In the last 48 hours we’ve learnt about the forthcoming release of two exceptional devices.
Sony has finally decided to release a new version of the Playstation 3 – their gaming device who’s sales have been, let’s be honest, lacklustre.
Key to it’s future success is its price. In the US it’s priced at $299, while in the UK it’ll be £249.
Now that’s not an exceptional deal. Today’s exchange rate suggests that £1.00 is equal to $1.65, so £249=$411 or so. To be fair, the US price of $299 excludes sales tax, while £249 includes VAT. At a rate of 15% that means a tax free price of £216, which is roughly equal to $357. So UK consumers are still paying over the odds, but it’s not the worst case ever.
We’ll leave that to Canon shall we?
I own a wonderful compact camera – the Canon Powershot G7. It was replaced not long after I bought it with the similarly specced G9 (there was no G8) which also recorded RAW images – something that I will look for in any future camera I buy. This is turn was replaced by the G10 which was similar, but actually in some respects was inferior to the G9 – not least in its video capture specs. I let that one go, and today the Canon G11 was announced.
As is always the case, there are some new features – with an improved sensor, and a fold out LCD at the back. It’s released in October, and I might just be tempted to replace my ageing G7. Except for one small thing.
The price.
In the US, its tax-free price is $499. Now we saw in the Sony Playstation example above that given the current exchange rate of £1.00 = $1.65, that we should expect to pay a little over the odds in the UK.
But what do you suppose the UK VAT inclusive price is?
£569!
If we exclude VAT from that it brings the price down to £494 or so. But the US price, excluding sales tax, is $499 which is equivalent to roughly £302 – nowhere near £494.
It’s practically unheard of to have a £ price that’s more than the dollar price.
Even Adobe – who can be awful – aren’t that bad.
Now you might think that perhaps the “RRP” is a meaningless price that nobody will expect to pay. But I’ve already received my first direct mail from Warehouse Express, allowing me to pre-order this camera for £569.00. And this is a retailer who always sell goods at a decent discount.
What on earth is Canon UK thinking? I know that to avoid poor currency exchange rates, that a certain amount of “safety” is built into UK prices, but this pricing strategy is extortion.
I may as well travel to the US and buy a camera there. I forsee dismal UK Canon G11 sales until they rethink their pricing.
And to be honest, I’ll be keeping an eye out for a competitively priced G9.