Bernina 550 QE (1)

Bernina 550 QE Introduced in the US in 2011: 

Bernina 550 QE Introduced in the US in 2011 What I found out about purchasing a Bernina 550QE for my wife for Christmas 2011 and why paying the price for a Bernina in the United States may be a big surprise to you…

Bernina 550 QE Introduced in the US 2011: 

Bernina 550 QE Introduced in the US 2011 I wanted to buy my wife a Bernina 550 QE for Christmas. After finding out the price of the machine, I started researching better prices on the internet. I couldn’t find any pricing information online in the United States, which I thought was odd. I got t he price by going in to the local retailer and then I found profoundly different prices online in Great Britain and in France. The price of the 550QE in the US $ 4,399 . Price of the machine in Great Britain is £1,750 British Pounds, or $2,768 US $1,630 more in the United States! 59% Higher WHY? The next page shows that £1,750 British Pounds, the equivalent of $2,768, is the price with as many of the British retailers as I could identify – not just one or two.

Pricing of Bernina 550 QE in the United States, Great Britain and France: 

Pricing of Bernina 550 QE in the United States, Great Britain and France Listed in US Dollars United States $4,399 Equates roughly to £2,872 (British Pound) or 3,475€ (Euro) based on when price was checked 1-12-2012 Listed in Pounds Great Britain £1,750 http://westendsewing.co.uk/product.php/594/0/bernina_b550_qe__a_sewing_machine_for_the_quilter £1,750 http://www.berninasewingshop.co.uk/01-sewing-machines/bernina-5-series-550-qe-sewing-machine-p-935.html £1,750 http://www.franknutt.co.uk/bernina-550-qe £1,750 http://www.howdenssewingmachines.co.uk/acatalog/Bernina_5_Series.html £1,750 http://www.onlinesewingmachines.co.uk/acatalog/Bernina.html £1,750 http://www.sewingmachineworldonline.co.uk/catalog/sewing-machines £1,750 http://www.sewingworld.co.uk/Bernina_550QE.html £1,750 http://www.sewmaster.co.uk/sewing-machines/bernina/mfc4-1 £1,750 http://www.sewworks.co.uk/sewing.html £1,750 http://www.thesewingstudio.co.uk/search.asp?types=Bernina+Sewing+Machines Listed in Euros France €2,069 http://www.simoline.fr/produit/18873/machine-a-coudre-bernina-550qe.html €2,069 http://www.rueducommerce.fr/m/ps/mpid:MP-87ACAM6476170#moid:MO-87ACAM10065449 €2,069 http://www.pixmania.com/fr/fr/r/bernina-550 €2,069 http://www.meilleurvendeur.com/promo/906483917/Machine-a-coudre-Bernina-550QE-Coffret-18-bobines-Madeira-Kit-couture-Gara.html €2,069 http://www.coudreetbroder.com/boutique/fiche_produit.cfm?ref=BERNINA550QE&type=12&code_lg=lg_fr&num=9 €2,069 http://prixcompar.fr/search/bernina%20550 €2,069 http://www.toutvendre.fr/Bernina-Machine-a-coudre-Bernina-550QE-Coffret-18-bobines-Ma_14050781.aspx To check current exchange rates go to http://www.xe.com/ucc/convert/ Here is a list of some of the retailers that I found in Great Britain and France. British are listed in British Pounds while France is listed in Euros. The websites are live as of 2-1-2012 and show actual retail prices.

