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  1. #1
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    Pricing and Exchange Rates

    SB3 US: $299
    SB3 Europe (from Logitech): €299

    Exchange rate = 1.45 makes $299 = €206.

    That's just not right!

    Or put another way, UK Logitech price is £219.

    Exchange rate = 2.08 makes $299 = £144

    It's just not right!!! Especially when you can't buy them from the US anymore.
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  2. #2
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    That's just not right!
    You forgot VAT and handling. In the summer I got a SB from US and had to pay euro 75 extra.

    There is still a difference but large orgs buy currencies ahead of time so spot exchange rate aren't alid.

  3. #3
    Junior Member
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    Remember you don't have to buy from logitech - most of their existing business comes from resellers. £180 here, which is £153 without VAT, much closer to the US price of £144:

    http://www.pcworld.co.uk/martprd/sto...&category_oid=

  4. #4
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    So? The Canadian dollar is now worth $1.07 US. But prices haven't changed here, we still pay a $5 - $15 premium for books, cards and magazines, a ~40% premium for audio equipment, and a car costs about $10 000 more here.

    It turns out that the exchange rate has very little to do with pricing. Things are priced at what the manufacturer feels the market will bear. That doesn't make it right, but that's how it is. Europe is more expensive to do business in than the U.S. due to taxes and bureaucracy - so is Canada.

    You can get a Squeezebox here off the U.S. website, but the extra charges will easily add $100 to it. The worst is "customs and brokerage", it seems this is a random number - there have been times I haven't been charged anything, but once it was $50 on a $200 US order.

  5. #5
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    Quote Originally Posted by Mark Lanctot View Post
    So? The Canadian dollar is now worth $1.07 US. But prices haven't changed here, we still pay a $5 - $15 premium for books, cards and magazines, a ~40% premium for audio equipment, and a car costs about $10 000 more here.

    It turns out that the exchange rate has very little to do with pricing. Things are priced at what the manufacturer feels the market will bear. That doesn't make it right, but that's how it is. Europe is more expensive to do business in than the U.S. due to taxes and bureaucracy - so is Canada.

    ....
    Yes, so true. I love the big hubub here in Canada over this. When the exchange rate was 1.5 and everything was priced at 1.7x the US price, no one complained because they where too dumb to do simple math

    Same with the cars. The cars being overpriced has been known for years. There is a (as of this morning) 539 page thread on redflagdeals that started in June 2006 on this subject.

  6. #6
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    Quote Originally Posted by Mark Lanctot View Post
    It turns out that the exchange rate has very little to do with pricing. Things are priced at what the manufacturer feels the market will bear.
    That's how free market economics work.
    Quote Originally Posted by Mark
    That doesn't make it right, but that's how it is. Europe is more expensive to do business in than the U.S. due to taxes and bureaucracy - so is Canada.
    In fairness, we (in the UK) do get things in return for those taxes. Cheaper Squeezebox vs. free heart surgery? You (or rather we) pays your money and makes your choice.
    Quote Originally Posted by Mark
    You can get a Squeezebox here off the U.S. website, but the extra charges will easily add $100 to it. The worst is "customs and brokerage", it seems this is a random number - there have been times I haven't been charged anything, but once it was $50 on a $200 US order.
    Over here, customs charges are fixed and the brokerage fee varies by carrier, but can easily be determined prior to ordering. I order a couple of hundred pounds worth of electronic components from the US recently and quick calls to C&E and Parcelforce informed me of the exact charges before placing the order.

    The times we don't get charged are 'escapes' but they are fewer and further between these days as C&E are focussing more on personal imports as the volume has increased with more people ordering on line from aboad.

    Of course, we should inform C&E of any escapes and pay the relevant duty and VAT ...
    Last edited by Fifer; 2007-11-06 at 07:01.

  7. #7
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    FWIW, I'm told that goods shipped to the UK by USMail are unlikely to be assessed for import duty.

  8. #8
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    Quote Originally Posted by majones View Post
    FWIW, I'm told that goods shipped to the UK by USMail are unlikely to be assessed for import duty.
    That used to be the case but things are much more stringent now. US Mail packages (as opposed to letters) are handled by ParcelForce who charge a standard £8.50 customs clearance fee and add the customs charge and VAT on top. Excise have tightened up things because of the increase in volume of personal imports driven by internet shopping and favourable exchange rates.

  9. #9
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    >Excise have tightened up things because of the increase in volume of personal imports driven by internet shopping and favourable exchange rates.<

    The thief Brown will let no-one escape the tax'n'bungle policies of NuLabour!

  10. #10
    Senior Member
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    The only way to avoid import duties is to ensure that the invoice is NOT in the same parcel as the item (get it mailed or e-mailed seperately) as the VAT etc is charged to the value of the invoice - no invoice no charge!

    BT
    We're Only In It For The Music! www.zappateers.com

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