|OT: prices of calculators in Brazil (was: ALG/RPN (and more) in the new Platinum)|
Message #7 Posted by Vieira, Luiz C. (Brazil) on 8 Nov 2005, 12:14 a.m.,
in response to message #6 by bill platt
Hi Bill, all;
in fact, but remember we're talking about Brazil. And some things happen in here that, although history may tell us a reason, only history would know this so-called reason. The problem is not exactly when the product leaves USA; in our case, the actual 'problem' resides in its delivery... Brazilian taxes over industrialized products (known here as IPI, or 'Imposto sobre Produto Industrializado') and others are, by themselves, so high that, in some cases, they go close to 50% of the final consumming COST, then we have commerce margin...
The fact is that most of the technology that is 'consummed' in Brazil is of foreign origin. I myself believe that as other countries have their own technology, we more than likely might also have ours, but in a moment in history where many countries were developping their own technology in many 'high-tech' areas, somehow Brazil decided that it would be less expensive to buy their final products instead of investing the same way inside here (reasons 'unknown'). I know other countries have done the same because of their own, very reasons, and that, in some cases, results were differently taken by their people. In our case, consumming foreign technology (no local equivalent, most cases) has its consequences...
(Please, in the following analysis, consider all references to product price as related to the HP12C Platinum) That's why a close to US$80 (US$105 is the MSRP, right?) product is regularly sold in Brazil for about R$450. If the straight current conversion is applied (US$1 ~= R$2.2) we have no more than R$176. The alternate commerce (final price: R$250) gives us a ~42% add-on, including profit and some expenses. The regular commerce (final price: R$450) asks for a ~156% add-on, that might include the regular commerce taxes (Brazil) + expenses + final profit. I know that final profit in terms of regular commerce is, depending on some circumstances, either lower or higher than that practiced in alternate commerce.
This is a very, very raw (and macro) analysis from the point of view of an engineer. Economists would see (and explain) it differently; in fact, terms like 'internal commerce protection' and 'incentive to local developments' would arise, but other considerations like 'extreme profit for those who only see profit' (not commerce, instead those who are interested on this scenario) would be intentionaly omitted. As this is a technology forum (not an economy one), I think that putting things straightly simple would be 'fitting them in'.
Oops! Wrote too much. Sorry! at least I hope it makes sense in all aspects, though. And I hope this elucidates a bit for you, Bill.
Please, forgive any typos (no spell checking).
Edited: 8 Nov 2005, 12:22 a.m.