Hi Myoracle
In a nutshell I'll explain - I've mentioned it also on these boards previously too in amongst various topics usualy to do with the USA and UK comparisons as a whole.
Reason is very very simple - The UK consumer is 'willing' to pay the prices you see on the shelves in the high street.
That's it really!! - a bit more detail, the price you see on the shelf isn't 'set' by the retailer as such, they have to of course add in their markup/profit but remember they must buy in the goods, in many instances from a long supply chain. That chain 'generally' speaking is 'Manufacturer > Importer > Wholesaler > Retailer > Consumer, each stage adds their profit. Now the Manufacturers 'know' the UK consumer will pay more - so when goods are sold destined for here, the price is inflated - we see this all the time when at Trade shows in China. Some manufacturers don't even bother with the UK market at all - so a handful of manufacturers often occupy a particular product/industry and pretty much inflate their 'UK' prices, knowing eventually, Mr/Mrs UK consumer will cough up the money at the retail level. The very largest companies do that without even going through the usual supply chain! they know already product X will sell in the UK for a markup of 'X' percent all day long here, and in other markets it won't and so price 'Y' is applicable in that country for the product to sell all day long.
'Ultimately' - it's the UK consumer who has holds the 'key' to lower pricing in this country, if they are'nt willing to pay price 'X' then the supply chain has to lower it's prices. The best example of this is the comparitive reduction in the price of new cars in the UK which is actually lower than a decade ago - it still as yet has to filter down to pretty much ALL other products. The reason its so slow?! well the UK consumer is culturally resistant to change, and also enjoys the 'buy now pay later' attitude which can be seen in the consumer borrowing figures which are shocking! until that changes, the prices in the UK will stay pretty much 'high'
Cheers! DtM! West London & Slough UK!
