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Recently I read some discussions on internet and heard by some people about the problem of international pricing.
Many people think that perfumes have to cost the same price everywhere. But why this idea?
It’s difficult for me to understand this point of view. And I see for some people is difficult to understand why perfumes can have different prices in different country ( in my opinion this could be also in the same country, but it’s an other story).
First reason is taxes. Each country have different taxes. I don’t like to take as example the EU, but in EU in Luxembourg VAT is 15% in Italy 22%. Is it strange that price is different?
And there is not only VAT. In Italy for example taxes are higher than in other countries.
In Switzerland VAT is 8%. If you are a small company, like me, you have no VAT at all. Then is it so strange that a perfume in Switzerland with no Vat cost less than the same in Italy with 22%?
Import has a price. That varies from country to country. In Italy for example import prices are higher than in Germany or Austria. Again, could the price be the same?
And it’s the point when someone say, yes but there are internet shops. If in Switzerland perfumes cost less, I will order there and save money. No, it’s not so easy. If you order from Switzerland you have to pay the custom duties and vat and shipping. And also in EU ( I think EU is the reason behind this misunderstanding) if you buy from Luxembourg to save 10 euros, you will pay more for shipment.
An other point. For me it’s more expensive, a lot, to sell my perfumes in EU than in Switzerland or US, due to the docs and compliance.
Probably people will continue to think that perfumes or other goods have to cost the same everywhere. But it’s not easy.
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