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Propeller Chips - UK Supply Issues — Parallax Forums

Propeller Chips - UK Supply Issues

Mike_GTNMike_GTN Posts: 106
edited 2009-05-27 15:05 in Propeller 1
Hi UK Propeller Users,

Seems to me that we are still not seeing the real price reduction introduced by Parallax on the propeller chip.

Is so little wonder all of America is getting excited about this product. For me at least is still a kind of niche product. I know have called it this before and was rebucked.

Is Digikey UK Via USA still the best source to make an order if in the UK?

Certainly have found the $7.99 price a draw, but even with conversions and adding on a hefty margin for shipping is not stacking up. Would appreciate hearing from other·UK based users. To my mind is an issue that seems not to be on the agenda of Parallax.
Understand have a large catalogue of products, that have UK suppliers for. Maybe they are stayed and only want the milk and cookies, and my business is not worth their business? For me just need to purchase chips and not the life support system. That is
what Parallax do so well. My problem appears to being able to find the Propeller for a certain price within the UK.

Any viewpoints UK, or European ?

Regards

Mike.

** I know the text formatting is out, Is not me is them·yeah.gif
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Comments

  • LeonLeon Posts: 7,620
    edited 2009-05-23 02:54
    I get the impression that the UK market is very small and that a distributor like Milford will still have substantial stocks of the chips that they bought at the old price.

    Leon

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  • hippyhippy Posts: 1,981
    edited 2009-05-23 03:31
    I guess it's a catch-22, high prices means small market and small market is keeping the prices high.

    Milford's chips are a staggering $18.72 against $7.99 in the US.

    On the plus side, the ProtoBoards are cheaper at $28.80 against $29.99.

    Ken did say there would be some good news coming for the UK ... I haven't heard how that's progressing, or the forthcoming Parallax World Tour.
  • EricGarlicEricGarlic Posts: 41
    edited 2009-05-23 08:22
    There is a pretty active MicController community in the UK - it must be worth the initial investment to grow the market.
  • ColeyColey Posts: 1,112
    edited 2009-05-23 08:35
    Well there's Tony at Spinvent but his prices are higher compared with bringing them in from Digikey.
    For small volume purchases that's the way to go I'm afraid.
    All I do is purchase as much as I can when making an order with Digikey to take advantage of their free shipping.
    I think their service is excellent!

    I can hold a very small stock if people wanted to buy them from me but I would only be doing it to help people not make money as if I wanted to make money out of it I'd have to charge the same prices as Milford for example.......


    Coley

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    Post Edited (Coley) : 5/23/2009 9:58:36 AM GMT
  • LeonLeon Posts: 7,620
    edited 2009-05-23 08:53
    I think that distributors for the bigger semiconductor manufacturers have deals which recompense them if chip prices are reduced, so that they aren't left holding expensive stock that they can't sell. A small company like Parallax obviously can't do that.

    Leon

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  • edited 2009-05-23 09:03
    Hi UK Propeller heads - sorry to "pollute" the forum with a commercial posting but I thought you should know that Spinvent's Propeller chip prices will drop when current stock is exhausted - my guess is that's the same for all Propeller suppliers. Also remember to consider both the VAT, (Spinvent's included in the price) and, (as Coley says), the delivery charges vs volume when comparing suppliers.

    Good weekend all [noparse]:)[/noparse]
    Tony
  • LeonLeon Posts: 7,620
    edited 2009-05-23 09:15
    Can you estimate how long we will have to wait? I might order some then. smile.gif

    Leon

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  • edited 2009-05-23 09:27
    sorry Leon but that's difficult to estimate; all I can say is I'll do my best to make it asap. [noparse]:)[/noparse]

    Tony
  • heaterheater Posts: 3,370
    edited 2009-05-23 14:18
    Elfa has a slew of Propeller / Parallax gear- A Prop in Euro is 12.90 + 4,48 VAT. Plus freight 5.00

    Their freight calculator seems a bit wonky, depending how you come at it it's 5.00 or 10.00 Euro "Letter Export" to the UK.

    Me I just pick Props up from overnight delivery at ELFA in Helsinki a few blocks away [noparse]:)[/noparse]

    www.elfa.se

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  • LeonLeon Posts: 7,620
    edited 2009-05-23 15:03
    That's about $18, though, about the same price as Milford charges!

    Leon

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  • hairymnstrhairymnstr Posts: 107
    edited 2009-05-23 16:16
    Milford are expensive, but good service that's where all my props have come from. They're only about $14 dollars at the moment (are you viewing the new milford site http://www.ppmilinst.redcetera.com/). Farnell supply them as well, but more expensive even in bulk.

    Generally availability of Parallax parts in the UK is very disappointing, I'd be interested in playing with the Hydra 512k card for example, but haven't found anywhere in the UK supplying it.
  • hippyhippy Posts: 1,981
    edited 2009-05-23 20:57
    hairymnstr said...
    They're only about $14 dollars at the moment (are you viewing the new milford site http://www.ppmilinst.redcetera.com/)

    Apparently not eyes.gif

    I went to www.milinst.com/main.htm

    That's the top site Google returned for "Milford Instruments", the new site doesn't appear until page four. I don't know what the new site's HTML is doing but it's thrashing my network connection.

