Pricing

[Cjg]

Does anyone know why there is such a big difference between the prices of the same kit between the USA & UK?

For instance an 8" simple Dobsonian from Orion USA is $349 at Telescope.com, or approx £220; yet the same scope from a UK retailer is £349!

Am not suggesting that the difference is the retailer's profit, but why on earth are we Brits paying so much more for the same kit?

[Cjg]

To add to this the The Sky-Watcher 10" Dobsonian Truss Tube Telescope is $695 at Meade Telescopes, Celestron Telescopes and Telescope Accessories - OPT Telescopes which equates to about £440, in the UK the same scope is £515.

[John]

By the time you have imported it and paid import tax etc the pricing is the same. This topic comes up again and again on the forum but it's the Government and the big scope manufacturers that you really need to ask.

It's rather charming that Celestron and Meade won't honor warranties for scopes purchased in the USA and imported to the UK. In many cases US dealers are prevented from selling to Europe by the manufacturers as well.

One thing I'm fairly sure of is that it's not UK dealers ripping us off.

[Sparrow]

It's restrictive trade practice and rip off Britain I'm afraid. Not unique to telescope equipment. Remember when we were paying over £17 for a music CD and the US equivalent was something like £5.

[virtualpilot45]

Same with technology, particularly Apple products. When £1 was $2 things in America looked ridiculously cheap, and some would travel just to get a discount, and save money overall!

[Bizibilder]

I believe, but could be wrong!, that in the Sates the price quoted does not include local and state taxes - after these have been added I doubt if there is much difference. Our prices include import duty VAT etc etc.

[crazyjedi]

I think you may have something there. Quotes in the states very often don't include taxes. Are there any European manufacturers of astronomy kit? It'd be interesting to see a direct comparison.

[hayju01]

I believe, but could be wrong!, that in the Sates the price quoted does not include local and state taxes - after these have been added I doubt if there is much difference. Our prices include import duty VAT etc etc.

I don't believe local and state taxes come in to it!

I purchased this Amazon.com: Sony Under-Cabinet Kitchen ICF-CDK50 CD/Clock Radio (Silver): Electronics from Amazon US at $79.95 (approx £49.97) and had it shipped to work collegue who bought it over to the UK for me. Had I purchased it through Amazon UK it would have cost £207.99 (approx $332.78)

£158.02 difference !!!!!!!

Import taxes may have something to do with it but I wouldnt know

More likely Rip Off Britian!!!!

[Telrad]

By the time you have imported it and paid import tax etc the pricing is the same. This topic comes up again and again on the forum but it's the Government and the big scope manufacturers that you really need to ask.

It's rather charming that Celestron and Meade won't honor warranties for scopes purchased in the USA and imported to the UK. In many cases US dealers are prevented from selling to Europe by the manufacturers as well.

One thing I'm fairly sure of is that it's not UK dealers ripping us off.

John is right, the import costs don't make it cost effective. Alongside the warranty issue

[johninderby]

When you add in the taxes, duties and shipping cost to the US prices it normally comes out about the same as the UK dealers are charging. The big exception is Meade and Celestron who artificially inflate the UK prices and won't let US dealers ship to the UK.

Interestingly enough the situation is reversed with something like UK made high end audio equipment imported into the US where it can be much more expensive than in the UK.

John

[lukebl]

Hmmm. Atik 314L, only $1425 (£877) in the States, £1175 here ....

[Psychobilly]

Hmmm. Atik 314L, only $1425 (£877) in the States, £1175 here ....

Is that including VAT and import duty .. seeing as it coming in from outside the EU?

[lukebl]

Is that including VAT and import duty .. seeing as it coming in from outside the EU?

Ok. So maybe I was a bit naiive in thinking a transatlantic relative could just bung it in their bag and slip it through customs on their next visit!

[Psychobilly]

No not at all

If you include duty and VAT its still around £100 cheaper in the US...

So even if she was unlucky enough to be "pulled" by customs on entry you would still be quids in...

[Capricorn]

US prices are without tax, they add the tax on afterwards. In effect the price you see is that before the addition of their version of VAT.

This seems to be anything from 10-15% in general. So you have to factor that in.

UK VAT sort of cancels out. If a retailer imports they are charged VAT, they then claim it back but still have to add it on at the time of sale. What can change in th mean time is he price they charge.

If they import something costing say £200, then sell at £250, they pay VAT on £200 at import, claim this back, then charge you VAT on £250. This bit goes to HMRC. The retailer gets £50 profit, HMRC get VAT on £250 and you pick up the bill.

In the example given £440 in the US with taxes of say 15% to be added comes to £506. Which comparable to the UK price of £515.

[johninderby]

I just ordered an American made bit of kit from the US and the best US price was £402.00 plus import duties and shipping etc. UK dealer price £404.00 delivered. Unfortunately everyone here is out of stock and there's several months waiting time at least with no real idea of a delivery date, so I reluctantly ordered it from the US.

John

[crazyjedi]

Thats it i'm setting up my own company to produce UK made astronomy equipment to under-cut the yanks - i'll be rich!!!!

[rabbithutch]

I've never seen prices advertised in the USA that include sales taxes. Sales tax rates range depending on the jurisdiction where the sale is made from as low as 3% to as high as 10%. Here in TX sales taxes are generally 8.5% (but there is no state income tax). What are VAT rates in the UK? I've read somewhere that they are 16-18%. Taxes alone, though, don't account for those differences. I suspect that import duties have more to do with the prices.

[John]

... What are VAT rates in the UK? I've read somewhere that they are 16-18%...

20%, believe it or not

Not the highest in the EU by any means though.

[rabbithutch]

20%, believe it or not

Not the highest in the EU by any means though.

O U C H ! ! ! !

[Telrad]

Customs duty becomes payable if the goods are over £135 in value but is waived if the amount calculated is less than £9. Customs duty is usually charged as a percentage of the value of the goods.

[Moonshane]

true but you still pay import VAT plus a RM handling fee.

I just paid £28 on a £75 order.

[Telrad]

Example of Duty calculation:

Goods = 1 Eyepiece

Value of goods £80 + Transport to the UK £35

Total value for Duty £115 x 3.5% Duty = Total Duty payable £4.02

Example of VAT calculation:

Value of goods £80 + Transport to the UK £35 + Duty charges £4.02

Total value for VAT £119.02 x 20% = Total VAT payable £23.80

Therefore the total import Duty and VAT charges payable on import of these goods would be £27.82.

[Moonshane]

plus the RM handling/clearance fee which in my case was £13.50 assuming it's the same and comes by RM.

[Telrad]

Yes, RM handling fee - that bumps the cost up. Unless you are unable to get the item here and the US is your only option, then it's probably worth the extra.