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lgsml

Pricing difference for EU/US

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Could you please justify the pricing model for packs based on region? I have just purchased backer pack for 49€ from the profile page, while the price for US I believe is 49$ ? Just for the notice - 49$ != 49€, and I do not feel much richer than regular US citizen. Meanwhile, (I did not try, but I can imagine) you can buy the same from retailers like Markee Dragon but still in $?

I understand that we talk for just 10% price difference, but still it looks kinda weird.

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Posted (edited)
On 8/17/2019 at 12:32 AM, lgsml said:

Could you please justify the pricing model for packs based on region? I have just purchased backer pack for 49€ from the profile page, while the price for US I believe is 49$ ? Just for the notice - 49$ != 49€, and I do not feel much richer than regular US citizen. Meanwhile, (I did not try, but I can imagine) you can buy the same from retailers like Markee Dragon but still in $?

I understand that we talk for just 10% price difference, but still it looks kinda weird.

Welcome to the forums.

This question has been asked frequently throughout the years. And fortunately the answer is still the same. Basically this is a false appearance issue.

In fact the EU prices are a little lower than the USD prices would be. Because the USD prices in the store don't include VAT (the added value tax), the EU prices do.

As far as I understood, that's mostly because the so-called regional taxes in the US can differ from country to country, so prices are usually shown without taxes before the checkout. While the european law demands to show the final price immediately at the offer.

When you take a look at the US store, it says: " * All prices are in USD unless otherwise stated and do not include regional tax. "
When you take a look at the EU store, it says: " * Order Price VAT is included, if applicable. "

Currently 10 USD is 9 EU. The US package is 50$+taxes. That would be 45€ + about 20% taxes = 54€ including taxes. So the current EU price of 50€ including taxes is in fact cheaper than the alternative. 

 

P.S.: If they now increase the price, only because you wanted the prices to be fair, I expect you to pay the difference between 50 and 54 for all future EU customers. ;) 

Edited by Kraahk

2W1ZHpA.jpg

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Posted (edited)
8 hours ago, Kraahk said:

Welcome to the forums.

This question has been asked frequently throughout the years. And fortunately the answer is still the same. Basically this is a false appearance issue.

In fact the EU prices are a little lower than the USD prices would be. Because the USD prices in the store don't include VAT (the added value tax), the EU prices do.

As far as I understood, that's mostly because the so-called regional taxes in the US can differ from country to country, so prices are usually shown without taxes before the checkout. While the european law demands to show the final price immediately at the offer.

When you take a look at the US store, it says: " * All prices are in USD unless otherwise stated and do not include regional tax. "
When you take a look at the EU store, it says: " * Order Price VAT is included, if applicable. "

Currently 10 USD is 9 EU. The US package is 50$+taxes. That would be 45€ + about 20% taxes = 54€ including taxes. So the current EU price of 50€ including taxes is in fact cheaper than the alternative. 

 

P.S.: If they now increase the price, only because you wanted the prices to be fair, I expect you to pay the difference between 50 and 54 for all future EU customers. ;) 

 

something is not working out in this explanation:

1. First of all a bit about taxes in the USA. The USA simply does not have VAT - so nothing to include, but it is what you supposed I believe, that is OK. Instead they do have common 'state sales taxes' state-wide, and more local surtaxes, which may be defined by county. There is no US state with higher than 7.5% local sales tax, or higher than 12% average tax including local taxes. Which makes the worst possible price (if not point 2) for US - 55$, exactly same cost as for EU, so definitely no one going to pay any "differences" that you mentioned.

2.  I have just registered via proxy from Louisiana, which is according to https://www.usatoday.com/story/money/taxes/2018/03/27/states-highest-and-lowest-sales-taxes/452512002/ has the most avg tax in the USA, and I am able to buy pack for 49$ 

tax.png

So apparently there are no sales taxes collected from online payments. I am not going to investigate per-state requirement to collect online retail tax, but as we can see from simple experiment - you can easily buy game for stated 49$ in US (after processing to paypal - it still shows 49.99$ in the final checkout).

4. I still can buy pack from retailer from Austria for 49$. https://store.markeedragon.com/catalog/Crowfall_Patron_Backer_Pack.html

Edited by lgsml

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Technically, you’re supposed to pay sales tax on all online purchases in the US. It’s a crime not to. However it’s not one that is pursued by any agency to enforce it. 

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