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Does anyone know why...


djbobbins
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... Stihl chainsaws are so much more expensive in the UK than the USA?

 

I have just found a site near where a pal of mine's family live (Pennsylvania) where a Stihl authorised dealer is selling an MS250 with 16" bar for $319.95.

 

At current exchange rates that's less than £200, yet the Stihl UK recommended price for the same model is £505 and my local dealer (who appears to offer a good discount on Stihl gear) is £348.

 

Is this like the whole thing with Levi jeans years ago where they operated separate prices for different markets?:confused1:

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... Stihl chainsaws are so much more expensive in the UK than the USA?

 

I have just found a site near where a pal of mine's family live (Pennsylvania) where a Stihl authorised dealer is selling an MS250 with 16" bar for $319.95.

 

At current exchange rates that's less than £200, yet the Stihl UK recommended price for the same model is £505 and my local dealer (who appears to offer a good discount on Stihl gear) is £348.

 

Is this like the whole thing with Levi jeans years ago where they operated separate prices for different markets?:confused1:

 

The saws do not all come from the same place. Its not like they come out of one factory and have different prices put on them. Ours are made in the Europe and are expensive. American ones are made somewhere in the states and are cheaper.

 

I don't know if thats because they make more of them, or the raw materials are cheaper or waht, I'm not sure. But that is why there is a difference as far as I know?

 

Also there might be more red tape in Europe, testing and what not that might make a difference.

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For what it's worth - my cynical interpretation of the situation would be that it is the company explioting the way it has set up its distributor network:

 

- Stihl knows that it is a premium product and that dealer's don't want to not be able to sell Stihl.

 

- The company therefore demands that sales have to be made in person by a dealer (also helps Stihl look good from a H&S point of view; like they are ensuring a thorough handover of product)

 

- This means that remote selling is impossible, since as soon as Stihl find out someone is doing it that seller will get "excommunicated"

 

- Therefore Stihl can set a higher price in any market which it thinks will pay that price.

 

 

I can't believe the products are that much different - if at all - in quality or cost of manufacture. Sure, there will be a difference in purchase taxes, which might make up say 20% of shelf price, but would not explain the difference between UK and US prices.

 

Put it this way - if I was running Stihl and saw that the same product I had to charge £350 for in the UK, but under £200 in the US, I'd be wondering how much it cost to ship a containerload of saws across the Atlantic.

 

(Answer = a hell of a lot less than £150 per saw!)

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