View Single Post
Old 5th January 2008, 02:18 AM   #9
steveC
Member
 
Join Date: Aug 2006
Posts: 639
Default

It's quite interesting to learn more about the price of products in different spots around the world. However, I think that there are a few facets in the situation that might say more about the differences in pricing. A significant impact can undoubtedly be associated with the national/regional distributors. I'm sure that the type of warehousing operations and the detailed distribution network they run, to include the margins expected, could explain much. I would think that the distributor carries the cost of transportation from the manufacturer, and I'm sure certain taxes, duties or tariffs of some sort come into play too. Unless you're involved in the business and understand the pecularities that can be tied to various regional or national policies, it's difficult to clearly shape what's going on. However, from what I've gathered over time listening to different folks, it's my understanding that most European customers pay some very stiff importation rates, thereby making products considerably more expensive in contrast to what I find here in the US.

Another thing I think merits consideration is how the retailers have structured their operation. Needless to say, there is has to be huge differences when contrasting national mail order/internet operations with smaller local or regional retailers. Sales volume usually has everything to do with the price structure that retailer pays for products from the distributors. I've found over time that small retail operations have shrunk tremendously from the scene, very likely because they find it increasingly difficult to compete with larger mail order/internet firms. Also, the way the market has been maturing, I think it's safe to say that things today are based more and more on hard orders, as it better controls manufacturing rates and streamlines inventories, thereby lessening the need for discounting and loss of margin.

I'm sure that there's much more to consider, but I'm convinced that what's going on between the distributors and retailers says quite a bit about price differences around the world.
steveC is offline   Reply With Quote