You can almost buy two Bernina 550QEs in England for the same price as you would pay in the good ole USA! Or you could buy one in Great Britain, have it shipped to you, when your machine needs maintenance work, go on a vacation to England, take your machine over to have it serviced and bring it home with you from your vacation and still save money!: 

You can almost buy two Bernina 550QEs in England for the same price as you would pay in the good ole USA! Or you could buy one in Great Britain, have it shipped to you, when your machine needs maintenance work, go on a vacation to England, take your machine over to have it serviced and bring it home with you from your vacation and still save money! Bernina USA without price listed ($4,399) Bernina of America Suggested Retail price effective 7-1-11 Bernina UK with price listed Notice the price after excluding VAT – that equates to $2,306

Converting British Pounds to US Dollars: 

Converting British Pounds to US Dollars Here is one of many currency conversion websites – check this out so you can see for yourself. http://www.xe.com/ucc/ Converting 1,750 UK Pounds Comes up to $2,768.06 US Dollars With British Value Added Tax included. You can deduct it if the machine is shipped to the US $1,630.94 less than in the US * - * - * - * - * - * - * - * - * - * - * - * Converting 1,458.33 UK Pounds Comes up to $2,306.71 US Dollars No Value Added Tax collected – when exporting to the US $2,092.29 less than in the US $4,399.00 - 2,768.06 $1,630.94 $4,399.00 -2,306.71 $2,092.29

Price different between prices in Great Britain as opposed to the prices put in place by Bernina of America How much extra you have to pay to purchase a Bernina machine in the United States. I have tried to compare exact models – some models are less expensive on some sites than others – results of a competitive market in Great Britain: 

Bernina Models MSRP USA Price in Great Britain Price in US Dollars Dollars Savings in Great Britain Percent Savings in Great Britain 330 $1,399.00 £599.00 $947.47 $451.53 47.7% 380 $2,299.00 £1,095.00 $1,732.02 $566.98 32.7% 430 $2,899.00 £1,275.00 $2,016.73 $882.27 43.7% 450 $3,599.00 £1,525.00 $2,412.17 $1,186.83 49.2% 530 $3,099.00 £1,295.00 $2,048.37 $1,050.63 51.3% 630 $4,699.00 £2,195.00 $3,471.94 $1,227.06 35.3% 640 $5,899.00 £2,745.00 $4,341.90 $1,557.10 35.9% 1008 $1,399.00 £649.00 $1,026.56 $372.44 36.3% 210 or 215 $1,099.00 £499.00 $789.29 $309.71 39.2% 350PE $1,799.00 £835.00 $1,320.76 $478.24 36.2% 430E with Art Design included $3,899.00 £1,275.00 $2,016.73 $1,882.27 93.3% 440QE BSR Standard $4,199.00 £1,625.00 $2,570.34 $1,628.66 63.4% 450 BSR added $4,499.00 £1,525.00 $2,412.17 $2,086.83 86.5% 550 QE $4,399.00 £1,750.00 $2,768.06 $1,630.94 58.9% 580E $7,199.00 £2,995.00 $4,737.34 $2,461.66 52.0% 630E $5,699.00 £2,195.00 $3,471.94 $2,227.06 64.1% 640 with BSR added $6,799.00 £2,745.00 $4,341.90 $2,457.10 56.6% 730E $9,499.00 £3,995.00 $6,319.09 $3,179.91 50.3% 820 or 820QE $7,799.00 £3,400.00 $5,377.95 $2,421.05 45.0% 830E $12,499.00 £6,400.00 $10,123.20 $2,375.80 23.5% 830LE $13,499.00 £6,400.00 $10,123.20 $3,375.80 33.3% Price different between prices in Great Britain as opposed to the prices put in place by Bernina of America How much extra you have to pay to purchase a Bernina machine in the United States. I have tried to compare exact models – some models are less expensive on some sites than others – results of a competitive market in Great Britain

How I tried to find out why the price is so imbalanced in the United States: 

How I tried to find out why the price is so imbalanced in the United States I sent numerous e-mails to the CEO of Bernina International, ones to Bernina of America asking for assistance buying the machine in the United States for a comparable price to the UK. You will see the response that I got from Bernina of America and International. Results? No help in purchasing for a comparable price and a lot of “reasons” why they sell the machine for so much more in the United States. You will also see where Bernina of America prohibits retailers from posting prices on the internet ! (Let’s hear it for openness, one of the factors mentioned in Bernina’s Mission Statement!) I also found that all of the other Bernina machines are more expensive in the United States as opposed to Great Britain. If you are contemplating the purchase of a Bernina sewing machine in the United States, do your own research – validate the research that I have done. Consider saving a lot of money by ordering it from Great Britain. If you decide to purchase a Bernina machine in the United States, bring in comparable price information from Great Britain and ask your local retailer to match it. Ask them why the prices are so much higher here – see what “reasons” they come up with. If their answer lacks credibility, buy your machine somewhere else. If you decide to purchase your machine in Great Britain and have it shipped to you within the United States, you could take your machine back when it needs maintenance. You meanwhile vacation in London for a week and still save money on what you would have paid had you bought the machine in the United States!

