Why are brand new Leica lenses so much cheaper in Hong Kong?

[rriley]

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Hi,

 

Is Ffordes a HK or a UK Store?

I did a Google search and found http://ffordes.co.uk

 

UK store, several successful purchases and no neg issues.  As I recall the tax is included in their Internet prices but they will deduct it when shipping out of the country.

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[Guest NEIL-D-WILLIAMS]

Several purchases over the years from reputable Hong Kong dealers. No problems. They usually use FedEx or postal services for delivery, both of which are good at not applying the incorrect import duties that UPS loves to collect.

 

+1

[Docderm]

I am still puzzled by the concept that prices for the exact same lens, with the same Leica warranty, are cheaper in Hong Kong than in Germany (where it was made) or in UK or in USA or maybe in other countries too. 

Can anyone help explain this anomaly in prices in a world connected by the internet? 

Thanks

[Guest NEIL-D-WILLIAMS]

I am still puzzled by the concept that prices for the exact same lens, with the same Leica warranty, are cheaper in Hong Kong than in Germany (where it was made) or in UK or in USA or maybe in other countries too. 

Can anyone help explain this anomaly in prices in a world connected by the internet? 

Thanks

 

Buy a Nikon mate.....less stressful 

[Guest]

I am still puzzled by the concept that prices for the exact same lens, with the same Leica warranty, are cheaper in Hong Kong than in Germany (where it was made) or in UK or in USA or maybe in other countries too. 

Can anyone help explain this anomaly in prices in a world connected by the internet? 

Thanks

 

No puzzle at all. Just that there must be a lot of people like you that are afraid to buy abroad.

 

Another reason is that currencies change constantly, sometimes with large movements. Some years back the GBP was 2.00 USD; when it dropped suddenly to 1.50 USD the Leica prices within the UK were for 6 months (?) not adjusted upwards for the drop in the value of the GBP, as it would have killed the Leica market in the UK, and dealers (or Leica UK, which imports the cameras) must have had some cameras in stock purchased with the previously stronger GBP — so that a camera that cost, say, £5,000 suddenly dropped from costing, in USD, US$10,000 to US$7,500.

 

Also, it looks some dealers in HK are will to make a smaller profit and a higher volume, as someone mentioned earlier in this thread. There are no mysteries in this.

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[Docderm]

Nowhereman, maybe you are right. 

 

Perhaps the lower prices in HK vs USA or vs UK or vs Australia simply reflect buyer fear of buying remotely.  

 

It is a nice, warm feeling to know that if you buy a camera from a store in your city, and there is a problem, that you can easily go right back to the store to get the problem resolved. 

 

It takes a leap of faith, perhaps buttressed by lots of positive reviews on EBAY, to purchase abroad and hope nothing will go wrong. Then when something goes wrong, there is no local help.  You have to trust that the remote merchant will help you. 

 

To induce folks to make that leap, the price has to be reduced proportional to perceived risk. 

[icemanhk]

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Europe sells to HK without tax and with deep discount.

 

By the way, I am from Hong Kong :-)

 

 

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[Docderm]

Thanks, Icemanhk

 

Question ....... are the prices when you are in the HK shops the same as the same shops offer on Ebay?

[icemanhk]

Thanks, Icemanhk

 

Question ....... are the prices when you are in the HK shops the same as the same shops offer on Ebay?

We pay cheaper in HK because we usually pay cash. PayPal, credit card and eBay eat a lot of charge. Also you can get very good deal if you can find sellers who are not active in internet. Most of them are doing wholesale mainly.

 

 

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[wizard]

I am still puzzled by the concept that prices for the exact same lens, with the same Leica warranty, are cheaper in Hong Kong than in Germany (where it was made)...

 

You should not be puzzled. For decades, German cars have been and still are a lot cheaper in the US, although most of them are still being made in Germany and have to be shipped to the US. Plus the car warranties are much better for German cars in the US, too, often up to 4 years and free service compared to just 2 years and no free service at all in Germany or elsewhere in Europe. Why should it be any different with cameras?

