Canon USD/Euro pricing parity

Yes, I know this is standard procedure for alot of companies - but why is the US$ and the Euro pricing on a numerical parity when the Euro is 30% stronger than the dollar? The Euro price should be 30% less (excluding VAT).

I can't wait to see the UK Pound pricing - i'll bet it will be at parity too.

Gruntle...

Well, according to DPR preview it will be: EU: € 1,299

Same old USD=EUR conversion...

http://www.dpreview.com/previews/canoneos40d/page2.asp

Yes, this is exactly my point - the Euro price should be lower. This is just taking the p!ss.

aris1234 said:

Yes, I know this is standard procedure for alot of companies - but
why is the US$ and the Euro pricing on a numerical parity when the
Euro is 30% stronger than the dollar? The Euro price should be 30%
less (excluding VAT).

Click to expand...

You have a point, but maybe less dramatic. Often the Euro prices do include the VAT, and the U.S. prices do NOT include the "sales tax".

But even after taking these differences into consideration, you're still right, but just less so.

Then I'm going to Japan to buy my stuff from now on!

--
Jim H.

David Mazeau said:

But even after taking these differences into consideration, you're
still right, but just less so.

Click to expand...

Is there any error in my math ?

U.S. price ... $1300 ... $1300 / 1.30 = 1000 Euros

Euro price ... 1300 Euros (including VAT 19% ? 245 Euros) = (1300 - 245 ) = 1055 Euros

Best prices will be in the US (or maybe HK) as the Yen wants to keep surging. Canon Sales Japan is not as aggressive with the price as Canon USA.

-gt

greentoe said:

Best prices will be in the US (or maybe HK) as the Yen wants to keep
surging. Canon Sales Japan is not as aggressive with the price as
Canon USA.

Click to expand...

Often too people in here will compare the prices they see at b&h or amazon to what they'd pay in their local, smaller size, store in Europe.

But even in the U.S. a small store would not have as great a price as b&h or amazon.

Somewhat.

1300 ~ 119%

1300/119*100

1092,44 ~ 100%

--
I wanted a better viewfinder and now I need more money

That's true, but what I meant (and meant it to be funny) was that if the pattern holds of the price being the same in all currencies, I'd rather pay in Yen than Dollars right now.

If I could get a 40D for 1299 Yen, I'd snap one up right away

--
Jim H.

Park Cameras, in the UK, are quoting a list price of 900 GBP, body only, as is Jessops.
Park's pre-order price: 875 GBP

I shall wait until next Spring, when the prices will have come down.

This is shameful... The parity would be 965€.. why 1299€???

They laugh at us.

Vat is not uniform throughout the EU. In the UK it is 17.5%.

Keithgg said:

Park Cameras, in the UK, are quoting a list price of 900 GBP, body
only, as is Jessops.
Park's pre-order price: 875 GBP

I shall wait until next Spring, when the prices will have come down.

Click to expand...

So basically the UK price is US$1800, and in the US it is $1300 - a $500 difference.

One needs to look at Canon from their perspective not ours. We see one Canon company that operates on a world wide basis. Canon sees itself as a bunch of different companies. One Canon company with its own P&L, designs, builds and distributes their cameras to separate local Canon companies. These companies then have their own P&L responsibilities for their local operations. To meet their required profit each company has to set the local price to cover all local, distribution, marketing & advertising, support, warrenties, facilities, payroll, taxes etc...

Each of these local companies are separate taxable entities in the areas where they reside. Canon Europe has to pay local taxes not just on sales but also employment, income and any other taxes that local governments can think of (and all governments are great at thinking taxes up). Plus the cost of operating in the local area - regulations to follow, all of these items add up and figure into the cost of operations. If you want to complain about the price you should complain to the local Canon group company - not Canon Inc.

My guess is based on volume that Canon distributes about the same number of cameras to EMEA as to the US - or close enough that the volume discount it close to the same price.

I think one of the biggest differences is the cost of doing business. I maybe wrong here - just a guess, but in the US 95% of all 40Ds will be sold by big Internet dealers or big electronic chains. Just not that many local independent dealers around anymore, and from what I hear Canon is pushing the few remaining dealers to deal with distributors to save money. I am guessing in EMEA there are more local or regional camera stores that Canon deals with, thus increasing their handling costs.

Remember companies the size of a major Canon local companies factor every little cost of doing business into their P&L model. All of this adds to the cost. BTW - this is also why warranties are not intentional - they are also factored into the local cost - last I heard EMEA has a 2 year requirement - this will add to the cost of a camera.
--
http://www.cbrycelea.com/photos/

aris1234 said:

So basically the UK price is US$1800, and in the US it is $1300 - a
$500 difference.

Click to expand...

Well, no, doing the math the way Volker Hett says, and using the VAT of 17.5% that you have said for the UK, the calculation would be:

1800 ~ 117.5%

1800/117.5*100

1531.91 ~ 100%

So the difference between what Canon is getting in the US and what they're getting in the UK is $232.

The rest of the difference has to do with different tax systems, which is a different subject.

Yes, still a lousy deal, more than the Euro price diff, but not a $500 difference.

Since I have a friend who can register it thre and have it serviced if anything goes wrong (which I'm not very worried about, since he will try it out thoroughly before shipping it to me), I don't see a single reason to pay premium just for the Euro warranty/manual. I intend it to keep it a little while, and will resell it the price I paid for it with the € being so much stronger )

Claire
--
'I do not seek difficulty, it is it that seeks me' (Rudolph Noureiev)

Also remember the increased cost for Canon from the UK sales of goods act.

This gives you rights to redress for hardware failure for up to 5 or 6 years (if you are prepared to chase them)

This has an associated cost for Canon which does not exist in the US.
--
Tony Collins