What is with UK Overpricing?

1manonthebog · 26-10-2015, 19:18

The new HTC A9 is $399, in the UK its £430. Convert that to $ and its almost $670. Its the same old story in the UK, Why?

jchamier · 26-10-2015, 19:35

Quote:

Originally Posted by 1manonthebog

The new HTC A9 is $399, in the UK its £430. Convert that to $ and its almost $670. Its the same old story in the UK, Why?

Prices in the USA don't include tax. You pay the tax at time of purchase. UK price includes 20% VAT (£86), so if you subtract £86 from £430 is £344 and then convert to dollars gives $528.

Yes overpriced. HTC will argue UK is part of europe and they had to develop all the languages.

Gigabit · 26-10-2015, 19:48

Just don't buy the HTC One A9. It would be a waste of money even if it was the "right" price.

oilman · 26-10-2015, 20:03

Quote:

Originally Posted by jchamier

Prices in the USA don't include tax. You pay the tax at time of purchase. UK price includes 20% VAT (£86), so if you subtract £86 from £430 is £344 and then convert to dollars gives $528.

Yes overpriced. HTC will argue UK is part of europe and they had to develop all the languages.

In the US, they pay sales tax - varies from state to state (6-10%).

As you say, in US prices are usually quoted pre tax (unlike UK where it is post tax as required by EU). This actually reduces margin a bit more. The other factor is simply retail costs in US are lower eg fuel costs etc.

None the less, we do get ripped off eg a Windows 10 licence should only be about 10-15% dearer as transport/retail costs are irrelevant for a digital purchase, and only difference should be in tax ( plus maybe a small uplift for additional marketing costs).

enapace · 26-10-2015, 20:18

Quote:

Originally Posted by oilman

In the US, they pay sales tax - varies from state to state (6-10%).

As you say, in US prices are usually quoted pre tax (unlike UK where it is post tax as required by EU). This actually reduces margin a bit more. The other factor is simply retail costs in US are lower eg fuel costs etc.

None the less, we do get ripped off eg a Windows 10 licence should only be about 10-15% dearer as transport/retail costs are irrelevant for a digital purchase, and only difference should be in tax ( plus maybe a small uplift for additional marketing costs).

Steam is a brilliant example lot of places claim that's its currency conversion but that is crap as that would mean prices of stuff should fluctuate but don't.

Orbitalzone · 26-10-2015, 22:15

Converseley I think we pay a lot less for our mobile phone network connections, SIM only here seems much more competitively priced here than in the US (I've not done extensive research mind you!)

US-UK pricing has never been the same but some things have come right down in price in recent times though, but it's not all greener over there.

JDF · 26-10-2015, 22:19

Quote:

Originally Posted by oilman

In the US, they pay sales tax - varies from state to state (6-10%).

As you say, in US prices are usually quoted pre tax (unlike UK where it is post tax as required by EU). This actually reduces margin a bit more. The other factor is simply retail costs in US are lower eg fuel costs etc.

None the less, we do get ripped off eg a Windows 10 licence should only be about 10-15% dearer as transport/retail costs are irrelevant for a digital purchase, and only difference should be in tax ( plus maybe a small uplift for additional marketing costs).

My Windows 10 was FREE.

d123 · 26-10-2015, 23:31

In this example it's just HTC ripping off the UK, plain and simple. If I read the story properly, there was even mention that the US version has more ram and more storage for the cheaper price.

The answer would be for no one to buy the phone.

Edit, yes it's 32GB with 3GB ram in the US and 16GB with 2GB ram for the price in the UK.

http://www.express.co.uk/life-style/...alike-UK-price

Quote:

Bizarrely, if you’re living in the US you’ll fare a lot better.

The HTC One A9 is priced $399.99 (£257.69), and that spec also differs wildly from its poorer UK cousin.

The US iteration comes with 3GB RAM and 32GB of storage.

Whereas here in the UK we’ve been left with 2GB RAM and 16GB respectively.

The difference between the two prices is frankly maddening.

LostFool · 27-10-2015, 07:48

Quote:

Originally Posted by oilman

In the US, they pay sales tax - varies from state to state (6-10%).

Or even 0% in New Hampshire, Alaska and a few other states. Some states also have local sales taxes in addition so it is impossible to give a nationwide price in advertising so the pre-tax price is always used.

oilman · 27-10-2015, 08:24

Quote:

Originally Posted by JDF

My Windows 10 was FREE.

