Pricing stability
Thomas Jackermeier
Member
You might have noticed that a lot of sim racing products from other companies have become more expensive since the pandemic started due to a big increase in shipping costs and also because supply is not enough to fulfil the demand.
Against the trend, we are trying hard to keep our prices stable so that our customers can plan their investment even if that means we are giving away a lot of profit.
The German government decided to reduce the VAT for German customers ordering here in Germany (not for orders from outside of Germany). We keep the prices stable as we have a common price for whole Europe anyway but this allows us to keep the worldwide prices at the current level as the tax we save here in Germany is a small compensation for the increased logistic costs worldwide.
The recent overload in our service department was also caused by the many pre-orders we have and with faster shipments we can avoid that.
We think global and not national and hope that our international community will appreciate this step.
Comments
Es increible lo que esta pasando con fanatec que ni siquiera tengan cajas para enviar los bundles lo cual generan costos adicionales en las aduanas y transportes para los compradores
Leonardo, expenses in customs are the same no matter how many boxes. Customs are always calculated basis the invoice and the AWB (the master airway bill that has all the tracking for the packages). So customs are exactly the same. 😎
More over in logistics it is calculated also basis the CBM. 1 BOX but much bigger to put everything in one might cost more to sent cause they UPS, FedEx DHL etc are charging basis the volume usually. What they do they compare the volumetric and the KG and they choose what is more expensive and charge the shipper. FANATEC is not a logistic company. Logistics are outsourced. And by the way, something that no one thinks of, is that we as consumers take advantage of the better rate that Fanatec get from all these logistics companies. Try to ship a pakage by your self and see how much it will cost. Usually is 50-60% higher than what the Fanatec rates are, because they ship a lot of stuff so they get better rates than you and me.
Regarding the bundles. If you by the CSL elite for ps4 with the normal steering wheel (such as the P1 that is called for x-box) it comes in one package. But when Fanatec says it is a bundle it means they gather a lot of standalone products, combine them in order to move them out of their warehouses, give discounts to become more attractive and sell them as a bundle. Being a bundle it doesn't mean that everything is in one box. 😎
Last but not least, please write in English.
Hi, thanks for your explain, the bundle csl elite f1 set come in a single box (i saw in many reviews) but due to the high demand in usa this bundle come in separate boxes (as shows the page) and i dont know if this situation affect the final cost as you explain it, i’m in chile and can’t paid more for the bundle, thanks for your help and support, sorry for my english.
Incredible to read that Fanatec has decided to use the VAT reduction to carry out a secret price increase at the expense of German customers and taxpayers.
It makes me sick to see what hypocritical reasons are given here to maximize profits.
I think that is completely unacceptable, given the corona-related background for the VAT reduction. The goal is to support and relieve the consumer. And not the goal is to help a company that profits very strongly from the corona pandemic due to very high demand for its products to help them increase prices secretly.
+1
It is a shame ....no understanding for this statement ! A big punch in the face of german customers....
the german fanatec customers are very, very disappointed:
https://forum.virtualracing.org/showthread.php/115455-Fanatec/page25
I think the best way to deal with the incredible dealings with german customers is to baycott Fanatec until 2021.
International customers can than maximize Fanatec's profits.
This is how German customers should think globally rather than nationally and hope that the international community will appreciate this step.
Then Jackermeier cannot use the value-added tax reduction for his own profit at the expense of German customers. Let's see how the press, media and the consumer advice center (Verbraucherzentrale) react to this if I forward this statement from Jackermeier.
Possibly the right publicity leads Fanatec to a customer-oriented company policy.
For me, the planned purchase of a Podium steering wheel is no longer an option under these conditions.
In Germany they offer ship to P.O BOX to Europe while in USA no, they are kidding with us, that shows of we are in south america doesn't exists for germans, why don't offer the products through amazon and mercadolibre, thats a s#1t
Please Germany.. Annex the Netherlands so I can buy DD1 for under 1000 euro. 😜
Ist das wirklich Ihr Ernst Herr Jackermeier ? So ein Statement gegenüber den deutschen Kunden.
Und dann solche Zahlen und Prognosen veröffentlichen:
https://www.vorstandswoche.de/blog/endor-umsatzziel-von-150-bis-200-mio-euro/
Hello Mr. Jackermeier,
I was also thinking about a new DD wheelbase, coming from my CSW2.5. But your statement stopped all my plans. I will wait some time and hope you will think about the VAT in Germany once more. If there is no change, I will sell my Fanatec stuff and go to another brand. So you loose two customers. One will be the customer of my second hand stuff and I will be the other one. I'm sure, that I am not the only one who will act in this way - it is not a law to give the reduction of VAT to the customers, but this governmental program is not for profiteers, to make them even more rich!
Sincerly yours
S.G.
So, the CEO decided not to raise his price and make more profits like the competition is doing and make even more money but wanted to keep the same price policy so no one can say they are using the increase of inquiries to make more and no one is looking at that as a positive. No one saw that all costs in manufacturing and logistics got increased and prices remained the same which is also positive.... BUT
Now we have the German customers complaining that they will not get the 3% (6 months reductions and then will get back to normal) on a luxury item. So my question is....
Would you prefer the increased prices with the 3% reduction (which after 6 months would be even more expensive when VAT would go up, so all your future orders will again be more expensive) or the current prices as is? Can't have a win win situation. After all he has a business to run. Doesn't he?
If you are looking to take advantage to buy a toy, which mean that you don't have an economic problem and taking advantage of the relief measures aimed to the less fortunate people, why he shouldn't take advantage of it as you claim?
Playing the devil's advocate here.
