Why is UK so expensive?

[computernerd123]

My build would cost 800 quid in america (cost me just over 1000 quid and that's with decent deals)

[o0Martin]

My build would cost 800 quid in america (cost me just over 1000 quid and that's with decent deals)

 

Probably due to VAT/Taxes in the UK

[Chronos5618]

Taxes. Got to import da tech

[Guest]

Cause we also have to pay for other people to live

[OAcesync]

My build would cost 800 quid in america (cost me just over 1000 quid and that's with decent deals)

It's what we have to deal with, if things weren't expensive I could of easily fit in a i5 to my build

[Chronos5618]

I have a friend in America at the moment and I am seriously considering asking them to bring me back a new graphics card. Would save quite a bit. 

[Jamdude]

@computernerd123 Taxes, plain and simple.  I'm guessing you're just looking at the display cost on US sites which is shown without tax, most states have tax added on top of that though.

 

I have a friend in America at the moment and I am seriously considering asking them to bring me back a new graphics card. Would save quite a bit. 

Apart from the import tax you'd have to pay on it.

[Chronos5618]

Apart from the import tax you'd have to pay on it.

Surely not if it was brought back in hand luggage? 

[Thony]

Import taxes. So someone's pocket can be always full...

[computernerd123]

@computernerd123 Taxes, plain and simple.  I'm guessing you're just looking at the display cost on US sites which is shown without tax, most states have tax added on top of that though.

 

Apart from the import tax you'd have to pay on it.

Used part picker and compared prices

[Jamdude]

Surely not if it was brought back in hand luggage? 

You're supposed to declare items like that, you can run the risk of keeping it quiet but if you're caught I believe there is a fine.

 

Used part picker and compared prices

Yes so that will have all US prices without tax, add 20% to it and their prices are equal.

[beach_boy98]

Vat yet we have double the value of the Canadian dollar with the Pound.

[GoodBytes]

My build would cost 800 quid in america (cost me just over 1000 quid and that's with decent deals)

A popular questions. The answer is:

-> In the UK, and many countries with VAT, the VAT is included in the price of the product you buy. While in Canada and United States, they don't. You have the surprise when you get to the cash register.

-> Another factor is taxes from your country from imported goods. This varies from the place of origin the good. That is why some products can be a lot more expensive than others.

-> Another factor is red tape and laws. For example, a country can require that x amount of employee work as support or sales over the phone, in the country they sale their goods. Depending on the wage and employment market that dictate the wage people are willing to work for the job and number of offers meeting the demand, this can affect the product price.

-> Another factor is transportation. If boats needs to be used, it can cost more than using trucks. Additional fees can be land cost. For example, if you need to have a large warehouse in Tokyo, Japan for your operations in providing your good to store/customers, then due to the super high cost of the warehouse land due to its size, the product will cost substantially more to pay off the cost of the warehouse the product needed to be in. In addition, minimum wage and how many people are paid to do their job. For example, if the minimum wage is 70$/h, then that dollar menu might be 10 or even 20$ menu instead, as the good needs to pay part of the employee cost (this is also why increasing minimum wage is only a short term solution, unless it isn't updated to follow the natural inflation rate)

-> Another factor is how many middle man layers is needed to reach the country. Some companies don't have the resources to manage their entire world wide distribution, as much as they would like it. So middle man are used. Each layer of middle man way profits, so it increases the price of the product at each stage. That is why some brands cost a lot more than other brands despite the same product, or companies simply don't sale the product in the country as the cost would be so high,they don't see it as people would actually buy it.

-> Government regulation on warranty. If a country says that the product needs to have a minimum of 2 year warranty, then that means that the product either needs to be made of superior quality to last 2 years, or/and keep warehouse of extra parts to repair broken parts longer, requiring more space, more logistics, and consider that a product can break more often, which all contributes in increase cost.

-> Lastly, although not a major factor in the technology sector, but: "How much people are willing to pay for the good". If people sees no value in it, then it can't be sold at a high price. And this ties in with the supply and demand principal of goods and services. If the demand is low and the supply is high, you, as a manufacture need to push things, so you reduce the price, and same is true for the reverse, where if demand is high, it is makes more rare, and the price is increased.

So, here are some factors that dedicates the price of a product in a country, and explains why each country has different prices.

This is a discussion going on here in Canada, onto why prices in the U.S are so much cheaper than in Canada, when our value of our currency was at parity with the U.S for many years. Even goods made in Canada at 100%, by a Canadian company, costs more here than the U.S

[starwarsguy99]

VAT is evil, although it still is cheaper than Singapore.

The PowerColor R9 270x costs 129.99 pounds and in Singapore it costed $350..

(1 Pound is 2 SGD) So yeah.. Englands way cheaper than singapore. Of course Murica is the cheapest

[BrightCandle]

Short answer is Taxes. Longer answer is Value Added Tax combined with Import Tax. As far as I know these two taxes combined with the day light robbery that is customs charges make up all the extra cost we pay over and above somewhere like the USA.

[PetiteBob]

You dont even want to know the prices in the AU

[nfank]

You dont even want to know the prices in the AU

[Avalen]

Try Finland for great deals. My new rig is 2160.22 USD in America according to PCPartpicker and its total price here came just under $3000 US. Most of the fun comes down to our lovely 24% VAT. Which is fun. Did I mention the fun? Oh God it hurts

[ShadowCaptain]

My build would cost 800 quid in america (cost me just over 1000 quid and that's with decent deals)

 

VAT is 20%

 

£800 x 1.2 = £960

 

there you go - dont forget some places in the US have sales tax so the price you see on PPP is not always 100% right (also lots of rebates that we dont get here)

 

 

but yes the UK is on average 10-40% more expensive to buy stuff than the US

[Albatross]

VAT is a killer. Come to America, we'd love to have ya.

 

Cause we also have to pay for other people to live

 

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