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To: Bobby Yellin who wrote (43165)	10/17/1999 7:01:00 PM
From: goldsnow	Respond to of 116764

But when you probe the subject more deeply, you find that pricing is far more complex than simple accusations about rip-offs suggest. For one thing, many of the companies apparently ripping us off are not making much money. Companies like British Airways and Levi Strauss, both recipients of consumer and media wrath, are struggling at the moment to satisfy their investors. And when you look at the retailers who typically take most of the flak for overcharging in the UK, although they do well (they make far bigger margins than their US counterparts), they do not come close to making enough money to account for the perceived differences between our prices and those across the Atlantic. If you do not believe it, take a look at the figures. Typically, when a British store sells a product for œ117.50: œ17.50 is VAT œ10 goes to the retail staff œ6 goes to the retail land lord in rent œ5 goes to the store as profit œ79 goes to the manufacturer and distributor Even if the retailer made no profit at all (which would not be good for the long term investment in retailing!) the price would not fall by more than 5%. But when you probe the subject more deeply, you find that pricing is far more complex than simple accusations about rip-offs suggest. For one thing, many of the companies apparently ripping us off are not making much money. Companies like British Airways and Levi Strauss, both recipients of consumer and media wrath, are struggling at the moment to satisfy their investors. And when you look at the retailers who typically take most of the flak for overcharging in the UK, although they do well (they make far bigger margins than their US counterparts), they do not come close to making enough money to account for the perceived differences between our prices and those across the Atlantic. If you do not believe it, take a look at the figures. Typically, when a British store sells a product for œ117.50: œ17.50 is VAT œ10 goes to the retail staff œ6 goes to the retail land lord in rent œ5 goes to the store as profit œ79 goes to the manufacturer and distributor Even if the retailer made no profit at all (which would not be good for the long term investment in retailing!) the price would not fall by more than 5%. news.bbc.co.uk