Windows 10 is not actually free. MS are just running a promotion whereby people can upgrade in one year for free.

So all this means is you got a bigger promotional benefit compared with those across the Pond.

dearmrman · 27-10-2015, 08:30

Also bear in mind with the US, if you get a contract and either the phone is free or you get it at a reduced price, i think you still have to pay the tax, in some cases this can be up to $100, as the tax charged is based on the full retail price of the phone.

ShaunIOW · 27-10-2015, 10:13

UK overpricing is nothing to do with currency rates, added languages etc, it's companies charging as much for a product as they think they can get away with (as a few admitted in the past), and while people are happy to pay, then companies will charge as much as they can and take us for mugs.

RuthlessMule · 27-10-2015, 10:41

Quote:

Originally Posted by 1manonthebog

The new HTC A9 is $399, in the UK its £430. Convert that to $ and its almost $670. Its the same old story in the UK, Why?

The solution couldn't be more obvious: emigration to the US!

finbaar · 27-10-2015, 12:22

So phone in the US only have one lanuage option? What one lanuage do the speak over there?

alan1302 · 27-10-2015, 12:56

Quote:

Originally Posted by finbaar

So phone in the US only have one lanuage option? What one lanuage do the speak over there?

Spanish

jchamier · 27-10-2015, 21:45

Quote:

Originally Posted by LostFool

Or even 0% in New Hampshire, Alaska and a few other states. Some states also have local sales taxes in addition so it is impossible to give a nationwide price in advertising so the pre-tax price is always used.

Also to make it complex if you get something posted from another state, from a store that does not have a presence in your state, you don't pay sales tax.

26-10-2015, 19:18	#1
1manonthebog Forum Member Join Date: Dec 2014 Posts: 2,332	What is with UK Overpricing? The new HTC A9 is $399, in the UK its £430. Convert that to $ and its almost $670. Its the same old story in the UK, Why?

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26-10-2015, 19:35	#2
jchamier Forum Member Join Date: Mar 2000 Location: This forum Posts: 3,392	Quote: Originally Posted by 1manonthebog The new HTC A9 is $399, in the UK its £430. Convert that to $ and its almost $670. Its the same old story in the UK, Why? Prices in the USA don't include tax. You pay the tax at time of purchase. UK price includes 20% VAT (£86), so if you subtract £86 from £430 is £344 and then convert to dollars gives $528. Yes overpriced. HTC will argue UK is part of europe and they had to develop all the languages.

26-10-2015, 19:48	#3
Gigabit Forum Member Join Date: Aug 2014 Location: United Kingdom Posts: 2,887	Just don't buy the HTC One A9. It would be a waste of money even if it was the "right" price.

26-10-2015, 20:03	#4
oilman Forum Member Join Date: Dec 2002 Posts: 3,854	Quote: Originally Posted by jchamier Prices in the USA don't include tax. You pay the tax at time of purchase. UK price includes 20% VAT (£86), so if you subtract £86 from £430 is £344 and then convert to dollars gives $528. Yes overpriced. HTC will argue UK is part of europe and they had to develop all the languages. In the US, they pay sales tax - varies from state to state (6-10%). As you say, in US prices are usually quoted pre tax (unlike UK where it is post tax as required by EU). This actually reduces margin a bit more. The other factor is simply retail costs in US are lower eg fuel costs etc. None the less, we do get ripped off eg a Windows 10 licence should only be about 10-15% dearer as transport/retail costs are irrelevant for a digital purchase, and only difference should be in tax ( plus maybe a small uplift for additional marketing costs).

26-10-2015, 20:18	#5
enapace Forum Member Join Date: Mar 2013 Posts: 4,249	Quote: Originally Posted by oilman In the US, they pay sales tax - varies from state to state (6-10%). As you say, in US prices are usually quoted pre tax (unlike UK where it is post tax as required by EU). This actually reduces margin a bit more. The other factor is simply retail costs in US are lower eg fuel costs etc. None the less, we do get ripped off eg a Windows 10 licence should only be about 10-15% dearer as transport/retail costs are irrelevant for a digital purchase, and only difference should be in tax ( plus maybe a small uplift for additional marketing costs). Steam is a brilliant example lot of places claim that's its currency conversion but that is crap as that would mean prices of stuff should fluctuate but don't.

