[Leica] Too much inventory

[nathan.wajsman at planet.nl (nathan.wajsman@planet.nl)]

The main reason things like Leicas are more expensive in Europe is the
lack of competition in many markets and people's lack of willingness to
shop online in some countries. True, the cost of doing business is
higher in some places than in others, but that has very little to do
with price differences. Thus, photo gear is more expensive in France
than in the Netherlands because the French use the internet less than
the Dutch, speak foreign languages to a much lesser extent, and are much
more wedded to the idea of shopping locally. The British market is more
competitive, but because of language difficulties and a general
suspicious of dealing with foreigners (similar to Americans), the
British are less likely to buy from a German online shop, for example.
Dutch and German prices are quite decent if you look around, and much of
the price differential relative to the US can be explained by the higher
rates of sales tax (VAT) over here.

Nathan

Nathan Wajsman
Almere, Netherlands
http://www.nathanfoto.com
http://www.fotosevilla.com
Print sales: http://www.photodeluge.com
Image licensing: http://www.alamy.com/search-results.asp?qt=wajsman

----- Oorspronkelijk bericht -----
Van: Frank Filippone <red735i@earthlink.net>
Datum: donderdag, juni 2, 2005 2:17 pm
Onderwerp: RE: [Leica] Too much inventory

> Fair trade pricing and VAT get you.  Plus, you still have the  " The
> individual Country sets their own prices " mentality.....  Whereas 
> distancesare small between countries, driving the consumer nuts to 
> get a good deal by
> crossing a border to purchase.
> 
> In the US, we have made fair trade pricing illegal, and the only 
> way a
> manufacturer can control prices is through advertising kick backs.  
> ( MAAP).
> 
> We also have State Sales Tax, which can add on an additional 8 1/2% 
> or more
> to the final prices.  Something you do not see when you look at
> advertisements.
> 
> Frank Filippone
> red735i@earthlink.net
> 
> A german made Leica still costs less in the USA than in Germany, 
> even after
> the price increase. Same for BMW, Porsche and Mercedes cars, same for
> Switzerland and swiss watches (though we have a low VAT here). I don't
> understand why we europeans must subsidize the US economy that 
> much... :-)
> Didier
> 
> 
> 
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