Before anyone else uses the phrase "Rip-Off Britain"...

Pecker

Distinguished Member
http://news.bbc.co.uk/1/hi/business/6562743.stm

£1 = $2.

Therefore a $599 PS3 looks like it should cost £299.50.

But when the exchange rate was $1.50 to the £1, that translates as £399.

In other words, not far from what it is now.

Manufacturers and retailers simply cannot allow prices to fluctuate in line with exchange rates.

Still, the good news is that you get more American good for your pounds.

Mission Impossible 3 disc set from Amazon US is $69.95, which translates as £35 + charges. At $1.50 to the £1 it would be c.£47.

Current Amazon UK price is actually £33.74.

So is it "Rip-Off America"?

Steve W
 

peterweg

Banned
Manufacturers hedge the exchange rate. So Sony is, apparently, locked in the current price, which is pretty unfortunate for them as they won't be benefiting from the Pounds strength.

Solution: Import.

BTW you missed out the VAT and Duty, and US sales tax made my PS3 $650 even bought online.
 

mattym

Banned
strong pound and weak dollar isnt always good, if we import products(as a company) and pay $$ for it, the exchange rate now means the retail price in the states now is far cheaper than the retail price here, even though the product might have been roughly equal in price when pricing was set.
 

michael.redfern

Active Member
£1 = $2.

Therefore a $599 PS3 looks like it should cost £299.50.

But when the exchange rate was $1.50 to the £1, that translates as £399.

In other words, not far from what it is now.

Just for info, and cos I'm a pedantic fool, the last time the rate was $1.50 to £1 was June 2002.

I'm pretty sure the PS3 pricing was done some time after that, and that makes it about £100 too high.

Sorry if that sounds a bit flamy, but prices in Britain are just a bug bear of mine. I agree it makes importing pretty attractive.
 

meltonboy

Well-known Member
BTW you missed out the VAT and Duty, and US sales tax made my PS3 $650 even bought online.

This is a very good point missed by most of the comments mae in papers and often on forums. When you buy stuff in the US, it is before local / state sales tax (thier version of VAT). This annoys me when im lucky enough to be over there, but thats the way they like it.
 

Pecker

Distinguished Member
Just for info, and cos I'm a pedantic fool, the last time the rate was $1.50 to £1 was June 2002.

I'm pretty sure the PS3 pricing was done some time after that, and that makes it about £100 too high.

Sorry if that sounds a bit flamy, but prices in Britain are just a bug bear of mine. I agree it makes importing pretty attractive.

I think some things in the UK are indeed a bit pricey.

But the exchange rate is just one factor. There's VAT, for example. And land/housing prices are more expensive in the UK, making workers' pay higher, which bumps up prices.

We then have higher fuel costs, which make delivery and transport more expensive.

But what do we get for this money?

In 1999-2000 the NHS cost the UK £61 billion. VAT and excise brought us £90 billion. Take away excise on cigarettes, etc, and you probably find that VAT & fuel duty pay for the NHS, which we then get for free.

How much do Americans pay for health insurance every year?

Steve W
 

peterweg

Banned
The cost of the PS3 in the Uk before VAT and Duty is £317 by my reckoning.

So $634
 

Ian_S

Distinguished Member
Mission Impossible III BR = £22.49 on Amazon UK (£33 in HMV stores).

By your reckoning that makes it $44.98 ($66 in-store)

Amazon.com = $27.95

Your mission should you choose to accept it is to prove that's not a rip-off.

I wish this message would self destruct in 20 seconds.
 

peterweg

Banned
I'm not disagreeing,

I just don't buy at those rip off prices. Ever.
 

TrevorS

Active Member
This is a very good point missed by most of the comments mae in papers and often on forums. When you buy stuff in the US, it is before local / state sales tax (thier version of VAT). This annoys me when im lucky enough to be over there, but thats the way they like it.

You have to be lucky enough to purchase in a state that doesn't have sales tax (which means the state makes it up in otherways -- from the residents).
 

TrevorS

Active Member
How much do Americans pay for health insurance every year?

A significant number simply can't afford it. Further - the rates have been climbing like crazy for the last few years.

(And if you pay cash, the medical industry screws you to the wall -- highest possible billing for everything.)
 

lgans316

Distinguished Member
If people in U.S and the U.K are paid the same in terms of their respective currencies then I can say that the pricing is not a rip-off.

Person A earns USD 3000 in the US
Person B earns GBP 3000 (= 6000 USD) in the UK

Person B pays GBP 3000 for a telly that costs USD 3000 in the US
So eventually both end up spending 3000.