    I've bought all my Propeller kit from Milford and found them excellent to deal with, next day delivery and no problems with order, but they do come over as a cowboy operation. I get the impression it's basically a one-man-in-a-shed-on-t'pennines operation. Nothing wrong with that, but it's not perfect. How many sales have been lost because prices are stated as 50% higher than they are if you go to the wrong site ? Ho hum.

    Also when comparing dealers, delivery method is an important factor for me. That's one area where Spinvent gets my thumbs up; using Royal Mail. A 60+ mile round trip when an incompetant courier cannot arrange delivery at a convenient time pushes the price up.
  • hairymnstrhairymnstr Posts: 107
    edited 2009-05-23 21:05
    Agreed, Milford have some serious problems with their website. If you just go to www.milinst.com you should get redirected. So I'd like to think that the lower price is the correct one.
  • Mike_GTNMike_GTN Posts: 106
    edited 2009-05-24 23:00
    Dear All,

    Is there a message contained in these threads? I see still that the UK is not supported very well, OK if you wish to pay high prices from a very limited supply chain.
    I do understand as in any other business that someone has to take the risk and import these chips, and then hope to be able to sell them whilst making a meager profit margin. I think the margins will always be small on such a Niche product, easy to die of hunger waiting for sales to ramp up. Lower prices will mean more or better food.

    Really is all down to Parallax to sort out with suppliers what the deal actually is. For sure they will be doing so. Love to see this chip in mainstream usage in education for example. Everything is right, apart from the UK pricing.

    Regards

    Mike.
  • hippyhippy Posts: 1,981
    edited 2009-05-25 00:55
    Microchip, Atmel et al all seem to be a able to sell within the UK or through dealers at a straight US equivalent price, which is perhaps what Ken's "good news" will be; some sort of arrangement which delivers a corresponding match for Parallax product.
  • HenrikHenrik Posts: 10
    edited 2009-05-25 16:59
    My 2 cents worth of info - http://www.lawicel-shop.se·- sells props for·9,25 Eur incl VAT. Please leave some for me... smilewinkgrin.gif
  • hippyhippy Posts: 1,981
    edited 2009-05-25 17:20
    7.40 EUR is 10.37 USD, so still a 34% mark-up. The VAT seems to be 28% versus 15% in UK, Still cheaper than in the UK even with the mark-ups on both chip and VAT. If one EU country can get them for that price I wonder why suppliers in the UK cannot do the same ? Is our import duty worse than Sweden's or are we just being price gouged ?
  • LeonLeon Posts: 7,620
    edited 2009-05-25 19:08
    Import duty is quite low here in the UK for goods coming from outside the EU - something like 5%, IIRC. It's charged on the total cost including shipping, though, then 15% VAT is charged on the total.

    Leon

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  • ColeyColey Posts: 1,112
    edited 2009-05-25 19:10
    I don't see a problem with buying them from Spinvent, his price at the moment is £10 incl VAT, not bad considering he has to make something out of the transaction.

    <I just chcked and they are £9 today smile.gif>

    If you have designed the latest and greatest whizz bang gadget that you are going to produce hundreds or thousands of then you'd deal direct with Parallax, I'm sure they'd do some sort of deal for you...

    One offs or small volumes will always carry a price premium, it's a fact of life unfortunately cry.gif

    Coley

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  • Ken GraceyKen Gracey Posts: 7,401
    edited 2009-05-25 20:07
    Hey there,

    We're looking for a solution in the UK. If we don't see lower prices between Spinvent and Milford shortly I'll consider opening our own distribution in the UK where we will hold inventory and sell directly. That's the preferred solution at this point if our distributors continue to have higher prices. None of them have bothered to contact us about price balancing, so I'm not sure why the prices remain so high. I'm hoping that with the addition of another distributor we see some serious price reductions. If it doesn't happen by the end of summer then we'll take the next step.

    Ken Gracey
    Parallax, Inc.
  • Mike HuseltonMike Huselton Posts: 746
    edited 2009-05-25 20:20
    Ken,

    What are the headaches involved with you (Parallax) setting up a direct line this way? I am assuming that you considered this method in the beginning and did not implement it for good reasons.

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    JMH
  • Mike_GTNMike_GTN Posts: 106
    edited 2009-05-25 20:41
    Hi Ken,

    That is excellent news, that shows that you are a company that listens to your users. I never cease to be amazed by the level of support and help offered here from both Parallax and forum members. This is a great example of how other companies should or might like to operate.

    That has to be some great news for us in the UK, and also in Europe. I know has been mentioned before about having Rapid Electronics as a supplier. From my personal viewpoint will purchase from the cheapest supplier, whilst an obvious statement tend to also require other parts at the time to either complete or start work on a new project

    If Parallax and any distributors (either current, or new) hit the correct pricing point will go like a rocket. I believe that people will start to get more excited about the applications this can be put to. Fever pitch is even possible now.

