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Suprising info about GW's pricing.
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Old 23 Sep 2007, 17:24   #1 (permalink)
Shas'O
 
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Default Suprising info about GW's pricing.

Well, if you don't know (and unless your a Canuk you probably don't) the Canadian Dollar hit parity with the US Dollar this last week. With that in mind I wanted to see just how badly out the pricing here in Canada was.

Since the Games Workshop is based out of England I decided to convert both US and Canadian prices to Pounds sterling to compare with the UK pricing, this I assume being the basis for pricing around the world for their products. The end results shocked me at first and so I decided to include Euro pricing and Australian as well but came up with the same results.

The result I was expecting was that the Canadian price would be higher than it should be seeing as the Canadian dollar has been making gains on the Euro and Pound as well as the US Dollar. However the results might just show how badly the US dollar is doing worldwide. What I wound up withwere that every currency BUT the US dollar was working out to about the same price, plus or minus a pound or so. The US kept working out to being as much as 6 to 8 pounds less than any other pricing I compared save for some of the newest items.

The conclusion I have to draw is that other than in the US the pricing for most things around the world is fairly balanced. The only exception I could find is where the Australians are paying through the nose for a Baneblade compared to other countries. Ironically that is the one item where the price is the same both in Canada and the US($95.00).

For those wanting to double check my figures I got my currency exchange info from www.XE.com. I compared the price of the following items: A standard troop box(marines), a standard tank box(Leman Russ), the Baneblade, and a new metal figure(Big Mek).

If I had to make a prediction about the pricing in the future by games Workshop I would imagine it would be for us to expect the US pricing to go up significantly if the current trend does not reverse itself soon. Your thoughts guys?
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Old 23 Sep 2007, 18:12   #2 (permalink)
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Default Re: Suprising info about GW's pricing.

Taxes are higher in the UK than in the US, so I would expect the US models to be cheaper.

I dont know about the taxes in relation to the UK and canada, or the USA and canada. Have you factored the taxes into your final assumptions?
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Old 23 Sep 2007, 18:39   #3 (permalink)
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Default Re: Suprising info about GW's pricing.

I work in Power Sports sales and we get alot of people from Canada down to our store and they are shocked at the price difference. Even though the Canadian dollar is reaching parity with the USDollar the prices for things like motorcycels are something like 50% higher. A motorcycle that we have here in the US that sells for $12,000 is selling in Canada for $19,000. That's a pretty significant difference. Also Canadian GM dealerships have made such an outcry that US GM dealers can no longer sell to Canadian customers who were going across the border and buying the same cars from the same company for MUCH less money. Im not totally sure why this is the case, but that is where it currently stands.
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Old 23 Sep 2007, 18:43   #4 (permalink)
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Default Re: Suprising info about GW's pricing.

I dunno Spirit. I just ran a few things through XE and things like Tactical squads were running in the neighbourhood of 9 dollars cheaper when converted by actual exchange rates. I reckon that's still a fairly significant difference, although I do admit that it's less than the disparity between canadian and US prices (the worst culprit probably being stealthsuits)

And on the matter of taxes. I understand that many countries in europe have their taxes included in the price of goods. In canada and the states taxes are usually added on afterwards. So the price you see on the canadian/US online store is BEFORE taxes
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Old 23 Sep 2007, 19:08   #5 (permalink)
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Default Re: Suprising info about GW's pricing.

Currency exchange rates vary daily. Prices marked on goods don't. Pick up any book at a bookstore in the US market. You'll see a US dollar price and a Canadian dollar price. That price is set when the book is printed. At any given point in time, that Canadian dollar price may represent less, the same as or more than the US dollar price in real terms. Right now, with parity between the dollars, it represents a significant increase in price. But that could change rapidly.





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Old 23 Sep 2007, 20:18   #6 (permalink)
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Default Re: Suprising info about GW's pricing.