 

Part of the reason for the significant price differences is due to different markets having different price levels, but another factor is taxes. Europe for example has roughly 20% VAT in effect in most countries, whereas HK to the best of my knowledge has no such tax (or a very low one). Add higher volume sales and you are there, it's not magic at all. Trust me, the Leica stuff they sell in HK is just as good or bad as in the rest of the world (I bought a lot of Leica equipment in HK, and it was always as expected).

 

Cheers,

 

Andy

Edited December 19, 2016 by wizard

[Krauklis]

I live in Germany and if I ordered that lens from HK the costs would be as follows, (all figures rounded):

 

lens in HK________________________________________________________7700 US  -  7500 EUR  

German turnover tax on imports (about the same as VAT)  20%____________________1500 EUR

German import duty 5%________________________________________________________375 EUR

 

all in all 9375 EUR  -  9800 USD (as of today)

 

Import fees might be similar in other countries.

 

krauklis

[Guest]

Krauklis - Surely you mean "similar in other countries" in the European Union. As stated earlier in this thread, there is no import duty or other taxes on imports of still cameras and lenses in the US.

_______________

Alone in Bangkok essay on BURN Magazine

[icemanhk]

You should not be puzzled. For decades, German cars have been and still are a lot cheaper in the US, although most of them are still being made in Germany and have to be shipped to the US. Plus the car warranties are much better for German cars in the US, too, often up to 4 years and free service compared to just 2 years and no free service at all in Germany or elsewhere in Europe. Why should it be any different with cameras?

 

Part of the reason for the significant price differences is due to different markets having different price levels, but another factor is taxes. Europe for example has roughly 20% VAT in effect in most countries, whereas HK to the best of my knowledge has no such tax (or a very low one). Add higher volume sales and you are there, it's not magic at all. Trust me, the Leica stuff they sell in HK is just as good or bad as in the rest of the world (I bought a lot of Leica equipment in HK, and it was always as expected).

 

Cheers,

 

Andy

 

Andy

 

HK does not have import tax for most items. Cigarette, alcoholic, perfume, cars etc have tax, the rest are free to import. Custom import document charge is within USD 1-2. So everything is cheap here except rent, electric and wages.

 

Iceman

 

 

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[gpwhite]

Thanks, Icemanhk

 

Question ....... are the prices when you are in the HK shops the same as the same shops offer on Ebay?

 

No. You pay a premium to buy on eBay. Usually 3% to 5% over what a store will charge directly for a wire transfer.

 

The Leica warranty issued by Leica USA is technically a bit different than the worldwide warranty from Leica Camera AG. You can investigate that point and make your own evaluation. For a digital camera that develops electronic problems, it is theoretically quicker to have repairs completed in New Jersey than Wetzlar...  but read various threads on this forum to decide which service center is actually preferable.

 

In my experience, there are a few shops in Hong Kong with outstanding service and selection that will deliver to the USA just as quickly and reliably as B & H Photo. If you need to make a return, however, it is far easier to do so with B & H.

 

Prices in Hong Kong on new Leica gear are much lower than in the USA because, historically, Hong Kong is where Leica and its European outlets have unloaded extra inventory. Leica USA, on the other hand, has protected a closely guarded inflation of prices as the Euro has plummeted and new Leica gear has glutted. Very recently, some authorized USA dealers have offered "demo" items that are, in fact, perfectly new.

[pkwok]

According to one of the HK dealers, Leica offers discount and rebate to the dealers according to the number of cameras/ lens they order. This discount is then reflected in the retail price.

[Einst_Stein]

I have bought Leica SL + 24-90mm kit for about 60000HKD, brand new, full international warranty. it was about 65% were I bought from BH using the Farmers house insurance discount. The Farmers house insurance discount is about 10-15% lower than BH regular price that most people pay.

 

I heard several theory about why HK Leica price is so low. One of the most sound convincing said the HK got the batch Leica sells to the mid east customers. ...with the tone suggest the lower quality batch. I asked Leica New Jersey about this. Leica told me, with the laugh in the mouth, saying Leica does not have that much of production volume worth to binning. ... Leica can only afford one quality grade.

