Price Discrepancy

[Alibobar]

So, I read from multiple sources that the prices in other currencies would be the same relative ratio, but in the e-mail I just recieved from the sales team the gbp and euro price for the Pandora are 20% higher than the usd price.

Does anyone know why these are so much higher like this?

I have a friend coming over from the states in june so I might take the chance to have him order from the US to hopefully have the console send to him right before he leaves to europe.

 

[dflemstr]

So, I read from multiple sources that the prices in other currencies would be the same relative ratio, but in the e-mail I just recieved from the sales team the gbp and euro price for the Pandora are 20% higher than the usd price.

Does anyone know why these are so much higher like this?

I have a friend coming over from the states in june so I might take the chance to have him order from the US to hopefully have the console send to him right before he leaves to europe.

Answer: In the Europe price, the VAT is included (aka European 'trading tax'). In the US price, this is not the case.

 

[Monk]

Although VAT is 15% in the UK, it could rise to 17.5% again by the time Pandora ships.

 

[borgqueenx]

yes, i payed alot more then the USD price. thinks its texas(VAT) or whatever. shipping aint sheap either...but hey, its for the best portable console on the world!

im one of the guys who payed 50 euro more nothing we europians can do about it

 

[MiniSinisterMinister]

Look here:

DSi costs $169.99 in the US
http://www.amazon.com/Nintendo-DSi-Matte-B...5316&sr=8-1

DSi costs €168,99 in Germany
http://www.amazon.de/Nintendo-DSi-Konsole-...5474&sr=8-1

The "domestic value" of one dollar is roughly that of the "domestic value" of one euro. Or to put it into another phrase: an American has to work as hard for one dollar as a European has to work for one euro. 1:1 is also what economists think is a realistic long-term exchange rate for the two currencies.

At the time the pre-orders started the euro was overvalued. So at a price of €250 Europeans had to pay significantly less for a Pandora than Americans had to pay (if you take the domestic values of the currencies into account, foreign exchange rates often do not reflect the domestic value of a currency).

 

[fusion_power]

I always thoufght in america, they get more money for their work than here in Europe. However, sometimes, these price discrepancy can't be explained with just VAT and/or "domestic value".
The most funny example is Adobe Photoshop. If you compare US prices and Euro-Prices for Photoshop, than you can only shake your head. Nobody really knows, why we have to pay around 950 Euro while in USA it costs 630 Dollar (amazon prices). At the Moment 630 Dollar are around 475 Euro.

 

[Monk]

I always thoufght in america, they get more money for their work than here in Europe. However, sometimes, these price discrepancy can't be explained with just VAT and/or "domestic value".
The most funny example is Adobe Photoshop. If you compare US prices and Euro-Prices for Photoshop, than you can only shake your head. Nobody really knows, why we have to pay around 950 Euro while in USA it costs 630 Dollar (amazon prices). At the Moment 630 Dollar are around 475 Euro.

Yes they do - it's called greed. Though the vendors usually site things like localisation, setting up local support centers, stuff like that it's pretty much hooey. A bit of greed, a bit of protecting themselves against possible currency fluctuations.

 

[MiniSinisterMinister]

QUOTE
I always thoufght in america, they get more money for their work than here in Europe.


If that was true, I would get the hell out of here! In earnest: If you look at wages for part-time work where different tax systems and social security schemes do not matter, the wages are roughly 1:1.

 

[WizardStan]

My friends in the UK make about the same amount in GBP as I do in CAD. Items cost about the same in GBP there as they do here in CAD. A meal from McDonald's costs about 6 or 7 units on both sides of the pond. And yet, if I take my 10 CAD and go to visit England, I only get 5 or 6 GBP for it. What's the deal with that?

 

[MiniSinisterMinister]

You offer your 10 CAD on the foreign exchange market in the UK and the "price" you get for them are 5 or 6 GBP. The price of your currency in the UK depends on how many people want to buy and sell CAD e.g. for importing goods from Canada, to go on holiday there or to invest in the country. However, currency prices are often manipulated by governments/central banks. For example the Chinese government keeps its national currency artificially low to boost Chinese export industries.

 

[carlgeorge]

My friends in the UK make about the same amount in GBP as I do in CAD. Items cost about the same in GBP there as they do here in CAD. A meal from McDonald's costs about 6 or 7 units on both sides of the pond. And yet, if I take my 10 CAD and go to visit England, I only get 5 or 6 GBP for it. What's the deal with that?

So what you are actually saying is that the McD's costs you >CAD$10 in the UK?

The UK is such a rip off.

Don't forget those greedy bankers taking your money and calling it an 'exchange rate'.

 

[NLS]

I'd love to live in the US, but receive my Norwegian wager.

 

[cowai]

I'd love to live in the US, but receive my Norwegian wager.

[Jeg også]

= me too.

 

[Lorkile]

This is an interesting topic, I wish there was more discussion on it as I know so little about all of this.

 

[DigitalWings]

Back on topic. I also believe that most of the bills the team have are in USD so if you pay in USD they don't have to pay to convert it like the would if you payed in GDP.

 

[Alibobar]

So does anyone think it's a feasible idea to have my friend in the US order the console and hopefully have it to him before he leaves in the beginning of June?

 

[GernotFrisch]

...why we have to pay around 950 Euro ...

Because the German translation, done in China, is so expensive?

 

[PoisonedV]

I always thoufght in america, they get more money for their work than here in Europe. However, sometimes, these price discrepancy can't be explained with just VAT and/or "domestic value".
The most funny example is Adobe Photoshop. If you compare US prices and Euro-Prices for Photoshop, than you can only shake your head. Nobody really knows, why we have to pay around 950 Euro while in USA it costs 630 Dollar (amazon prices). At the Moment 630 Dollar are around 475 Euro.

wait a minute, people buy photoshop?

 

[Bosbeetle]

I always thoufght in america, they get more money for their work than here in Europe. However, sometimes, these price discrepancy can't be explained with just VAT and/or "domestic value".
The most funny example is Adobe Photoshop. If you compare US prices and Euro-Prices for Photoshop, than you can only shake your head. Nobody really knows, why we have to pay around 950 Euro while in USA it costs 630 Dollar (amazon prices). At the Moment 630 Dollar are around 475 Euro.

wait a minute, people buy photoshop?


I only know compagnies who bought it.

 

[lulzfish]

What's Photoshop?
Is it like the GIMP?