Decent Espresso XXL - looking better than ever - Page 5

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GDK

#41: Post by GDK »

spiraleyes wrote:Thanks for the reply. Just finished putting in my white DE1XXL order. Can't wait to start using it. :D
Look forward to your thoughts.
Note to Canadians -it may be worth waiting for the border to reopen. The Canadian dollar has gained more strength, to the point where DE1XXL price here is now 28% higher than south of the border.

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decent_espresso
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#42: Post by decent_espresso » replying to GDK »

Just a note that we repair machines in the country that they were purchased in. If you buy the machine in the USA and then move it to Canada, it will be your responsibility, if a repair is needed, to get the machine to a USA address where it can be picked up and sent to our NYC repair center. We will pay the USA shipping both ways for the warranty repair, in addition to any other parts/labor costs. Or you can pay yourself to ship it from Canada to us, as well as VAT/duty on the return trip, as that is usually re-assessed by Canadian customs.

Repairs in Canada are much more expensive for us to do, because of (a) much higher UPS costs (150% worse than any other major country we sell to) and VAT/duty (b) having to pay a Canadian repair person who is mostly inactive. That's why we charge more for Canadian machines.

We had a customer recently who moved to a remote Caribbean island after buying their machine in the USA, and the machine later needed repairing. UPSing their machine back to us would have cost $1400 and we were not willing to pay that. In the end, we found a happy compromise as they're traveling to the USA soon and we'll pay to pick up/return the machine inside the USA, as that's where they bought it.

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pcdawson

#43: Post by pcdawson »

I'm not a business guy and don't know a lot about business models but would it make sense to have a distributor for Decent Espresso machines in Canada? Not sure if that would make it more cost-effective with respect to some of the cross boarder duties you mention. I understand what you are saying about duties associated with shipping and the expense of having the machine repaired in Canada. Nevertheless, these costs remain a significant barrier for any Canadian considering purchasing a Decent machine.

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decent_espresso
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#44: Post by decent_espresso »

pcdawson wrote:I'm not a business guy and don't know a lot about business models but would it make sense to have a distributor for Decent Espresso machines in Canada? Not sure if that would make it more cost-effective with respect to some of the cross boarder duties you mention. I understand what you are saying about duties associated with shipping and the expense of having the machine repaired in Canada. Nevertheless, these costs remain is a significant barrier for any Canadian considering purchasing a Decent machine.
Distributors require margins starting at 30%, while 40% is typical and 60% is not unheard of.

In other words, using a distributor would increase the price more than what we currently do. Makes sense: they need to make a living.

Also a distributor would have no effect on Canada's vat/duty, which would still be due.

In the USA, our machines are delivered to customers from Hong Kong completely free of sales tax or duty.

Unfortunately Canada is more difficult to do business with, while the USA is still quite easy.

GDK

#45: Post by GDK »

decent_espresso wrote:Just a note that we repair machines in the country that they were purchased in. If you buy the machine in the USA and then move it to Canada, it will be your responsibility, if a repair is needed, to get the machine to a USA address where it can be picked up and sent to our NYC repair center. We will pay the USA shipping both ways for the warranty repair, in addition to any other parts/labor costs. Or you can pay yourself to ship it from Canada to us, as well as VAT/duty on the return trip, as that is usually re-assessed by Canadian customs.
Thanks for confirming John, this is quite doable.

alunare
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#46: Post by alunare »

Great thread. I'm on the fence and would like to know if there is a European support centre in case of repairs being needed ? I don't want to ship the DE1 back to the US or Asia and get hit with VAT / custom fees again + extreme shipping costs. Thx

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decent_espresso
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#47: Post by decent_espresso » replying to alunare »

Salut Xavier,

We have a repair center in Milano, Italy.

And for two years we pay all costs to do warranty repairs, including shipping, and any VAT/duty that might apply, if we needed to send the machine to another country.

But sending machines is fairly rare, because most things can be fixed by us sending you parts and helping you install the part on a video call with you.

-john