Are Prices Really This High in Europe?

Red,

The dealers all buy at the same price . US does not have import tax on toy planes and engines, whilst European dealers often can get their import taxes back. Then the dealer adds his margin of profit to keep the wheel turning. Then in Europe, on top of that basic cost, in most countries 18% VAT is added. No state tax in the US is that high. That will pretty much explain the difference. On top of that, some US dealers are so large, that they can get lower prices. They oftentimes even get away with market monopoly positions. Shipping across Europe or to the States hardly differs in price, so that is of minor importance.

With your Dollar down 30% at the moment, things might be different though.

I thought that our wages were higher then in the US. That is certainly the case in Norway. Also, we don't have import taxes on toys and RC

-- Wood floats... We can make it fly...

Stefan Pettersen

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Access to cheap labor? Looks like th UK has plenty of it around emigrating every day. Pretty soon the dominant language will be Bengali.

Now, explain the rest of the 60-70% price difference.

That is exactly the problem with the UK. They desire to stand alone with their own markets. You only consider the UK when marketing rather than the whole of Europe. I am sure that there are a lot RC fliers in the whole of Europe. Just like no company could continue doing business in just Arizona or Oregon, but thrive when they market to the whole of the US.

Pe,

The VAT difference is very small, probably amounting to 10% difference at the retail level. That doesn't account for the 60-70% difference for most products.

Your wages are higher but your taxes are also a lot higher. While many in the US have health insurance either paid for or heavily subsidised by their employer, the NHS in most countries is paid for out of taxes. Some times it is good (Finland, France) other times it is terrible (UK). I heard a figure one time of aroung GBL6,000 for each NHS patient. That is a FANTASTIC amount if true. Excellent health care in the US is available for around $4500 a year for a family.

I can't. They are simply more expensive. Always have been. I think Germany drives the model market somewhat. Their average income is WAY above ours and they can get the prices I guess.

Pe has a good point though. They dollar completely sucks against the Euro and other currencies right now. When I lived in Germany and the exchange rate was 2.5 DM's to the dollar, it wasn't too bad. Now 1.25 Euros = 1 dollar.

Hmmm... This from the same person that chided another user when he made a similar remark about the wetbacks.

Hmmm... This from the same person that chided another user when he made a similar remark about the wetbacks.

Hmmm... This from the same person that chided another user when he made a similar remark about the wetbacks.

Yup, gotta love our taxes :-)

-- Wood floats... We can make it fly...

Stefan Pettersen

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The change in currency rate is relatively new. For the last three years it had been fairly stable at around $1.40 per GBL and around $1 to the Euro.

HUH? What are you on about?

Indeed. Frankly as far as I am concerned, it can't be too soon. This country has ruined the education system, and bred a nation of spoilt work shy idiots.

Bengalis have no illusions about the value of education, and hard work. Half the top management in UK merchant banks is asian, and half of them are women. A huge amount of technology is being developed and run by Asian immigrants - second and third generation. When I had my hernias patched up I had an Iraqi Anaesthetist. This country runs on immigrants, and without them it would bloody well come to a halt.

Besides, its nice to see the different style of faces and skin colorations. AND maybe we have a chance to get some english cricketers now who care about the game :-)

Just wait....and see...US economy is on a knife edge right now.

Yep, That is why I think they must get bargain prices from the European producers. Though the US market is about the same as the EU market, the US market is one single block, dominated by a few giant buyers whereas the EU market is highly divided. It may be better to compare i.e. Oriental products, which are imported by a few large EU importers, and compare the prices on that basis. That would be more like an apple-apple comparison.