That's what Sascha Möser wrote in this forum:
So you're telling your German customers that they (alone) have to compensate increased international logistic costs, through a national German government initiated (temporary) VAT reduction - which is intended to benefit German citizens (paying taxes in Germany) and to support restarting the national economy. You notice it yourself, do you?
"We think global and not national and hope that our international community will appreciate this step."
I'm sure your international customers will do.
Your CEO will have thought about the impact of his decision and therefor it's obvious that Fanatec doesn't seem to care about the 'signal' you're giving your German customers with such a statement in these times.
Don't get me wrong, if economic reasons require price increases (supply, procurement, logistics, staff, ...) there is no discussion about that, those are decisions companies must make. But the way Fanatec is handling and communicating this national VAT topic (perceived as on the back of your German customers) is very unfortunate. You probably thought people wouldn't care about ~2,5%, but they do about the signal you're giving.
Think about it.
Maybe you should read this as well:
https://www.vorstandswoche.de/blog/endor-umsatzziel-von-150-bis-200-mio-euro/
Have red the above as well. But when a company is booming globally and doesn't depend only on one market (this is why they are who they are as per the link provided) hence they have to think as such, and they have to find ways to keep everyone happy.
More over if you guys think only for the German Market then why nobody from Germany complained when the prices in US (for example are cheaper)? Price numbers are the same and only the currency sign changes. Last time I have checked euro was more expensive than USD.
example:
PODIUM F1 WHEEL in eu site: 1,799.95 EURO inc vat (vat charged the same wherever in Europe is sent although each country has different %)
PODIUM F1 WHEEL in us site: 1,799.95 US inc vat (1,596.22 euro with today's rate)
This one is a bigger to complain than the 6 months 2,5% vat difference. oh wait... But US have 10% VAT... Maybe the US guys should start complaing as well. 🙄
Well none has to complain. It is called price sustainability for the global market.
But in our case, we are looking to take advantage to buy a toy in our country everything something happens (like you guys are doing in Germany for example), which means that we don't have an economic problem and taking advantage of the relief measures aimed to the less fortunate people. So I ask again, if we are doing that , why the company shouldn't take advantage, and use this as he deems that is needed for the growth of the company ?
You say lack of communication and why they didn't address it. Well news flash... They don't have to announce/communicate something like that in advance. They are doing so, only when needed to clarify something, and they did.
If some of the people doesn't like the move then they can choose their next steps.
Let us not kid ourselves. All of you wanted wrote that you were waiting this to upgrade your gear and take advantage of the VAT reduction, but now that FANATEC is not doing it, you are asking to boycott the company, because is not right to use trhe VAT reduction as they deem to do, and not as you guys want to. 🤣
Again playing the devil's advocate here, to see the bigger picture. Companies like these one is not only 1 or 2.... They have multiple factors to think and calculate. AND YES. GLOBAL MARKET IS BIGGER THAN GERMANY. Sorry to bust your bubble.
What I am trying to say cause it might have been lost.
We cannot always have it as we like as consumers and always at our benefit. We need to think of the companies as well.
Just think what would be the price of our beloved toys if they were not made in China (although German design etc) and were made in Germany.
Good speech in the spirit of Fanatec. Could come directly from Fanatec's marketing or press department.
However, this does not convince me in any way.
Nevertheless, the reduction in VAT in Germany has the purpose of relieving consumers. And not to offset any questionable cost increases in favor of the company or whoever. If that benefits other customers around the world in any way, I don't care.
I'm not ready to make up for it. And consider it too immoral even after your speech. Therefore my decision is clear, no purchase of Fanatec products until further notice.
Therefore I like to live on in my bubble which you cannot bust either.
Marketing?
Why I didnt think of it 23 years ago and spent my life at sea ? I should apply for a matketing position inside the company. 😂😂😂😂😂😂
LOL, you really have something for everything ... :D
Always. 🤣 My wife says the same. 😂
Jokes aside. We are beating up a company (and we are rightfully to do so up to a level) for communication, for delays, for software development, warranty registration for for for. Well it is not right to beat them up because they think of the global operations and thinking the whole world as a market against one country only for not using the temporary VAT reduction that is a government help aimed to the less fortunate and for basic stuff while we are talking about sim stuff that is a hobby/luxury product. If someone doesn't like can choose his options and apply them quietly instead of whining in the forum using the immoral card (while we spent thousands of euros and we are not in the less fortunate position) just to press leverage. 😇
Well, I had a DD2 and a Podium Wheel on my list, waiting for the VAT reduction to get effective only to get disappointed to my bones by looking at the current - unchanged - price tags.
And to get really surprised by the stock growth of Endor.
And to get angry about strange explanations of the CEO.
So, this will not be continued with Fanatec from my side - I can live and drive well with my current stuff, other companies have great equipment too.
byebye.
+1
1000% approval
Simagic DirectDrive is awesome (the quick release is a dream..)
Heusinkveld Sprint Pedals, Sq. Shifter and Handbrake really, really awesome, quality is awesome ! - no comparsion to fanatec
and the SHH Shifter ist a prize-winning master....
No FANATEC, no more months long faulty beta software testing, wobbly QR, quality problems and price megalomania....
byebye FANATEC
I am sorry but this is unacceptable.
Let me restrict this to the European Union sellers and customers. The amount of VAT depends in which EU country the product is sold and not from which EU country the customer is purchasing from. Today the VAT for certain products sold in Germany is 16% (was 19%)
The price should be stated clearly in your shop. Final price, base price and VAT. But no, you just state the final price . And this, beyond the moral issue of hideously rising your base price a 3% using the good will of the German government, smells illegal under the EU trade rules.
Please show me what I am paying for BEFORE I do the purchase or even drop the into to a shopping cart.
As a UK customer I appreciate this, thank you.