Flight to and Hotel in London Price around $1,550: 

Flight to and Hotel in London Price around $1,550

Bernina 550 QE in the United States: 

Bernina 550 QE in the United States I wrote to Bernina International as well as Bernina of America asking for help understanding the reason for the price difference. I also asked for assistance purchasing the machine in the United States for a price comparable to those in Great Britain. Although eventually I received a number of reasons why the machines are so highly priced in the United States, I received absolutely no help in purchasing one for a better price. You might find paying roughly $1,600 to $2,000 MORE for what appears to be the same machine as being acceptable. I look at it as being gouged. I do not consider the price difference as reasonable or fair. ( gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair. ) Following are copies of some of the responses that I got from Bernina. You might also notice that no one with Bernina International or Bernina of America talked about profit as being the reason that the machines are so expensive in the USA.

Bernina of Americas doesn’t know prices from their retailers – : 

Bernina of Americas doesn’t know prices from their retailers – 1 st e-mail from Bernina of America in response to my query about pricing differences between US and UK and trying to get their help on acquiring a 550 QE in the United States for a comparable price. Points awarded for factual description of their position – 7. Points awarded for their Customer Service???? Pretty close to zero. “Thank you for your email. BERNINA of America is the wholesale importer/distributor of BERNINA sewing machines and related accessories in the US, with distribution only through authorized BERNINA dealers.  Each dealer is an independently owned and operated business who set their own policies, practices and procedures.  As such, we are unable to sell directly to our consumers or to quote pricing, nor would know what an individual dealer's selling price on a machine might be.   BERNINA of America is a separate entity from BERNINA UK and are not privy to their pricing or policies. The BERNINA factory warranty is honored worldwide, however, different countries have different warranties.  BERNINA of America covers 2 years electrical, 5 years on circuit boards and 20 years limited mechanical.  Europe has a shorter warranty (we believe it is 2 years electrical and electronic and 5 years limited mechanical).  A machine purchased overseas would be held to the warranty of the country of purchase, not the US warranty. Authorized BERNINA dealers include mastery classes and a minimum one-year labor warranty with the sale of a BERNINA.  These are over and above the factory warranty, honored by the selling dealer only and are not transferrable to another dealer. We regret that we were unable to be more helpful to you, but simply do not have access to the answers you require. Thank you for contacting us. Consumer Relations BERNINA of America, Inc.”

Lack of response from Bernina International: 

Lack of response from Bernina International Not really the response that I got back from Mr. Dreyer – since there was no response back from him I represented that as a blank piece of paper. First e-mail back from Mr. Dreyer Second e-mail back from Mr. Dreyer Same thing here – no response. Pretty poor when you read the mission of Bernina – “Customers – in-house and external – are cared for by all staff .” See selected parts from the mission in a few pages.

After a few unanswered e-mail to Mr. Dreyer, I received this one from a kind soul who works at Bernina International concerning the price difference and letting me know why they had not gotten back in touch with me. : 

