Eley: Masters of marketing

do you call that dumping, like the Japs were dumpin' plywood a few years ago? whay are we paying so much less then the good folks in the UK? seems to me something don't add up, ..........or we're getting a bargain. thanks, douglas

There are a number of factors that need to be taken into consideration.
Volume,
Wholesalers mark ups,
Taxes,
Competition
Desire to ensure dominance of a given market.

Let's do volume first.
The US market is huge in relationship to the UK market. Eley can afford to sell to US wholesalers at a lower price simply due to the volume that they consume.
Wholesalers mark ups.
US wholesalers tend to work on low margins than their UK equivalents for a number of reasons.
Taxes.
UK taxes other wise known as Value Add Tax are currently 20%. Although I can see no added value in a 20% tax rate.
Competition
Eley face stiffer competition in the US market than they do in the UK
Market dominance
There is a risk even for a market leader that you can price yourself out of a given market. Or given an equally high performing product a price advantage that weakens your market dominance significantly. Causing customers to switch, unfortunately if your customer base is eroded due to these factors regaining ground can be very difficult, can take considerable time and can prove to ultimately be rather costly.

The best pricing policy is to screw everyone for as much as their domestic markets will stand bearing in mind the above.

You have to always consider the following. Eleys pricing is structured so that they make their minimum desired nett gross margin on their lowest price product. Production is geared to produce their premium product. Which some claim they can sell all they produce.

You have to dig a little deeper, look under a few more rocks and, learn to read between the lines to fully understand the methods, and strategies the world wide shooting industry employs.
 
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