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by heywhatupboys 1243 days ago
> Do you think Mercedes makes a cheap version of an SLK for the "poor Indians"?

they, do? Global pricing of the same product is vastly different depending on regions. If there is an Italian and a Nepalese market for a handbag, that same bag could selld for twice as much in Italy. Just look at videogame prices!

2 comments

Interesting thing, that Mercedes cost more in Germany, than in USA. And a lof of the models, they actually assemble in Germany and ship to USA.
They don't. Not cars, not electronics, not house appliances. As was said elsewhere - these are more expensive in poorer countries, not cheaper. Maybe handbags/other apparel, but I don't buy that.

As someone coming from a poorer country, I'd check if it really is the same item - usually what happens is that they produce a cheaper version out of cheaper materials and with lesser service commitment that costs almost the same price (80-95%) as the better item in a rich country.

You cannot generalize every commodity and every 'poor country' like that. There are cars in Colombia that are less expensive in Colombia, and some that are more expensive in Colombia, than the U.S.

Similarly, I was shocked to find that scotch whiskey is actually cheaper in Colombia than the US, and it's the same product. The market is more competitive because discount liquor (especially rum) is decently good quality and reaaally cheap. It's also hard to sell someone a bottle that is half their monthly salary!

Of course, this doesn't hold for anything (and I frankly have no idea how supply chains work), but my point is that it's not as simple as made out above.

No, the same car is practically never less expensive in Colombia than in the US. There are few specialty items such as liquor, tobacco products or drugs where it's different - but that's about it. Certainly not cars, electronics, home appliances or anything else like that.