After a few unanswered e-mail to Mr. Dreyer, I received this one from a kind soul who works at Bernina International concerning the price difference and letting me know why they had not gotten back in touch with me. “Even if I’m not responsible in this matter (I’m in marketing not in sales or support, but anyway)  I would like to write to you with an apologize. The first Email you wrote to info@bernina.ch went to our swiss importer and not to our headquarter because the headquarter is a  .com adress and not a . ch adress , even if we are based in switzerland . The person who worked at the importer was probably not sure about what to do with an customer request from the US (that’s a guess) so this email were never forwarded to us or to another person and this could had been the reason why your request never get through to our international support. So until you found out the Email adresses of Mr. Dreyer (probably through the internet or the local dealer) we never got an Email from you. And Mr Dreyer really react immediately by forwarding your Email letter (dated dec 2nd) to our responsible person in the US, based near Chicago, with the request to get in contact with you and help (I hope you‘ ll understand, that Mr. Dreyer is not answering customer requests by himself). So we were sure that somebody from the other side of the pod is going to contact you as soon as possible. BERNINA usually always gets in touch with customers and try to help in any case. And believe me, we really regret to loose a customer because of unfortunate circumstances. That is not what we are working for every day. So we really hope that you’ll honor our official apologize and still believe in our brand and products. To answer your question regarding the B 550QE: First of all the dealers are indepentand (most of them) that means also within the prices and not all of  them decided to list up their prices online. So also we are not knowing the prices of the products all over the US and cannot help you in this case. But because of that big price difference you mentioned I think that the accessory package is probably not the same (UK/US) or the offer regarding training and education after the purchase. And in terms of warranty, service, support and training/education (for your wife) it’s always better to buy at a local dealer. Hope that helps and I wish you and your wife a merry christmas .” Sincerely yours Annett Werner Brand Manager Bernina Internationales Marketing BERNINA International AG Seestrasse 161 CH-8266 Steckborn Phone: +41-52-762 11 11 Direct:  +41-52-762 12 06 Fax:     +41-52-762 13 12 E-Mail: annett.werner@bernina.com

Letter from Michael Perich, VP of Bernina of America concerning price difference: 

Letter from Michael Perich , VP of Bernina of America concerning price difference Thank you for contacting Mr. Dreyer about your concerns regarding differences in the price of Bernina products in various parts of the world. Let me begin by telling you that we appreciate your kind words about the quality and performance of Bernina products and that you considered purchasing one of our machines for your wife.  We also regret any inconvenience or frustration you may have experienced in your efforts to obtain information regarding our products, particularly as you correctly identified that part of our mission statement is that "our customers are the focus of our activities." As an initial matter, you should understand that as mentioned in the email you received, Bernina of America is a separate entity from Bernina International , Bernina UK, and the other companies which are the exclusive licensees of Bernina International in other parts of the world.  These companies are not just separate entities, but in fact operate separately and independently.  Their individual pricing and other policies are the result of geographic market conditions as well as the applicable laws and regulatory requirements of the countries in which they do business.  For example, legal requirements for product warranties may differ by jurisdiction.  Similarly, the market conditions that affect their policies, in particular pricing, include not only what other competing products are sold for, but also the cost of doing business (e.g. property, raw materials, labor, shipping, insurance, taxes, utilities costs), which is different in each country, and may also differ by product.  Factors such as currency volatility of one country’s currency against another is also a significant factor in establishing pricing within different international markets.  Distributors in one country, like Bernina of America, cannot reasonably be expected to have a comprehensive understanding of all applicable regulations and market conditions in a foreign country in which it does not operate.  Additionally, even if a distributor in one country, like Bernina of America, was familiar with the applicable regulations and market conditions in a foreign country, it would not have access to the decision-making process behind each individual policy and product price at the distributor level, much less at the individual dealer level.  In sum, when you were told that “BERNINA of America is a separate entity from BERNINA UK and are not privy to their pricing or policies,” this was not an attempt to avoid answering your question or providing you with the information you desired, but rather was the honest truth.  We do not know why the 550QE might available in UK for less than it is in the U.S.  It may be because it costs less to ship the machines to the UK, comparable machines cost less there, the warranty is not the same, labor is more expensive there, the Great British Pound’s strength versus the US Dollar or any combination of these reasons or other reasons. With regard to Bernina of America’s policies relating to price, it is true that we prohibit our independent dealers from selling Bernina products online or advertising the price of our products online.  The purpose of this policy is not to “hide the ball” or make it more difficult for consumers to purchase our products at the lowest available price.  Rather, in our experience, face-to-face, in person sales of our products typically results in significantly greater customer satisfaction.   Our machines are complex pieces of equipment with many features and most purchasers require, or at least desire, significant training and support.  It is for this reason that our independent dealers are required to provide in-person training and support for each Bernina machine that they sell.  There are costs to providing this training and support and the dealers take this into account when they set their prices.  While you may disagree with it, we do not believe that internet sales are ultimately beneficial to the overall customer experience that owners of Bernina machines have come to expect.  That is why we choose to sell in the community and not online. Posting of Bernina machine pricing from different countries (which are affected by all of the reasons set out above) and then suggesting that Bernina of America is gouging its customers is horribly misleading, and I trust you will reconsider.  Hopefully I have answered your questions sufficiently.  If not, please let me know what additional questions you may have. Yours sincerely, Michael Perich , Vice President BERNINA of America, Inc.

