poing
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Model A price point

Tue Feb 05, 2013 9:52 pm

I just ordered two model A Raspberry Pi's from Farnell. Each was €27.66, including shipment but without VAT. In the announcement on the frontpage I read: "We are very, very pleased to finally be able to offer you a computer for $25. It’s what we said we’d do all along, and we can’t wait to see what you do with it."

That doesn't fit. €27.66=$37.56, which means 37.56-25=$12.56 for shipping! Locally the standard shipping charge for 'a packet' send as a consumer (size larger than an envelope up to the size of a well-packed guitar) is €6.50=$8.83. Large clients like Farnell get a substantial discount.

So where does the 12.56-8.83=$3.73, or 13% of $25 go (assuming Farnell isn't smart enough to obtain a discount from the local post service, which is laughable)? In reality the model A price is more like €27.66-3.25=24.41=$33.15.

I don't have a problem with the price as it is and I'm a die-hard Foundation supporter, but it's NOT $25!

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alexeames
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Re: Model A price point

Tue Feb 05, 2013 10:02 pm

It's $25 before shipping and taxes isn't it?

Farnell sells them for £15.97 before tax and shipping. I just checked on OANDA.com and $25 is £15.90 at interbank rates today. Farnell won't get interbank rates, but even if they did, it's within 7p of $25 and currencies fluctuate, but price points don't tend to.
Last edited by alexeames on Tue Feb 05, 2013 10:15 pm, edited 1 time in total.
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Re: Model A price point

Tue Feb 05, 2013 10:04 pm

alexeames wrote:It's $25 before shipping and taxes isn't it?
Yes, but I just calculated in reality it's more like $33.15 before shipping and taxes.

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Re: Model A price point

Tue Feb 05, 2013 10:07 pm

I'm always surprised when I see this argument. When you go to bestbuy.com or walmart.com and see an item for $25, do you suddenly throw a fit when you put it in your basket and they charge you for shipping? Do you go "Hey they said it was $25 why am I being charged shipping and tax and VAT?! That's not $25 at all!"

Hopefully the answer is no you don't do that. The Pi is $25 USD period. However like anything ordered on-line you will have to pay shipping, vat, and taxes as applicable. These charges do not negate the reality of the cost of the product.
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Re: Model A price point

Tue Feb 05, 2013 10:17 pm

poing wrote:
alexeames wrote:It's $25 before shipping and taxes isn't it?
Yes, but I just calculated in reality it's more like $33.15 before shipping and taxes.
I don't know how you did your sums, but I did mine and added them to my previous post. In pounds, at least, the numbers stack up exactly.
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Re: Model A price point

Tue Feb 05, 2013 10:21 pm

@ abishur: Irrelevant remark. Some people on ebay sell items for $0.01 and charge $20 for postage. I'm sure they advertise their product costs only $0.01 but I don't buy that :D
Last edited by poing on Tue Feb 05, 2013 10:24 pm, edited 1 time in total.

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Re: Model A price point

Tue Feb 05, 2013 10:23 pm

alexeames wrote:
poing wrote:
alexeames wrote:It's $25 before shipping and taxes isn't it?
Yes, but I just calculated in reality it's more like $33.15 before shipping and taxes.
I don't know how you did your sums, but I did mine and added them to my previous post. In pounds, at least, the numbers stack up exactly.
I took the initial number (€27.66) from my order page on nl.farnell.com and transferred euros to dollars using xe.com.

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Re: Model A price point

Tue Feb 05, 2013 10:24 pm

poing wrote:Irrelevant remark. Some people on ebay sell items for $0.01 and charge $20 for postage. I'm sure they advertise their product costs only $0.01 but I don't buy that :D
That's comparing auction an auction site to corporate business site it doesn't stack.
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Re: Model A price point

Tue Feb 05, 2013 10:25 pm

abishur wrote:
poing wrote:Irrelevant remark. Some people on ebay sell items for $0.01 and charge $20 for postage. I'm sure they advertise their product costs only $0.01 but I don't buy that :D
That's comparing auction an auction site to corporate business site it doesn't stack.
But they seem to both use the same tactics :?:

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Re: Model A price point

Tue Feb 05, 2013 10:28 pm

poing wrote:
abishur wrote:
poing wrote:Irrelevant remark. Some people on ebay sell items for $0.01 and charge $20 for postage. I'm sure they advertise their product costs only $0.01 but I don't buy that :D
That's comparing auction an auction site to corporate business site it doesn't stack.
But the seem to both use the same tactics :?:
Not at all. In one case the auctioneer is being a jerk and trying to hide the cost of his product by overcharging shipping. In the other case you have a corporate business charging you the exact cost of shipping. It's not some hidden "Gotcha" it's what they're charged to mail the product to you. That's why different shipping options cost you different things, because it costs them different things.
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Re: Model A price point

Tue Feb 05, 2013 10:45 pm

abishur wrote:It's not some hidden "Gotcha" it's what they're charged to mail the product to you. That's why different shipping options cost you different things, because it costs them different things.
But I didn't have 'different shipping options', I just have an all-in price from a local company.

What I do know is that the shipping price is 'very steep', as I can buy goods off ebay that originate in China, are as heavy as the model A and cost €2 including shipping halfway around the globe. OK, that will take three weeks and I can't send a package locally for that money (let alone manufacture the product as well), but then I'm not Farnell either. I can't prove it off course, but I'm sure the shipping cost are quite a bit more than Farnell pays to the shipping company.

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Re: Model A price point

Tue Feb 05, 2013 10:51 pm

Still bloody cheap though - I think we should all celebrate with a cup of tea!

