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If The Pound Is So Strong Why Do We Pay Pounds For Dollars?

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Why is everything in this country still twice as expensive as it is in the US even though our currency has apparently appreciated compared to the rest of the world.

I bought a camera lens from a company based in New York this week which was imported from Japan, yet cost half what it does in the UK.

How does that work. I thought one of the points of having a strong currency was cheap imports??

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Yes, but we're in rip-off Britain, where the government wants prices to stay high 'cause VAT is king! If you don't like it, vote with your feet. I plan to some day if I can get enough money together to be allowed into another country!

Edited by Bingley Bloke

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Why is everything in this country still twice as expensive as it is in the US even though our currency has apparently appreciated compared to the rest of the world.

I bought a camera lens from a company based in New York this week which was imported from Japan, yet cost half what it does in the UK.

How does that work. I thought one of the points of having a strong currency was cheap imports??

I don't understand this argument and never have.... Are you telling me there is a much higher proportion of Americans on 'equivelent wages' to UK citizens who can afford a new camera lens, or am I missing the point?

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I don't understand this argument and never have.... Are you telling me there is a much higher proportion of Americans on 'equivelent wages' to UK citizens who can afford a new camera lens, or am I missing the point?

It's not an argument, it's a statement of fact. As for the camera lens, that was an example, feel free to substitute it for various other items that are imported from a third country

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I suspect the price difference between the usa and the UK is caused by leaches feeding off the whole the supply chain. It would be very interesting to see how the factory price of say a BMW is affected by the additional costs asociated with delivery to the customer. I wouldn't be surprised to find our venerable institutions have created endless leaching though taxes, accountancy and management fees, insurances and the like. The plain fact is that the free market for supply is just that in the USA, whereas i remain to be convinced it exists in the UK. Take the example below and start weeping.

http://uk.cars.yahoo.com/car-reviews/car-a...se-1004887.html

CAR: BMW 325i SE saloon

UK PRICE: £25,840 - on the road, i.e. around $49k

www.KBB.com

MSRP

$32,995.00

Invoice

$30,270.00

New Car Blue

Book Value

What consumers are really paying for this vehicle

$31,481.00

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Why is everything in this country still twice as expensive as it is in the US even though our currency has apparently appreciated compared to the rest of the world.

I bought a camera lens from a company based in New York this week which was imported from Japan, yet cost half what it does in the UK.

How does that work. I thought one of the points of having a strong currency was cheap imports??

Well, you're on the right lines, what are you complaining about, you didn't pay the UK price. :lol:

The reason is simple, soft touch for being ripped off + business rates, business rents, tax, red tape, govt. Tresure Island - pure cubic zirconia.

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It's not an argument, it's a statement of fact. As for the camera lens, that was an example, feel free to substitute it for various other items that are imported from a third country

I fully understand the fact that the camera lens was an example mate... ok to elaberate lets say me and other half bring in 40,000 Sterling salary. Now I want to swap my coolpix for a D50 with a decent lens, but can't afford this upgrade. Are you telling me I could afford it if we (as a family) lived in america on a comparativly similar wage or if I couldn't afford, I could at least consider it worth while to save up for? That's the point I was trying to understand see?

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I fully understand the fact that the camera lens was an example mate... ok to elaberate lets say me and other half bring in 40,000 Sterling salary. Now I want to swap my coolpix for a D50 with a decent lens, but can't afford this upgrade. Are you telling me I could afford it if we (as a family) lived in america on a comparativly similar wage or if I couldn't afford, I could at least consider it worth while to save up for? That's the point I was trying to understand see?

These appear to be the same model of camera a Nikon D50 6.1MP Digital SLR Camera with 18-55mm f/3.5-5.6G ED lens cheapest I could find of the identical model in both places:

UK:

http://www.cameras2u.com/products/details....569831b168a126a

USA:

http://www.amazon.com/exec/obidos/tg/detai...9GZANC?v=glance

UK Price £378.15 inc VAT

USA Price $625.00 ex VAT = £328.00 ex VAT = £384.40 inc VAT

It seems it is actually more expensive in the US. When you shop around on the internet you can usualy get some good deals.

Edited by Della

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I fully understand the fact that the camera lens was an example mate... ok to elaberate lets say me and other half bring in 40,000 Sterling salary. Now I want to swap my coolpix for a D50 with a decent lens, but can't afford this upgrade. Are you telling me I could afford it if we (as a family) lived in america on a comparativly similar wage or if I couldn't afford, I could at least consider it worth while to save up for? That's the point I was trying to understand see?

The point your feeble brain must try and understand is a camera lens that may cost $200 in American dollar costs us £250.

An armani T-shirt costs us £80 and costs them $30

Exchange Rate is about $1.90 to £1 now go figure that out !!??

understand now?

Now remember the goods are coming from the same place and they should charge the same rate for each country they sell to so why is it costing us 3 times more?

Edited by Impartial

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I'm in the process of buying an American-made guitar. The UK price is £4000; the price (including shipping, import duty and VAT) if I import from a US dealer is £2800, so the UK distrubutor and/or the UK dealers are adding a huge mark-up just because we usually roll over and let them.

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The point your feeble brain must try and understand is a camera lens that may cost $200 in American dollar costs us £250.

