Great Device - Poor Distribution

[HopWorks]

I would love nothing more than having a bunch of RPI's all over my home. I was already into the beginning stages of designing a device for my company to log vendor visits via a LAMP server running on an RPI when I decided to look into buying one. The price is totally unreal! $35 for all this power and features! I was totally sold. Then I noticed the unethical practices of the distributors of this device. Newark for one will NEVER get a penny of my business. MCM is shamefully overcharging shipping AND tax, as Newark is, and neither has a retail operation in my state!

And then I noticed that Mouser and Digikey are not carrying it yet, but are pushing the BeagleBone Black. I have done business with them and trust them not to use tax and shipping to profit at my expense. I will have to consider the BeagleBone over the RaspberryPI for this reason, and the RPI was clearly the winner for my applications.

So disappointed am I that I cannot obtain this beautiful piece of hardware without lowering my commerce standards. I hope that the designers of this creation can offer it to the masses through more business-ethic trustworthy distributors. I will keep checking to see if that happens here in the United States.

That's my opinion, and I thank you for your time.

Gary Rubin
Hop of HopWorks

[klricks]

I never had a problem with Newark (Element14). I have made 3 orders and was charged about $8.30 each shipping on 2 of the orders, UPS ground, and one order over $100 was free shipping.
No sales tax in my state on anything....

[Jim Manley]

Find nine other people nearby who want a Model A, or five others who want a Model B, or any other combination of parts/components that add up to over $199 and shipping is free at MCM. Secondary distributors beyond the primaries (Farnell/Element 14/Newark or RS/Allied) sell the Pi at close to their cost, and if they don't sell at least a minimum amount, the cost of the Pii, shipping, and manhandling will exceed the revenue from the sale.

If you haven't looked at just the price of energy lately, it's back up to almost as much as it was just before the economy went South for more than one Winter. Despite all sorts of corporate shenanigans, labor costs can only legally go so low. Existing leases/mortgages going back further than the economic collapse haven't changed in cost, and the same goes for insurance, legal fees, the cost of capital for maintaining stock, and all of the other odds and ends that make doing retail business such a joy.

For-profit companies are just that, and selling minimal-margin products is not an easy thing to do one unit at a time while covering costs, especially when the business is geared to filling tractor trailers full of products to be delivered to a single customer. Here's a suggestion for you - buy more than $199 worth of Pi boards to get them at their advertised price with free shipping and then see if you can cover your costs selling and shipping them without someone accusing you of profiteering.

[Heater]

In Helsinki you can walk into a store, Element 14's distributor Part Co, and pick up off the shelf:
Raspberry PI: 48,16€
Beagle Bone Black: 59.95€

24% of those prices is VAT. and I expect a hefty markup on a retail outlet in order for them to stay in business.
I'm glad there is such a store nearby.

[bbmonster]

Jim pretty much nailed it on the cost.

My question to the OP is what is "the unethical practices of the distributors of this device" that you speak of? Are they using the markup to test products on babies or donate the profits to shady groups that want to wreak havoc on the world?

I'm not trying to change your mind, I'm just trying to understand you, like why do you think its unethical to markup.

Believe me, I get where you are coming from when you see a product with a manufacturers suggested price and then bummed when you can't get it for that much. I get that all time living in Hawaii. Prime example Taco Bell, they have specials advertised on TV all the time, but if you read the fine print, it says offer not valid in Hawaii. I looked like an ars in the drive through asking could I get that 99cents special I seen on TV only to be told that special is for continental US only. Oh another example, Hawaii is excluded from most "Free Shipping" offers from online sites, and a lot of sites that I have come across don't tell you that till you checkout your cart.

Anyway, yeah, just wondering why you feel those companies are unethical.

Oh and I got my Pi through Amazon fulfilling the order from who knows, came out cheaper than ordering from Newark, I think I got it during a sale, oh and Amazon is one of the few sites that does free shipping to Hawaii.

[RaTTuS]

to the OP
how much would it cost post the final figures

[Heater]

I think there is an issue here.

The title of the Raspberry Pi's home page is "Raspberry Pi | An ARM GNU/Linux box for $25. Take a byte!". As seen in your browser windows title.
That catch phrase used to appear in the page itself, if I remember correctly, I notice it no longer does.

Problem is I don't think you can get one anywhere for that price. 25 Dollars is about 19 Euro. By the time I get to the store or order online that has become almost 50 Euros!

So obviously expectations are raised unreasonably and those who don't think much about how the world works think that the final price they pay is somehow excessive or exploitative.

I wold urge anyone to go and check the price of potatoes or USB cables or anything and have a look at the markups we see there.

[RaTTuS]

it is $25
and has always been said $25 + Tax and Shipping
$25 for a Model A
$35 for a Model B

http://www.raspberrypi.org/faqs

edit though in the UK at least it is
+ tax + shipping + shipping tax as we get vat on postage

[Heater]

RaTTus,

Exactly.

Thing is for a long time there was no model A and never has that $25 been the price you finally pay. So that tag line boldly displayed is rather misleading.
When I see a can of beans advertised that is the price I pay in the store. They don't start explaining to me at the checkout that I have to pay extra for their truck drivers, store profit and taxes.

