Why is everything cheaper in the USA?

[Bloater]

I am considering buying a Raymarine C80 plotter and the price for this in the UK is around the £1300 mark.

The same item in the USA sells for around $1600

Now why should this be so? The plotter is exported to the USA so it just doesn't make any sense.

I expect the it is simply because the Americans wouldn't buy them if they were any more expensive - but we British are expected to!

Has anyone had any really good deals on a C80?

 

[Whitelighter]

Don't forget nearly all prices in the US are net of tax, as each state is different. So effectively they advertise a pre Sales Tax (VAT) price then add the appropriate level of tax when you buy.

Also, the £ vs. $ is very strong, adding to the difference. No doubt there is a 20% margin because of local markets - if the UK sustains that sale price then the manufacturer and retailers will continue to charge it.

At the current rates, the US unit is £800 + VAT while the UK unit is £1106 + VAT. Take the $ back to it last 10 year average and that adds £120 to the US price - but manufacturers can't alter the market price on a daily/weekly/monthly basis with the exchange rate. Sometimes they win, sometimes they loose.

Same thing with almost everything you buy in the states, cars, watches, clothing - it is all cheaper by at least the 30% difference you see there, if not a lot more in some cases. It is not just marine electronics.

 

[TigaWave]

Many electronic items are made in the Far East, with cheap surface shipping to US West Coast, and cheap fuel to truck deliveries across to the East. Their business property operating costs are less than ours as they have more space. Don't know about min labour rates but I suspect businesses are not paying as much for employees pension NI than Uk operations?but that's a guess.

If we ship from Far East surface rates are higher and much much slower.

 

[Kipper]

Also worthy of note is the average US salary is not as high as ours, well certainlynot in my industry. When we convert things to pounds they look cheaper but they are not that much cheaper in real terms especially to an American.

 

[Chris_d]

[ QUOTE ]

I expect the it is simply because the Americans wouldn't buy them if they were any more expensive - but we British are expected to!

[/ QUOTE ]

Average salary in the US $30881, UK £38651, so I guess we are expected to pay more.

 

[bobgosling]

Americans complain (loudly) and don't take any crap from retailers.

Brits either meekly accept or quietly go away and never come back again.

The difference in service levels in the two countries is the result of years of that difference in customer attitude.

 

[Pinnacle]

[quote
Average salary in the US $30881, UK £38651, so I guess we are expected to pay more.

[/ QUOTE ]

Intrigued by these stats. Do you mind telling us where you got them from, please? /forums/images/graemlins/confused.gif

 

[Chris_d]

Just "ask.com" many different sources but those seem to ball park enough to get the idea.

 

[Pinnacle]

The reason I asked was because I thought the UK number to be too high. I had understood it was more like £28k for the average male in the UK. Still /forums/images/graemlins/confused.gif

Have a look at this.

 

[ms1]

USA business overheads are much lower than in UK also businesses dont tend to have the rip off mentality ... they generally are more inclined to go for repeat business. I bought a pair Volvo Penta props in USA, total cost was less than ONE prop bought in UK - they came in a Volvo Penta box, product of Italy .. so I personally feel its more about overheated profit considerations in UK than actual cost of production .

 

[Kaste]

I recently spent a month in the USA and it is quite a hike to the advertised price as others have stated. We had intended to purchase a Nikon camera there but decided against it when we were advised that the warranty only applies in the country of purchase. In the end we bought in the UK after shopping around internet etc and bought at only a small incease from the final USA price but with peace of mind.

 

[Sundays_Child]

"cheap surface shipping to US West Coast, and cheap fuel to truck deliveries across to the East."

Costs more and takes longer to get things to the east coast from Asia than it does to the UK.

"If we ship from Far East surface rates are higher and much much slower."

With both full containers and LCL, it's only a week longer from Asia to the WEST coast than it is to the UK. Price isn't a big diff either. East coast is the same, as mentioned above.

I don't wish to be argumentative, but regarding the shipping aspect, those aren't the facts from this side of the world (I don't work in shipping, nor am I defending them. I just use them a LOT).

 

[MaltaBob]

They have the advantage of higher volumes and lower costs, plus margins generally are less than the UK.

 

[longjohnsilver]

£38651 average Uk salary!! Where do you get those figures from? I suspect they're about 50% out.

 

[jhr]

UK National average full time salary is about £25k; London average about £30k. So yes - a bit out! /forums/images/graemlins/grin.gif

 

[Sneds]

Phew!
I feel a bit better now /forums/images/graemlins/grin.gif

 

[pelicanpete]

USA VAT (or state sales tax) is mostly around 6%. (In some states, sales tax is 0%!). In the UK we are ripped of at 17.5%.

Interestingly, I have just bought an expensive brand-new German-built motorhome in Germany and despite the fact that their VAT is 19%, it still worked out much cheaper than buying the same vehicle here in UK.

We are charged what the market will stand while we are daft enough to sit down and take it!!

 

[ArthurWood]

<<USA VAT (or state sales tax) is mostly around 6%. (In some states, sales tax is 0%!).>>
It's always 0% if it's shipped out of state unless the store has a branch in the other state. So shipping to the UK should not incur sales tax.

 

[Pinnacle]

[ QUOTE ]
£38651 average Uk salary!! Where do you get those figures from? I suspect they're about 50% out.

[/ QUOTE ]

Agreed - that is why I posted the link I did in in my earlier post! /forums/images/graemlins/smile.gif

 

[pelicanpete]

Hey, Arthur, I was referring to the sales tax level in one's own country. True, if you have goods shipped from the US via post/air/sea - and only if the supplier delivers direct to the shipping company - the sales tax is zero (but not if you buy across the counter and carry it back personally). Unfortunately, there is no 'tax-back' scheme operating in the USA, such as the VAT refund scheme operating in the EU.

Forget purchasing from West Marine/Boat U.S inside the US and paying zero sales tax domestically because you live in another state - they have stores in every state and so must charge sales tax.

I think we get galled in this country (UK) that even after paying shipping costs, duty and VAT on goods we import from the US, it's still often cheaper than buying direct from a UK source - and that's crazy!

Pelicanpete
(SE Florida...)