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Why is equipment in the UK so much more expensive?

pradeep1

pradeep1

Golden Member
Right now 1 British pound = 1.9931 U.S. dollars.

I read British photography magazines (good technique coverage) and see that you guys pay the same as us, but you pay it in quid. So that means that basically everything you buy is almost two times the cost of what we pay in the USA.

Is this because of customs duties in your country or are the camera companies taking advantage of you guys?

It is hard to believe that a modern western country would levy 100% tariffs on imported cameras, etc.

What is the story?
 
If you think about it, we really have it good here in the USA in terms of earning a good salary and being able to buy things.

I don't know if it is all just taxes that makes the price of things in the UK so much more than here.

 
Originally posted by: beer
didn't one Sony exec call america "the land of the cheap" or something?
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I like going to england but did not like the fact that the dollar has like 1/2 the buying power there. 🙁

 
Originally posted by: pradeep1
If you think about it, we really have it good here in the USA in terms of earning a good salary and being able to buy things.

I don't know if it is all just taxes that makes the price of things in the UK so much more than here.
Click to expand...

Well it does help that they make a little more than we do.

Their minimum wage is more than twice that of Americas
 
Taxes are a bit higher in the UK, but wages are lower (with an important exception of the minimum wage - which is much, much higher. It's something like $12 equivalent - even for waiting staff/pizza delivery boys, etc.). This enormous minimum wage has significant implications on business overheads, particularly where unskilled labour is required.

So, the high taxes certainly contribute - in particular the 17.5% sales tax is a bitch - although all displayed/advertised prices must, by law, be inclusive of this, so you avoid the scam of 'hidden taxes' suddenly being added on (unless the prices are intended for business users, who don't pay sales tax)

I think another significant reason is that people in the UK have historically not had such a keen eye for bargains and there is less aggressive competition between vendors. And, by extension, that the British are actually content to pay these prices.

There was a big issue a few years ago regarding cars - let's say you wanted to buy a British car like the British GM brand, Vauxhall. You could buy it from a local dealer - but actually it's a couple of £k cheaper to go to Germany, have a german dealer custom order a UK spec car, then get it shipped back to Britain, and pay all the taxes/duties/importation fees/registration/etc. There are even companies that will do all the grunt work for you, if you don't want to. The UK dealers say they sell the cars at a low markup and that it is the manufacturer that charges them a high price.

One of the things that has struck me about this forum, in particular hot deals, is the number of absolutely amazing deals - like 50% off, or rebates/coupons/etc. You simply don't get those in the UK. I don't recall ever seeing or hearing about a British product which is sold with a mail-in-rebate. It's simply unheard of.
 
Originally posted by: Mark R
Taxes are a bit higher in the UK, but wages are lower (with an important exception of the minimum wage - which is much, much higher. It's something like $12 equivalent - even for waiting staff/pizza delivery boys, etc.). This enormous minimum wage has significant implications on business overheads, particularly where unskilled labour is required.

So, the high taxes certainly contribute - in particular the 17.5% sales tax is a bitch - although all displayed/advertised prices must, by law, be inclusive of this, so you avoid the scam of 'hidden taxes' suddenly being added on (unless the prices are intended for business users, who don't pay sales tax)

I think another significant reason is that people in the UK have historically not had such a keen eye for bargains and there is less aggressive competition between vendors. And, by extension, that the British are actually content to pay these prices.

There was a big issue a few years ago regarding cars - let's say you wanted to buy a British car like the British GM brand, Vauxhall. You could buy it from a local dealer - but actually it's a couple of £k cheaper to go to Germany, have a german dealer custom order a UK spec car, then get it shipped back to Britain, and pay all the taxes/duties/importation fees/registration/etc. There are even companies that will do all the grunt work for you, if you don't want to. The UK dealers say they sell the cars at a low markup and that it is the manufacturer that charges them a high price.

One of the things that has struck me about this forum, in particular hot deals, is the number of absolutely amazing deals - like 50% off, or rebates/coupons/etc. You simply don't get those in the UK. I don't recall ever seeing or hearing about a British product which is sold with a mail-in-rebate. It's simply unheard of.
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Thanks for your reply Mark.

So the next time you come to the States, you should load up on electronic goodies and take them back with you!
 