Now comes the advantage

Person A orders 10 movies worth USD 250 from www.amazon.com within US.
Person B orders 10 movies worth USD 250 (=GBP 125) from www.amazon.com from UK.
Eventually Person B ends-up saving 50%. So in this scenario Person B gains a lot.

Now comes the Real Rip-off from India

Avg Income GBP 500 = USD 1000
Avg Price of 40/42" HDTV = 1300 - 1700 GBP

So Indians need to save 3-4 months of their salary to buy an HDTV and end up with no Savings.
People in developed countries are able to get the same in less than 1 month of their Salary.
 

dBrowne

Well-known Member
If people in U.S and the U.K are paid the same in terms of their respective currencies then I can say that the pricing is not a rip-off.

That's a big comforting fairytale of an if, but sadly not so.

http://www.answers.com/topic/median-household-income
median household income: Information from Answers.com

As redistributive politicians keep telling us, all poverty is relative. Even so, with Brits earning less AND being charged more than Americans for goods in absolute terms, I don't think it is unfair to use the term "Rip-Off Britain".
 

Sonic67

Banned
Depends on what you like. If you are buying a house or drive a car in the UK I think the USA is way better.
 

keep_it_legal

Active Member
If you seriously think we get a better deal in the UK, compare the projector forums here and on avsforum. You get an awful lot more people on avs discussing the merits of high end Marantz/sim2 projectors and complaining that they can get anything bright enough to fill their 10' wide screens in their dedicated theatre rooms.
 

StooMonster

Well-known Member
As redistributive politicians keep telling us, all poverty is relative. Even so, with Brits earning less AND being charged more than Americans for goods in absolute terms
AND paying higher taxes.

I don't think it is unfair to use the term "Rip-Off Britain".
Quite.

peterweg said:
benefiting from the Pounds strength
Surely you mean US Dollar's weakness?

StooMonster
 

Black Adder

Active Member
If people in U.S and the U.K are paid the same in terms of their respective currencies then I can say that the pricing is not a rip-off.

Person A earns USD 3000 in the US
Person B earns GBP 3000 (= 6000 USD) in the UK

Person B pays GBP 3000 for a telly that costs USD 3000 in the US
So eventually both end up spending 3000.

Now comes the advantage

Person A orders 10 movies worth USD 250 from www.amazon.com within US.
Person B orders 10 movies worth USD 250 (=GBP 125) from www.amazon.com from UK.
Eventually Person B ends-up saving 50%. So in this scenario Person B gains a lot.

Now comes the Real Rip-off from India

Avg Income GBP 500 = USD 1000
Avg Price of 40/42" HDTV = 1300 - 1700 GBP

So Indians need to save 3-4 months of their salary to buy an HDTV and end up with no Savings.
People in developed countries are able to get the same in less than 1 month of their Salary.

Looks like I'll put off emigrating to India just yet then.
 

ash

Well-known Member
Bit OT, but anyone planning to import, maybe wait. The Bank of Engerland are going to raise interest rates by 0.5% most likely next month, which should bolster the £s strength against the $. As long as the US Fed don't increase their base rates.
 

ash

Well-known Member
That is true, but according to the minutes of this months meeting, some members wanted to raise it, while others wanted to wait for further information to come in from the quaterly reports.

And especially since inflation has gone to 3.1%, BoE has to control this.

We will see LOL!
 

lgans316

Distinguished Member
PS3 in India costs a dear $900.
This is too much for Indian Income when the avg middle class income is less than $1000 per month.
So please don't say the phrase "Rip-Off Britain"

The worst part is there are no next gen titles sold in India and even if one orders from web-sites it's likely to get looted by the customs.
 

GlynH

Active Member
So please don't say the phrase "Rip-Off Britain"

Here's an example I have ben keeping my eyes on for a while;
Canon EF 300mm f/2.8L
UK price 3000GBP or 6000USD
US price 1930GBP or 3850USD
:eek:

So if I want to say the phrase "Rip-Off Britain" then I shall continue to do so...with good reason in this case. :devil:

Something else I want to get off my chest while on the subject of prices...

I purchased a Belkin 2m Cat6 Snagless cable in PC World yesterday for an amazing 19.99UKP because I needed it straight away.

My usual supplier (Netshop) sells exactly the same cable for 2.86 + VAT
:eek: :mad:

Regards,
-=Glyn=-
 

TrevorS

Active Member
Well, I don't think anyone can reasonably accuse Belkin of having cheap prices. Though, at least the construction quality is reliable.
 

pjclark1

Well-known Member
A persons income is irrelevant.
Price should be set according to manufacturing costs plus profit then translated into currency. Saying you should pay more because you earn more is just wrong.
 

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