    Regards

    Mike.
  • Ken GraceyKen Gracey Posts: 7,401
    edited 2009-05-25 20:59
    JMH,

    Taxation, VAT, staffing, and everything involved with running another business. The UK is a tax-heavy location to operate a subsidiary so we'd really prefer to have a partnership that we can develop into one that our customers appreciate. Setting up our own business is the last resort. One tremendous benefit it brings is that we could consolidate container shipments to serve our other distributors more effectively throughout Europe. We try to do a lot around here with few people, and setting up a Parallax-operated business is a significant undertaking.

    Mike, we're listening and we know it's a problem. Rapid is an option, as you pointed out, but I'm concerned we'll see the same high pricing that exists from other UK distributors. Adding more to the mix isn't going to provide the best long-term solution. When we started doing manufacturing in China, we took a similar approach. We have all business licenses, our own staff and facility, and it's there for the long haul at this point. Feel free to share any ideas we may not have considered.

    Ken Gracey
    Parallax, Inc.
  • hippyhippy Posts: 1,981
    edited 2009-05-26 00:19
    $7.99 is £5.02, excluding duty, VAT and P&P. With duty (5%), VAT (15%), that's an inclusive total of £6.06, so that's the minimum end cost at current exchange rates.

    Dealers have to make a profit in the chain, but it seems they are all adding large mark-ups, Spinvent (~50%, was ~60%) and Milford (~65%) included, more if taking advantage of Parallax quantity or dealer discounts.

    Maybe that's what the dealers have to surcharge to stay in business and I'm not criticising per se - I couldn't see how to make a Propeller re-sale business work when I considered it - but therein lies the root problem.

    Ken : As to the onerous nature of running a business within the UK; how about considering Play.com ? They're a DVD, CD dealer in Jersey ( Channel Isles ) and they can 'pass on' goods VAT exempt. May be worth a phone call, or considering a Jersey-based business.
  • ColeyColey Posts: 1,112
    edited 2009-05-26 10:21
    Hippy said...
    Ken : As to the onerous nature of running a business within the UK; how about considering Play.com ? They're a DVD, CD dealer in Jersey ( Channel Isles ) and they can 'pass on' goods VAT exempt. May be worth a phone call, or considering a Jersey-based business.

    A loophole sure to be closed, it's only a matter of time.

    The price you pay for living in a civilised society is taxes, it's a fact of life, the reason why taxes are high (but not the highest) in the UK are because it's a great place to live and for the most part the infrastructure we have is admired and revered by many.

    As for running a business in the UK, it's easy, I know, I've run one sucessfully for 10 years now, getting new business and getting paid is the hardest part wink.gif

    Making a Propeller re-sale business pay would be a challenge, it would surely have to be augmented with the full range of products from Parallax (and maybe even others) to be considered feasible.

    Coley

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  • LeonLeon Posts: 7,620
    edited 2009-05-26 10:30
    The UK is one of the easier places to start up a business compared to many other countries - no license or anything like that is needed. You just have to keep proper accounts and register for VAT, if necessary. Limited liability might be a good idea; getting it is very straightforward.

    Leon

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  • QuattroRS4QuattroRS4 Posts: 916
    edited 2009-05-26 13:52
    I have to say that I have dealt with Spinvent .. and find the service A1. Tony is very reasonable to deal with and quick to respond to queries. The business is relatively new and I am sure he will adjust prices as soon as he can. He carries quite a good range.

    Regards,
    John

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  • TonyDTonyD Posts: 210
    edited 2009-05-27 08:57
    To clarify the VAT situation on Jersey, HM Revenue & Customs state:
    www.hmrc.gov.uk said...

    If you buy goods online from Jersey or Guernsey
    • Customs duty will not be charged.
    • Import VAT is charged if the value of the goods is €22 Euro (£18 GBP) and over.
    • Many Channel Islands companies are part of a ‘VAT pre-payment’ scheme. This means you will be asked to pay import VAT if the value of the goods is over €22 (£18) at the time you pay for the goods. In this case you will not have to pay any additional costs when you receive your goods.
    • Excise duty will be charged for some goods, for example alcohol and tobacco.

    Earlier in the year I contacted Rapid Electronics and asked them to consider taking the Propeller and other Parallax product, whilst I got a reply from one of their buyers saying they would contact Parallax about the possibility, the trail went cold and I've never heard anything more. Perhaps Ken and Parallax could contact them direct.

    In addition, I agree with the other forum members comments about Spinvent, I found the service provided by Tony to be first rate.

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  • Ken GraceyKen Gracey Posts: 7,401
    edited 2009-05-27 12:31
    Indeed, Rapid had contacted Parallax so the trail ended at our doorstep. They could be a really appropriate distributor, but the concern is that too many distributors in the UK would cause an overall lack of motivation from excessive competition.

    Ken Gracey
  • LeonLeon Posts: 7,620
    edited 2009-05-27 12:48
    Rapid is big in the educational market.

    Leon

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