Rip Off Britain
Rip-off Britain - Wikipedia, the free encyclopedia
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Rip-Off Britain
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Rip-Off Britain is an expression coined by the tabloid press in the late 1990s to describe dissatisfaction with certain products costing more in the United Kingdom than in the some other countries, especially certain members of the EU and the United States. Such complaints are particularly prevalent in the media when the Pound (currency) is strong, as this makes overseas prices lower in sterling terms.
Origins The phrase Rip-Off Britain came out of a campaign run by the Consumers' Association in 1998 aimed at lowering car prices in Britain, which were at the time, and despite legislation outlawing it, significantly higher than the EU average.
The Consumers' Association hired a stand at the British International Motor Show, only revealing on press day its true purpose. The organizers (SMMT, Society of Motor Manufacturers and Traders) decided not to fan the media flames by ejecting the Consumers' Association.
The phrase, "Rip-Off Britain" had already taken a hold on the media and it became a term in frequent media usage, used to describe anything that was wrong with Britain. Along the way, it proved to be one of elements that led to a tipping point for car prices, with prices harmonizing with the EU very quickly.
The campaign was devised by UK advertising agency Claydon Heeley, who are known for this type of "guerrilla marketing" work.
Rip-Off Britain Today Other products which still cost significantly more in Britain include:
- CDs and DVDs
- Computer Software - the most notable example being Microsoft Windows Vista
- Books
- Electrical Goods
- Houses
- Petroleum and diesel fuel
For example: The PlayStation 3 costs approximately £120 more in the UK than the US.
The defence generally used by companies subjected to "rip-off" complaints is that some of their fixed costs are higher in the United Kingdom than elsewhere. The amount of substance to this defence varies from case to case. Also, the level of indirect taxation applied to some products, such as Alcoholic beverage and tobacco, varies widely from country to country.
Although VAT is high in the UK at 17.5%, price differences are often far larger than this. For example when Playstation 2 was launched it cost $300 in America and £300Playstation 2#Price history (this equated to around $435 dollars in November 2001) in the UK; about 38% more than the US price, once an average 5% ($15) US sales tax is added.Something else that is often not taken into consideration is that US prices are quoted before tax, while UK prices already include VAT. This would put the £300 UK Playstation 2 at about £255 before VAT or $370.
However, the price differences compared to the US and Asia are also existent in other European countries.
Another example is Microsoft Windows Vista, where upon release it had an suggested retail price (Recommended Retail Price) of $249 (£127) in the United States and £249 ($487) in the United Kingdom. This makes it almost twice as expensive to buy in the UK than in America, which tax differences alone cannot account for.
Yet another example is books. Amazon.com provides a good opportunity to research the "rip-off Britain" effect because books are an international commodity item whose price is unaffected by tax in the UK. As an example, John Grisham's book "The Broker" is listed at £6.99 ($13.74 on Feb 2, 2007) at the UK Amazon site and $7.99 for the same item at the US site. A strong pound cannot explain away this 71% price difference. However, the same book could be purchased at UK hypermarkets such as Tesco Extra and Asda for less than £3.99.
Effect on Internet Retail Perceived or actual higher prices in the UK often have the effect of making British consumers order goods from the Internet, whether from UK businesses claiming to break a pricing cartel (e.g. CD WOW! for CDs, Play.com for CDs, DVDs, and videogames, and Glassesdirect in the prescription spectacles business) or directly from abroad, including via ebay and other online auction sites. See Uk internet businesses.
See also
- Regional lockout
- de:Teuro - similar complaints in Germany after introduction of the Euro currency
References
External links
- BBC News investigates 'Rip-off' Britain (2002)
- 'Rip-Off Britain' website
- Macworld article on iPod nano pricing in Britain (Jan 2007)
Rip-off Britain
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Rip-Off Britain - The Consumers Champion, Rip-off, Ripoff Britain ...
We reveal the truth why British consumers have been Ripped-Off for the past 50 years, and how you can avoid being ripped-off!
Rip-off Britain - Wikipedia, the free encyclopedia
Rip-off Britain is an expression used within Britain to denote dissatisfaction with higher consumer prices than overseas. [edit] External links. MSN Money:
Rip-off Britain: UK firms charging more than Continent face EU ...
Companies which make British customers pay higer prices on gadgets, designer clothes and other products face being named and fined by the Eurpean Union
Goodbye to rip-off Britain | Martin Samuel - Times Online
There is a guy, does business up town, doesn't use his car much, bit of a novice when it comes to scooting around London.
Rip-off Britain II - Birmingham Mail - Is It Just Me
My son is getting married in Greece and was unfortunate enough to book his flights through XL - who are still trading in France and Germany by the way so it would be an interesting ...
Rip off Britain -
How nice to see Scottish & Southern warning customers it is likely to increase electricity and gas prices again, blaming record oil prices for any increases.
Rip-off Britain is back -Times Online
Remember rip-off Britain? This was when British consumers were routinely fleeced, paying higher prices than anybody else in Europe for food, clothing, cars and just about ...
BBC News | Business | Do we live in rip-off Britain?
The BBC's Evan Davis investigates whether customers in the UK are right to believe they really live in "rip-off Britain".
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Rip Off Britain 08 May 2007. I travel regularly in Europe and recently bought an Oral-B Dual electric toothbrush in France. It cost €20 (equivalent to 13.50).