This week saw the introduction of various new Apple products. Everybody has their own opinions on these new products, and websites all over the world saw enough discussions about the integrated video card of the Mini, the 'HiFi-ness' of the iPod HiFi, and more. Another issue, however, which got considerable less attention, was that of pricing. And no, I'm not talking about expensive-or-not (God, no). I'm talking about price differences between the US and Europe. And quite frankly, it's pissing me off. Note: This is this week's Sunday Eve Column.
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Member since:2005-06-29
- wages standards / minimum wages in that country (eg. for people working in stores that sell the product)
Wages in the US are generally higher than in Europe.
- local taxes
Like was already said roughly 23432832 times: the prices were excluding taxes.
- costs for localization of the product (keyboards, manuals, etc)
Like I already said: then please explain why Apple's prices in Britain are even higher than in the rest of Europe?
Other than that, is manufacturing a German keyboard more expensive than manufacturing an English keyboard? Of course not. It's flicking a switch on a machine-- nothing more. And after a run of German keyboards, the switch has to be flicked back to English.
- cost of transport (gas and road tax is much higher in Europe than elsewhere, how much water & land to cross to get the product to the customer, etc.)
It's already been said 3294083 times: the prices excluded shipping costs. And since Apple products are made in Asia, shipping them to either the US or Europe should give comparable costs.
- customs (how many borders to cross to get product to customer)
See above.
Did I just lay the base for an angry minute there? 
Member since:2005-07-06
Member since:2006-02-05
- local taxes; like your forgot about 28283798 times: I am not talking about just VAT / Sales Tax / BTW, but other taxes such as environmental taxes and other stuff companies have to pay, as well as additional costs for having employees in your company. There's more than just VAT in a product's price you know.
- wages: do you know what a Burger King waiter gets in the US? 4 bucks per hour?
- localization costs: you must agree that setting up a separate product line for AZERTY keyboards (or other localization) MUST be more expensive than when the entire world has the same keyboard. Same for localized user manuals and packaging. It's not just flicking a switch. You actually HAVE TO PAY people to translate, alter the graphics, etc etc. Don't be ignorant
The fact that in Britain the prices are higher, obviously don't have to do with the localization.... or perhaps customers in the USA also have Pound (sterling) sings on their keyboard? Besides, American English and British English ARE different!! In early Mac OS versions the USA "Trashcan" was called "Wastebasket" in British English. To say that English == English is extreme simplistic. (Look at the different TV-ads for the Intel Macs for instance. They're slightly different to fit in better with the audience. This costs money you know.)
- transport: like you forgot 23827678 times: do you really think the cost of transporting a single machine is transferred directly into the sale price? Of course not. You also have to take into account the transport of parts, assembly, and transporting half-fabricates to other places, more assembly, transporting, packaging, transferring finished products to central places of distribution. Mind you, taxes may vary per country even on transporting / exporting / importing parts or half-fabricates.
For instance, customs on complete computer systems may be lower in certain parts of the world than when they are still in parts.
- customs: see above.
You are really being overly simplistic by just converting dollars to euro's and then deducting sales taxes. And you did not respond to my points about several other point I made.
Not that I blame you, everyone does that --especially Dutch peopl-- but you obviously haven't worked for any company that actually produces and sells computer products worldwide.
Member since:
2006-02-05
I'm a Dutch man getting rather sick and tired of these people that do a dollar to euro conversion and then start shouting that Apple is ripping off Europeans.
The price of any product in any country varies depending on loads of variables:
- wages standards / minimum wages in that country (eg. for people working in stores that sell the product)
- cuts that resellers get in that country
- local taxes
- costs for localization of the product (keyboards, manuals, etc)
- local laws (about warranties, product safety, etc)
- cost of transport (gas and road tax is much higher in Europe than elsewhere, how much water & land to cross to get the product to the customer, etc.)
- customs (how many borders to cross to get product to customer)
- company policies about profits may vary per country
- market size (size of the specific country)
- competitive companies / products in that country
- wealth / state of the economy in that counry
<sarcasm>
Now why the hell do I have to pay more than one Euro for a kilogram of rice when in Indonesia it costs 20 cents? Those bloody Indonesion rice farmers are ripping us Europeans off!
</sarcasm>