Officine Panerai

Bill
32024

• Show profile
• Show other posts

No simple answer or a fair one - just a practical answer

If you take your example of us price of 10,400 + 10% tax you start with a US price +/-  $11440 not sure why to include tax but staying on the same thought.

If you look at the currency exchange between USD and EURO we had a high of 1.48 and low today close to 1.27  when we apply these to factors we have

Your example stating +/- 9000 EURO at today's rate

or

$11,440 at the high rate of 1.48 we are closer to 7700 Euro mid year.


If you remove the tax from the equation you are less 10% or at +/- 7,000 Euro


So when a brand sits down every year to set prices they are obliged to make some assumptions as to exchange rates and then set the price.  This way a price is set for each country and the buyer that goes to his local store for a price has one number in his currency to look at and evaluate his purchase rather than a spot price.

I wish is was more simple but I remember buying Euros at 1.60 plus on vacation not to long ago going to Europe and OOOUUUCCH.  But at that time my Euro friends loved coming to the US for great bargains with the strong Euro.

The bottom line this simple business practice not an effort to overcharge one region over another.  It can only be looked at from a local perspective.  If you are looking a currency valuation they there is a skew in the perspective. 


Bill