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View Full Version : US vs. Europe tech-toys price differences


Half-Saint
May 23rd, 2008, 02:49 AM
Can someone explain where does the huge difference in the pricing of computers, gadgets and other techno toys come from? For example, you can order an ASUS Eee PC 900 from Amazon.com for $549 while the same thing costs 330 pounds (about $650) in the UK. Even worse with DSLR cameras... a Nikon D60 with 18-55mm VR Lens costs $749 in the USA, $950 in my country. I mean what's that all about? Almost every time I buy something, I feel I'm being ripped off.. hopefully someone can shed some light on this issue.

Cheers,
SainT

Jorg
May 23rd, 2008, 03:21 AM
Well, it more or less always has been the same US price in dollars, as in euros.
Of course at the moment, that really hurts.

Why? Probably because they can..

carlsson
May 23rd, 2008, 05:53 AM
I can think of three immediate factors, if you consider retail sales:

1. Different VAT and Sales Tax. Most European countries have a substancially higher VAT than many US states have sales tax, if any at all.

2. Customs. The EU have an inner market to protect, and for some goods particularly that is also manufactured within the region, a protective customs fee is added to imported items. I'm sure this applies all around the world to different degrees.

3. Translation and product adoption to European standards. Sometimes new 230V power supplies need to manufactured. Documentation needs to be translated to at least 10 different languages. Possibly certain certificates need to be signed and paid for in order to be allowed to sell a product.

Well, for smaller importers there is a fourth one too: make a margin! Nobody is likely to work for free, and in order to get a discount from the manufacturer compared to the retail price in the home country, you probably need to order a whole lot of pocket computers, digital cameras and so on.

But yes, you as a private person can sometimes make a bargain by importing directly from a different country as long as you find a seller willing to ship the items. Sometimes the seller may be prohibited to ship it to you because the exact same product is licensed to be sold by another company.

I still believe the higher and different type of tax system is the #1 reason why many items (or tech-toys as you describe them) are more expensive in the European Union than e.g. in the USA.