01:34 AM

Alphabug
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p.20 #11 · Einsteins 640....Dec??

Paul.....May I suggest you check with BrianO before you form any more opinions ?

Apparently he doesn't like yours !!

Anyhow, before the Mods step in and kill the Trolls or lock the thread..back to topic !!

How's the Einstein going, and will they be air-freighted to Australia ?

Is Australia's quota in "The first batch" or will we be waiting for later in the production cycle ?

Thanks,

AB.

Mar 10, 2010 at 01:39 AM

Paul Buff
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p.20 #12 · Einsteins 640....Dec??

dmward wrote:
Internet should be free and cross boundary sales tax collection are two different issues.
Legally, anyone purchasing an item outside their state of residence is obligated to include the state's sales tax when paying their state income tax. As pointed out, its uncommon for anyone to actually do that.

Paul's quickly business model description is a clear description of the difference between single, double and triple tiered distribution. Every layer adds cost. Paul has additional costs because he chooses to sell direct. They do not equate to the cost of adding a layer of distribution.

I suspect the reason he has been unable to successfully find a distributer for the EU is because the cost structure would make his products similarly priced to European products and there is no benefit to adding that competitive layer and distribution cost.

You are totally correct on this. I have distributor offers every day. But to service Europe properly involves a $2,000,000 USD investment on their part, and then the EU price will be on a par with other EU products after the middlemen take their profits, plus the VAT taxes, duties and regulations. We are leaning more in the direction of setting up service centers and our own distribution warehouse. But the USA comes first and I have no interest in becoming another global corporation. I'd rather work on world class products than in trying to be a global mogul. Still, we are working on solutions - but they have to fit my business model.

Mar 10, 2010 at 01:49 AM

Paul Buff
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p.20 #13 · Einsteins 640....Dec??

Alphabug wrote:
Paul.....May I suggest you check with BrianO before you form any more opinions ?

Apparently he doesn't like yours !!

Anyhow, before the Mods step in and kill the Trolls or lock the thread..back to topic !!

How's the Einstein going, and will they be air-freighted to Australia ?

Is Australia's quota in "The first batch" or will we be waiting for later in the production cycle ?

Thanks,

AB.
We have some pre orders from Colin Smith (our AU partner) and they will be serviced in the same order as our US pre orders. We plan to start up production next week on a ramped up basis. We're fighting some battles with parts availability as a few parts have lead times of up to 26 weeks and a have to be substituted.

RE BrianO if I were younger I'd consider Australia. You have your own political problems down under but probably have the most sensible policies in the world right now.

Mar 10, 2010 at 01:59 AM

E-Vener
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p.20 #14 · Einsteins 640....Dec??

Rick Perry is blowing hot air (and he knows it) when he talks about Texas seceding. The last time individual states tried declaring the federal actions unconstitutional and refused to honor them the result was the U.S. Civil War of 1860-65. You can hope it will happen but it ain't going to.

Heard this author tonight on "Fresh Aire with Terry Gross": David M. Walker, he made more real sense about the economy than anyone I've heard recently. He just wrote a book titled "Comeback America: Turning the Country Around and Restoring Fiscal Responsibility." He's a real (as opposed to the posturing political hacks with which every political party is filled, including the so-called "Tea Party" folk) finacial conservative. I ordered it right away from my public library.

Mar 10, 2010 at 03:00 AM

kenyee
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p.20 #15 · Einsteins 640....Dec??

BrianO wrote:
You have just lost a potential customer, and I will recommend to all I know to boycott your company.

...do you buy products made in china?

Mar 10, 2010 at 04:12 AM

photomarvin
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p.20 #16 · Einsteins 640....Dec??

So seriously back to the point of this thread...any definite update on the Einsteins? Not a we hope to do such and such this week or next week...anything concrete?

Mar 10, 2010 at 05:04 AM

BrianO
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p.20 #17 · Einsteins 640....Dec??

kenyee wrote:

...do you buy products made in china?

Mar 10, 2010 at 05:25 AM

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p.20 #18 · Einsteins 640....Dec??

Paul Buff wrote:
Snipped..

My business model gets you the same product for $400, a direct line of communications to people who really know the product,no nonsense customer service, and always current product, usually shipped from stock. And my cost of goods is 50% and I have fewer money handers and more technical and customer service people (who I pay very well). But my bottom line beats the daylights out of the other example because far more people buy the same product at $400 than would at $700.

I'm not advocating everyone should do this . . . it takes time and effort to develop this sort of business plan, and it also takes employees who understand the process and management to match. The core is rather simple . . . do customers want to pay salesmen, banks and money shufflers, or engineers, manufacturers and customer service people? The GDP is largely in the service and financial sectors and this is crashing the global economy at an alarming rate.

Let me say that this is the #1 reason why I buy PCB and will in the future. Sane pricing and cutting out the middleman along with quality products. Kudos Paul, I've just got a pair of CRBs now but when I'm up for strobes I'll def be buying AB(or Einstein).

Mar 10, 2010 at 05:39 AM

Paul Buff
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p.20 #19 · Einsteins 640....Dec??

E-Vener wrote:
Rick Perry is blowing hot air (and he knows it) when he talks about Texas seceding. The last time individual states tried declaring the federal actions unconstitutional and refused to honor them the result was the U.S. Civil War of 1860-65. You can hope it will happen but it ain't going to.

Heard this author tonight on "Fresh Aire with Terry Gross": David M. Walker, he made more real sense about the economy than anyone I've heard recently. He just wrote a book titled "Comeback America: Turning the Country Around and Restoring Fiscal Responsibility." He's a real (as opposed to the posturing political hacks with which every political party is filled, including the so-called "Tea Party" folk) finacial conservative. I ordered it right away from my public library.

Ellis, I wouldn't be too sure about this. I don't expect a direct secession, but can well see a refusal to bail out the liberal states that are coming asking for bailouts this year. This ain't the civil war days and right now the southern states can shut the country down if they are pushed too hard by the liberal states that are becoming hopelessly mired in socialism. Southern States like Texas and several others have a lot more economic and military power than they did in the civil war and will act if Obama insists on being a Socialist (or worse) dressed as Robin Hood. Look at the real national debt, not the one you see on N BS C and the others.

Mar 10, 2010 at 05:43 AM

Paul Buff
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p.20 #20 · Einsteins 640....Dec??

BrianO wrote:
kenyee wrote:

...do you buy products made in china?

Not if I can help it; unfortunately it's getting harder and harder to find products that aren't made in China. Whenever possible I by products made in the USA, and if not, then in USA-friendly countries.

What I'll avoid are products made by a company whose owner waves the American flag and hums God Bless America out of one side of his mouth while espousing the destruction of that very same Union out of the other side of his mouth.

What I espouse is saving America instead of giving it to European Socialists. If that takes difficult decisions, so be it. I must ask from whom you are going to buy these USA friendly products? I was born in the great depression and served proudly in the US Marine Corps to protect it. And you?

Mar 10, 2010 at 05:52 AM

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