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I work with foreign sales daily.
We charge Americans less cause they are our bread and butter and spend more.
We jack up the prices 30 - 40% in Europe cause Europeans will just pay more.
The dollar is worthless and the Euro is strong, we milk it for everything we can get.
We can get a European to pay 2 Euros for something an American will only pay $1 for. So we end up making 350% more on those types of deals.
We can still get away with charging Canadians 60% more.
Business is business and people will PAY.
It's a free market global economy.
They don't have to justify themselves because they're Apple. If a small supplier tried this they'd struggle, but Apple have a monopoly and can do anything they like.
Bless them.
this has seriously put me off buying anything from apple uk.
They will pay a sales tax that averages 7% on top of the price. (Low of 0% in a very few places to as high as 12% in others.)
So something advertised for $500 will end up costing the purchaser $535.00
Prices in the US are NEVER listed tax inclusive.
Environmental requirements for electronics manufacturers are more stringent outside the U.S. Recent new rules have American manufacturers scrambling to adapt to the new European standards regulating use of hazardous materials. Also, eventual disposal costs are generally factored into prices in the E.U. because that responsibility is deemed to be the manufacturer’s. Such costs are passed on to the European customer in the purchase price, whereas in the U.S., waste disposal is usually paid for by property taxes - a completely different system that disconnects price from true cost.
In the U.S., citizens in most municipalities have to pay extra fees to responsibly dispose of hazardous waste such as electronics. In the U.S. version of capitalism, corporations rule our economic and political systems, and corporations have more legal rights than human beings do. We have all kinds of hidden subsidies that amount to corporate welfare; our system allows costs to be reallocated and hidden in bizarre ways. But such shenanigans don’t cross the pond.
Because the total lifetime cost of a product isn’t paid up front in the U.S., lowest-price competition drives our marketplace. Some of that total-cost responsibility gets shifted back onto the consumer, or society as a whole, so those costs can be trimmed from initial purchase prices here. Our sales tax in the U.S. is not federal, it varies by state, therefore quoted prices don’t include 3-9% sales tax. Retailers can discount manufacturers’ suggested retail price a lot, or a little, or even sell products at a loss in order to gain a customer. There are also significant differences in employment laws and other aspects of manufacturing outside the U.S. (not everything is outsourced to China - isn’t there still an Apple manufacturing facility in Ireland?).
Such legal differences between countries must be monitored, adhered to, and paid for (the lawyers don’t work for free either) and the higher cost of doing business would naturally result in higher prices outside the U.S. We can only guess what these additional costs might add up to, but I’d bet Apple’s accountants have a pretty accurate idea. I’d also bet the amount is very close to the price difference you are complaining about (after accounting for the VAT/sales tax).
Not that you should expect Apple’s P.R. department to explain this in any detail, if at all. They may not know anything about these reasons themselves, especially if they are Americans!
Once GST is removed (our blanket 12.5% govt sales tax), we commonly pay 10% more than the comparable $US price. The price difference (% wise) is less on lower-priced items, and higher on larger-ticket items.
Example, we almost have price parity for low-end ipods. Macbooks are a few hundred (NZD) dearer. Macbook Pro’s and Mac Pro’s are CONSIDERABLY dearer in NZ compared to US.
I just think it’s upsetting when major vendors reflect this because ultimately empties our bank accounts quicker. I really like the Macbook but I just can’t afford to pay UK prices for them.
I do remember Apple uk responding to pricing concerns back in the nineties when grey imports were seriously cutting into Apple Resellers sales and over a period of months, various models were actually cheaper over here - but that was in the dark days of Gil Amelio who nearly brought the company to it’s knees. I don’t think Apple worry too much whilst sales are on the up - +30% year on year in the EU.
Extra cost over the US is a sacrifice I’m resigned to for their products and have been for nearly 20 years.
Everything’s more expensive in the UK. Maybe they need to raise prices as UK employees wages might be higher due to our pricey cost of living?
so 699 is really 594.89 with VAT of 104.11.
Rest is hidden tax for British Empire that you have to pay.
Why the hell should pound be so valuable when you guys
don\\\’t produce anything. I have zero items made in UK.
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