The Euro and A/V products

[Talk2me]

Is it just me or does anyone notice,that when the Euro goes up, so does prices of European A/V products. But when the Euro goes down, like it has, and is a 4 year low , the European manufact. keep the prices stable. I am buying a Burmester CDP, and have noticed the prices are alot, and I mean alot cheaper in Europe. Or am I wrong?

[Face]

You're right, someone is profiting off of this.

[cmalak]

You are correct. Although, most firms have annual pricing cycles so it could be that many companies have just locked in their prices and are taking advantage of the f/x conversion for now. I have to believe though that if demand from the US for European products starts to wane, that you may see some of that profit passed on to the consumer in the form of pricing concessions/cuts. Most manufacturers will not like to cut price outright but may provide temporary incentives/discounts but will keep list pricing as is. I am sure Ivan has a better feel for how many of the European lines he represents are going to deal with this going forward.

[Talk2me]

Originally Posted by Face

You're right, someone is profiting off of this.

LOl. I mean alittle less greed.

[Jerome W]

Originally Posted by Talk2me

Is it just me or does anyone notice,that when the Euro goes up, so does prices of European A/V products. But when the Euro goes down, like it has, and is a 4 year low , the European manufact. keep the prices stable. I am buying a Burmester CDP, and have noticed the prices are alot, and I mean alot cheaper in Europe. Or am I wrong?

Do you think we pay in Europe the same prices as you pay for McIntosh, Audio Research, Wilson and so on, in the US ...?
That's part of the "distributors game" !
An example : a pair of 2301's cost in europe 27500 euros so at todays rate of 1.2358, that is 33985 $ !! they are at 22000 US $ in the US !
As for you, when the euro goes high towards the dollar, the prices remain the same in euro !!

[cmalak]

Jerome...it works both ways. Absolutely.

[Still-One]

Originally Posted by C220MC275

Do you think we pay in Europe the same prices as you pay for McIntosh, Audio Research, Wilson and so on, in the US ...?
That's part of the "distributors game" !
An example : a pair of 2301's cost in europe 27500 euros so at todays rate of 1.2358, that is 33985 $ !! they are at 22000 US $ in the US !
As for you, when the euro goes high towards the dollar, the prices remain the same in euro !!

You are correct about how you get hammered with the price difference but remember part of that is how taxes are handled. In the US the $22k is without any sales tax, local or state. In Europe the price always includes VAT of about 17%-18% if I am correct.

So the Euro price includes taxes, to the US price you would have to add at least 6% or a little more in most states or $23,320. so it is a $10K difference with taxes. Still a big number.

[Jerome W]

Originally Posted by Still-One

You are correct about how you get hammered with the price difference but remember part of that is how taxes are handled. In the US the $22k is without any sales tax, local or state. In Europe the price always includes VAT of about 17%-18% if I am correct.

So the Euro price includes taxes, to the US price you would have to add at least 6% or a little more in most states or $23,320. so it is a $10K difference with taxes. Still a big number.

Good point Jim

[Talk2me]

It would be nice if there was a company that did what BMW does.Pick-up a BMW at the plant, drive it for a week and then ship it home, and your vacation is paid for from the savings.