Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT!

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RickJP909
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2014/06/30 10:30:02 (permalink)

Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT!

Hi, can anyone explain the rationale around the current offer as my maths equate the answer differently.
 
Producer Upgrade from X2 to X3 = $99
At the current exchange rate $99 = £58!
Adding UK VAT of 20% = £11.60 + £58 = £69.60
Perhaps it's postage and packaging but hey, there's no media as it's download only!!!
 
So how does that compute anyone?

Synth Hardware Aficionado!  Moog Sub 37, Roland MKS-70/XV-5080/JV-1000/JP-8000/JP-8080/Boutique JP-08, Oberheim Matrix-1000, Korg EX-8000/MS2000B, Novation Super Bass Station/A-Station/Drum Station 2/Supernova 2, E-MU Orbit-3, Edirol UM-550/880, Lexicon MX300, Akai MPD226, Mackie ProFX22, M-Audio Delta Soundcard.  PC: AMD FX-6350, 8GB RAM, Samsung 840 EVO SSD, Windows 7 Ultimate 64-bit, Sonar X2a Producer/Platinum (32-bit).
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    Splat
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/06/30 10:55:42 (permalink)
    Maybe buy a T-Shirt with it?

    Sell by date at 9000 posts. Do not feed.
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    #2
    200bpm
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/06/30 11:25:34 (permalink)
    Additional overhead in phone support with European customers? (Who may not speak English well.)
     
    I wouldn't fret over ten bucks.
     
    If you want a reality check, consider how much commercial software products generally cost in China.  They have lowered the cost either because they do not have as much money and/or pirating is rampant.  I think US should just "write off" significant portion of debt to offset pirating and R&D costs.  
     

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    #3
    Splat
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/06/30 12:32:23 (permalink)
    @200bpm (I know you are reading this) people who use pounds are from the UK and speak English, funnily enough your country (USA I assume) inherited our language. You are thinking about the Euro. How the heck you suddenly get to put the UK and China under the same roof beats me (totally irrelevant to the OP anyway), perhaps consult a map and leave US borders once in a while to get a view of the world outside your bubble.

    The real answer is that the exchange rate has been fluctuating recently and this seems cheaper than usual to be honest. Normally it's more expensive, the scenario is to always overcharge UK/Europeans rather than undercharge. It's not too bad right now however.

    Sell by date at 9000 posts. Do not feed.
    @48/24 & 128 buffers latency is 367 with offset of 38.

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    Paul P
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/06/30 13:47:52 (permalink)
     
    I wouldn't complain, it's 150$ in the US store.
     
     

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    #5
    Grumbleweed_
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/06/30 14:17:34 (permalink)
    RickJP909
    Hi, can anyone explain the rationale around the current offer as my maths equate the answer differently.
     
    Producer Upgrade from X2 to X3 = $99
    At the current exchange rate $99 = £58!
    Adding UK VAT of 20% = £11.60 + £58 = £69.60
    Perhaps it's postage and packaging but hey, there's no media as it's download only!!!
     
    So how does that compute anyone?


    This subject has come up many times in the past and it never makes sense so you basically have two choices:
    Suck it up and forget about it or get all twitter and bisted. Complaining on this forum has never led to a change (I've been there and tried that) so blindly accepting the status quo is the stress free option .

    Grum.

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    #6
    scook
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/06/30 14:22:36 (permalink)
    Blame George III, those Bostonian's know how to carry a grudge.
    #7
    Splat
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/06/30 14:48:36 (permalink)
    We will be back for tea! :).

    Sell by date at 9000 posts. Do not feed.
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    Stockport
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/06/30 15:26:21 (permalink)
    Hi Rick, you're not alone here! The Cakewalk offer to UK customers is both offensive and exploitative. An email to Cakewalk support asking why the difference in price brought the following response:
     
    "The discrepancy between prices on our US Web Store and the GBP Web Store is due to the fact that all prices on the GBP web store include VAT. The additional amount above VAT is there to make up for potential exchange rate fluctuations and to avoid directly competing with local dealers. As a resident of Great Britain, the web store will require you to make a purchase in the Great Britain store."
     
