I know it's an old gripe, but why are we being ripped-off?
Posted by: Jono 13 on 30 November 2006
Why are consumer electronics so much cheaper in the US than the UK?
Example 24" iMAC with all the extras in the UK is £627 more than the same thing in the US. I nearly bought one until I did the sums.
I have worked in the IT world and seen companies beat suppliers down by threatening to source kit from US partner companies. So why do these companies still rip us off?
And perhaps more pertinently why do we keep falling for it?
Jono
Posted on: 30 November 2006 by Steve Bull
How much of the difference is due to the US prices being shown without their sales tax, but the UK ones including VAT?
Steve.
Posted on: 30 November 2006 by Jono 13
I don't know, but I can't believe it would be 28%.
Jono
Posted on: 30 November 2006 by Chris Kelly
Jono
You're right of course, but bloody VAT and the current exchange rate also plays a part, as anything priced in dollars looks attractive to us. Most American companies do not allow their UK subsidiaries to adjust local prices to allow for the weaker dollar. My former employer ( a HUGE IT vendor) has been using the same $/£ rate internally for years (£1=$1.55) no matter what the real rate. It's a legal racket.
Posted on: 30 November 2006 by Steve Bull
Not sure what you've included in all the extras, so I've just done a comparison of the 24" iMac with no extras:
US Apple Store online $1999 = £1022 at today's xe.com rates.
UK Apple Store online £1349 inc VAT (=£1148 ex VAT)
UK Apple education discount £1267 inc VAT (=£1079 ex VAT)
Ok, there is still a difference but rather a smaller one than it first appears.
Steve.
Posted on: 30 November 2006 by Big Brother
Without the import duties the UK imposes, companies like Naim, Linn, Arcam ect would never have come into existence or been allowed to thrive. Hence we would not be posting here to complain.
Japanese and chinese CE goods are cheap here. Here we either buy Sony, Toshiba Hi Fi's or the totally out of reach 'high end' kit that costs the mortage on a small house. Most of which sounds no better than the cheap Asian imported stuff.
Cheers
Big Brother
Posted on: 30 November 2006 by Derek Wright
Chris K - are you no longer working to pay my pension?
Posted on: 30 November 2006 by Chris Kelly
Derek
Fraid not. They made me an offer I couldn't refuse!
Posted on: 30 November 2006 by Derek Wright
Chris
So are you now dipping into my pot<g> -
are you resting or working
Posted on: 30 November 2006 by Chris Kelly
Derek
Your pot is safe! I was on MPlan (sadly!).
Having had a few weeks of sheer self indulgence need to get back in the saddle asap or 2007 will be a lean year!
Posted on: 30 November 2006 by Derek Wright
Chris - good luck - the view of C Plan members was that M plan was funded out of C PLan
I trust you know of the C Planners web site which does also address other plans
