QUOTE (Kerry @ Sep 20 2008, 11:12 PM)

Well, what a subject???? ?????derivation????? (Post # 4) apologized for the ?????novel????????? I may end up having to apologize for out-wording the author ???? this subject ????? Canadian Sales of Dean Guitars is rather close to my heart!
I am the owner of an independent music store in Ontario and my son, David, and I are very proud to be Dean Dealers - we are listed on the Dean Guitars website accordingly. We don?????t sell Dean Guitars because they have an outrageous profit margin. They don?????t ???? we would be too likely to SELL any of them if the margins were as high as mentioned in Post 4.
We sell Dean Guitars because we are absolutely passionate about them???? My own ?????pride and joy????? is a USA 30th Anniversary ML (#12) signed by THE MAN, Dean B. That?????s how passionate we are about that ?????Winged Logo????? ????? it?????s a shame that it undoubtedly belongs to ER of Armadillo Enterprises and not DBZ, but that?????s life (it?????s a great pity that I misplaced my magic wand).
Intellimix Corporation (Baie d'Urf???, Quebec) is currently the exclusive distributor for Dean Guitars in Canada. It is my understanding that Intellimix buys guitars for about the same price in US dollars as would any large US chain of music stores. They then have to pay shipping from Tampa, Florida. Then comes the border crossing???? Let?????s forget about the 5% GST because they claim that back when they re-sell to me and eventually the retail buyer pays that (plus the 8% PST in Ontario). There is a large Brokerage fee PLUS GST to pay to a Customs Broker, who is there at the border, to present documents as the container(s) cross into the country.
Then there is the duty payable on the instruments ????? typically 7% duty (PLUS 5% GST) depending upon the country of origin. ?????But, Free Trade????????? you say? NO SUCH THING EXISTS. You need a NAFTA Certificate to certify USA Origin. That involves Lawyers, Judges and on and on???? We hope that you are all getting the picture here. So, we are paying 7% Duty PLUS 5% GST on US Made instruments just like the Japanese, Korean & Chinese made Dean Guitars????? That is my clear understanding. So, as you can see, Free Trade doesn?????t really exist unless you are a huge auto manufacturer or a multi-national lumber company with an army of corporate lawyers on the payroll.
All these extra charges, that the US retail chain stores DON?????T pay, but Intellimix DOES, leads to higher prices here in Canada.
And then, of course, you have to add Intellimix operating costs, advertising, REAL dollar exchange rates, profit margin ???? and suddenly prices here, in Canada, are way out of line with aggressive online US retail prices.
And, of course, the drop ship location certainly isn?????t here in Ontario. It?????s in Quebec ???? 675km (420 miles) from our store. Shipping costs and more shipping costs.
We have had to resign ourselves to all of these irritating facts. But we will not surrender to the trap of selling what?????s profitable as opposed to what?????s great. Most passionate guitarists don?????t want to buy an online photo ????? they want to play, touch, smell and hug that new ax before they buy???? and we hand them the goods to try.
Having said all that, we still try to remain as competitive as we can vs. US online prices, which we follow closely. I have found that with most models, we remain competitive with US online prices ????? maybe you?????re just not shopping in the right store (chuckle)???? An example follows:
eBay Item : 290262141299 ????? a Dean Hardtail Select from BeatStreet Music
Buy It Now: US $649.00 (approximately C $679.44)
Shipping: US$49.00 (approximately C $51.29)
Brokerage: C$50.00 MINIMUM ????? count on it!
7% Duty (Made in Korea): C $47.56
That totals C $ 828.29 + 5% GST + 8% PST (Ontario) = C $935.97 at your front door ????? hope it?????s not damaged!
We have an identical guitar in our store that is priced at C $829 + taxes = C $ 936.77 with a CANADIAN warranty, strap, new set of D?????Addario 110 strings and a FREE AUTOGRAPHED Michael Angelo Batio CD (we buy them direct from him). So, as you can see, buying direct from the ?????Lower 48????? isn?????t necessarily such a bargain IF you shop around. We only wish that I had the same margins as our brothers to the south???? (sigh)
Now, if we can only get a DBZ dealership???? wooooo????.maybe the first in Canada ????? who knows? (dream on, Kerry)
Here endeth the Canadian Lesson ????? don?????t say I didn?????t warn ya ????? Rock On!
Ah I see. So my question would then be why do we get other brands for so much cheaper. ESP/LTD and Jackson both seem to be sold at very similar prices as in the US. What would the difference between Dean and a company like ESP be where there could be such a price difference? Im pretty sure Nafta only applies to items made in the US such as gibsons and fenders etc. That was always my reasoning of why they were priced close to equal in both countries.