View Full Version : Outrageous Pricing
I have long been a lurker eagerly anticipating the gen3 but one look at the ordering page has totally turned me off. I live in Australia and the website forces me to buy in euros. 295 euros is $463 australian dollars while $350US is only $381 australian dollars. That means I am being charged an extra $75US or 52 euros NOT including shipping.
I won't be buying direct from bookeen while that policy is in place.
I also don't understand their pricing policy which states:
We decided to keep a constant price for all the countries without calculating the price from money currencies. On top of that some countries will pay a 19,6% VAT like all European countries, others won't. At last, we also considered the shipment price in mind, to keep an average cost more or less the same.
How is paying an additional $US75 keeping the price constant????
Ortep 10-28-2007, 02:09 AM I have long been a lurker eagerly anticipating the gen3
How is paying an additional $US75 keeping the price constant????
Because it is the law in Europe to quote prices including VAT. That is not the case in the US. If something is exported outside the EU you can get a VAT refund. That is why it is cheaper in the US.
I live in the EU and I did the math. If I buy the Sony in the VS, the price, including transport, customs tax, and VAT (Over the sum of those numbers) will be something like 20-30$ lower. Buth then I will have no warranty at all.
HarryT 10-28-2007, 02:49 AM If it's worth it to you, then buy it; if it's not, don't. Nobody's going to force you.
I've just placed my order for the "Deluxe" pack.
You might want to try e-mailing them. You are not in the EU so you might get away with sending a money order that is in US dollars. Couldn't hurt right? Though It would take longer to clear the bank check. I doubt the fees would be anywhere near the $75 for paying EU price.
Egghead 10-28-2007, 09:09 PM Because it is the law in Europe to quote prices including VAT.
Australia's in Europe? :stunned: Who knew?
NatCh 10-29-2007, 09:58 AM Australia's in Europe? :stunned: Who knew?No, of course it's not. :nice:
But France is, and Bookeen is in France. Therefore (by EU law, apparently), they have to quote their prices including the VAT, even to those who are in non-EU countries, and will therefore be able to get the VAT refunded. :shrug:
Dave Berk 10-29-2007, 10:07 AM how do I get the VAT refunded? (I'm from outside the EU)
JSWolf 10-29-2007, 10:08 AM Does the $350 (US dollars) price include VAT?
HarryT 10-29-2007, 10:08 AM If you have a delivery address outside the EU, VAT will not be charged on your order.
JSWolf 10-29-2007, 10:09 AM So the prices then are not with VAT and VAT just gets added on based on where you live. That sounds reasonable.
HarryT 10-29-2007, 11:53 AM So the prices then are not with VAT and VAT just gets added on based on where you live. That sounds reasonable.
The web site is "smart". If it detects that you're in the EU, the displayed price includes VAT (eg it quotes £245 for me, which a price that includes the 19.6% French VAT). If it detects that you're outside the EU, you get quoted a price exclusive of VAT.
tompe 10-29-2007, 03:16 PM I am in Sweden but I got the price in Euro. We are probably in the same situation as UK with regard to Euro (we do not have it unfortunately).
I emailed them at 7.46pm on Sunday night local time and its now Tuesday 10.46am local time and as yet there is no reply.
The web might be smart or it might not be but Australia is NOT in the EU so if the 295 euro price quoted to me does happen to be exclusive of VAT then I still need an explanation as to why the price for Australia is US$75 or 52 euros MORE than the price for US customers not including shipping.
The logical supposition is that their website is not smart at all and is quoting me a price in euros that includes VAT despite the fact that Australian customers don't have to pay VAT which would explain the discrepancy.
I am not prepared to be gouged on price because I want the product - that would be silly. Uness there is an explanation that makes the pricing policy fair, such as the VAT thing, then there is a massive arbitrage opportunityfor someone in the states to buy these things from bookeen and then sell them on ebay to people like me and I will just wait to get a fair price.
Of course a prompt response to my email enquiry would help a lot...
tompe 10-29-2007, 07:05 PM The logical things is that 295 is without the 19% or so VAT added. And that you get the price in Euro is probably because only US will get the US price.
and that's my point - if its 295 euro without VAT added then I am paying US$75 MORE than US customers which is not a fair pricing policy.
JSWolf 10-29-2007, 07:44 PM I am not prepared to be gouged on price because I want the product - that would be silly. Uness there is an explanation that makes the pricing policy fair, such as the VAT thing, then there is a massive arbitrage opportunityfor someone in the states to buy these things from bookeen and then sell them on ebay to people like me and I will just wait to get a fair price.
Of course a prompt response to my email enquiry would help a lot...
If you bought the Gen3 from someone in the US, you'd at the very least have to pay for shipping from France to the US and from the US to AU. So basically, it would not really save you anything. Plus nobody on ebay would selling for just $350. So the only choice you have is to do what you are doing and try to get a hold of them and get it sorted.
BKeeper 10-29-2007, 08:29 PM I emailed them at 7.46pm on Sunday night local time and its now Tuesday 10.46am local time and as yet there is no reply.