If stores advertised with the price they actually pay for stuff you might never buy anything from them.

You see how this might lead to unreasonable expectations in some folks.

[Joe Schmoe]

The answer to this whole thread is:

Guess what??? When you order something from TV that says only $19.95, your out-the-door is going to be about $35. That's the way commerce works these days. The pi is no different.

[surfatwork]

The answer to this whole thread is:

Guess what??? When you order something from TV that says only $19.95, your out-the-door is going to be about $35. That's the way commerce works these days. The pi is no different.

Personally, I think the Pi offers phenomenal value for money, with or without shipping charges.
so to add to the above, if you can get a better or similar computer for the price of the Pi++, from a retailer you like, then you should totally get it.

[W. H. Heydt]

RaTTus,

Exactly.

Thing is for a long time there was no model A and never has that $25 been the price you finally pay. So that tag line boldly displayed is rather misleading.
When I see a can of beans advertised that is the price I pay in the store. They don't start explaining to me at the checkout that I have to pay extra for their truck drivers, store profit and taxes.

If stores advertised with the price they actually pay for stuff you might never buy anything from them.

You see how this might lead to unreasonable expectations in some folks.

Some of what is being bandied about is the difference between US practice and UK practice.

In the US, the price of the goods is stated. Taxes, shipping, handling, etc. are then added on. As I understand it, in the UK, a quoted price includes VAT (might even be a regulatory requirement), then shipping, handling, etc. are added on.

For reasons having to do with the way the electronics industry works, the formal price of Pis is given in US dollars, and has been held constant through all board revisions. 35 for a Model B and $25 for an Model A. This in spite of physical improvements and doubling the memory in each case (the original Model B had 256MB while current ones are 512MB; the Model A was intended to have 128MB but all that have been made have 256MB).

Methods to get free shipping has already been mentioned. If you get a state resale license (and follow your relevant state laws) you can get them without taxes added on. so there you have it. It IS possible to buy a Model B Pi for....$35.

[HopWorks]

Some really great responses and I get most of what you all say. What set me off initially was that I wouldn't know the final cost until after the sale. It was like "trust us, we won't surprise you." and I had a problem with that. And I get the comment by ...

Guess what??? When you order something from TV that says only $19.95, your out-the-door is going to be about $35. That's the way commerce works these days. The pi is no different.

Well I don't need to be enlightened about that, being the frugal shopper that I am, and I do not buy things as seen on TV, "BUT WAIT!" (couldn't resist), I'm sorry that it is no different with the pi. It certainly is different with a lot of things I buy online, and I was hoping the pi was no different than those expected experiences.

In the end, I succumbed to the urge and ended up buying it from Allied along with the camera attachment. I haven't seen a final cost yet and I will post it here when I know it. I really feel uneasy not knowing what they are going to 'possibly' soak me for. I was disappointed in Allied on the shipping though. The USPS price was the same as FedEX ground. It never should be equal at all. There certainly is profit taking, especially when they have retail operations in my state.

[ds2dale]

OK, I just got my RPi from Amazon this week and I'm using it right now. It was 43.00 USD delivered. Got a case, heatsinks, and other stuff, too. Saw the RPi camera module there for another 50.00 or so and I will have one of those directly. All Electronics has good deals on stuff but you gotta go back every once in a while to see what is available.

Anyone who routinely buys from one of the big electronics distributors is crazy. They're around for manufacturers and Government contractors, not us.

[jamesh]

OK, I just got my RPi from Amazon this week and I'm using it right now. It was 43.00 USD delivered. Got a case, heatsinks, and other stuff, too. Saw the RPi camera module there for another 50.00 or so and I will have one of those directly. All Electronics has good deals on stuff but you gotta go back every once in a while to see what is available.

Anyone who routinely buys from one of the big electronics distributors is crazy. They're around for manufacturers and Government contractors, not us.

#


Those prices seem a little high...camera from Farnell should be much less than 50 delivered.

[W. H. Heydt]

Anyone who routinely buys from one of the big electronics distributors is crazy. They're around for manufacturers and Government contractors, not us.

What you are complaining about is one of the virtues when it comes to the Pi. The RPF *contracted* with Farnell and RS and part of the contract requires that they sell the Pi at the price set by the Foundation.

If they add stuff on, they price the add-ons however they want, but the basic board prices are fixed.

[Nige C]

Added value is often offered by distributors. The Maplin Raspberry Pi package may seem expensive, but everything works well together. Horses for courses, I guess

[HopWorks]

I have played with the RPi rather extensively and found that it is an amazing addition to my bench, and other projects I am working on. The camera is amazing, and incredibly configurable via options from the command line. I was able to do Raspbian Wheezy as a LAMP server with Samba and Webmin, and it is using 25% of the ram at idle. I of course killed the GUI and moved the allocated ram from the GUI to the other side.

It is stable too! Several days running until I had to power it down to put it in a case and add heat sinks as a precautionary measure.

I wonder if it is possible through logic to access and control several cameras. One of my projects is to put several cameras on my Jeep for our excursions. Looking at probably 8 cameras. I need a spec sheet for the camera addon of course.

I don't like the lack of power management, but there are ways around that, and this little powerful creation has changed the ways I look at my embedded systems projects! I love it!!!