Originally posted by: Mark R
One of the things that has struck me about this forum, in particular hot deals, is the number of absolutely amazing deals - like 50% off, or rebates/coupons/etc. You simply don't get those in the UK. I don't recall ever seeing or hearing about a British product which is sold with a mail-in-rebate. It's simply unheard of.
Click to expand...

The only thing it's really taken off with is mobile phone contracts where they do free/half-price line rental. You pay monthly, but get cheques back over time.

I think UK consumers are more interested in the instant deal, like buy one get one free, or getting any part of the deal for free (like shipping), or getting upgrades or something. Getting money back in the future, especially if it involves any effort, is less appealing.

 
It's not that we UK consumers put up with it, we just have a sense of helplessness.

I can remember, I wanted this Ibanez guitar, and it was £399 in the UK and $399 in the US. So I decided to buy it from the US, pay all the customs and import duties etc, and still end up with a much cheaper guitar. However after e-mailing 3-4 US stores who ship internationally I was told by all of them that Ibanez does not allow them to ship the guitars to the UK. Of course this makes sense... Ibanez, the thieving bastards, want to protect their 100% markup in the UK.

In the end I bought it off a unscrupulous American eBayer so screw you Ibanez!

Yeah so to summarise, it sucks.
 
The UK is certtainly not somewhere to go and buy stuff if you live somewhere with a lower valued currency - which is everywhere - but conversely it does give us good buying power overseas. When I go on holiday, I'm rich!
 
Originally posted by: rikadik
It's not that we UK consumers put up with it, we just have a sense of helplessness.

I can remember, I wanted this Ibanez guitar, and it was £399 in the UK and $399 in the US. So I decided to buy it from the US, pay all the customs and import duties etc, and still end up with a much cheaper guitar. However after e-mailing 3-4 US stores who ship internationally I was told by all of them that Ibanez does not allow them to ship the guitars to the UK. Of course this makes sense... Ibanez, the thieving bastards, want to protect their 100% markup in the UK.

In the end I bought it off a unscrupulous American eBayer so screw you Ibanez!

Yeah so to summarise, it sucks.
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I am surprised you surly Brits would take that from companies that sell to you.

I know that many companies here in the USA sell grey market items, which is exactly what you describe. Buy it in a country where the product is sold cheaper, import it here and pay duties, etc., and then sell it for a lot less and still make a handsome profit.

 
Originally posted by: pradeep1
Right now 1 British pound = 1.9931 U.S. dollars.

I read British photography magazines (good technique coverage) and see that you guys pay the same as us, but you pay it in quid. So that means that basically everything you buy is almost two times the cost of what we pay in the USA.

Is this because of customs duties in your country or are the camera companies taking advantage of you guys?

It is hard to believe that a modern western country would levy 100% tariffs on imported cameras, etc.

What is the story?
Click to expand...

Its not just photography stuff, its everything and it really pisses me off, we do earn a little bit more i think but not double, someone ought to do something. :|
 
Originally posted by: Jahee
Its not just photography stuff, its everything and it really pisses me off, we do earn a little bit more i think but not double, someone ought to do something. :|
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If it makes you feel better I have a 4 year university degree and make less than the UK minimum wage. And its not like it is cheap here either. I pay $1500 for a 1 bedroom apartment here.

 
Originally posted by: DaveSimmons
Isn't part of the difference the higher taxes in the UK for its greater socialism?
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That still doesn't seem to explain it.
Sweden has an a tax burden of over 50+%, and yet they don't pay an arm and a leg for equipment.
Equipment in the UK is more expensive than the remaining EU countries.
See the PS3 and Apple iPod for reference.

My guess is they know UK is an island and they're taking advantage of it.
How many people will pay an airline ticket of $300 to pick up something that is only $50-100 cheaper in France or Germany?

The PS3 is more expensive in the UK than in other EU countries.
 
Originally posted by: Atheus
The UK is certtainly not somewhere to go and buy stuff if you live somewhere with a lower valued currency - which is everywhere - but conversely it does give us good buying power overseas. When I go on holiday, I'm rich!
Click to expand...

😛 You are not rich, you just feel rich. 😛

🙂 We earn about the same as you, but we can buy twice as much. 🙂
 
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