I am not prepared to be gouged on price because I want the product - that would be silly. Uness there is an explanation that makes the pricing policy fair, such as the VAT thing, then there is a massive arbitrage opportunityfor someone in the states to buy these things from bookeen and then sell them on ebay to people like me and I will just wait to get a fair price.
Of course a prompt response to my email enquiry would help a lot...
I'm in the same situation.
I emailed them on Sunday, and I'm still awaiting their response. I supose it's normal, I'll give them 36h.
But you should get an answer in the next 15h hours.
I've also asked them to clear things up, given that by law the minimum legal warranty for consumer goods it's 2 years. :smash:
If you bought the Gen3 from someone in the US, you'd at the very least have to pay for shipping from France to the US and from the US to AU. So basically, it would not really save you anything. Plus nobody on ebay would selling for just $350. So the only choice you have is to do what you are doing and try to get a hold of them and get it sorted.
Not really - if I use bongous.com's personal shopper service to buy the gen3 from bookeen in US dollars and have it shipped to the US and then forwarded to Australia I STILL come out 13USD or 9 euros ahead of buying it directly from Bookeen even with double shipping and the charge for the personal shopper service. And that assumes the parcel weighs 1kg (if its 2lbs or less then I am 21USD ahead).
I'm in the same situation.
I emailed them on Sunday, and I'm still awaiting their response. I supose it's normal, I'll give them 36h.
But you should get an answer in the next 15h hours.
I've also asked them to clear things up, given that by law the minimum legal warranty for consumer goods it's 2 years. :smash:
I was reading the FAQs on their website and found a second address - shop@bookeen.com as opposed to contact@bookeen.com. I forwarded my first email to the second address and asked which was correct and requested a read receipt. The read receipt came 12 minutes after I sent it but so far no actual response to the email itself.
JSWolf 10-29-2007, 09:41 PM The Sony Reader PRS-500 is less then 2 pounds and it includes the AC Adaptor. So I ould think the Gen3 is less then 2 pounds as well for the non-deluxe package.
HarryT 10-30-2007, 02:42 AM and that's my point - if its 295 euro without VAT added then I am paying US$75 MORE than US customers which is not a fair pricing policy.
Presumably they've set the prices according to what they feel is best suited to each market and, like it or not, consumer electronics have historically been priced more cheaply in the US than elsewhere.
A company can set whatever price it wants - you have the choice as to whether or not to do business with them. Personally I think the product is worth the price, and have ordered one. If you feel otherwise, don't buy it.
Barcey 10-30-2007, 09:17 AM Teleread has an article on this. Check under "Currency Issues" http://www.teleread.org/blog/?p=7427
JSWolf 10-30-2007, 09:22 AM Presumably they've set the prices according to what they feel is best suited to each market and, like it or not, consumer electronics have historically been priced more cheaply in the US than elsewhere.
A company can set whatever price it wants - you have the choice as to whether or not to do business with them. Personally I think the product is worth the price, and have ordered one. If you feel otherwise, don't buy it.
But, Bookeen has set a price and they would get that price at less of a cost to the consumer. So I don't see any problem paying in whatever conversion rate is best for the consumer as long as Booken gets the money it has asked. If paying in US Dollars is cheaper for the consumer due to the exchange rate, then I don't see why not.
tompe 10-30-2007, 10:00 AM The price is different for different countries. It is not a question of exchange rate. Read the Teleread blog entry.
Regarding the EU directive mentioned in the blog entry. I thought this was three years nowaday (changed from two years a couple of years ago). Is my impression of this wrong?
DaleDe 10-30-2007, 12:01 PM I'm in the same situation.
I emailed them on Sunday, and I'm still awaiting their response. I supose it's normal, I'll give them 36h.
But you should get an answer in the next 15h hours.
I've also asked them to clear things up, given that by law the minimum legal warranty for consumer goods it's 2 years. :smash:
So you want it at the US price with a free 2 year warranty. Talk about having your cake and eating it too.
Dale
JSWolf 10-30-2007, 12:09 PM DaleDe is Bookeen is trying to be fair, then they'll have the same price all over and the same Warranty.
BKeeper 10-30-2007, 12:34 PM So you want it at the US price with a free 2 year warranty. Talk about having your cake and eating it too.
Dale
Oh not at all, I have no problem with their pricing. (what made you think so?)
I'm ready buy.
I don't really care at all, a 2 year warranty is mandatory in the EU (for consumers). Whatever they say, I can assure you that.
(but let's not confuse legal warranty with commercial warranty)
In a nutshell, if all I get is 1 year and on top of that I have to pay for shipping to France for repairs no matter where I buy it, ...then I'll buy it in the US. :)
DaleDe 10-30-2007, 03:38 PM DaleDe is Bookeen is trying to be fair, then they'll have the same price all over and the same Warranty.
Right now the warranty is different, VAT is different, US taxes are not in the price, and the current exchange rate on US dollars is depressed and is never constant compared to Euro's. I think Bookeen has to factor in a lot of stuff to compute the selling price since they can't change it daily as the exchange rates change. I do believe the tack they have taken is a good first cut but I am still looking around for myself.
