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Old 09-07-2011, 12:48 AM   #1
prsita
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Why the T1 costs much more in Italy and in Spain?

I have tried to explain myself the apparently strange fact that, while the price of the PRS T1 was established by Sony in his sites at 149 euro in Germany, France and Holland, it is established at 199 euro (so, 50 euro more) in Italy. To be precise, on the Italian site of Sony, it was established on the first day at 149 euro as the above mentioned countries, but the second day it was established 50 euro more.

I wrote to Sony Italia and the answer didn’t explain this strange fact. They answered that the fact that the price was fixed at 149 euro depends on an error of the person in charge to update the site and that belongs to the policy of the Sony the right to fix the price for every country.

This answer was a no answer. Why Sony, for Italy, ask a price 50 euro more than France, Germany and Holland?

Not because of local taxes, since the taxes are almost the same (in Italy is 20%, while in France is 19,6% and in Germany 19%) and in any case the slight difference don’t justify a difference of 50 euro.

Not because the expenses of shipping, since that are almost the same in all European countries. Not because the euro in Italy is less valuable than in Germany or France.

After many thoughts, I have found the solution of the problem and is possible to synthesize it in one magic word: discounts.

Italians, often wanting to appear smarter than the others, are attracted in a irresistible way by discounts. They are very happy when they can say to friends: I have bought this product with a certain percentage of discount or: "they have made for me, only for me, a very special price", I am a businessman, I make always good deals.

Fixing a price of 149 euro also for Italy, as the other major European countries, would mean that there is not much room for discounts.

In this way (fixing the price 50 euro more) everyone is happy; there is, apparently, an happy end in this short story, as happens in the best American movies:

a) Sony Italia is happy because, selling directly, can get a 50 euro premium price, and have more room to practice a bigger discount to resellers;

b) the resellers have more room to practice discounts to consumers;

c) the Italian consumer will be happy to have bought from a reseller the product with a discount, making apparently a deal. Everything perfect? Not so much.

Let’s make an example: fixing a price at 199 euro means that the reseller can offer the product with a discount, selling for instance at 179 euro (20 euro less than the Soy "fixed" price); the consumer will be glad to buy it with a discount of 20 euro, and will think that is a smart person, that he had made a deal, while he won’t realize that he have payied 30 euro more than the French and German consumer.

The moral of the story is simple: when you want to be too smart, is probable that you are stupid.

The strange thing is that Sony accept this “suk market” policy.

For the same reason, probably, in Spain, the T1 is sold by Sony 30 euros more than the other European countries. Before Internet it was difficult to realize this, but after it, is simple to realize this bitter reality. Someone will ask: and the Euopean common market? It's not fitted to all countries.

Last edited by prsita; 09-07-2011 at 02:10 AM.
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Old 09-07-2011, 03:40 AM   #2
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prsita

I think people love discounts in all countries.
In case of Italy/Spain shipping/handling/advertising costs might be still higher per device, because of smaller volumes.
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Old 09-07-2011, 10:14 AM   #3
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Quote:
Originally Posted by prsita View Post
I have bought this product with a certain percentage of discount or: "they have made for me, only for me, a very special price", I am a businessman, I make always good deals.
So cute!

Ä50 more than in Germany is quite a premium. It would certaily seem foolish to pre-order at that price.

On the other hand, if you (can)wait, there will be other retailers selling the T1 at competitive prices. Since nobody really knows how good it'll be, I might, in fact, be the foolish one to have pre-ordered it at the earliest possible time.

I'm just so desperate to get a replacement for my slowly dying, ancient ereader, I couldn't resist.

ps: Just tried, again, to pre-order a KoboTouch and it still aint possible.
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