Thread: import charges?
View Single Post
  #60  
Old 04-05-2007
modelimages modelimages is offline
Member
 
Join Date: Jul 2006
Posts: 223
Default

i am not argueing that the mi3 would be cheaper or that there is nothing wrong with the current imbalance between the uk and us price.
lets take the quoted figures $399.99, on todays exchange rate it comes out at £199 however most people would order using a credit card and you will not get that rate from your credit card company, if you use $1.9 then the price would be £210 add $30 shipping it brings the price to £225. now take the quoted uk price of £270 remove the vat at 17.5% and it would make the price £222, if you got the best exchang rate you will stay between £216-£225. now this is a special case as we are talking about a british product in the us whereas most of the argument is about US products in the uk market a classic example would be the XX4 the losipartshouse price is $284 or £142 (using $2-£1) my shop price is £249.99 so order from them and save £107 you will of course have to pay for shipping which will eat into your saving, lets use the $30 quoted now your saving is £92 still substantial, lets assume your honest and don,t take liberties with the customs and excise. you will pay 17.5% on the total value inc shipping (£157+ 17.5%) =£185' parcel force charges will be £8-£13 so you would be looking at around £200 still a decent saving of around £50, all this assumes an exchange rate of 2 to 1 which you may or may not get.
the difference in price between the two markets is 20% ish so who gets the 20% because that is where the accusation of rip off occurs, is it 20% cheaper to run a distribution business in america are wages 20% higher in this country. all these questions i dont know the answer to, it may well be that there isn't a difference in which case your being robbed or that there is a difference and your not. unless you are an expert in the british and US business economies i doubt a definitive answer will be available.
__________________
www.theraceplace.co.uk
Reply With Quote