'Rip Off Britain' alive and well at Costco

ianeck

We've been Costco members since they first appeared in the UK. I have to say that for a long time we were big fans. Over the past few years though we have perceived a rapid decline in range, competitiveness and customer service but never more so than this evening.
I seemed to recall having seen a wooden tool chest at one of the Costco stores. I had no use for it at the time but do now so I Googled for details. Sure enough it popped up as item 922281 at $39.97 (about £27). I called our local store quoting the item number and was advised there were 22 in stock BUT.... at a price of just under £50 plus VAT. I protested at the difference in price and it became obvious that this 'UK special pricing' issue was something that the store was clearly aware of. They justified it as the result of Costco UK's overheads and limited 'buying power'? We Brits are used to paying £ per $ value in the UK but this takes the biscuit. This item is manufactured in the far east. Are UK overheads really twice those in the US? I think not - seems like blatant profiteering to me! I glanced at a few other items and this is not an isolated instance but seemingly the norm. Problem is that I now know that when I buy at Costco I may be paying twice as much as a US member and paying a membership fee for the privilege. So much for Globalisation and so much for Costco Membership. I will see what HQ say on Monday but this is the final straw for us.

Transformers

It's not that simple.

In the US there is often local state sales tax to pay on top of the advertised price. Their taxation is vastly different to ours.

Plus, when selling in the UK, if it's a non-EU imported item then there will be import duty plus 20% VAT. Not to mention the differences in trading costs between the US and UK.

Costco has an item for sale - you think it's too expensive - so don't buy it.

This has nothing to do with 'rip off Britain' and everything to do with basic economics.

marliepanda

Also considering fuel is hugely more expensive in the UK than the US, increasing transport costs, as well as the UK minimum wage being double the US minimum wage, I could make a guesstimate that UK overheads are indeed getting towards double that of the US.

vikingaero

ianeck wrote: »

We've been Costco members since they first appeared in the UK. I have to say that for a long time we were big fans. Over the past few years though we have perceived a rapid decline in range, competitiveness and customer service but never more so than this evening.
I seemed to recall having seen a wooden tool chest at one of the Costco stores. I had no use for it at the time but do now so I Googled for details. Sure enough it popped up as item 922281 at $39.97 (about £27). I called our local store quoting the item number and was advised there were 22 in stock BUT.... at a price of just under £50 plus VAT. I protested at the difference in price and it became obvious that this 'UK special pricing' issue was something that the store was clearly aware of. They justified it as the result of Costco UK's overheads and limited 'buying power'? We Brits are used to paying £ per $ value in the UK but this takes the biscuit. This item is manufactured in the far east. Are UK overheads really twice those in the US? I think not - seems like blatant profiteering to me! I glanced at a few other items and this is not an isolated instance but seemingly the norm. Problem is that I now know that when I buy at Costco I may be paying twice as much as a US member and paying a membership fee for the privilege. So much for Globalisation and so much for Costco Membership. I will see what HQ say on Monday but this is the final straw for us.

Not really sure what the problem is? A car in the US will cost $29,999 and when transported over here will sell for £29,999.

As others have said we have import duty, 20% VAT compared to single digit sales tax in some US states., higher land costs, higer construction costs, more expensive employment costs etc etc. And that isn't taking into account the much smaller market that the UK is.

robatwork

Not really a rip off. What is really a rip off is software prices, where there's no shipping and the taxes argument is very weaselly.

Basic photoshop is about £650 or $699 but you can't buy the identical US version here. And when you go to the top of the CS6 scale....

http://www.neowin.net/news/its-cheaper-to-fly-to-the-usa-than-buy-adobe-cs6-in-australia

pollypenny

I'd say that normal. Most thing cost the same in dollars as in pounds, as far as I can see.

We've never bothered taking presents over for grandsons, but buy in the USA. Last time, the little one was excitedly looking at my case and asked if I had 'a surprise ' for him. So it's UK prices for the next trip.

Sam_Fallow

Transformers wrote: »

... there will be import duty plus 20% VAT. Not to mention the differences in trading costs between the US and UK.

marliepanda wrote: »

Also considering fuel is hugely more expensive in the UK than the US, increasing transport costs, as well as the UK minimum wage being double the US minimum wage, I could make a guesstimate that UK overheads are indeed getting towards double that of the US.

vikingaero wrote: »

... higher land costs, higher construction costs, more expensive employment costs etc etc.

So there might be a case of rip off Britain, but it sure isn't Costco's fault.

j0nathon2

Didn't OP say £50 plus VAT?

Therefore the £50 vs $39.97 are both presumably ex tax, so a fair comparison.

Regarding import duty, the US pay import duty too, and the OP said the goods were manufactured in the far east.

shaun_from_Africa

At £50 + VAT it would be £60 in Costco.


http://www.ebay.co.uk/itm/Trinity-Wooden-Tool-Box-8-Drawers-Tool-Chest-Hardware-Tools-Organizer-Box-/261769482651


http://www.amazon.co.uk/gp/offer-listing/B00SC014EG/ref=dp_olp_0?ie=UTF8&condition=all


http://www.ebay.co.uk/itm/Trinity-8-Drawers-Wood-Tool-Chest-Hardware-Tools-Wooden-Organizer-Box-BRAND-NEW/121665675991?_trksid=p2047675.c100011.m1850&_trkparms=aid%3D222007%26algo%3DSIC.MBE%26ao%3D1%26asc%3D20140107083358%26meid%3D109d28cdf8c0432baa877e0ce508492e%26pid%3D100011%26rk%3D1%26rkt%3D2%26sd%3D141553422505


Maybe Costco isn't such a rip off after all!

geerex

marliepanda wrote: »

Also considering fuel is hugely more expensive in the UK than the US, increasing transport costs, as well as the UK minimum wage being double the US minimum wage, I could make a guesstimate that UK overheads are indeed getting towards double that of the US.

I seem to remember reading somewhere that Costco US staff were paid a good bit more than min wage. Don't assume.

p00hsticks

Googling the item number brings up a link which suggests that the US price quoted was a special clearance offer at particular US branches

"The Covington Costco has the Trinity Wood Tool Chest on clearance for $39.97. That is $35 off Costco’s regular price of $74.97. While supplies last!"
http://www.frugalhotspot.com/2014/12/trinity-wood-tool-chest/

The stated US regular price of $74.97 seems comparable with the UK price of just under £50 +VAT quoted to the OP