Dale
JSWolf 10-30-2007, 04:28 PM But can't Bookeen give the price in Euros and US dollars and let the person paying get the money to Bookeen given what exchange rate works best for the purchaser?
DaleDe 10-30-2007, 05:57 PM But can't Bookeen give the price in Euros and US dollars and let the person paying get the money to Bookeen given what exchange rate works best for the purchaser?
Only if the terms are the same. Warranty costs definitely impact the cost of doing business. Why limit to Euros and dollars? They could price in all know currencies I suppose. I think they are anticipating the demand and targeting the bigger markets without regard to onesy and twosy business at this point and they seem to be overwhelmed at the moment and not hungry to make sales.
Dale
I think they are anticipating the demand and targeting the bigger markets without regard to onesy and twosy business at this point and they seem to be overwhelmed at the moment and not hungry to make sales.
Dale
I think this is the real reason - they have set their US price to compete with Sony while expecting the rest of the world to subsidise their marketing strategy. They havent answered my query about VAT and their explanation that others companies do the same thing suggests that they won't be answering.
Like Harry said, I have to decide if its worth the price to me and so far I would have to say that its not. Between their claim that the policy is fair, their silence on email and now the shipping delay, I am suffering from a whole lot of indignation so sitting on the fence a while longer is looking mighty comfortable again.
Whereas previously I had ruled out the Sony, now that I find I can get one for $US92 cheaper than the gen3, its worth me waiting to see some reviews and comparisons and rethinking its limitations.
And while they maintain their 'fair' pricing policy, its worth waiting to see if US resellers emerge and to see whether the Amazon Kindle eventuates and how it compares as presumably that will be sold in US dollars.
In the meantime, $US425 buys me a whole pile of paper books (as much as I despise the space they take up!)....
I guess I am a bit foolish in this day and age for expecting companies to want my business enough to extend to me a fair deal and some decent service although interestingly that is something I do get from my local booksellers.:book2:
JSWolf 10-31-2007, 12:13 AM Only if the terms are the same. Warranty costs definitely impact the cost of doing business. Why limit to Euros and dollars? They could price in all know currencies I suppose. I think they are anticipating the demand and targeting the bigger markets without regard to onesy and twosy business at this point and they seem to be overwhelmed at the moment and not hungry to make sales.
Dale
If the warranty really is 2 years for people in the EU who purchase the Gen3, then it really is unfair that people in the US get shafted that 1 year.
HarryT 10-31-2007, 02:31 AM Only if the terms are the same. Warranty costs definitely impact the cost of doing business. Why limit to Euros and dollars? They could price in all know currencies I suppose. I think they are anticipating the demand and targeting the bigger markets without regard to onesy and twosy business at this point and they seem to be overwhelmed at the moment and not hungry to make sales.
Dale
They're pricing in British Pounds too, by the way. £245 for the basic, £315 for the deluxe.
JSWolf 10-31-2007, 02:32 AM So why can't people from the UK pay in US dollars? given the exchange rate, it would come out cheaper for the UK buyers.
HarryT 10-31-2007, 02:50 AM <shrug>
They set the rules. They've said that only people in the US can pay in US$, and that's the way it is. All we, as customers, can do is to decide whether or not to buy from them. They have a right to charge different prices to people in different countries if they wish to do so.
Ours not to reason why...
JSWolf 10-31-2007, 02:53 AM I have the solution... Have someone in the US pay for the Gen3 and have it sent to someone in the UK.
tribble 10-31-2007, 02:55 AM @JSWolf: You should stop whining about the pricing policies. You are in the states, so buy it for a cheaper price than we europeans do. Be happy about it.
And for everyone else. There is more to setting prices than just tax, customs and warranty. You have to consider distribution channels, support possibillities and especially - what are the users willing to pay to maximize profit.
I personally dont like paying more than the rest of the world, but it is like it is. Now i say: Shut up everyone about the pricing, and start enjoying the Gen3 CyBook. Its a nice piece of hardware and i personally think its better than the Sony. (though i havent seen the 505 yet.)
So get a good ebook and start reading.
Alexander Turcic 10-31-2007, 03:58 AM We Europeans are used to paying more than our friends over in the US. It's not fair, but that's how it is ;(
Talking about unfairness, I am going to buy a new Dell system, and I figured out that it would be around 30% cheaper if I bought it in the US (not considering shipping costs, etc.).
HarryT 10-31-2007, 04:00 AM Totally agree, Tribble. Bookeen can charge whatever they want for it - all we have to do is decide whether or not to buy it, and that's purely a personal decision for each of us to make.
frozenpeas43 10-31-2007, 05:37 AM Wow, we wait all that time for a European e-book seller and it's STILL cheaper to ship a Sony from the US.
I paid $259 for my 505 + maybe $30 for USPS shipping to Korea. Mark it as personal effects and bingo, a reader for less than $300 shipped.
I'm so glad I don't live in Rip off Britain (Europe?) anymore.
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