U.K. Camera prices??

[kiev4a]

I noticed this difference several times and don't have any idea why it should be this way:

When we were in the U.K. last year I would see an item that might cost, for example, $10 in the U.S. The same item might be 15 Pounds in the UK--which was about $30 U.S.

I'm in the process of purchasing a Nikon D300. In the U.S. the price at virtually all reputable dealers is $1,799 for the body. But I understand that the "standard price" in the U.K. is about $2,900 (U.S.). and that would be before any of your taxes, I assume.

Why does camera, manufactured in Asia, cost $1,000 more in the U.K. than in the U.S.? Makes no sense!

[doubs43]

Wayne, my experience in the UK was that quoted prices included the Value Added Tax (VAT) which was 15% at the time and higher now. The VAT was over and above other taxes that likely make up a large percentage of the final sale price.

It's not difficult to understand price differences when you consider that the UK Government provides National Health Care and other services that cost huge sums. The money has to come from somewhere so taxes tend to run high, especially on "luxury" items.

Let me add that the prices for used cameras in the UK are often lower by quite a bit than the same equipment would command in the US but I'm reluctant to take a chance on the shipping costs which can go a long way to equaling things out.

Walker

[PeterW]

Wayne,

This is quite an involved business. Are you sitting comfortably?

Makers' list prices of cameras in the UK very seldom mean anything except that they are artificially pitched so that dealers can advertise 'massive savings' to boost sales. I couldn't find one dealer advertising a Nikion D300 at list price.

The list price of a D300 body in the UK is £2,200, but the theoretical profit margin is so high quite a few of the larger dealer chains which can afford bulk buying are offering it at £1,100 or slightly below. These prices include VAT, but dealers can claim back the VAT charged on their wholesale price from the maker or importer.

A few others 'hide' the price reduction by advertising something like "Up to £900 allowed on your old digital SLR subject to condition", and they usually beat down the trade-in price by pointing out every little mark, and want the lens with it. The trade-ins are farmed out in the trade at a low price to smaller dealers who can then add a reasonable profit margin and VAT and still sell the camera at a price that will compare with many on Ebay. This ploy is more usual, though, in other fields like cars.

It's all part of the marketing ploys in very competitive markets. And with many dealers offering identical 'Massive Discounts' no-one is going to convince me that, despite price fixing agreements being illegal, members of trade associations don't keep in close touch over prices.

The cheapest D300 I found was at Dixons which advertises a D300 body for £1,057 cash including the 17.5% VAT. If you take off the VAT, which professionals who are registered for VAT can reclaim from the Customs & Excise branch of the Inland Revenue, the price comes down to £899 - or $1,799. Hello, and Whadayaknow, that's the same price as in the US, so Nikon probably sells it for the same price in both countries.

A very similar 'price cutting' takes place on many 'luxury' items such as new fitted kitchens, higher-priced household electrical goods, computers (often sold only as a package deal with scanner and printer) other electronics, hgh priced leather settees and armchairs and so on, though some dealers make extra money on commission from finance houses by advertising '0% credit for six months. Take delivery now and start paying on very affordable terms in six months time' (always 'subject to status', in other words a creditworthiness check, of course).

The 'affordable terms' are as a personal loan from a finance house, not hire-purchase, and spread over anything from two to five years depending on the amount, at a annual percentage rate that can be as high as 29%.

The consumer associations don't like it, and frequently tell the public that they are, in the long run, paying up to 160% to 180% of the advertised price, but in the present credit-mad 'see it now, want it now' society not very many people are prepared to wait and save and buy for cash (except old-fashioned fogeys like me) They don't think in terms of price, they think in terms of 'how much a month will it cost me'.

You don't find the same 'price cutting' on lower priced items like lenses and accessories, or other goods.

It's all a big psychological scam, but it's the way we are. The Government, of course, makes a lot of money out of consumers because consumers can't claim back VAT from anybody, and dealers are unpaid tax collectors.

PeterW

[kiev4a]

Thanks for the explanation, Peter.

When I was convincing my mate to let me get the camera, I speculated that the D300 probably didn't cost much more in today's dollars that the Nikon FTN I bought in 1968. I think that Nikon cost about $350. So I found an on-line inflation calculator and plugged in $350 for 1968. In 2007 dollars that's $2,077. The D300 was $1,799. I guess I should buy accessory battery pack, too.

[Dan Vincent]

Cameras are not the only things that cost more in the UK.

A few years ago a freind of mine and his buddy were over here from Glasgow, Scotland and he mentioned the difficulty he was having in obtaining a certain model airplane engne in the UK.

He said they were going for about $160 in the UK and he had to get on a 6-month waiting list.

I called the US importer and he had 30 of them sitting on the shelf. He said he would sell them for $65.00 so we ordered three on a UK credit card and the package was shipped to my house in two days.

My Scottish friends were very happy.