    I subsequently replied to the effect that..........
    "From what you say you are charging UK Customers an Extra £10  an increase of some 13% simply to cover ‘potential exchange rate fluctuations’? That is clearly not fair, just or equitable. I repeat from my previous email, you made me an offer to purchase Cakewalk at $99 and I would like to take up this offer. I accept that UK customers face a VAT charge and so that should equate to £69.93 as outlined above. The additional text you added about “and to avoid directly competing with local dealers” is plainly not applicable as you made the offer to me for $99. Cakewalk must realise that UK customers are tired of seeing manufacturers seeking to exploit them. I wish to escalate this issue with you in the hope that you will apply equitable terms to your UK customers and not leave with a bad taste in their mouths upon purchasing the products you offer."
     
    Support failed to answer this second email. Seems they are more than happy to exploit their UK customer base and will continue to do so.
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    jeffb63
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/06/30 15:48:40 (permalink)
    It's for this reason that I decided not to let them have any more of my money.
     
    That and having to pay for an upgrade to fix historic bugs.
     
    I'll stay on X2 until it becomes obsolete then take my spending elsewhere.
     
    Been with Cakewalk since Pro 5 (MIDI only) about 1995 but no more!

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    sharke
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/06/30 16:20:09 (permalink)
    Every country represents a different market with different levels of supply, demand and a whole host of other factors. Every business in the world sets it's prices based upon these factors. It seems a little economically naive to expect the price of a product to be a direct translation of the exchange rate in each country.

    Look at the price of laptops, cameras or any other form of technology in the US versus the UK. It's almost always cheaper in the US. When my dad last visited me in New York from the UK, he bought a camera lens which was so much cheaper than it would have cost back home that it almost paid for his flight. And this lens wasn't manufactured here.

    James
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    #11
    RickJP909
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/06/30 19:33:01 (permalink)
    Well done Stockport, that was a well written e-mail.
     
    At the end of the day guys, it's not about £11 lousy pounds or thereabouts but the fact that we've been offered a "loyalty upgrade" for $99!!!  So being loyal means we pay an additional premium?
     
    Well, being OCD as I am and not particularly wishing to spend hours downloading, I like to purchase the media set so in that case, this whole package comes to £104!
     
    Et Cetera a UK Cakewalk dealer are doing the whole package for £110 boxed, with disks, printed manual and VAT!  They also provide e-mail and phone support for UK customers direct!
     
    So on that basis, for UK customers buying from the Cakewalk store doesn't compute.
     
    In the past, I was offered X2 Pro as a loyalty upgrade for £39 and I snapped that up.  Now that's what I call looking after your customers so for the time being I'll wait until it drops sub-£50...
     
    BTW 200bpm, most European's use Logic Pro or Cubase for that reason as they have multilingual staff and Sonar hardly gets a look-in so if Cakewalk want to break that market, they need to ensure they're being fair.
     
    Also, Sharke I understand and accept what you're saying but we're talking about download software here which other than hosting fees, has little cost attached to it as there's no manufacturing, packaging or shipping costs, etc.  Also, you can't send an e-mail to overseas customers telling them that they can buy an upgrade for $99 and then charging more for having it in your own currency.
     
    So, in that case let us UK/Euro folks buy it in dollars as I can tell you, my bank will charge 1 exact pound for such a transaction and I'll get the product at the near exact price.
     
    Doing what Cakewalk have done is like me coming to the US and going to one of the shops you mentioned and for those same goods a salesman saying, "ah you're from the UK, well you can't have it at $99 but you can have it for $124", as that's the equivalent exchange rate which is being charged!!!
    post edited by RickJP909 - 2014/07/01 07:22:43

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    #12
    sharke
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/06/30 20:12:44 (permalink)
    RickJP909

    Also, Sharke I understand and accept what you're saying but we're talking about download software here which other than hosting fees, has little cost attached to it as there's no manufacturing, packaging or shipping costs, etc.  Also, you can't send an e-mail to overseas customers telling them that they can buy an upgrade for $99 and then charging more for having it in your own currency.


    Think of it like this. The US price is a factor of the US market. Why wouldn't the UK price be a factor of the UK market? Regardless of it being a download, things are priced differently in different countries for reasons which aren't limited to shipping costs and taxes. But I agree, it's a bit off sending out emails to non-US users offering the price in dollars, if that's what they're doing. They should at least word the offer appropriately by country.

    James
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    200bpm
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/06/30 20:14:14 (permalink)
    Stockport
     
    Support failed to answer this second email. Seems they are more than happy to exploit their UK customer base and will continue to do so.