An armani T-shirt costs us £80 and costs them $30

Exchange Rate is about $1.90 to £1 now go figure that out !!??

understand now?

Now remember the goods are coming from the same place and they should charge the same rate for each country they sell to so why is it costing us 3 times more?

My feeble brain understands every point you just made - Now why shouldn't we pay three times more - if that's what we are prepared to pay! Surely it is all to do with affordability, and as I was trying point out earlier it is not like Americans have a much better lifestyle than us is it? Maybe they do and my feeble brain can't see this!

I just thought, if imported goods, food and clothes got comparable in price to the states i.e. *much* cheaper, then maybe the ONS could fudge inflation figures and keep interest rates artificially low. That would delay HPI for some time to come, help high street chains and help maintain the 'miracle economy' we all love so much. I must pass that idea on!

Edited by ollk

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The point your feeble brain must try and understand is a camera lens that may cost $200 in American dollar costs us £250.

An armani T-shirt costs us £80 and costs them $30

Exchange Rate is about $1.90 to £1 now go figure that out !!??

understand now?

Now remember the goods are coming from the same place and they should charge the same rate for each country they sell to so why is it costing us 3 times more?

UK: Emporio Armani T-shirt £34.99 inc VAT

http://www.togged.com/shop/Mens/T-Shirts-T...-506-11308.html

US: Same T-shirt US $62.82 ex VAT = £38.84 inc VAT

http://www.amazon.com/exec/obidos/ASIN/B00...0c-20/ref=nosim

UK: Armani Jeans Denim Jacket £249.99 inc VAT

http://www.togged.com/shop/Womens/Jackets/...t-677-7574.html

US: Same Jacket $448.81 ex VAT = £277.55 inc VAT

http://www.amazon.com/exec/obidos/ASIN/B00...0c-20/ref=nosim

There is a company called "Armani Exchange" in the US that has cheaper stuff but that's not real Armani, and if you're buying Armani you're only paying for the name anyway.

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I suspect the price difference between the usa and the UK is caused by leaches feeding off the whole the supply chain. It would be very interesting to see how the factory price of say a BMW is affected by the additional costs asociated with delivery to the customer. I wouldn't be surprised to find our venerable institutions have created endless leaching though taxes, accountancy and management fees, insurances and the like. The plain fact is that the free market for supply is just that in the USA, whereas i remain to be convinced it exists in the UK. Take the example below and start weeping.

http://uk.cars.yahoo.com/car-reviews/car-a...se-1004887.html

CAR: BMW 325i SE saloon

UK PRICE: £25,840 - on the road, i.e. around $49k

www.KBB.com

MSRP

$32,995.00

Invoice

$30,270.00

New Car Blue

Book Value

What consumers are really paying for this vehicle

$31,481.00

emigre's considering OZ might get a shock then

http://www.drive.com.au/Editorial/ArticleD...ArticleID=10556

Price

$71,900 (man) $74,500 (auto) plus options and on-road costs.

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When I lived in California I paid $20 for a haircut in the same place by wife went--a moderately smart salon with highly experienced sheeple shearers. We all know what the same haircut would cost in the UK--about 20 pounds if you don't go too fancy.

The big items like Houses and cars are roughly pounds for dollars--now almost twice the price given the extraordinary 1.90 exchange rate. I bought an American made Fender Strat for about $700 and the same here is about 800 pounds so there must be a big mark up on musical instruments. My Martin D15GTR cost $1100 in the US and about that much in pounds here. There is going to be a new "Guitar Centre" opening in London soon and they are the biggest guitar dealers in the US and should help bring prices down here.

Equilibrium must retun to the marketplace eventually which means the pound must fall to more or less the same value in relation to the cost of goods in competing markets. Having said that, "Rip-off Britain" has been endemic for at least 20 years and HPI may be the reason for it as it sets the level, as it were, at a very high point on the "value" scale. Even houses are pounds for dollars which is insanity.

According to last week's data our exports are beginning to get hit hard with the exchange rate and Gordon is going to have to raise IR whether he likes it or not to contain inflation which is just getting started. That means a devaluation of the pound if the market doesn't do it for him through continuing fiscal mismanagement.

Right now the currency dealers believe in Gordon Brown's miracle. When it unwravels a little more my bet is on the pound returning to historical norms of the past decade--1.60's. If the recession is deeper than the US, it could break the 1.50 barrrier. I still recall when it hit 1.05 back in the 70's. :)

Edited by Realistbear

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The big items like Houses and cars are roughly pounds for dollars--now almost twice the price given the extraordinary 1.90 exchange rate. I bought an American made Fender Strat for about $700 and the same here is about 800 pounds so there must be a big mark up on musical instruments. My Martin D15GTR cost $1100 in the US and about that much in pounds here. There is going to be a new "Guitar Centre" opening in London soon and they are the biggest guitar dealers in the US and should help bring prices down here.

Cheapest Martin D-15 I could find from a company based in the UK

£610.04 inc VAT $986.44 ex VAT

http://www.reidys.com/index.pl?submit=View_PLU&PLU=3979

The cheapest Fender Standard Strat I could find that was based in the UK

£319.00 inc VAT = $515.82 ex VAT

http://www.gear4music.com/Fender_Standard_...Ri0mZL_AyD7pZAR

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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