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Old 10 October 2004, 10:29   #1
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Price Differential

At the risk of enflaming all our dealer members and going over this again, how can Worldwide companies like Garmin say, explain to a buyer here why they can buy a navigational instruement for use world wide at half price in the States (compared to the price in UK)

I realise it may not be half price by the time it gets here but lets not be silly the difference is vast. And can we really expect customs to open every package? what are the cahnces you will be caught every time.

I dont mind paying for service but the price difference is gaulling to say the least, and how would one go about getting this excellent service if you were visiting from the states after sailing over here having kitted out your boat in your home country. For instance Garmin 76C US $175.95 (ebay) bought here price dollars from globalpositioningsystems.co.uk $753.75. Is this a price difference I as a consumer should be bothered about!
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Old 10 October 2004, 12:10   #2
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They do it because they can. There is no other reason than to bump up profits.
You can listen to all the arguments in the world about freight and duty, VAT, cost of setting up a European support operation and so on.
The arguments are superficially true, but wrong, as they are balanced by other cost factors in the selling equation.
I know because I have run and controlled w/w sales and marketing operations for a number of US hi-tech companies, and therefore been on the other side of the fence for most of my working life.
The artificiality of some of the manufacturers arguments really make me laugh.

Take an American yacht, for example, that comes for a sail over here.
Well, of course, its VHF wont work in UK waters will it? Because its frequencies are wrong. And it's illegal to use it.
It's GPS Plotter is not capable of navigating you in European waters because it's base map is US orientated.
And the changes to make both items work over here, doubles the cost of the unit dont they?

Do me a favour! They are having a larf.

You get charged more because the manufacturer can get away with it here and you will pay the asking price.
If you want some proof, ask Andre how much he pays for electronics and engine etc. in Poland.

Enough said. I am retired now. Can't take all this excitement any more.
And BTW, I am not advocating you either import from the US or break UK or European law. Either put up and shut up, or change the system.
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Old 10 October 2004, 14:57   #3
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Simon ,play the game- be more cleverer than them. Send me a private mail and I will tell you how to buy in the states from ANY supplier- reduce the duty and VAT by 60% ( perfectly legal). I do on a regular basis and save a
lot of money. The biggest difference is on laptops, and pc accessories.

I recently purchased a plextor DVD writer ( px708uf). This costs over 350 euros in europe..... picked it up at 175 in the states and landed in europe at 230, duty, vat and freight paid... to my door. When you are being ripped off
just go around the wall... and there are many doors.

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Old 10 October 2004, 20:10   #4
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Why do people go on about Rip off Britain all the time? It is ONLY really true of things taxed like cigs or petrol etc - they are a serious rip off but as to other things NO!!!!

Haven't you thought it is because of the exchange rate? The £ is very strong against the $ at the moment - get rid of this and it is NOT the case!!!

Just come back from France Spain Andorra and Gibraltar - couldn't find anything cheaper than the UK other than taxed items - in fact electronics etc a lot dearer.

You can buy a good DVD player in the UK for £30 - don't see how they could be much cheaper!
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Old 10 October 2004, 20:27   #5
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Where the hell did you get that stupid price for the 76C???? Just looked on Ebay.com and they are about $400 - doesn't look such a ripoff now does it???
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Old 10 October 2004, 20:28   #6
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whoop sorry didn't see your 2nd post!!!!!!!!!!!!!!!!!!!!!!!!
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Old 11 October 2004, 08:15   #7
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Maybe this emotive issue could be moved to an FAQ? I shall look into going round the wall and finding the doors, I suppose until it is glaringly obvious that people are doing this we wont see much change....Err like we've done with booze...
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Old 11 October 2004, 11:14   #8
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As regards rip off britain what about :
-house prices
-food
-a cup of so called coffee
-hotels in London
-taxi fares
-car parking and meters
-London airport
-car prices ( still)

anymore??

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Old 11 October 2004, 11:47   #9
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marina fees,