Hoorah!
Last edited by pygmy_giant on Tue Feb 05, 2013 10:52 pm, edited 1 time in total.

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Re: Model A price point

Tue Feb 05, 2013 10:52 pm

pygmy_giant wrote:Still bloody cheap though.
Yes, and I did pay happily. But that's not my point.

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Re: Model A price point

Tue Feb 05, 2013 10:56 pm

sorry - you're right - i retract my nausiatingly jubilant post.

Maybe one can get a better deal if one waits a bit and shops around - expect to pay some tax and shipping though.

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Re: Model A price point

Tue Feb 05, 2013 11:16 pm

poing wrote:. I can't prove it off course, but I'm sure the shipping cost are quite a bit more than Farnell pays to the shipping company.
I'm sure you're incorrect ;-) I know by the powers that be that the RPF has a very strong arm when it comes to hidden mark ups on the pi. The price is $25 they (Farnell/RS) charge you the cost of shipping and, in accordance with local government laws, tax/vat. Now there might be other third party vendors out there who do other things. I have no knowledge about how they do things, but as far as farnell and RS are concerned the cost is $25.
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Re: Model A price point

Wed Feb 06, 2013 3:24 am

abishur wrote:
poing wrote:. I can't prove it off course, but I'm sure the shipping cost are quite a bit more than Farnell pays to the shipping company.
I'm sure you're incorrect ;-) I know by the powers that be that the RPF has a very strong arm when it comes to hidden mark ups on the pi.
As a point of clarification on the above, I'm not trying to suggest that there is no profit on S&H costs. The part I'm sure about is the statement that "the shipping costs are quite a bit more" (emphasis added) and the preceding comment trying to compare RS/Farnell to some ebay seller who hides all of his cost in the shipping charge ;-) A fact I'm sure of because I know the RPF strong arms them on hidden mark ups, and if the distributors just shifted the mark ups from the base cost of the pi into exorbitant s&h charges there would be flack. More importantly exorbitant markups is, at the end of the day, bad business practice.
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Re: Model A price point

Wed Feb 06, 2013 5:12 am

That's an extremely uncynical and magnanimous view of things, Abishur.
note: I may or may not know what I'm talking about...

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Re: Model A price point

Wed Feb 06, 2013 8:49 am

I just received my Model A less than 24 hours after ordering.

Total cost charged to my card: £18.88 = €21.81 = $29.53

Knock off the VAT then that makes the Model A: $24.54 which is under budget.
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Re: Model A price point

Wed Feb 06, 2013 9:59 am

It boggles me how cheap the Pi actually is, especially when you compare it to the cost of addons and accessories, many of which are as much, or more than the pi itself.

Seems there's lots of money(profit) in cases for a start.

That "$25 computer" strapline did annoy me ever so slightly (since the model b was all that was available, and at $35),
but now the Model A is around, all is good - now I just have to stop buying them ;)
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Re: Model A price point

Wed Feb 06, 2013 10:14 am

Methinks the same whinge came up when the Model B started shipping. "Its not $35, I can't buy it for less than $xxx, moan, the foundation are a bunch of crooks, moan". Welcome to capitalism......
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Re: Model A price point

Wed Feb 06, 2013 10:18 am

http://nl.rs-online.com/web/p/processor ... s/7568317/ Euro 20.23
Farnell seem to have it listed
http://nl.farnell.com/raspberry-pi/rasp ... dp/2254699
if you buy 100 you get it at the real price
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Re: Model A price point

Wed Feb 06, 2013 10:42 am

RaTTuS wrote:http://nl.rs-online.com/web/p/processor ... s/7568317/ Euro 20.23
Farnell seem to have it listed
http://nl.farnell.com/raspberry-pi/rasp ... dp/2254699
if you buy 100 you get it at the real price
Now that is interesting!
With Farnell the price per unit is €27.66 including shipping. I bought two, which makes 2 x 27.66 + VAT = €66.94.
Wit RS the price is €20.23 without shipping, while shipping is €6.95 per order. So if I buy two I pay 2 x 20.23 + €6.95 + VAT = €57.37.

If I but three from Farnell I pay 3 x 27.66 + VAT = €100,41.
If I buy three from RS the order is above €50 and I get free shipping, so then I pay 3 x 20.23 + VAT = €73.43.

OK, my fault, I should have seen this before I ordered, for then I'd have bought three from RS meaning the third would've cost me only 73.43 - 66.94 = €6,49 incl. VAT!

The two boards came in this morning, about 16 hours after ordering them. It was an envelope with two cardboard boxes inside each containing a model A. Then why do I have to pay double shipping? I'm sorry, but I'm not in agreement with abishur's claim above that no hidden markups exist.

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Re: Model A price point

Wed Feb 06, 2013 11:25 am

I don't believe you should have paid for double shippping. I'll flag the inconsistencies to Liz, but she is in the States at the moment so not that contactable.
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Re: Model A price point

Wed Feb 06, 2013 11:35 am

OK, thanks jamesh.

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Re: Model A price point

Wed Feb 06, 2013 11:52 am

jamesh wrote:I don't believe you should have paid for double shippping. I'll flag the inconsistencies to Liz, but she is in the States at the moment so not that contactable.
Won't it depend somewhat on how the orders are managed during packing and shipping? If they arrived together in one box, incurring one set of handling and shipping charges to Farnell, then to have a flat P&S charge per Raspberry Pi could be argued as unfair. If they do actually arrive separately, it is just an unfortunate circumstance of the way Farnell choose to handle multiple order for Raspberry Pi's going to one customer.

RS are clearly set up to handle multiple orders by a single customer better, by the sounds of it, albeit some would say that RS have other issues.
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