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Old 06-10-2010, 03:34 PM   #67
fjtorres
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Quote:
Originally Posted by martienne View Post
It's also strange how a European company can add on that extra cost for European customers. I considered buying from the US but thought it was too much hassle and did not, instead paid the EUR 499 - I disagree with the principle although I can take the cost.

I like the company though but I wish I knew the reason for this seemingly ripoff-deal targetting fellow Europeans
This is not new stuff.
In gaming consoles and other CE devices it is routine for euro prices to be significantly higher than in the US.

There is a *lot* more going on than simple currency conversion.
For starters, there is the general "cost of doing business" aspect: corporate taxes, warehousing costs, labor costs, support infrastructure costs, etc.

Second, the US is a unitary market with one set of regulations and one language for 350 million customers. Localization costs are lower, sometimes zero. (We can generally figure out manuals in "googled english". )

And electronics retailers are a very lean breed; they know how to live on thin margins when they have to. Add-in very efficient low-cost ground shipment and it is no surprise to see ultra-lean pricing on products shipping out of China via the US west coast; no need to airlift.

Finally, the US doesn't mandate warranty lengths on CE products; manufacturers get to choose. If they think a product has a market with a 90-day warranty they are free to market it as such. Warranties add cost, you know...

Add all those things to the currency aspect and you're likely 90-plus percent of the way to explaining the pricing differential. Works for most products, anyway.

iRex? Who knows what they were thinking, anyway?
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