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View Full Version : Gadget firms 'ripping off' Britons with high prices



Hands0n
8th February 2007, 05:35 PM
I cant say that this is any kind of surprise, especially as I had a call from a friend who is visiting the USA and told me that the GSM handsets there were a fraction of the price we pay for them here SIM-free!

The old chestnut about $ and £ differences when shipping, import duty and VAT are applied just dont wash.



British consumers are being ripped off by gadget-makers who charge higher prices here than anywhere else, it is claimed.

An Evening Standard investigation found British buyers of the latest computers and games consoles are being charged hundreds of pounds more than shoppers in the U.S.

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Industry watchers said the electronics business has a history of charging UK shoppers the most.

"British consumers are forever being ripped off," said Tom Dunmore of gadget magazine Stuff.

"Every electronics company thinks it can get away with charging the UK more for an identical product.

"In many cases, people may well be better off investigating whether it would be sensible to buy in the US when they are next on holiday."

British buyers were stung in 2004 when Sony's PlayStation Portable hit the market at £179 - a 40 per cent mark-up on its U.S. price. Just before Christmas Nintendo's Wii console went on sale here for £180, 38 per cent more than in the U.S.

Liberal Democrat Treasury spokesman Vincent Cable said: "Rip-off Britain seems to be alive and kicking.

"This has been going on for years in the electronics industry and there is no question that consumers are being ripped off here. The question is whether it is happening deliberately or not. I think it is something the Office of Fair Trading should be more active on."

This week, Microsoft boss Bill Gates was forced to defend his company's pricing plans after it launched the new version of Windows for £127 in the U.S. but up to £249 in Britain.

He said: "We try to keep our prices largely in line from country to country.

"But with price you do generally get some things that get a bit out of alignment as currencies go up and down.

"Our goal across our product line is to largely have a global way of looking at things."

• Sony Playstation 3: UK £425, U.S. £305

• Nintendo Wii: UK £179, U.S. £127

• Windows Vista Ultimate Upgrade: UK £249, U.S. £127

• Apple iPod 80Gb: UK £259, U.S. £178

• Apple iMac 20in computer: UK £999, U.S. £765

• Dell XPS notebook PC: UK £798, U.S. £663

• Microsoft Xbox 360 premium: UK £279, U.S. £203

• Philips 42in Ambilight plasma TV: UK £2,624, U.S. £1,786

Article Source: Daily Mail (http://www.dailymail.co.uk/pages/live/articles/technology/technology.html?in_article_id=432987&in_page_id=1965)

bsrjl1
9th February 2007, 10:05 AM
Gotta love the Daily Mail. Of course had they either removed VAT from the UK prices or added USA sales tax, the difference wouldn't be as great.

Hands0n
9th February 2007, 10:21 AM
Ah, but it was an Evening Standard investigation :D

But that aside ....



Sales Taxes
State Sales Tax: 4.0% (food, prescription and non-prescription drugs exempt); Other taxing entities may add up to 5.5% in additional sales tax.
Gasoline Tax: 41.7 cents/gallon
Diesel Fuel Tax: 41.2 cents/gallon
Cigarette Tax: $1.50/pack of 20; New York City adds an additional $1.50.


Then you have to add Federal Taxes to the above .... Then their own import duties etc ... and still the high street price is a [significant] fraction of ours!

Hell, we're even more expensive than our "common market" neighbours in Europe.

Makes one feel proud :rolleyes:

3g-g
9th February 2007, 11:21 AM
Japan, 5G 30Gb iPod Video £120 from the Apple store itself.

UK, 5G 30Gb iPod Video £190 from, well everywhere really...

It was almost worth flying all that way to save the £70!!