Analysis of response from Bernina International, Bernina of America and from the retailer: 

Analysis of response from Bernina International, Bernina of America and from the retailer What was said by Bernina International “First of all the dealers are indepent and (most of them) that means also within the prices and not all of  them decided to list up their prices online .” “the accessory package is probably not the same (UK/US )” “ or the offer regarding training and education after the purchase. “ ______________________________________________ What was said by Bernina of America “It may be because it costs less to ship the machines to the UK, comparable machines cost less there, the warranty is not the same, labor is more expensive there, the Great British Pound’s strength versus the US Dollar or any combination of these reasons or other reasons.” ______________________________________________ What I heard at the retailer The electricity is different, that is why there is such a large price difference. The reality of the market… In actuality, Bernina of America forbids retailers from posting prices online. This is not a choice retailers have . Interesting, I found a site in Russia where they are allowed to publish the price online, but retailers can’t publish them in the USA! See next page. The machines as described on the websites appear to be identical in the USA and Great Britain. In Great Britain they offer training after the purchase of the machine, same as in the US. ______________________________________________ “Costs less to ship there” Could be true but one retailer in Great Britain is willing to ship the machines for free to the US. There is enough profit margin for that retailer to sell the machine and still ship for free. “Labor more expensive there” If labor were more expensive there, the machines would be more expensive there than they are in the US. “Warranty is not the same” Not sure if this is true or not – but would it account for $1,600. For the difference in price, you could take your machine on a trip to Great Britain for warranty work, stay a week while your machine is serviced and then return to the US and still save money on the purchase price by buying it in Great Britain!!! ______________________________________________ Difference in electricity sounds like a great reason that was made up to explain the difference. Not factual.

Retailers allowed to post prices in Russia, but not in the United States of America. I think that the website is from Moscow. If it is Russian Rubles, the price may equate to $1,850 for what costs $4,399 in the USA. Not familiar with Russian currency, but I am certain that they can post their prices there! Let’s see – free to post price on internet in Russia – forbidden to in the United States. What’s wrong with this picture? Mission statement that talks about trust, respect and openness??? Just what is it about openness that Bernina International and Bernina of America just don’t get???: 

Retailers allowed to post prices in Russia, but not in the United States of America. I think that the website is from Moscow. If it is Russian Rubles, the price may equate to $1,850 for what costs $4,399 in the USA. Not familiar with Russian currency, but I am certain that they can post their prices there! Let’s see – free to post price on internet in Russia – forbidden to in the United States. What’s wrong with this picture? Mission statement that talks about trust, respect and openness??? Just what is it about openness that Bernina International and Bernina of America just don’t get???

