m444uk
Active Member
SuinBruin said:C'mon, really?m444uk said:SuinBruin said:Differential pricing is a completely different issue. There are many factors that go into pricing an item in a particular market, including exchange rate, cost of doing business/overhead, costs to import, taxation, etc
No, it's exactly what Aero are doing and for some of the reasons you then list !
Here's the nub, and why "differential pricing" is not the issue.
Aero and ELC charge one retail price in the UK and a different retail price abroad and conceal the difference under the cover of VAT.
Anybody in the EU can compare prices for Levi's, Apple, Nikon, Sony, etc. on the internet and see who is paying what where. How does an American consumer who knows nothing about VAT tell that he or she is paying 20% more for an Aero or ELC jacket than a buyer in Britain, or France, or Germany? The VAT element is being used to conceal the true retail price. That's not "differential pricing," that's just dishonest.
Moreover, because Aero and ELC do not have retail or wholesale presence outside of the UK (unlike, say, Apple) and are not engaging in mass exportation, they aren't subject to additional overhead, or import costs, or exchange rate costs, or taxation, which might account for "differential pricing." They've just found a way to conceal an extra 20% in their overseas sales and they've taken advantage.
No, the issue of whether a price is concealed or not has no bearing on the decision to use a differential pricing structure. It's routinely done by a whole host of different measures.
It is not the duty of a company to explain to a goat herder in Outer Mongolia the tax structures in the EU. If this Mongolian fellow contacted Lewis leathers in London and specially asked about tax free exports, they may or may not, be willing to oblige him.
BTW. Aero and ELC have retail dealers. Aero have 3 or 4 in Germany and lots in Japan their biggest market.
https://www.original-fliegerjacken.de/d ... n_aero.php