Why is the GK internal kit so expensive in the US?

Started by sequencer, September 12, 2021, 02:27:52 PM

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sequencer

I'm always wanting to get one of the Gk-3 internal kits, but the US price is $360 - wtf?  This seems ridiculously overpriced.

I checked prices in the UK and Europe and around $120 is the price there - which seems about right for about 10 wires, a couple of switches and a circuit board.

Confused more than anything - has someone made an error with the US pricing?

US:
https://www.sweetwater.com/store/detail/GKKITGT3--roland-gk-kit-for-guitar
UK:
https://www.andertons.co.uk/roland-gk3-internal-pickup-kit#tab4

admin

#1
Quote from: sequencer on September 12, 2021, 02:27:52 PM
I'm always wanting to get one of the Gk-3 internal kits, but the US price is $360 - wtf?  This seems ridiculously overpriced.

I checked prices in the UK and Europe and around $120 is the price there - which seems about right for about 10 wires, a couple of switches and a circuit board.

Confused more than anything - has someone made an error with the US pricing?

US:
https://www.sweetwater.com/store/detail/GKKITGT3--roland-gk-kit-for-guitar
UK:
https://www.andertons.co.uk/roland-gk3-internal-pickup-kit#tab4

In USA, we all recommend buy from Andertons UK , arrives under a week
(details)

Internal GK-KIT-GT3 Installation questions
https://www.vguitarforums.com/smf/index.php?topic=133.msg327#msg327

CodeSmart

But I got more gear than I need...and I like it!

sequencer

Thanks

That's what I'll do then!! - still just confused - the UK price seems about right - then it's like someone added an extra $250 to the US list price by accident and it just stuck.

Very strange.

sequencer

Hmm

In that Thomann link they specifically mention that the new GK3 kit has undergone a massive price reduction
- so maybe the cheap UK/Europe price is a relatively new thing?

Chumly

You'll find many more examples of market inefficiencies in the retail sector as well as other economic sectors.  Some market inefficiencies are moderated by arbitrage, however such markets need to be relatively liquid before arbitrage can be effective.

Try arbitraging the GK internal kit and see what your profit margin and risk-return ratio looks like! 

The fact of the matter is that the efficient-market hypothesis does not hold in all conditions and all times for a variety of reasons   https://en.wikipedia.org/wiki/Efficient-market_hypothesis
I think it's much more interesting to live not knowing than to have answers which might be wrong. - Richard P. Feynman

CodeSmart

#6
Quote from: Chumly on September 12, 2021, 03:07:16 PM
You'll find many more examples of market inefficiencies in the retail sector as well as other economic sectors.  Some market inefficiencies are moderated by arbitrage, however such markets need to be relatively liquid before arbitrage can be effective.

Try arbitraging the GK internal kit and see what your profit margin and risk-return ratio looks like! 

The fact of the matter is that the efficient-market hypothesis does not hold in all conditions and all times for a variety of reasons   https://en.wikipedia.org/wiki/Efficient-market_hypothesis

Regardless of theory, PayPal sucks the b***s out of whatever was left of the theoretical price ::)
But I got more gear than I need...and I like it!

Chumly

#7
I suppose PayPal would be called a market maker in security trading parlance.  Despite your legitimate concerns about transaction costs, if you want to assume the risks and costs of being a market maker, you'll discover things are not so easy in the land of thinly-traded, semi-propriety, high-tech music gear.

Come to think of it, I expect you should know that lesson well, with the cool stuff you build and sell.

By the way, the efficient market hypothesis does not mean that securities are priced correctly, in fact it means the exact opposite, that securities are never priced correctly.
I think it's much more interesting to live not knowing than to have answers which might be wrong. - Richard P. Feynman

chrish

Quote from: sequencer on September 12, 2021, 03:00:17 PM
Hmm

In that Thomann link they specifically mention that the new GK3 kit has undergone a massive price reduction
- so maybe the cheap UK/Europe price is a relatively new thing?
been that way for a long time now

whippinpost91850

Nope, I've been buying from Thomas & Andertons, for years

chrish

Quote from: whippinpost91850 on September 12, 2021, 06:35:16 PM
Nope, I've been buying from Thomas & Andertons, for years
yep, that's what I said, GK price has been that way for a long time in the UK. ;) inexpensive there.

CodeSmart

Quote from: Chumly on September 12, 2021, 05:17:11 PM
I suppose PayPal would be called a market maker in security trading parlance.  Despite your legitimate concerns about transaction costs, if you want to assume the risks and costs of being a market maker, you'll discover things are not so easy in the land of thinly-traded, semi-propriety, high-tech music gear.

Come to think of it, I expect you should know that lesson well, with the cool stuff you build and sell.

By the way, the efficient market hypothesis does not mean that securities are priced correctly, in fact it means the exact opposite, that securities are never priced correctly.

