USA pricing vs UK pricing

Discussion in 'Buying Tips and Advice' started by knaggs89, Apr 14, 2010.

  1. knaggs89 macrumors newbie

    Joined:
    Apr 14, 2010
    #1
    I am considering buying the new 13" macbook pro and while browsing the apple store I saw both the price in dollars $1199 which is £775 and the UK price is £999. So i was just wondering if anyone knows why there is such a huge difference in price?
     
  2. robbieduncan Moderator emeritus

    robbieduncan

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  3. Bennieboy© macrumors 65816

    Bennieboy©

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    #3
    because the english are mugs and we pay premium for everything ;)
     
  4. r.j.s Moderator emeritus

    r.j.s

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    Mar 7, 2007
    Location:
    Texas
    #4
    Exchange rate? VAT? Because it is more expensive for Apple to do business in the UK?

    Don't forget to add sales tax in the US price.
     
  5. robbieduncan Moderator emeritus

    robbieduncan

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    #6
    How do you explain pricing in Scotland where everyone is famously tight? (I'm Scottish so I can say that)
     
  6. r.j.s Moderator emeritus

    r.j.s

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    #7
    I can't explain that.
     
  7. knaggs89 thread starter macrumors newbie

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    Apr 14, 2010
    #8
    thanks guys! I forgot you americans have to work out VAT out yourselves lol
     
  8. JNickyJJ macrumors member

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    Mar 26, 2010
    #9
    You need to add US tax onto that too so maybe 9% makes it £820 and if you take your original translated price, add 17.5% to it and you'll see its near enough the same. If you don't like the taxes, vote in the election in 4 weeks[​IMG]
     
  9. Kebabselector macrumors 68030

    Kebabselector

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    #10
    For who though, they're all a bunch of lying *****.
     
  10. TheBritishBloke macrumors 68030

    TheBritishBloke

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    #11
    You're forgetting, in the USA they also don't have any kind of import tax, whereas in the UK, when you import a high value item (even if for resale) you have to pay ~15% Import Tax AND 17.5% VAT (Apple won't have to pay it as they're VAT Registered).

    So if you take the £775:

    Add 15% import tax: £891.25
    Add 17.5% VAT: £1047.22

    So you're technically getting it cheaper than it should be!

    Blame the stupid person currently in office in the UK. And just don't vote in the elections, they're all lying B****rds quite frankly.
     
  11. jahman macrumors regular

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    Feb 12, 2010
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    UK
    #12
    Actually there is no duty on laptop or desktop computers. Check at HMRC.

    $999 is £645 at current exchange rates. Adding VAT comes to £758 approx. So Apple is charging a considerable premium for the base 13" Macbook Pro. I think there must be a significant "Treasure Island" effect in operation because it's hard to see a justification for such a price disparity.

    Cheers,

    jahman
     
  12. jahman macrumors regular

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    UK
    #14
    Ah, I thought the US price of the base 13" was $999 but you're right it's $1199. That's £774 at present exchange rates(google "1199 dollars in sterling") or £909 including VAT. So we're talking a £90, or roughly 10%, disparity. It's probably reasonable as a hedge against foreign exchange risk.

    Cheers,

    jahman
     
  13. tuna macrumors 6502

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    Apr 11, 2010
    #15
    VAT is inclusive. 999GBP before vat is ~825GBP. Which is about $1,280.

    Relatively small difference, I feel like I've seen many things that have a higher price differential. Media, for example, you UK people pay through the roof for. How much are songs on iTunes? And new videogames over there go for 50GBP or $77.50, when they are $60 here.
     
  14. gnasher729 macrumors P6

    gnasher729

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    #16
    You are adding two sets of sales tax.

    If Apple wants to get $1499 from a US sale, they advertise for $1499, and the customer actually pays $1499 + for example 6.55 = $1596. If Apple wants to get $1499 from a UK sale, they need to convert $ to £, makes £969, then add 17.5% VAT, makes £1139. That should be the advertised price in the UK, and that should be what a UK customer pays.
     
  15. tuna macrumors 6502

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    Apr 11, 2010
    #17
    Thats wrong because VAT is stated as an inclusive rate. Stating the 17.5% VAT as an exclusive rate is about 21.2%. So take you 969*1.21= 1,174.43
     
  16. Hands Sandon macrumors 6502

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    Aug 3, 2008
    #18
    Yeah, I screwed up in my earlier post by comparing the taxed US price to the UK price. Sorry about that. I was trying to show the differences that taxes make and did it wrong.
     
  17. jahman macrumors regular

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    UK
    #19
    The US price is without taxes. I worked forward from there to a price in sterling inclusive of VAT of £909 at present exchange rates, a difference of £90 or roughly 10%. You've miscalculated your figures: £999 including VAT is actually £850 excluding VAT not £825. £850 is $1315 giving a disparity of $116 which is still in the order of 10% of the US price excluding taxes.

    Cheers,

    jahman
     
  18. Hands Sandon macrumors 6502

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    Aug 3, 2008
    #20
    £851 + VAT at 17.5% is £999.92. £851 at todays exchange rate is $1,316. The US price is $1,199 so in the UK we pay $117 more, which is £75, to Apple.
     
  19. Hands Sandon macrumors 6502

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    Aug 3, 2008
    #21
    We pay £75 more on the £999 13" MBP to Apple than US customers, not including taxes.
     
  20. pastparticiple macrumors regular

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    Apr 13, 2010
    #22
    In most markets outside the USA they use the excuse of "import costs" but if you break it down they charge far more than that. It is just greed. They see the opportunity to slide some more profit in and they take it. The thing that get's my goat is that they lie about it and call it "import costs" as if it has nothing to do with them.
     
  21. tuna macrumors 6502

    Joined:
    Apr 11, 2010
    #23
    Ha you should probably know how your own tax system works. VAT is INCLUSIVE, meaning that when something is 100 pounds including 17.5% VAT, that the VAT tax included in that 100 pounds is 17.50.

    As I said, expressing the 17.5% VAT as an exclusive tax, as American sales taxes are expressed, would be 21.2%.

    So to do the math your way:

    $1199 is 777 pounds. Factoring in a 17.5% VAT is the same as multiplying 777 by 1.212 (because the difference between that product and 777 will be 17.5% of the product). So with VAT it would be 942 pounds.
     
  22. Igantius macrumors 65816

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    Apr 29, 2007
    #24
    The simple fact is that Apple stores outside of the US are run as separate entities – there are differences other than in price.

    For example, in the UK there are no academic versions of Apple software – in the US, there are. In the UK, however, if you bought Apple software through the HE Store, you would get a full version at a greatly reduced rate – FCS, for instance, is about £250 – the discount is not only much greater than a US academic version, but the software is fully upgradeable.

    There will be different pricing for different markets for a number of reasons – but let’s face it, Apple is like any company, it’s all about the bottom line.
     
  23. applemike macrumors 6502

    applemike

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    Aug 6, 2008
    #25
    Apple tax!!!

    Apple feels the need to screw all of us in the UK over by about 8% on all products they offer over here
     

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