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Cheaper in USA?

Discussion in 'Plasma TVs' started by Cliff, Aug 14, 2003.

  1. Cliff

    Cliff
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    I noticed that you can get Plasmas for about $3000 there. That's £1875. If you aren't interested in the tuner box then isn't this a bargain? Surprised there isn't more talk of importing.
     
  2. krl25sc

    krl25sc
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    Problem is that on top of that price you need to add (i) shipping cost and insurance (and shipper's cost for customs clearance), (ii) import duty (I think it's 5-10% for TVs) and (iii) VAT on all of that of 17.5%. Also the US warranty may not apply in the UK, there may be voltage issues and a general hassle factor. It isn't long before you get close or more than £2500 which will buy you a 42" Hitatchi screen or a Panasonic 5 series or £2800ish which will buy you a Panasonic 6 series. But it does make you wonder why a new Panasonic 6 series can be had for less than $3000 in the US even taking into account VAT and other costs.
     
  3. Cliff

    Cliff
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    I guess when you add the shipping and duty and the rest it is probably not worth it. But as you say how is it they can sell the same item over there so cheaply.
    Considering the dollar is cheap(1.6) - how is it that in most cases the price here is the same figure but in pounds?
     
  4. Orbitalzone

    Orbitalzone
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    America is a country with a huge population compared to the UK so manufacturers make huge quantities of products which drives down the price.

    You've only got to walk into a Walmart which is about 10 times larger (store wise) than most UK stores and you can see the sort of buying power these huge chain stores have...

    However UK prices have always been traditionally $ equals £ price....which does seem a little unfair. If it's any consulation, US car insurance is much more expensive than in the UK... Ihmmm oh but petrol was 80p a gallon.... oh well.
     
  5. TheBigApple

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    What a lot of people don't take into account is that wages in the US are generally less compared to UK wages.
     
  6. encaser

    encaser
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    I don't know about wage differentials UK-US. But the argument that the sheer size of the US = cost reductions on a manufacturing base doesn't pan out for plasmas; when ALL the Panasonics came direct from Japan for both nations.
    It is rip off UK, whatever that Russian fairy on tv sais.:(
     
  7. jrbd90

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    Being from the USA, I can say that plasma prices are coming down because of wider acceptance and availablity. Pioneers and Panasonics are in stores that can be found in any shopping mall that until recently didn't have any digital TVs of any kind.

    We also do not have any VAT or taxes (usually) when we buy online from another state. Many people bought the commercial Pioneer 503CMX for under $5000US from a certain famous online computer retailer. There is still a large difference between this Pioneer and the top rated Fujistu P50 where $8200US seems to be the lowest anyone can find it for. I remember seeing that UK prices between the two were closer..

    Not that it is important, but as for wages, my company did a study analyzing the possible move of a production line to England and found that the aveage wage in the US was ~$37000US in 2001 compared to ~$24500 in England for the same time period. Here in Connecticut the average is over $47000US but we are taxed higher (probably around 30%).
     
  8. krl25sc

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    After allowing for taxes, duties, exchange rate differentials etc. the same product should be the same price in different counties - wages should have nothing to do with it - as regards plasmas I do find the situation slightly bizarre - why is a Fujitsu XHA50ES significantly cheaper in the UK even with tax included (i.e. around £5000 (including 17.5%VAT) in UK vs. $8000ish (no taxes included) in the US and the Pioneer 50" CMX/MCE so much more expensive in the UK (£5500 in UK (with tax) vs $5500 (no tax)? Somebody either is making lots of money or somebody is making no money (and I doubt it's the latter - Sony excepted!). It's not just plasmas - what about the truly rip-off pricing of high-end US manufactued hi-fi equipment in the UK (e.g./especially Krell) due to extremely greedy distributors....

    Having said that there are bargains e.g. pricing of Pioneer 2011 amp - maybe manufacturers need to even things out?!
     
  9. taimur

    taimur
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    but we have free health care...... :)
     
  10. StooMonster

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    Your company should just buy the data rather than do a study, although one can Google and get much Macro Economic data for free.

    I think you are both wrong and the wages are about the same in USA and UK, the variations are regional ones. e.g. London vs Alabama against New York vs Tyneside.

    Anyway, it's not nominal dollar wages including exchange rate fluctuation you should compare, but PPP (purchase power parity) adjusted wages. Don't confuse PPP per capita with wages either.

    StooMonster
     
  11. Boris Blank

    Boris Blank
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    One of my particular pet hates is the sudden increase in price when items costing $1 in the US suddenly jump to £2 the moment they land in the UK.

    Some points to consider;

    The manufacturing cost is exactly the same for product x as long as it is made in the same factory whether it is sold in the US or UK (the manufacturing cost variance for a UK spec to a US spec is negligible and the price difference if any is spread across all units manufactured).

    The shipping costs vary but not by much if it is coming in from say Japan.

    Trade price will be higher in UK due to lower levels of bulk purchase.

    The UK has higher tax rates (vat etc) which increase the cost to the consumer.

    However, all this pales into insignificance with the UK mark-up placed on some "premium" products by manufacturers, distributors and to a far lesser extent dealers.

    Its not the production cost or the vat thats the problem, its the profiteering at the start/middle levels thats the main price difference factor. This will only reduce as and when the products become more mainstream and competition from other rival products force prices down in order to retain market share at a reduced profit.

    Just my 2p worth.
    Paul
     
  12. cerebros

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    No, that's where your NI & taxes go... It is, to quote that annoying New Labour phrase, "Free at the point of delivery" - you just pay for it all your working life (unless you're one of these people who manage to con the benefits office on a perpetual basis or take cash-in-hand jobs, in which case, yes you do get it for free...)
     

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