Stockport
"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."
Disclaimer: I don't speak for Cakewalk. However, I have had much experience in this industry and have seen the view from the retailer's, manufacturer's, and customer's side.
First, the amount of legalities that all three have to go through (although it tends to be hidden the most from the customer) is immense. That alone influences price.
But overall, a quick search showed that the prices for
all American software tends to be higher in European countries. If you think Cakewalk is bad, Apple Logic Pro X - which is download only, sold only by Apple, and doesn't involve physical packaging or shipping - sells for $240 (all prices are quoted at today's exchange rates) in the UK compared to $199 in the US. MOTU Digital Performer is $616 at Thomann compared to $499 at Sweetwater. Reason 7 is also $616 at Thomann and $399 at Guitar Center in the US. Cubase 7.5 is $839 in the UK and $499.99 at Sweetwater.
I could go on, but I think the point is obvious: It costs more to buy American software in England, and given the Cubase price, I suppose German software as well. And in comparison, Sonar is generally much kinder on your wallet than some other programs.
Why is this? I don't know, but I assume it has to do with the cost of doing retail business in the UK. Software companies cannot undercut their dealers without basically putting them out of business, which is no way to reward companies that promote, sell, and support your products.
If you want to get to the root of the problem, I think it probably lies with the British government, retailers complying with the regulations of the British government, and software companies accommodating the retailers.
I think the answer received from Cakewalk was quite direct, which is why I highlighted what I considered the most pertinent part in bold. Blaming Cakewalk for a problem that apparently affects all software manufacturers is, IMHO, misdirected.