[access-uk] Re: THE OLD CHESTNUT OF FREEDOM'S US AND UK PRICES
- From: Gordon Keen <gordonkeen@xxxxxxxxxxxxxx>
- To: access-uk@xxxxxxxxxxxxx
- Date: Mon, 30 Aug 2010 11:48:58 +0100
Hi
Forgive me but I am still struggling to understand how an American retailer in
say Alaska has lower transport costs to bear than a U.K. retailer - they both
have to obtain the goods from a producer many thousands of miles away, equally
the U.S. state and federal tax regime also requires retailers to charge sales
tax and inter state duty to be paid.
The argument that economy of scale impacts on the price only has validity if
the producer is providing two differing products for the two markets, for
example if the access tech has to be for German speakers rather than for
english speakers.
The localisation costs for U.S. / U.K. are non existent.
Where does the extra profit made from the sale of access tech products from the
U.S. go to?
Is it the U.S. manufacturer ro is it the U.K. retailer who is pocketing the
near 50 percent difference?
Could it be that the U.K. retail business is based on the fact that it is
presumed that sales would be funded by government or charities?
If so it is built on a false premise because many more sales could be achieved
if the price was reduced making the equipment/software affordable by more
visually impaired people.
As I said to George, I would love someone to explain these anomalies.
Regards
G
From glorious Devon, England.
On 30 Aug 2010, at 11:26, Glenn Tookey wrote:
> Yes, if the goods are manufactured in US, the UK supplier has additional
> costs over and above the US supply/ Reseller chain - shipping to UK, duty etc
> (as set out by George). So, the UK price for the equivalent product will be
> higher than the US. It would be the same the other way around.
>
> There are other considerations, such as size of market. The US market is
> significantly larger than the UK, so the fixed costs for any retailer can be
> spread over a greater volume of sales, which could also lead to lower prices.
>
> Glenn
** To leave the list, click on the immediately-following link:-
** [mailto:access-uk-request@xxxxxxxxxxxxx?subject=unsubscribe]
** If this link doesn't work then send a message to:
** access-uk-request@xxxxxxxxxxxxx
** and in the Subject line type
** unsubscribe
** For other list commands such as vacation mode, click on the
** immediately-following link:-
** [mailto:access-uk-request@xxxxxxxxxxxxx?subject=faq]
** or send a message, to
** access-uk-request@xxxxxxxxxxxxx with the Subject:- faq
Other related posts:
