European gear cheaper in the U.S

[leroydiamond]

Just noticed that you can save over $200 on the price of the German made Tecamp Puma 900 in the U.S. when compared with prices here.
They cost $999 dollars in the U.S.( [url="http://www.austinbasstraders.com/newgear/276/tecamp-puma-900-new-lower-price"]http://www.austinbas...new-lower-price[/url])
However after currency conversion they come in at $1204 (£719) at Thomann.

Edited April 8, 2014 by leroydiamond

[flyfisher]

Could be worse (or better) if you were after a Range Rover.

£71,320 in the UK
http://www.landrover.com/gb/en/lr/

$84,225 in the USA (about £53,000)
http://www.landrover.com/us/en/lr/

Rip-off Britain eh?

[LukeFRC]

it does say "new lower price" maybe the price hasn't come down in EU yet?

[leroydiamond]

[quote name='LukeFRC' timestamp='1396975603' post='2419369']
it does say "new lower price" maybe the price hasn't come down in EU yet?
[/quote][quote name='LukeFRC' timestamp='1396975603' post='2419369']
it does say "new lower price" maybe the price hasn't come down in EU yet?
[/quote]
well lets hope so. I can understand paying more for U.S. made gear because of Taxes/ duty etc. But surely it should work both ways

[dannybuoy]

Add on the VAT and they are the same price.

[leroydiamond]

[quote name='dannybuoy' timestamp='1396978162' post='2419411']
Add on the VAT and they are the same price.
[/quote]
?

[JamesXP]

There is no VAT in the USA.. just sales tax in some states..

so 999$ + 20% VAT = 1200$

= UK Price

[yorks5stringer]

Pretty sure we've had this discussion before... USA is a bigger market and there is more competition, so lower prices. Mark Bass gear used to be the same price in $ as it was over here in £.

[molan]

[quote name='yorks5stringer' timestamp='1396980361' post='2419444']
Pretty sure we've had this discussion before... USA is a bigger market and there is more competition, so lower prices. Mark Bass gear used to be the same price in $ as it was over here in £.
[/quote]

Plus the size of market means volume purchases are higher and greater volume almost always means lower pricing (for a host of different reasons).

Bulk shipping to and from the US is way cheaper than low volume shipping inside Europe too.

[leroydiamond]

[quote name='JamesXP' timestamp='1396980085' post='2419435']
There is no VAT in the USA.. just sales tax in some states..

so 999$ + 20% VAT = 1200$

= UK Price
[/quote]
No sales Tax once they are being shipped outside the state so that makes it available at $999 plus shipping (typically $15-$20). And if you live in Ireland where there is higher tax than the UK, purchasing the Puma 900 from Thomann comes to $1240 ( 899 euro).

[flyfisher]

Isn't the EU a similarly sized market as the USA?

Bulk shipping to the USA is an [u]additional[/u] cost and it will still be required to do the low volume shipping (distribution out to customers) inside the USA, just as in the EU.

[spacey]

Most of it is made in the far east, I doubt it ever gets to Europe.

[Dingus]

We have indeed had this discussion a fair few times before, and if I might say, everybody gets it it a bit wrong every time.

The economy of scale thing is certainly a factor in why goods may be a bit cheaper in America, but it is a fairly minor factor, when all is said and done. The most significant reason is that America is a relatively low taxation economy, but it takes money from its' citizens in other ways.

Also , in real terms those prices quoted in U.S dollars are not as cheap to consumers in America as they appear, in so much as you are all making the cardinal error of using the exchange rate with £ Sterling as an indication of relative costs, but the exchange rate is not any kind of accurate indication of the domestic buying power of the dollar in the United States. . In reality, in most instances, a dollar will buy you approximately what a pound would in the U.K , and sometimes more, so if for instance a bass costs three thousand dollars, to buy it in the USA then the typical American is depriving himself of the same potential spending power as someone in the U.K spending three thousand pounds on the same bass here.

The fact is that.especially in light of that domestic buying power of the dollar that I have outlined, in terms of spending ability , Americans on average have far higher wages and a much higher standard of living than most of their European counterparts, including poor sods in the U.K. Put another way, statistically speaking, it costs an American less a proportion of their wages to buy luxury consumer goods than their equivalents in the U.K . That is because they are richer and more prosperous than us, in much the same way that people in the U.K are richer and more prosperous than people in Bulgaria or the Congo . [u][i]That [/i][/u]is what you are actually getting upset about, not this spurious idea of "rip off Britain".

Edited April 9, 2014 by Dingus

[LukeFRC]

[quote name='flyfisher' timestamp='1396981582' post='2419469']
Isn't the EU a similarly sized market as the USA?

[/quote] I guess we aren't integrated closely enough to feel the full benefits of that yet.

[Musicman20]

Dingus has nailed it.

Unfortunately, despite knowing that is the reason for it, it STILL winds me up. It feels to me like it applies more to music gear more than a lot of other items, but Im probably imagining that.

Clothes/music/DVDS/Blu Rays/gaming seems to have come down very very cheap, but music gear increases.

In 2009 I paid about £830 for a new American Fender P and the same for a J. In 2011, about £950.

I moved some of those on, and inbetween bought my favourite P bass (same model, just better) for a silly low price new.

Now? £1100+....

It's still a good deal...but that is one heck of a jump.

A PS3 cost me £450 new (ish) on release day. I don't own that as it played up, the store game me a new one, and a refund as they had reduced the price, (nice suprise). I then moved on and traded it etc for the slim version, even cheaper.

A new PS4 is £350 ish. I will eventually buy one. A new LED Smart 40" 3D TV is now also very cheap in comparison.

Weird. I know its totally different markets...but it does perplex me.

[Bassnut62]

I have spent a lot of time in US and my sister lived there for 20+ years until she moved back to UK 2 years ago........our collective experience echoes exactly what Professor Dingus (Head of Economics at Bass Chat University?) has said......and the same feelings/experiences/realities apply to many goods in US, including clothes, houses, land, cars, food, fuel, etc.

The US is the ultimate capitalist economy, where the rich get richer and the poor get poorer and there is little or no safety net if you are poor and/or fall ill, unlike over here in UK......relatively low taxation (and maybe gun culture?) plays a big part in that equation.