Many US-based companies charge the same amount in the US as in Europe: a certain item will cost 100 USD when bought in the US, and 100 EUR when bought in Europe. This really means that the European customer pays 44% more for his stuff (1.44 USD = 1 EUR, today). Usually, this higher price includes the European Value Added Tax (VAT), which is around 20%. Still, American companies charge 24% more to European customers, presumably because the cost of selling for them is higher in Europe. Perhaps just because they can get away with it.
- Are there any European companies that do the same: charge more to American customers than for European customers?
- When you, as a European business, announce prices in EUR and USD: which conversion rates do you use? How often do you update prices to reflect changing exchange rates?