Different prices for electronics, why?

September 19, 2008 5:16 AM

Why are electronics so crazy expensive in Europe? Any creative ideas to help me buy a video camera?

I was looking at the the Canon XH A1, and although quite expensive the prices I was seeing on Amazon were just at the level I was comfortable with (about USD3,300). But when it came time to find it in Europe, I was shocked! At UK Amazon, the price is £2,499.99 (about USD4,500 WTF?), and even worse when pricing it locally in Bulgaria... quotes of 7,500BGN (about USD5,500 WTF???!!!!)

So two questions:

1) How is such massive variation in price possible?
2) How can I buy this in the US and get it here without massive hassles, import duties, etc?

posted by Meatbomb to shopping (10 comments total)

Well, for one thing, European countries tend to have sales tax (VAT) which is significantly higher than anywhere in the US. Like, 17-25%. Because that tax is included in price tags, sticker shock is a real issue if you're used to tax-free prices.

Additionally, you're seeing the effects of a weak dollar. A few years ago, when the pound was trading at around 1.5:1 with the dollar, the same camera would only have been $3750, which is within range of the sales tax differential.

But ultimately, companies charge more for their products in Europe because, well, they can. Cost of living is generally higher in Europe than in the US through a combination of taxation, higher median (though not per capita) income, and a population used to paying more for things than we are. Add tariffs imposed by the EU on non-European products, and prices go way up. Software is particularly bad, sometimes costing as much as twice the US price.
posted by valkyryn at 5:36 AM on September 19, 2008

Creative idea (risky) - go the route of potential importer, contact manufacturers/distributors in China (or wherever the unit is manufactured) and ask for a sample. You still have to pay, but it will be much less than retail.

It could also only be useful for building a wall or jamming a door.
posted by strawberryviagra at 5:38 AM on September 19, 2008

From your figures, looks like it might be cheaper to buy a return ticket to the US.
posted by Not Supplied at 6:19 AM on September 19, 2008

There's only one loophole I can see in Europe: Andorra.

Other than that, either you go to the US (or another country with cheaper prices) to get it, or you ask a friend who's going. If you find any other way, please let me know.

And I join you in a big, huge, MASSIVE rant against European pricing and customer service (which, let's just admit it, also totally sucks here).
posted by neblina_matinal at 6:33 AM on September 19, 2008

On EU tariffs: The US, Japan and Taiwan are currently suing the EU over misapplication of the ITA (Information Technology Agreement), which was supposed to provide duty-free status to a lot of computer and electronic goods. Until the issue is resolved, don't expect things to get cheaper.
posted by tommasz at 6:40 AM on September 19, 2008

also, just to save you a bit of time in the future, in case you were thinking of it - Amazon UK won't ship electronics outside the UK; been there, tried that.
posted by taz at 7:04 AM on September 19, 2008

It's true. If you want to have, say a new camera, or a laptop, it nowadays means you can have a nice weekend in New York thrown in for free, if you buy it in the US instead of in the EU. And still come out on top.

The only way prices wil drop in the EU, is if the so called internal market really becomes one, with harmonized prices and VATs, so factories have to deliver their goods to one big 500.000.000 people market, instead of 27 different ones.

Size matters in economy. A lot.
posted by ijsbrand at 7:09 AM on September 19, 2008

Could it have anything to do with the WEEE Directive in Europe? Clearly this wouldn't account for the entire difference in pricing, but I would guess it's driving at least some of it. (In general, I'm curious how this whole "take back" / recycling deal works in Europe, appreciate any additional insight anyone has.)
posted by brandman at 7:40 AM on September 19, 2008

(I looked for the camera you are looking for on pixmania's Portuguese site - that's 20% VAT inclusive - and they sell for 3.571,00 EUR. Here's the link (they probably have a Bulgarian site too, and if you have a company you can order from their Pro site, which is VAT exempt).
posted by neblina_matinal at 8:22 AM on September 19, 2008

Well there's a lot of technical and legal talk above and I'm sure most of it's valid and accurate.

However as a NYer living in EU, and not happy with the price hike I still shop in the states. eBay is my savior. Not all companies will ship overseas, but plenty do. Most times it gets stopped at the post office for customs, they open it, ask for a receipt and charge me the standard VAT. Still a lot cheaper than buying it here in Europe.
posted by wile e at 9:22 AM on September 19, 2008