Posts Tagged ‘product pricing’

Cost Confusion

From our email archives, another frequently asked question about the cost of our products:

Dear Timberland,

How come your prices in (name a region of the world) are more expensive than they are in (name another region of the world)?  Why can’t I buy the same Timberland product for the same price anywhere?

Signed,
Price Conscious Customer

Fair question.  Here’s what we learned:

As a company that operates around the world, we have to respond to a wide range of external and internal factors that do create complexities in pricing our products.  In some countries, items such as VAT, transport costs and duty have to be factored in to our retail prices – all of which can contribute to a higher price in one location and a lower price in another.  Exchange rates also contribute to price variations from country to country.  Market demand is also a key factor in determining cost.  In addition, retailers are completely free to set their own prices to the consumer.

Taking all of these factors into account, it’s not uncommon to find that companies (like Timberland) offer products for different prices in different countries.

So a pair of Earthkeeper boots in New York might be more or less expensive than the same pair of boots in, say, Paris … which got us wondering:  What’s the biggest price difference you’ve seen on any given product from one region to another?