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Today's biggest tractor price difference
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<blockquote data-quote="e3120" data-source="post: 4687268" data-attributes="member: 1161"><p>First paragraph: Are you sure? The pound fell at the vote and buys less since, helping exports but making imported equipment/raw materials dearer to buy.</p><p></p><p>Second paragraph: Yes, maintaining price stability in local markets can have odd effects. At the same time as your Audi example, there was a watchdog hoohaa about it being cheaper to ship a Rover 200 from brum to Italy, and bring it back, than to buy one here. The reason was simple - the Rover could not justify any price increase on the Italian forecourt, so had to be offered for the same Lira. Let's say the UK price was reduced to match (further increasing the losses and frustration of BMW shareholders), then what would happen when the exchange rate swung back? Increase UK prices for a product that never left its shores or have the Italians moaning that it would be cheaper to import their cars privately (leading to a case for reducing Italian prices by the same arguement)? If a company was to react like this, they'd eventually be giving product away. No defence, but some explanation for seemingly rip-off discrepancies</p><p></p><p>The other factor that has sucked up R&D budgets is, of course, emissions reduction. Previously, buyers would have expected R&D spend to deliver performance-enhancing benefits, which made price increases easier to swallow.</p></blockquote><p></p>
[QUOTE="e3120, post: 4687268, member: 1161"] First paragraph: Are you sure? The pound fell at the vote and buys less since, helping exports but making imported equipment/raw materials dearer to buy. Second paragraph: Yes, maintaining price stability in local markets can have odd effects. At the same time as your Audi example, there was a watchdog hoohaa about it being cheaper to ship a Rover 200 from brum to Italy, and bring it back, than to buy one here. The reason was simple - the Rover could not justify any price increase on the Italian forecourt, so had to be offered for the same Lira. Let's say the UK price was reduced to match (further increasing the losses and frustration of BMW shareholders), then what would happen when the exchange rate swung back? Increase UK prices for a product that never left its shores or have the Italians moaning that it would be cheaper to import their cars privately (leading to a case for reducing Italian prices by the same arguement)? If a company was to react like this, they'd eventually be giving product away. No defence, but some explanation for seemingly rip-off discrepancies The other factor that has sucked up R&D budgets is, of course, emissions reduction. Previously, buyers would have expected R&D spend to deliver performance-enhancing benefits, which made price increases easier to swallow. [/QUOTE]
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Today's biggest tractor price difference
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