To elaborate on my harsch statement about PayPal last night when I was tired, I just detailed analyzed a random transaction from yesterday.
Here's the findings:

The total effective transaction loss (compared to interbank exchange rate+0%) is 15% using PayPal for international transactions between USA and Sweden. This is caused by two exhange rates applied (USD->EUR->SEK) using very poor exchange rates (Kiosk rates) and a PayPal fee of effectively 5.5%.

So instead of a PayPal "fee" of expected 4.8% it's actually 15% effectively in this case considering the total transaction between countries.
I consider that pretty much.

But I got more gear than I need...and I like it!

gumbo

Ok not much different to the situation in Down Here either, and has always been the case.....

Andertons price:  92 GBP...minus VAT 15%, plus shipping at around 15 GBP, means that it's still around 100 GBP landed in Oz

..that equates to about 188 AUD based on today's exchange rate...(not PayPal's, which we KNOW is a cut above...probably if I had done that analysis, I would be even more depressed)

Price from 299  -  319 AUD from Oz dealers via Internet search a moment ago...   ..and most say no stock at the moment, BTW...

It's all a game...answer: do your research !

....and if you want to throw away the Roland jack and replace it with one that works, unfortunately that will cost you another 48 USD + 13 USD shipping in the States...    ...but that's another story I won't mention here..   oops!  I did!    ...... ::)

Cheers from mostly-locked-Down-Under...

;)




Read slower!!!   ....I'm typing as fast as I can...

gumtown

It is only $NZ 299.00 here which equates to
$289.00 Aussie bucks
or
$212.76 U.S bills.

Which is not too bad since being so remote, we usually get ripped off with all other imports.
Bank just advised me this morning that international transaction conversion rate charge is going up.
The average house price here has just reached an insane $1 million.
I don't know how anyone can afford to live, now there is talk about a future death tax (inheritance tax), so you won't be able to afford to die here either.
 
Free "GR-55 FloorBoard" editor software from https://sourceforge.net/projects/grfloorboard/

Antonuzzo

We've had inheritance tax here in the UK for aeons.

This is an intriguing thread, because it's normally the other way around; something that sells for $99 in the US will retail for £99 in the UK.

gumbo

Quote from: Antonuzzo on September 13, 2021, 02:04:28 AM
We've had inheritance tax here in the UK for aeons.

This is an intriguing thread, because it's normally the other way around; something that sells for $99 in the US will retail for £99 in the UK.


Andertons' system seems to be organised around 'deals'.....bulk purchases that they then sell quickly at discounted prices...
...perhaps they are only people in the World who are willing to order hundreds of Roland bits at a time...   :o

...and / or they give out a purchase order for a year's worth of stock at a time and then specify a progressive delivery / payment arrangement with the supplier in question...whatever it is that they are doing, they do seem to be having a great turnover...

One hesitates to guess what the 'real' wholesale price is of a GK3 Internal Kit...we already know that the cost of the bits in it has got to be fairly minimal.. ;)     ...just a shame that Roland didn't ever realise that they could have probably sold twice as many synth units if they had halved the price of the pickup kit....   ::)

Read slower!!!   ....I'm typing as fast as I can...

gumtown

Who would have thought that the cost of purchasing (and supply stocks) a GK-Kit-G3 or GK-3 might be prohibitive to purchasing a GK/SY/VG unit.

It would make better business sense for Roland to sell the GK at cost price, and it would promote the sales of the GK processing unit (GR-55 and SY-1000 at this day).
Free "GR-55 FloorBoard" editor software from https://sourceforge.net/projects/grfloorboard/

admin

#17
Quote from: gumbo on September 13, 2021, 03:11:27 AM

Andertons' system seems to be organised around 'deals'.....bulk purchases that they then sell quickly at discounted prices...
...perhaps they are only people in the World who are willing to order hundreds of Roland bits at a time...   :o

...and / or they give out a purchase order for a year's worth of stock at a time and then specify a progressive delivery / payment arrangement with the supplier in question...whatever it is that they are doing, they do seem to be having a great turnover...

One hesitates to guess what the 'real' wholesale price is of a GK3 Internal Kit...we already know that the cost of the bits in it has got to be fairly minimal.. ;)     ...just a shame that Roland didn't ever realise that they could have probably sold twice as many synth units if they had halved the price of the pickup kit....   ::)

At Winter NAMM shows, I always see the main Anderton UK dude , often filming with Rob Chapman on show floor.

At 2018 NAMM, I introduced myself and thanked him for providing GK-KIT-GT3 Kits at unbeatable pricing for the VGuitar Community- he was busy, but seemed unaware of their stores unique pricing on these. I get the feeling a third party Anderton IK internal stock manager is a Roland GK enthusiast, and snuck in a deal in their inventory control system,  as Andersons UK pricing for GK-KIT-GT3 that has been same price for 10 years now - at nearly 1/2 what USA Roland Dealer cost is.

chrish

"We buy all products as an authorised dealer from the official distributors, or from the manufacturers themselves. ... Some manufacturers sell their products exclusively through Thomann. Because the wholesale margin is removed we can offer products at up to 50% cheaper.
https://www.thomann.de › faq_quest...
How can Thomann offer such low prices?"