Price on Bernina 550 QE in the United States: 

Price on Bernina 550 QE in the United States $4,399 – price quoted in retailer Suggested Retail Price from Bernina of America price You will not see prices posted on US web sites. Bernina of America “With regard to Bernina of America’s policies relating to price, it is true that we prohibit our independent dealers from selling Bernina products online or advertising the price of our products online. The purpose of this policy is not to “hide the ball” or make it more difficult for consumers to purchase our products at the lowest available price.  Rather, in our experience, face-to-face, in person sales of our products typically results in significantly greater customer satisfaction . ” Michael Perich , Vice President BERNINA of America, Inc . From my perspective, this whole experience did not lead to a “significantly greater customer satisfaction” – it left me feeling that I was being gouged. In his e-mail, Mr. Perich let me know that my feeling that Bernina was gouging it’s customers was horribly misleading.

Selections from Bernina International Mission http://www.bernina.com/content-n15-sen.html This is what Bernina International says that they believe in. See if you can pick out the statements that don’t ring true relative to Bernina prices in the United States. Do you feel like a valued customer? Does it feel like they are loyal to you by keeping prices secret and then charging so much more for the machines in the United States? : 

Selections from Bernina International Mission http://www.bernina.com/content-n15-sen.html This is what Bernina International says that they believe in. See if you can pick out the statements that don’t ring true relative to Bernina prices in the United States. Do you feel like a valued customer? Does it feel like they are loyal to you by keeping prices secret and then charging so much more for the machines in the United States? Purpose of Our Mission Statement Our mission statement encompasses the long-term goals and behavioral principles of all BERNINA Textile Group enterprises. It enables all employees to understand their activity as part of a whole. All employees are charged with making their contribution to the actualization of our mission statement in their day-to-day actions. Our Market Performance Our customers are the focus of our activities. BERNINA products and services provide our customers with genuine benefits and fulfill their expectations. All-round quality means optimal fulfillment of customer needs, i.e. with the cost-efficient use of resources of all kinds. Customers – in-house and external – are cared for by all staff. Our working atmosphere is characterized by trust, respect and openness. Our Behavior We are committed to a policy of openness, constructive criticism and dialogue based on mutual trust. We are loyal to and honest with customers, the company, our supervisors, colleagues and employees. Reviewed and approved by  Claude Dreyer, CEO BERNINA Textile Group Steckborn , 11.30.2011 These are selected from the Mission of Bernina International – to see the entire Mission Statement, go to http://www.bernina.com/content-n15-sen.html

What you can do…: 

What you can do… If you decide to purchase a Bernina in the USA Talk with the retailer Print off pages from UK retailers showing lower price Ask for a comparable price, one similar to prices charged in England If they won’t make a deal, you don’t have to buy the machine from them Consider buying the machine in Great Britain Write to Bernina International – let them know what you think and how you feel. Spread the word about this video. Tell your friends about this video. Encourage them to take a look at it. Post the url on blogs that you are familiar with. Write to the people I have listed at the end of this piece. Ask them why the prices are so much higher in the United States.

What I was going to do..: 

What I was going to do.. I considered putting a web site together where prices for Bernina machines in the United States could be posted, so buyers could be aware of the prices. I mean if Bernina of America prohibits it’s retailers from posting prices online, someone else could and should do it for them. I believe that this would lead to more competitive prices for customers and would love to see someone do it. Why is it that the sites that allow posting of prices in Great Britain, France and even Russia have lower prices than those that are kept secret in the United States! I did post the prices that I could find within this piece. After dealing with the brick wall that is Bernina for a couple of months, I just don’t have any interest in dealing with them ever again. They may have a mission statement that says that they focus on customers, but the statements are hollow – I can’t find any substance there . At this point, if you want to deal with Bernina remember “Caveat emptor” Latin for “Let the buyer beware”

If you want to write to someone at Bernina, use these addresses. E-Mail Addresses for Bernina: 

If you want to write to someone at Bernina, use these addresses. E-Mail Addresses for Bernina Claude Dreyer – CEO of Bernina International Claude.Dreyer@bernina.com Person who signed off on the mission statement talking about how important customers are. (Do not expect a reply ) Annette Werner annett.werner@bernina.com Brand Manager Bernina Internationales Marketing Kind person at Bernina International who actually responded Michael Perich , mperich@berninausa.com Vice President BERNINA of America, Inc.