Yeah, but because the price in the US is pre-tax the real price is around $108 which is still less than €99 but not by that much. Also, yeah USD is weakened but that also means people there are making less money so they have less purchasing power, it’s common for companies to price the same thing lower on low-income countries and higher on high-income ones to compensate.
it doesn’t make sense to put only one price without tax
That’s done because that’s the norm in the USA, if you advertise a price without tax on Europe you will be legally bound to sell at that price.
americans have less purchasing power than before not than europeans
I didn’t meant to imply that Americans have less purchasing power than Europeans (although they might, I don’t know) but rather than it’s common for companies to price things differently according to purchasing power and while the dollar did lose power that also means it’s people lost purchasing power so it makes sense to keep it the same price instead of increasing it to compensate as otherwise they might loose sales.
Also something that might not occur to Europeans (and didn’t to me when I first visited the US) is that different states each have their own tax laws and can set the tax rate independently.
Which contributes to why it’s usual to show price before tax.
That’s a stupid argument, and it’s more of a thing Americans say to try to convince themselves that their system makes sense. Taxes are also different in different EU countries, some companies have different prices on different countries because of it, while others prefer to advertise to the whole community as a single market. Regardless, the price they advertise is the price you pay, otherwise it’s called false advertising.
Cuz other countries have strong consumer laws that make it so the price you see is the price you pay. Whereas here in the US we like to hide things like taxes and fees to 1. Make consumers overspend and 2. Make consumers extremely aware of the taxes they pay so that anytime reducing taxes on the rich comes up they think “yeah, I hate taxes, let’s lower them!”
Make consumers extremely aware of the taxes they pay so that anytime reducing taxes on the rich comes up they think “yeah, I hate taxes, let’s lower them!”
American prices reflect the lower purchasing power within the US interior because pricing has to be the same across state lines (because otherwise people would take advantage of state discounts, similar to how people take advantage of the no-VAT states). The US even has programs where banks give free money (usually 100-300$) to open accounts in order to incentivize people to spend and churn their financial institutions.
A huge chunk of the American economy is predicated on uneducated people being goaded into overspending by giving them extra money they think they can spend on non-necessities. For example: a bank gives you 100$ for opening an account, so you buy a 150$ sofa using their credit card, predicated on the fact that sofa purchase wouldn’t’ve occurred without the stimulus. Because financial literacy is so low in the US, the bank makes a net profit because a large enough cohort of credit users won’t pay their balances at the end of the month and end up paying 25% interest (which is roughly the interest charged on these credit cards).
I’m lower middle class, and I absolutely take advantage of my vacation times to fly to or near VAT-free states to buy big ticket electronics and similar. If I could stack that and fly to Montana for no VAT and “poor state” pricing, I absolutely would.
This is funny, because amer*can currency is nowhere near strong enough to be comparable to EUR now
Yeah, but because the price in the US is pre-tax the real price is around $108 which is still less than €99 but not by that much. Also, yeah USD is weakened but that also means people there are making less money so they have less purchasing power, it’s common for companies to price the same thing lower on low-income countries and higher on high-income ones to compensate.
it doesn’t make sense to put only one price without tax
americans have less purchasing power than before not than europeans
That’s done because that’s the norm in the USA, if you advertise a price without tax on Europe you will be legally bound to sell at that price.
I didn’t meant to imply that Americans have less purchasing power than Europeans (although they might, I don’t know) but rather than it’s common for companies to price things differently according to purchasing power and while the dollar did lose power that also means it’s people lost purchasing power so it makes sense to keep it the same price instead of increasing it to compensate as otherwise they might loose sales.
Also something that might not occur to Europeans (and didn’t to me when I first visited the US) is that different states each have their own tax laws and can set the tax rate independently.
Which contributes to why it’s usual to show price before tax.
I hate it personally, but that’s how it is.
That’s a stupid argument, and it’s more of a thing Americans say to try to convince themselves that their system makes sense. Taxes are also different in different EU countries, some companies have different prices on different countries because of it, while others prefer to advertise to the whole community as a single market. Regardless, the price they advertise is the price you pay, otherwise it’s called false advertising.
For reference, $99 are like 85€ nowadays.
Except EU price has VAT included
Oh, I didn’t know that.
So they earn less by each sold controller in European countries with higher VAT?
It seems so.
Thanks Obama
99€ is with tax and 99$ is pre-tax? No?
Yes
kinda-ish, but why is one price sans tax and the others with it
Cuz other countries have strong consumer laws that make it so the price you see is the price you pay. Whereas here in the US we like to hide things like taxes and fees to 1. Make consumers overspend and 2. Make consumers extremely aware of the taxes they pay so that anytime reducing taxes on the rich comes up they think “yeah, I hate taxes, let’s lower them!”
This is the answer.
American prices reflect the lower purchasing power within the US interior because pricing has to be the same across state lines (because otherwise people would take advantage of state discounts, similar to how people take advantage of the no-VAT states). The US even has programs where banks give free money (usually 100-300$) to open accounts in order to incentivize people to spend and churn their financial institutions.
A huge chunk of the American economy is predicated on uneducated people being goaded into overspending by giving them extra money they think they can spend on non-necessities. For example: a bank gives you 100$ for opening an account, so you buy a 150$ sofa using their credit card, predicated on the fact that sofa purchase wouldn’t’ve occurred without the stimulus. Because financial literacy is so low in the US, the bank makes a net profit because a large enough cohort of credit users won’t pay their balances at the end of the month and end up paying 25% interest (which is roughly the interest charged on these credit cards).
I’m lower middle class, and I absolutely take advantage of my vacation times to fly to or near VAT-free states to buy big ticket electronics and similar. If I could stack that and fly to Montana for no VAT and “poor state” pricing, I absolutely would.