How do UK suppliers justify their higher prices?

Diamond hell

Diamond hell

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Maybe I'm being naiive here, but I went into a shop to have a look at the Canon G15 on Friday, which would have cost me £549 or the same from them on their website.

So I had a look at Panamoz's site and I could pick up a G15 for £299.

Does anyone have any reasoning how the UK shops are justifying the nearly double the price for items such as this?

Sorry - I get the whole UK warantee thing, but most electronics I've bought in the last few years have been pretty good.

If it needs servicing/repair after 12 months, will Canon UK refuse to service it?

Sorry, but I'm confused/puzzled as to why anyone would spend an extra £250 just for the convenience of buying from a shop and would appreciate any well-reasoned explanation from someone more in the know than me.

Cheers!
 
By operating legally and not dodging tax I would think. They also have to pay for UK premises, pay staff UK wages and the such like.

Remember if you import from a non UK source and the tax due isn't declared or paid it is YOU as the importer that is liable and not the vendor.
 
OK, so even if I get taken for duty and VAT we're at £380.

I've still saved £170.

And that's RETAIL price, so allows for operating costs and profit made in the country of original purchase - these guys aren't doing it for their own gratification.

The overheads excuse doesn't cut it - it's a global market.

Do Canon rig the market *that* much for UK market products? I'm thinking they're seriously disadvantaging UK companies, if that's the case.

The other hypothesis is that UK businesses are making a fat profit on what they sell.
 
Diamond hell said:
OK, so even if I get taken for duty and VAT we're at £380.

I've still saved £170.

And that's RETAIL price, so allows for operating costs and profit made in the country of original purchase - these guys aren't doing it for their own gratification.

The overheads excuse doesn't cut it - it's a global market.

Do Canon rig the market *that* much for UK market products? I'm thinking they're seriously disadvantaging UK companies, if that's the case.

The other hypothesis is that UK businesses are making a fat profit on what they sell.
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It may be a global market but UK suppliers have to pay UK costs! They may pay more for the camera that the HK suppliers and their staffing costs, rent etc will be much higher. If they sell cameras for less than they need to to break even they quickly won't be in business. I am not sure they are making huge profits either, camera bodies etc have very low profit margins indeed. Why do you think shops then try and flog you accessories? That is where the big profits are.
 
OK, on that basis surely it should be significantly cheaper from UK online suppliers, who don't need a lot of that overhead cost.

But it's not.

I can't think of another example where there is such a huge disparity between DIY import vs UK market prices. It says something is broken to me.
 
This scenario has always been the problem with all things. We all want items and services at very low cost, but we all want top wack wages!

I like everyone else want things as cheap as possible, and I also want a good decent wage. But to get something for cheap/ low cost, somebody has to take the hit, and who will it be ?

I wish I knew the answer to this question, I have often wondered about this problem :thinking:
 
IMO UK suppliers will charge what Joe Public will pay.
 
Global products are priced for the local market, they will charge whatever the local population can/will afford.

The daftest one I've heard of is that Golf Clubs made in the UK were cheaper to buy & ship back from the U.S than buy here :bang:
 
Just to make you aware, Panamoz DONOT pay import duties even though they say they do on their website.

I ordered a £1300 lens from them and written on the box was "toy accessories" so if it gets stopped at customs for what ever reason you will be liable as it has your name address and telephone number on the label, I am fine over here as I donot pay VAT anyways
 
Well technically it IS an accessory for your toy.....

Get the duty-dodging bit, but as my original point - they're still significantly cheaper when you've paid duty and VAT, which is my gripe.
 
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they dont make big profit at all
a local camera shop to me said they could not compete with the uk prices and the one from HK they have now reduced size and done the same as local jessop's and pretty much gone to printing they are the only independent shop around now the HK price's are closing shops down because they dont have the same over head's and not the same price as HK prices
 
SpikeK6 said:
Just to make you aware, Panamoz DONOT pay import duties even though they say they do on their website.

I ordered a £1300 lens from them and written on the box was "toy accessories" so if it gets stopped at customs for what ever reason you will be liable as it has your name address and telephone number on the label, I am fine over here as I donot pay VAT anyways
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Really? They say on their website they pay the fees. Did you try dispute it with them?
 
I think that's how many (all?) of the grey importers who sell directly to the public operate - rather than declaring the item up front, they try to circumvent the import charges and offer to compensate the customer IF they're stung. Because more items make it through unchallenged than are caught, it remains profitable.

It's all a bit tip-e-toe and isn't good for our country. Unfortunately most people don't see past the saving.
 
A friend runs one of the few independent camera shops left - his language about the treatment of smaller operators by the likes of Canon is unprintable - at one point he negated all the profit on the sale of one of their cameras if the punter paid using plastic.....

So the companies are largely to blame - often he will waste hours demonstrating goods, the customer will then go off and save a few quid buying from a multiple, and then expect him to help them out when they have problems, or can't understand how to work it!
 
Getting something for nearly half price is a difficult saving to look past, wouldn't you agree?
 
Tigger.ufo said:
In words of one syllable " THEY LIE "


Heather
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What I'm trying to ascertain is that they say they pay the fee's. They aren't directly lying if they pay them after you get billed by customs. The way they say on their site could be taken either of two ways.
 
Photogaz said:
What I'm trying to ascertain is that they say they pay the fee's. They aren't directly lying if they pay them after you get billed by customs. The way they say on their site could be taken either of two ways.
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The fees are only paid if your order gets caught and you are charged. Otherwise you are avoiding tax. The easy thing to do is declare it and ask them to refund you.
 
All I can say is carry on buying gray imports, as the more you do the greater chance you will see your local high street retailers shut up shop.