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Originally Posted by Arschbombe
Currency exchange rates vary daily. Prices marked on goods don't. Pick up any book at a bookstore in the US market. You'll see a US dollar price and a Canadian dollar price. That price is set when the book is printed. At any given point in time, that Canadian dollar price may represent less, the same as or more than the US dollar price in real terms. Right now, with parity between the dollars, it represents a significant increase in price. But that could change rapidly.
Problem is that the canadian dollar has been on the rise for quite a while and projections show that this state will continue. This is not solely a problem with GW, but while I do not expect this company or any other for that matter to throw some kind of magic switch and instantly have prices that reflect exact exchange rates, I would like to see some effort not to have this sort of disparity between prices. Currently I am seeing no such effort.
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Old 23 Sep 2007, 20:26   #7 (permalink)
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Default Re: Suprising info about GW's pricing.

My Mum has just come back from America, and she was telling me how much cheaper evrything is over there compared to the U.K. It's probably just the same with GW products.
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Old 23 Sep 2007, 20:30   #8 (permalink)
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Default Re: Suprising info about GW's pricing.

Games workshop will not lower prices until The Canadian Dollar is at something like 1.15, because
1. They are lazy and dont want to both have to figure it out and actually change it
2. because they like money and have more distribution power in the U.S. so they want people to buy from there.
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Old 23 Sep 2007, 22:50   #9 (permalink)
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Default Re: Suprising info about GW's pricing.

Quote:
Originally Posted by Siruk
Taxes are higher in the UK than in the US, so I would expect the US models to be cheaper.

I dont know about the taxes in relation to the UK and canada, or the USA and canada. Have you factored the taxes into your final assumptions?
I was basing this on the posted prices in GWs catalog online for various countries. I know Canadian Sales tax is added on after and not sure for the USA as that, as in Canada, varies form place to place. Alberta for example has no provincial sales tax, so only has the federal one of 6%.


Quote:
Originally Posted by chryos
I work in Power Sports sales and we get alot of people from Canada down to our store and they are shocked at the price difference. Even though the Canadian dollar is reaching parity with the USDollar the prices for things like motorcycels are something like 50% higher. A motorcycle that we have here in the US that sells for $12,000 is selling in Canada for $19,000. That's a pretty significant difference. Also Canadian GM dealerships have made such an outcry that US GM dealers can no longer sell to Canadian customers who were going across the border and buying the same cars from the same company for MUCH less money. Im not totally sure why this is the case, but that is where it currently stands.
Worst offenders according to the CBC right now are Aumotives, Books and Electronics. These have a much higher pricing in Canada than in the USA and in fact seem still to be set on the idea of a dollar at 69 cents.

What many people point out, rather rightly, is that the prices rose much more in accordance with the fall of the dollar when it was going down, than it has lowered as the dollar climbed. That people are now flocking south for purchases should be no suprise and hopefully will put preasure on retailers to match things out.

Quote:
Originally Posted by Rosarch
Games workshop will not lower prices until The Canadian Dollar is at something like 1.15, because
1. They are lazy and dont want to both have to figure it out and actually change it
2. because they like money and have more distribution power in the U.S. so they want people to buy from there.
The lazy I can agree with, that probably could be ssaid for most retailers. The second part, not so much. However it is not much better for Canadian gamers to buy from third party retailers in the US than form GW directly. Online orders or by phone to the US GW will just get you told to order form the Canadian GW site and phone number.
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Old 23 Sep 2007, 23:00   #10 (permalink)
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Default Re: Suprising info about GW's pricing.

Quote:
Originally Posted by Fish Ead
This is not solely a problem with GW, but while I do not expect this company or any other for that matter to throw some kind of magic switch and instantly have prices that reflect exact exchange rates, I would like to see some effort not to have this sort of disparity between prices. Currently I am seeing no such effort.
Yeah, but absent the knowledge about the international currency exchange, you really have no complaint. Your wages are not reduced because your national currency is strong i.e you are not being paid on some relative scale, where since your dollar is worth more internationally than before, you should get fewer of them so that it evens out in an international sense. Your work still brings you the same income and a GW item still costs the same portion of that income as before.
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