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    #1

    US/Europe prices of products.

    Dell laptop at Dell.com website:
    $719 (€ 455)

    Price qouted for the exact same laptop, with exact same spec, on Dell.nl:
    € 931

    Do they fly these laptops over in business class?
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    #2
    US/Europe prices of products.

    Tax helps & Competition, and referencing of exchange rates right now. When all equally specified machines cost more in Europe than the US, why should dell choose to lose profit?

    See also car prices (UK, Europe, US) and a whole host of things. Some UK clothes in the US are absurdly priced as well (only recently has the exchange rate moved in line), but are made in the Far East.

    Exchange rates now are really not in favour of relative quoting, and would obviously not be popular to not try and hold prices in a stable fashion (except when it goes against you).

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      #3
      US/Europe prices of products.

      Inflation shouldn't be a problem in Europe for years to come, the price of so many products has been overinflated, especially with the ongoing surge of the Euro. The US is going to have the opposite problem.

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        #4
        US/Europe prices of products.

        If they're an American company making and selling laptops in dollars, then you'd think their Euro price would be dependent on the exchange rate. They could take advantage of the low dollar to make serious inroads in Europe. Instead they seem to have a fixed Euro price.

        And even if the exchange rate was one to one then the difference is still pretty huge.

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          #5
          US/Europe prices of products.

          And I can't see that tax makes that much difference. It can't be 100% in Europe, can it?

          And how does competition come into it? There are the same manufacturers everywhere. And retail is irrelevant to dell because they sell direct.

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            #6
            US/Europe prices of products.

            Adobe Fireworks CS3:

            Direct download (i.e. nothing gets physically shipped to you)

            US Price: $299
            UK Price: £299

            Also, Adobe's website is a bloated pile of over-developed and unusable shite.

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              #7
              US/Europe prices of products.

              the dollar and euro comparison is somewhat undermined coz dell make their laptops in europe. It's still a huge price difference though.

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                #8
                US/Europe prices of products.

                BMW 3 Series Coupe - GBP 50,625
                BMW 3 Series Coupe - US 68,989

                The US Price will be without tax, which is some of the amount.

                The Dell case is that in the US they entered the market as the low cost provider (they are ubiquitous, along with apples), before the others moved in and cornered it as a low profit market.

                In Europe this was not their strategy, and you are better being in the higher price range for earnings. There is enough differential in the market for going for a different price set in Europe (you can roughly double the price of an apple as well to convert to GBP).

                Current exchange rates are really bad to look at for any pricing decisions of major companies - there is a huge lag in the speed they move at. And often pricing is entirely unrelated anyway depending on the markets themselves and the strategy.

                Such as many academic text books that will cost $200, GBP70, or about $3 dollar equivalent in rupees.

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                  #9
                  US/Europe prices of products.

                  the dollar and euro comparison is somewhat undermined coz dell make their laptops in europe.
                  ah right, it's cheaper because it's made in some north american sweatshop

                  i should go with my conscience and not support that disgusting oppressive regime

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                    #10
                    US/Europe prices of products.

                    and they use seal fur to make some solid state components.

                    Seriously though, just about all of Dell's manufacturing is in the far east. One big difference with Europe might be that the VAT is included in the European prices, while there is no VAT in N. America, only sales taxes which vary from state to state (0% to 13%). Other differences are higher operating costs at the retail level due to things like higher wages and less flexible labor markets.

                    Good post dglh, back in business school many students used to buy their books online from the UK and other sources, the prices for textbooks in the US is exhorbitant (esp at the grad school level).

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