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Comment by indigomm | Hacker News Reader

US Price: $499 UK Price: £599

I get that technology companies don't just directly convert USD at the appropriate exchange rate, but this is ridiculous. Especially as the conversion rate they used on the Pixel Fold is 1 USD = 1 GBP.

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The UK price is VAT inclusive. (Advertised prices in the UK must generally include tax.)

The US price is pre-tax (since there are several thousand sales tax rates that could apply, based on customer location).

UK value-added tax is 20%. $499 * 1,20 = $598.8, which is about £478. Selling it for £499 would have more than covered the tax difference at current exchange rate, so where do the other £100 come from?

As was pointed out earlier in other comments, Google generally uses a 1:1 convention for USD->GBP for pricing. (This 1:1 generally accounts for minor f/x fluctuations and for customs duties for importing goods into the U.K.)

GBP 500 x 120% = GBP 600 (rounded)

Then how is the Pixel 7a only £450 when it's $500 in the US?

Some reasons, not all of which are applicable to this exact situation:

* Differences in tariffs and taxes.

* Differences in what deal they can make with local distributors.

* Cover cost of different consumer protections/warranty requirements etc.

* They think the market will sell enough units at the higher price to make it more profitable than a lower price.

679€ in Germany, which is about the same as the UK price. Or about $740. Even if you remove the taxes, that's still $622.

At least it's available in the UK. Ireland (home to Google's EMEA HQ) gets... The Pixel 7a.

And Google duly thanks the Irish for not enforcing days protection laws!

it's actually insane, obviously this isn't google but it is actually cheaper for me to fly from prague to the US, buy a new macbook and fly back than it is for me to buy one locally. It makes absolutely no sense

Is it though? When I went to the US recently, an M1 MacBook Air from the physical Apple Store + taxes was about the same as I paid for it in the UK. I was considering getting an iPhone while I was there but the shorter warranty and same price out me off.

Back when it was $2 = £1 prices seemed to be converted at a 1 - 1 rate (and VAT was 17.5% then). This seems to be a long standing problem.

The 1:1 at least had some rationale given UK VAT and greater expenses. But this is 50% more expensive ($499 is £399 at current rates). And why use different rates for the Fold than the Tablet?

1:1 then meant a 100% markup compared to the US price. That isn't accounted for by 17.5% VAT. I can't imagine expenses were really twice as high.

one reason might be is that in the US taxes usually arent included in the price advertised

“Brexit means Brexit”

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