Prices: Europe vs USA

[Huck Finn]

I have the impression that camera prices are substantially higher in Europe than in USA - not just for German cameras, but for Japanese cameras as well. Is this true? If so, any idea why?

 

[RML]

Import duties, higher VAT, higher costs for retailers (rent, wages, etc), higher taxes, etc.

 

[Pherdinand]

Your impression is, annoyingly, more than correct, Huck. I guess mostly due to taxes.

As Jeroen wrote in another thread, the price of the bessa r2A/3A body will probably be around eur750 - that is about the same price as the body AND the 40/1.4 lens at cameraquest...

AFAIK the worst is in the UK, the best is in Germany. Here in the Netherlands everybody buys cameras in Germany, if they want to get it somewhat cheaper. ANd not only cameras...PC's as well, and some other (eleectronic) equipment.

 

[Pherdinand]

By the way, this is valid for second-hand camera stuff too🙁 If i look on KEH prices they seem ridiculously low.

 

[Biber]

aaaaaaaaaaaa

 

[back alley]

the prices in north america are different also. the states is way cheaper on most things than canada.

 

[Jeroen]

When you think about it, it's so stupid: a camera with a German name (Voigtländer) is more expensive in its native country than overseas... 😀

 

[pshinkaw]

Would a Japanese camera using a Japanese name costs more than a Japanese camera using a German name?

Partly because of a markedly different social philosophy, taxes tend to be higher in the EU than in the USA. This tends to result in higher consumer prices in the EU, but also a completely different societal attitude toward social services funded by taxes. I think the different systems tends to make it more difficult to compare buying power on a Euro to Dollar basis.

-Paul

 

[back alley]

same in canada, very different social priorities.

 

[Huck Finn]

Would a Japanese camera using a Japanese name costs more than a Japanese camera using a German name?

Partly because of a markedly different social philosophy, taxes tend to be higher in the EU than in the USA. This tends to result in higher consumer prices in the EU, but also a completely different societal attitude toward social services funded by taxes. I think the different systems tends to make it more difficult to compare buying power on a Euro to Dollar basis.

-Paul

I see what you're saying, pshinkaw. I guess when you're paying for a product in Europe, you're also paying for other services you'll receive &/or for participation in a system that may provide other benefits, such as more vacation time.

Now we do make comparisons all the time, such as "I can buy 5 Bessas for the cost of one Leica." Or: "Leicas cost so much because of quality German engineering & assembly."

I did a quick survey of some European price comparisons. I converted the prices to dollars, using the current currency conversion formula.

An M7 is $3049 at The Leica Shop in Austria before VAT
An M7 is $2748 at Robert White in England
An M7 is $2695 at Tamarkin in New York
An M7 is $2795 at B&H in New York

The British price is virtually the same as New York prices. Pherdinand says that German prices will be cheaper. (I'll check further this afternoon.) So, we see no discounting when a Leica comes to America.

An R2 is $602 at Robert White
An R2 is $499 at both B&H and Cameraquest
An R2 is $549 at Tamarkin

The British price is 10-20% higher than the New York price. This has been my impression. German cameras sell for the same price in America as they sell in Europe, but Japanese cameras sell for less in America than they sell in Europe. This seems to be the case even when German cameras have some parts outsourced to save on labor. It also makes German cameras more price competitive in the European market than in the American market.

It will be interesting to see the price of the new Zeiss-Ikon in relation to the new Cosina Bessas.

NOTE: It is difficult to compare prices on the Bessa R right now because its price has not held to what it once was. Local supply & demand seems to be the primary factor in setting the current price. While Cameaquest has a clearance sale price of $249, B&H sells it for $299, & Tamarkin for $389. Robert White sells it for $483. Interestingly, there is virtually no difference among Cameraquest, B&H, and Robert White for the 50 Nokton.

 

[Scarpia]

In Europe the VAT is usually included in the price. In the US most states have a state sales tax and in some states, New York is one there are also local sales taxes. In NYC the total sales tax is 8.25%. This is added on to the stated price at the time of sale. When an item is ordered through the internet or by phone from another state the sales tax is not charged. On "big ticket" items which can be easily mailed or FedExed such as a Leica one can save a considerable amount by ordering out of state. There is no federal sales tax in the US and no sales tax on food except for candy and alcohol and restaurants.
Kurt M.

 

[Huck Finn]

So . . . here's the question. What would a Leica cost if it were built in Japan? I mean exactly the same camera - same specs, same design, same materials, same everything. Suppose, for example, that Leica went into partnership with a Japanese camera company the way that Zeiss has done with Kyocera - or, in fact, the way that Leica once did with Minolta for the CL - would prices change?

 

[Huck Finn]

Actually another example occurred to me. The x-pan. It currently sells for almost $2000 under the Hasselblad marque - & at opne time the price was even higher. The exact same camera sold by Fujifilm went for $1300. Some of this may be due to higher mark-up. But products just seem to come out with a higher price tag when they are run through a German factory - even when part of the construction was outsourced. Be it labor costs, taxes, whatever, the final price will typically be higher. The price of a Japanese product seems to float up when sold in Europe, but it will seek a different level in America or Asia. But a German product will sell at the same high price outside the EC as it sold inside it. Why then don't all the manufacturers do what Zeiss does & run their products through an off-shore factory - Japan in their case - rather than bringing it back to be packaged in the German factory, thereby being subject to all of the surcharges? If Cosina can put a German name on a Japanese product, certainly others should be able to find a way to do it.