Are EU brands not too expensive in the US compared to US brands? When I see what US brands cost in the Netherlands compared to US prices I would think something similar would be true vise versa.
If I have the prices correct:
Magico S3 mkII
US 28k dollar
NL 40k euro
VAT has a lot to do with it, as it applies to margins and shipping costs too and can be 20% in the EU.
US prices are usual pre- sales tax and even that is a single digit.
Take a $10K retail US made item in the US. Shipping is normally imputed in that price and with a 6% sales tax, the takeaway price is $10.6k all in (no discount).
Same item the EU, assume shipping is a flat $300, additional dealer/distrib margin is 10%, FX rate price buffer (to ensure no loss on fluctuations= another 10%, warranty surcharge to handle cross continentally= another 10%). Interim pre-VAT price of $13.6K, then with 20% VAT included in the quoted retail price we get a final published total of $16.3K or roughly €14.9K vs the published US $10K price!
It appears to be 60% more, but is really like 53% more in take home price. That jives well with the Magico prices you qute which seems to imply a 57% upward price adjustment.
Lesson is that its cheaper to buy the local US producst and when you factor tax rate differences, it gets to be more.
Of course going from the EU to the US, you benefit from the lower tax there, PLUS the illusion of a lower sticker price as the sales tax is NOT shown as part of retail. In theory this means a real advantage for US exports...BUT often, the US manufacturer does NOT think in terms of export and is satified with the USA/Canada market and its relative lack of complexity vs exporting.