Divorce
Alimony
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Old 11 October 2004, 11:50   #10
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Old 11 October 2004, 12:12   #11
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Have been travelling arround the World on buisiness for the last 20 years.
I have to say that in the UK certain things i.e. PCs, electronics, cars, moto bikes, boats, housing -rent or bought- and taxis too also food, wine, beer, sigs - although should be charged at £100 each for the damage they do - and quite a large number of other consumer goods are 2 and some time 3 and 4 times more expenssive than in other EU states or the US or SAfrica or Australia or even Japan.
IMHO, this has nothing to do with the exchange rate or so much with the gread of some/all of the re-sellers/producers here.
High prices have to do with high labour costs i.e. a secretary earning £ 800-1,000/month net is unheard off in many of the EU state and also in the US, and high direct or indirect taxes (the highest I think in Europe).
An example: I went to buy SIKAFLEX in a shop down the road from here. Found it at £8.90. The same tube if I bought it in Greece made by the same company SIKAFLEX would have cost me between Euro 5.00-6.50!!
Any way, these two variables that I mentioned above (there are many more) but IMHO these two labour costs and taxes both direct and indirect are quite important in determining the prices of consumer goods and private services since the higher they are set the more expenssive consumer goods and private services become. Certainly this is the case in the UK.
The UK (in a survey done by Herald Tribune or EUROPE TODAY news paper some time ago was found to be the MOST expenssive country in Europe).
May be some of the blame should be directed to some of the various (not all) re-sellers and producers in the UK been gready but the larger part of the blame should be directed to the State. Always IMHO.
Now the counter argument is with high taxation you can have good (the best IMHO) state health care, good public services, good schools and higher education and many other services provided by the state.
The bottom line here is what one really wants.
Now I buy all of the electronics I need and other otems for our boats from the US I pay the tax and vat (claim that back as a business any way) and I'm happy. It takes a bit longer to get them but it worths the wait.
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Old 11 October 2004, 14:48   #12
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Manos,

Sorry to see your blobs got burst! Its got to be the USA for the kit we need so will see how it can be done minimising any duty payable.
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Old 11 October 2004, 15:59   #13
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Manos how the hell can you say electronics - pcs etc are more expensive in the UK???

I challenge you to go to a British website and look at prices for say hdd or cpus etc - then go to a yank site and see for yourself it is NOT dearer in the UK.

http://www.dabs.com/uk/channels/comp...quicklinx=259Y

DiamondMax Plus9 120GB UDMA133
£47.98 inc VAT (£40.84 ex VAT)

http://www.tigerdirect.com/applicati...tegory_hdd.asp

Same hdd in US $89 which is £49.54 - dearer than the UK with or without VAT!!!

A DVD player for £30 or less - eletric drill a fiver - do they GIVE them away elsewhere???

Have you any idea how small a margin there is on computer an electronic stuff??? I have been buying pc components for years - I shop around all over the world - take into account exchange rates etc and Britain has cheaper prices than most places.

Tried to do some electrical shopping in France - Spain - Andorra etc - FAR more expensive than the UK - seriously - my Ipaq was £150 dearer than it would have been in the UK.

Resturants even in little villages etc were just as expenive - or worse than the uk.

Property prices are NOTHING to go by - USA is cheap cos there is plenty of space - smaller the country - higher the population - more expensive the property - simple!!!

Now when it comes to things that are taxed by Blair and his mob it's a different story - Britain HAS prob the worlds most expensive petrol - 20p p[er litre on the spot market - even now with the high oil price - what do we pay - 82p per litre - thats 62p per litre TAX - that's what I call a rip off!!!
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Old 11 October 2004, 16:21   #14
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Why do people go on about Rip off Britain all the time? It is ONLY really true of things taxed like cigs or petrol etc
So how do you explain the price differential on new shotguns, for example? Beretta 391 semi-automatic in the States - $800. New price in UK - £850!!??
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Old 11 October 2004, 16:21   #15
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I recently priced....

......several items in the U.K. (toys for the new R.I.B) and then compared them to the prices in on www.westmarine.com only to find a 30% saving which included the cost of ($28) postage. As I'm in the States next week I'll be filling my bags whilst there - if anyone wants anything, feel free to let me know.
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Old 11 October 2004, 16:33   #16
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Codprawn,

Its electronic kit that I was looking at if it's so cheap worldwide how do we see different prices? I looked the German ebay site it appeared to offer similar navigational kit at markedly different price. I'll check again to see if it has changed.

I must confess to be astounded by the plummetting power tool prices and a rise in percieved quality. Own brand lines have upped the anti on quality whilst the price has gone down, no complaints here.

This does lead one to wonder how much the Worldwide brands are landing them for here when made abroad. Maybe China will start banging out "Defender" type "Landrover" lookalikes for about a tenth of the cost this I could live with!
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Old 11 October 2004, 16:34   #17
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Bullshitting Scouse salesman's talk if ever I heard it! Right Graeme, and I'm dead serious here, I'll have aforementioned Beretta in Max4 HD camo with 26" barrel please. You can bring it over as a gift, that'll save even more And don't worry about the barrel length, they dismantle easily enough. C.O.D OK?
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Old 11 October 2004, 16:36   #18
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Maybe China will start banging out "Defender" type "Landrover" lookalikes for about a tenth of the cost this I could live with!
They do, but they're a tenth of the size, too, and are badged as Corgi.
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Old 11 October 2004, 16:42   #19
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......I'll be filling my bags whilst there - if anyone wants anything, feel free to let me know.
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Old 11 October 2004, 16:49   #20
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So how do you explain the price differential on new shotguns, for example? Beretta 391 semi-automatic in the States - $800. New price in UK - £850!!??
Could it be because it is left hand drive
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