On our local High street a shoe shop has to sell a £1000 worth of goods a day just to pay his Rates.
 
The old saying is "use it or loose it"
 
Diamond hell said:
OK, so even if I get taken for duty and VAT we're at £380.

I've still saved £170.

And that's RETAIL price, so allows for operating costs and profit made in the country of original purchase - these guys aren't doing it for their own gratification.

The overheads excuse doesn't cut it - it's a global market.

Do Canon rig the market *that* much for UK market products? I'm thinking they're seriously disadvantaging UK companies, if that's the case.

The other hypothesis is that UK businesses are making a fat profit on what they sell.
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Maybe you need to check your UK prices better..?

Cheapest legit sourced G15 is £435
 
It's a lot more than just import duty and VAT.


It's.

Import duty
VAT
Corporation Tax
Higher wages
Higher rents on multiple shops
Business rates on multiple shops
Electricity for multiple shops
Public liability insurance
Wages of the health and safety officer to ensure the customer doesn't trip on the step on the way in
Advertising

And I'm sure the list goes on.
 
In addition to previous posts about overheads & taxes etc etc etc.I presume Canon & other manufacturers also do what Nikon do. They set their RR prices & expect retailers to stick to it. (especially for new models)
If they don't they are warned that they will no longer be supplied!
 
Diamond hell said:
OK, on that basis surely it should be significantly cheaper from UK online suppliers, who don't need a lot of that overhead cost.
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How do you work that one out? You think online importers work out of their bedrooms? They still have premises - warehouses in some cases. Sure, the operating costs are lower, but they'll still need to pay UK taxes (all of them, not just VAT), pay UK wages and associated costs etc.

Seems like you may have also used Currys/other non specialist store for your price? They're in the market of selling things to people who can't be bothered to find a specialist store/don't care about paying over the top/aren't aware there are specialist stores/are suckered in by "sale" prices...
 
mrgubby said:
Global products are priced for the local market, they will charge whatever the local population can/will afford.

The daftest one I've heard of is that Golf Clubs made in the UK were cheaper to buy & ship back from the U.S than buy here :bang:
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I remember going o Australia 12 years ago, and a Freelander was £6000 cheaper than back in the UK.
 
OldCarlos said:
I presume Canon & other manufacturers also do what Nikon do. They set their RR prices & expect retailers to stick to it. (especially for new models)
If they don't they are warned that they will no longer be supplied!
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You presume incorrectly. Apart from the first few months after release, when companies aim to extract the full RRP from the more-money-than-sense-need-new-toy-NOW! brigade, most companies sell at less than 80% of the RRP.

Park Cameras show the RRPs on their web site - HERE.
 
Photogaz said:
What I'm trying to ascertain is that they say they pay the fee's.
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Do they also promise to pay your legal fees and fines if the customs people decide to take you to court? After all, it's you who are breaking the law.
 
Hmmm, now I'm wondering if I should buy from DigitalRev. Was just about to push the buy button when I came across this thread. On their website it clearly says that tax and importation is directly billed to them. I checked this in the DR thread and again they say the price I pay is it.

If the tax is not directly billed then I'll get a postman on the door asking for money that I'll have to claim back? Why do TP allow them to advertise here if they are trying to seek an uncompetitive advantage over UK business?
 
Is Digital Rev any better? Look at the serial number thing. Instead of screwing the government, they screw the buyer.

Out of interest surely customs can't hold you liable if you are unaware before buying.
 
Photogaz said:
Is Digital Rev any better? Look at the serial number thing. Instead of screwing the government, they screw the buyer.

Out of interest surely customs can't hold you liable if you are unaware before buying.
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Stupidity is not a legal defence.
 
menthel said:
Stupidity is not a legal defence.
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Stupidity? If someone who you'd believe to be reputable says that they are having the tax billed direct to them, what do you do? Is there evidence to backup the claim that they are not doing as they say?
 
I got told that they could not take the VAT off for me when I asked.
I never bothered going back to them because even they cannot give me a 70-200 mk2 fro just over a grand.

Also see my post about what was written on the box.

spike
 
SpikeK6 said:
I got told that they could not take the VAT off for me when I asked.
I never bothered going back to them because even they cannot give me a 70-200 mk2 fro just over a grand.

Also see my post about what was written on the box.

spike
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Personally I'm not bothered about buying cheap, I am bothered about being lied to or aiding an illegal act.
 
hollis_f said:
You presume incorrectly. Apart from the first few months after release, when companies aim to extract the full RRP from the more-money-than-sense-need-new-toy-NOW! brigade, most companies sell at less than 80% of the RRP..
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First few months, weeks, days..... whatever. Doesn't really matter how long, it's price fixing! & as you admit it goes on, putting reputable tax-paying shops at a disadvantage from the importers from Hong Kong etc & creating problems for the consumers. (be it import duty/VAT, forged serial #'s, warranty issues, even pre-owned/refurbed items sold as new)
 
hollis_f said:
You presume incorrectly. Apart from the first few months after release, when companies aim to extract the full RRP from the more-money-than-sense-need-new-toy-NOW! brigade, most companies sell at less than 80% of the RRP.

Park Cameras show the RRPs on their web site - HERE.
Click to expand...

OldCarlos said:
First few months, weeks, days..... whatever. Doesn't really matter how long, it's price fixing! & as you admit it goes on,
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What? Of course it's not price fixing! Canon do not force the retailers to sell at the RRP, which is what you accused them of. The retailers choose to sell at the RRP when a product is first launched because they know that some people will buy at the RRP just because they have to have the new shiny toy immediately. Sensible people know that the price will soon drop, but not because of any ruling from Canon.
 
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