 

Leica further told the how to make sure it is genuine. Afyer paying the money, before leaving the store, immediately find the serial number and go online to register the product. If it can be registered, I can leave the store, otherwise retirn it immediately,,, or call Leica about it.

 

Another theory, not really apply to Hong Kong, but to Chinae. Mainland, is about the SL + 24-90mm kit, which I have never heard in US od UK. It said that kit is only available in Mainland China, due to the strong buying power of China market.

 

The next wuestion is where to buy from Hong Kong store. My experience Ebay is not the best choice. Most HK Ebay Leica are used and the seller would honest label it that way. My impression you will pay about 10-15% due to Ebay fee. InsteD, you should go to price,com.hk. There you will get brand new and without the ebay fee (may there is also a web fee, but much lower).

 

For brand new Leica stuffs, it is actually really worth to pay the flight ticket to buy from Hong Kong. Serious.

[frame-it]

As far as i know, with Leica there is no such thing as a lower quality batch...with the sheer level of buying power in Asia, if there WAS a lower quality batch that would go to the west

 

Hong Kong dealers sometimes buy in bulk, hence the lower prices..at least that's what they told me...and the taxes are much lower there anyways.

 

I have bought Leica SL + 24-90mm kit for about 60000HKD, brand new, full international warranty. it was about 65% were I bought from BH using the Farmers house insurance discount. The Farmers house insurance discount is about 10-15% lower than BH regular price that most people pay.

I heard several theory about why HK Leica price is so low. One of the most sound convincing said the HK got the batch Leica sells to the mid east customers. ...with the tone suggest the lower quality batch. I asked Leica New Jersey about this. Leica told me, with the laugh in the mouth, saying Leica does not have that much of production volume worth to binning. ... Leica can only afford one quality grade.

Leica further told the how to make sure it is genuine. Afyer paying the money, before leaving the store, immediately find the serial number and go online to register the product. If it can be registered, I can leave the store, otherwise retirn it immediately,,, or call Leica about it.

Another theory, not really apply to Hong Kong, but to Chinae. Mainland, is about the SL + 24-90mm kit, which I have never heard in US od UK. It said that kit is only available in Mainland China, due to the strong buying power of China market.

The next wuestion is where to buy from Hong Kong store. My experience Ebay is not the best choice. Most HK Ebay Leica are used and the seller would honest label it that way. My impression you will pay about 10-15% due to Ebay fee. InsteD, you should go to price,com.hk. There you will get brand new and without the ebay fee (may there is also a web fee, but much lower).

For brand new Leica stuffs, it is actually really worth to pay the flight ticket to buy from Hong Kong. Serious.

Edited October 5, 2018 by frame-it

[Chaemono]

The main reason is Hong Kong has no sales tax. It’s 19 percent in Germany. It’s a value added tax here. Due to a bilateral tax agreement with the UK, one can purchase in Hong Kong and have the goods shipped via the UK to the rest of the EU, until Brexit day, 29 March 2019, that is.

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Hallo,

Look here: Leica L-Mount

[Einst_Stein]

Another FAQ is the tax at airport. For US

, it is free. You do not need to tear the boxes or package etc. To be safe if you were questioned, just say it is for personal use. I don't know what if you say it is a gift or for sale.

 

However, for mail in, I have been taxed about 46USD for an item with the insurance value of 8000USD.

Edited October 5, 2018 by Einst_Stein

[helged]

Another FAQ is the tax at airport. For US

, it is free. You do not need to tear the boxes or package etc. To be safe if you were questioned, just say it is for personal use. I don't know what if you say it is a gift or for sale.

 

However, for mail in, I have been taxed about 46USD for an item with the insurance value of 8000USD.

 

 

With a default tax of 25 percent to Norway, whether by mail or brought in privately, buying in HK doesn't seem to be that attractive for us. Yes, there are ways to circumvent the tax, but the law is clear.