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Forums - Sales Discussion - Why are prices of consoles and games the same in USA as in Europe?

A few thoughts ...

First off, products are priced based on what a consumer is willing to pay; and few companies are going to adjust their pricing out of the goodness of their heart simply because exchange rates changed. There are exceptions to that and (as much as most Canadians whine about it) Canada is one of the primary exceptions because barrier to import/exporting goods between both countries tends to be smaller than many other regions in the world; as prices become more and more out of line the number of local/authorized sales declines and the number of import or grey market sales increases and companies are required to readjust prices to keep things in balance. For you Canadians who are upset about pricing, take advantage of companies that have been set up specifically to get past these artificial shipping restrictions manufacturers have put in place like http://myus2.myus.com/   

 

Secondly, the cost of doing business in many regions is not equal. When you have one country with a minimum wage of $5/hour and another country with an (equivalent) minimum wage of $15/hour, where the first country has no required benefits and the second country has benefits worth $10/hour paid through taxes, and you’re primarily dealing with a handful of large store chains in one country and thousands of little stores in the second country, the cost of a single unit of your product at retail in the first country will be far lower than the cost of that same unit in the second country.

 

Finally, in spite of what many consumers would want to believe, companies often have long term agreements in place and are hedging against exchange rate changes to prevent them from losing money; and until these contracts expire and are renewed at new levels few prices are going to change.