26-10-2015, 22:15	#6
Orbitalzone Forum Member Join Date: Oct 2000 Location: Sussex Posts: 12,173	Converseley I think we pay a lot less for our mobile phone network connections, SIM only here seems much more competitively priced here than in the US (I've not done extensive research mind you!) US-UK pricing has never been the same but some things have come right down in price in recent times though, but it's not all greener over there.

26-10-2015, 22:19	#7
JDF Forum Member Join Date: Oct 2015 Location: Angel Grove Posts: 2,927	Quote: Originally Posted by oilman In the US, they pay sales tax - varies from state to state (6-10%). As you say, in US prices are usually quoted pre tax (unlike UK where it is post tax as required by EU). This actually reduces margin a bit more. The other factor is simply retail costs in US are lower eg fuel costs etc. None the less, we do get ripped off eg a Windows 10 licence should only be about 10-15% dearer as transport/retail costs are irrelevant for a digital purchase, and only difference should be in tax ( plus maybe a small uplift for additional marketing costs). My Windows 10 was FREE.

26-10-2015, 23:31	#8
d123 Forum Member Join Date: Jul 2007 Posts: 3,993	In this example it's just HTC ripping off the UK, plain and simple. If I read the story properly, there was even mention that the US version has more ram and more storage for the cheaper price. The answer would be for no one to buy the phone. Edit, yes it's 32GB with 3GB ram in the US and 16GB with 2GB ram for the price in the UK. http://www.express.co.uk/life-style/...alike-UK-price Quote: Bizarrely, if you’re living in the US you’ll fare a lot better. The HTC One A9 is priced $399.99 (£257.69), and that spec also differs wildly from its poorer UK cousin. The US iteration comes with 3GB RAM and 32GB of storage. Whereas here in the UK we’ve been left with 2GB RAM and 16GB respectively. The difference between the two prices is frankly maddening.

27-10-2015, 07:48	#9
LostFool Forum Member Join Date: May 2005 Posts: 59,737	Quote: Originally Posted by oilman In the US, they pay sales tax - varies from state to state (6-10%). Or even 0% in New Hampshire, Alaska and a few other states. Some states also have local sales taxes in addition so it is impossible to give a nationwide price in advertising so the pre-tax price is always used.

27-10-2015, 08:24	#10
oilman Forum Member Join Date: Dec 2002 Posts: 3,854	Quote: Originally Posted by JDF My Windows 10 was FREE. Windows 10 is not actually free. MS are just running a promotion whereby people can upgrade in one year for free. So all this means is you got a bigger promotional benefit compared with those across the Pond.

27-10-2015, 08:30	#11
dearmrman Forum Member Join Date: Jul 2012 Location: Utopia Posts: 10,186	Also bear in mind with the US, if you get a contract and either the phone is free or you get it at a reduced price, i think you still have to pay the tax, in some cases this can be up to $100, as the tax charged is based on the full retail price of the phone.

27-10-2015, 10:13	#12
ShaunIOW Forum Member Join Date: Jun 2006 Location: Isle of Wight Posts: 7,828	UK overpricing is nothing to do with currency rates, added languages etc, it's companies charging as much for a product as they think they can get away with (as a few admitted in the past), and while people are happy to pay, then companies will charge as much as they can and take us for mugs.

27-10-2015, 10:41	#13
RuthlessMule Inactive Member Join Date: Aug 2015 Posts: 144	Quote: Originally Posted by 1manonthebog The new HTC A9 is $399, in the UK its £430. Convert that to $ and its almost $670. Its the same old story in the UK, Why? The solution couldn't be more obvious: emigration to the US!

27-10-2015, 12:22	#14
finbaar Forum Member Join Date: Nov 2009 Posts: 3,921	So phone in the US only have one lanuage option? What one lanuage do the speak over there?

27-10-2015, 12:56	#15
alan1302 Forum Member Join Date: Jul 2008 Location: West Yorks Posts: 6,180	Quote: Originally Posted by finbaar So phone in the US only have one lanuage option? What one lanuage do the speak over there? Spanish

27-10-2015, 21:45	#16
jchamier Forum Member Join Date: Mar 2000 Location: This forum Posts: 3,392	Quote: Originally Posted by LostFool Or even 0% in New Hampshire, Alaska and a few other states. Some states also have local sales taxes in addition so it is impossible to give a nationwide price in advertising so the pre-tax price is always used. Also to make it complex if you get something posted from another state, from a store that does not have a presence in your state, you don't pay sales tax.

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What is with UK Overpricing?