     
    The math is a bit off, but at least they responded.  Also... keep in mind that Sonar upgrades are cheaaap compared to other sequencers.  AND they honor OLD versions of their software.  I just upgraded from SONAR XL to X3 Producer for $149, which included AD2, Melodyne, and several other plugs that can be used in other sequencers . Granted I gave Cakewalk a good bit of money for early versions of CWPA.  Other platforms penalize you heavily if you are more than one version old.  
     
    For instance, I have been upgrading with Samplitude since v7, when the program used to cost $1000 (so Ive given them a ton of money.)  They recently lowered the price to $500 for ProX and they want $359 for my upgrade to stay in the "Pro" tier, which gives nothing but 64bit versions of plugs I already own.  Think about that.  I've probably given them $1500-2000 over the past 8 years or so, and to go from v11 to v12 they want another $359, when all v12 gives you over v11 is 64bit, and mild UI tweaks.  And if I don't upgrade now, the price will go to something like $600 (for the pro tier) if I wait until v13.
     
    I think you should look at the big picture.  Cakewalk is upgrade friendly.

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    #14
    mettelus
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/07/01 15:48:19 (permalink)
    Man... People will quibble a lot over the price of a few beers!

    Demand the coffee mug!!!

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    #15
    lawp
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/07/01 17:08:43 (permalink)
    In my experience Cakewalk are the only company with pricing like this, maybe someone can give examples of others?

    sstteerreeoo ffllllaanngge
    #16
    BJN
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/07/01 19:47:59 (permalink)
    One thing to check out is who was the correspondence with? The person.
    The upset is not with Cakewalk if the person you were in correspondence with could of very well of applied a total arbitrary to the situation.
    I'd suggest checking this out on other external channels.
    It is not uncommon for a new person at a job to make wreckless mistakes, in fact
    in the competitive market the enemy within getting paid while underhandedly destroying a company is the subject of my latest book. 

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    Stockport
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/07/02 11:01:36 (permalink)
    Interesting.......we seem to have a divergence of opinion between those who feel exploited (UK/European Customers) and the US customers who are not being thus exploited and wonder why we should be making a fuss? Funny as I thought it a matter of common decency and respect to treat ALL customers in a just and equitable manner and as a matter not only of honour but of laws of offer and acceptance to fulfil the terms i.e. $99 or it's equivalent exchange rate. We are talking about a simple download no shipping or external factors.
     
    BJN suggests the complaint may not lie with Cakewalk but it surely does! Cakewalk made an offer and then changed the terms to actively discriminate against non US customers.
     
    I suggest that non US customers do not let the matter lie. I have still yet to receive a reply from Customer Services following my second email but will continue to pursue the matter. I can't help but feel that if the circumstances were reversed many of those who contributed above would be equally disgruntled! It's not a matter of it being 'the price of a few beers' it's about how you treat, engage, respect and further a loyal customer base.
    #18
    200bpm
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/07/02 11:40:28 (permalink)
    Cakewalk responded:
     
    and to avoid directly competing with local dealers.
     
    Different markets have different rules.  If they want to grow their presence in UK based markets, they can't undercut UK-based shops.  Why would a UK store become a Cakewalk dealer if everyone could just order from their website directly for the same price?  You are disregarding the part of their answer that explains this practice.
     
    Don't get your knickers in a twist.
     
     
     

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    DeeringAmps
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/07/02 11:43:36 (permalink)
    "UK and speak English, funnily enough your country (USA I assume) inherited our language."
    Never forget, we are two countries separated by a "common" language!

    T

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    lawp
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/07/02 11:47:42 (permalink)
    We're talking download, a global market, the $99 is the same wherever it's paid from... I suspect that the effort to change the shop software is too much for it to be worth their while

    sstteerreeoo ffllllaanngge
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    sharke
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/07/02 11:51:07 (permalink)
    Stockport
    Interesting.......we seem to have a divergence of opinion between those who feel exploited (UK/European Customers) and the US customers who are not being thus exploited and wonder why we should be making a fuss? Funny as I thought it a matter of common decency and respect to treat ALL customers in a just and equitable manner and as a matter not only of honour but of laws of offer and acceptance to fulfil the terms i.e. $99 or it's equivalent exchange rate. We are talking about a simple download no shipping or external factors.
     
    BJN suggests the complaint may not lie with Cakewalk but it surely does! Cakewalk made an offer and then changed the terms to actively discriminate against non US customers.
     
