T60 Series in Europe, Sale price, Depreciaton & Prices i

[moghul]

Hello

I am based in UK, and like most other european countries, are paying almost double the cost of these machines compared to the prices in USA.

I have 4 points to raise here:

1. Why is it when the machines have already been produced, their cost suddenly doubles when they reach the shops and resellers in Europe? I think Lenovo would do Much better if their pricing structure reflected the cost based on the model, rather than the country.

If I buy some McDonalds fries from UK, US, Germany or Japan, the cost is relatively the same - even though in the case of McDonalds, the product (fries) are made locally at their local rates etc.


2. How can Lenovo justify a price drop of $700 for the 2623DDU and still make a profit? They must be making over $1000 per machine if they can afford to do this. Why not make a reasonable profit on each machine - wouldnt it sell much more this way?


3. Also, How can we be sure of the depreciation rate of these machines? has anyone been keeping tabs on the models after they have bought them? What kind of rate are they falling at, or are they holding on to their prices?


4. Where are the best prices (shops or internet retailers) for Europe - (in particular UK). I have found some internet prices are quite different for the same models. Im sure I havent found the best prices yet - but this forum seems to be full of very good information.

Thanks

[draco2527]

From personal experience! (selling to Latin America) It has to do with the taxes that are impossed on NEW equipment!!! and not by the vendor....

Used equipment falls on a smaller tax scale, but it still increases the cost by 15 to 20%!!

[JHEM]

I am based in UK, and like most other european countries, are paying almost double the cost of these machines compared to the prices in USA.

You can thank your socialist government and the EU for the price you pay for things manufactured outside of the Common Market!

The base price for Thinkpads is pretty much the same worldwide, just like gasoline or any other commodity. It's the taxes and tariffs added by local governments that cause the geographic price differentials you're seeing.

Regards,

James

[jdhurst]

In terms of personal depreciation, you will *not* get your taxes back. So your used laptop is worth the same in US$ as a used laptop for sale in the US.

And, used equipment attracts taxes again when you do resell your ThinkPad.

... JD Hurst

[Puppy]

Don't get me started about the EU End-user price of ThinkPad is up to +100% comparing to the US. Additionally, we have to pay taxes/vat for nearly single thing ordered via Amazon. It used to be over 200 USD per shipment only.

[beeblebrox]

1. Why is it when the machines have already been produced, their cost suddenly doubles when they reach the shops and resellers in Europe? I think Lenovo would do Much better if their pricing structure reflected the cost based on the model, rather than the country.

It depends, you are in UK. Everything in UK is drastically overprized AND you you should check the currency exchange rate. UK has little competition due to its isolation status to the rest of Europe. If people would start buying direct via internet, e.g. from continental Europe or US and include the shipping/handling fees they would get a.) a better price and b.) force local business to adapt prices. It is a competitive market, and without competition prices stay high. There are no EU import taxes on computers. Just VAT, so go figure...

And, trust me, I have been working long enough all over UK to know what I am saying here. Just check the iTunes law suit for different song prices in Europe and UK.

If I buy some McDonalds fries from UK, US, Germany or Japan, the cost is relatively the same - even though in the case of McDonalds, the product (fries) are made locally at their local rates etc.

Because McDonalds is very closely monitored. There IS a BigMac currency exchange factor (no kidding!) to monitor (look at financial Times). However, I saw price variations in South America and Asia.

2. How can Lenovo justify a price drop of $700 for the 2623DDU and still make a profit? They must be making over $1000 per machine if they can afford to do this. Why not make a reasonable profit on each machine - wouldnt it sell much more this way?

Because they can make a large profit on John Doe who has no clue. Further, you can make prohibitive pricing to select your customer market. Large Customers, such as corporations, have "special prices" anyway, that are WAY lower, including service contracts etc.

Once you start on a low price, you destroy your brand image and customer perception on discounts. For that market, Lenovo created the other notebook line.

3. Also, How can we be sure of the depreciation rate of these machines? has anyone been keeping tabs on the models after they have bought them? What kind of rate are they falling at, or are they holding on to their prices?

Depreciation rate is always 3 years straight line for accounting, due to tax reasons. After 3 years the notebooks are dumped and replaced anyway.

Any electronics today has a useful life of 3 years, be it computers, digicams or mp3 players. After 3 years they are kind of worthless, except Apple iPods, methinks....

4. Where are the best prices (shops or internet retailers) for Europe - (in particular UK). I have found some internet prices are quite different for the same models. Im sure I havent found the best prices yet - but this forum seems to be full of very good information.

Electronics is cheapest in Germany, at present.
in Germany: www.notebooksbilliger.de (you got to pay in Euros)