    I suggest that non US customers do not let the matter lie. I have still yet to receive a reply from Customer Services following my second email but will continue to pursue the matter. I can't help but feel that if the circumstances were reversed many of those who contributed above would be equally disgruntled! It's not a matter of it being 'the price of a few beers' it's about how you treat, engage, respect and further a loyal customer base.


    There is no law which says products have to be the exact same price in every country. I also feel like you need to reassess your definition of the word "exploit." And maybe look into what markets are and how they factor in determining prices.

    James
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    sharke
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/07/02 11:54:28 (permalink)
    lawp
    We're talking download, a global market, the $99 is the same wherever it's paid from... I suspect that the effort to change the shop software is too much for it to be worth their while


    It is not just a "global market." The market of the county the product is sold in is a factor too.

    James
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    #23
    lawp
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/07/02 12:08:42 (permalink)
    Respectfully disagree

    sstteerreeoo ffllllaanngge
    #24
    Cactus Music
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/07/02 12:16:16 (permalink)
    And then there is the publishing of books that are clearly marked $10.00 US and $15 Can. The exchange rate has been closer to zero for years.. For the last  few year we were actually ahead of the US buy 4 or 5 cents  it's just recently they have snuck ahead, but only by 8-10 cents,, never $.50 ever!   All books and magazines  ( sheet music too) have always had this ridiculous differance... we just suck it up.
    Advantage we have here in Canada is if we purchase from the US with a Visa card it nails the exchange rate to the penny. It's better to order directly from the states if they will ship to Canada too. If not,  I'm on the border and just go pick it up from the General Store in Danville Wash.
    The Download from Cakewalk was in US dollars $99, My Visa charged me $102.77 Can. that day.

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    #25
    200bpm
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/07/02 12:45:30 (permalink)
    Try to use some logic:
     
    You are singling out Cakewalk, but EVERY DAW company does the same thing.
     
    DAW software made in Germany (Ableton, Cubase, Samplitude) all sells in the USA for a _99.00 price.   They are priced at 99.00, 199.00. 299.00, 399.00, 499.00 etc.
     
    I am absolutely positive that the amount paid by US customers is different than what German customers pay.  If they worked it out to be the same by exchange rate, then we would be paying oddball amounts (523.87, 12.34, etc)
     
    Is there a reason you are singling out Cakewalk and not other companies?

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    #26
    Splat
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/07/02 13:33:37 (permalink)
    @200bpm without a unit of currency being quoted next to the figures, your post is meaningless to me. Cheers...

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    sharke
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/07/02 14:31:22 (permalink)
    CakeAlexS
    @200bpm without a unit of currency being quoted next to the figures, your post is meaningless to me. Cheers...


    Really? Seems obvious that the first set of figures is dollars and the second set represents "some other currency."

    James
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    #28
    sharke
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/07/02 14:32:25 (permalink)
    lawp
    Respectfully disagree


    With what? That national markets influence the price of international products?

    James
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    #29
    sharke
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    Re: Sonar X3 Current Special Offer Pricing - $99 not = £79 inc VAT! 2014/07/02 14:40:21 (permalink)
    Cactus Music
    And then there is the publishing of books that are clearly marked $10.00 US and $15 Can. The exchange rate has been closer to zero for years.. For the last  few year we were actually ahead of the US buy 4 or 5 cents  it's just recently they have snuck ahead, but only by 8-10 cents,, never $.50 ever!   All books and magazines  ( sheet music too) have always had this ridiculous differance... we just suck it up.
    Advantage we have here in Canada is if we purchase from the US with a Visa card it nails the exchange rate to the penny. It's better to order directly from the states if they will ship to Canada too. If not,  I'm on the border and just go pick it up from the General Store in Danville Wash.
    The Download from Cakewalk was in US dollars $99, My Visa charged me $102.77 Can. that day.


    My experience of living in both the UK and the US is that almost everything is cheaper in the US. Most notably, technology and clothes. I have never visited Canada but I suspect it's the same. There are many things which affect prices in a county - things like taxes, regulations, red tape, distribution costs and the price of competing products. I suspect the overall size of the market has a lot to do with it, as well as the price that people are prepared to pay for a product in various countries (people have different priorities, expectations, attitudes etc).

    When my friends and family from the UK visit me in New York, they go nuts buying stuff because it's so much cheaper than it is back home.

    In the case of books that have a US price and a Canadian price on them - those prices are never going to be a direct conversion of each other. They're priced according to the book market in each country.

    James
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    #30
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