Expensive Rip off pricing in South Africa

The cost of doing business varies by country - and prices vary accordingly.  An economy car in the US costs about $12,000 - in Europe, the cost for a basic car is nearer $20,000 factoring in the exchange rate - at least in part due to taxation.

If you buy a model in a different country, be sure you buy an international warranty - which generally means buying a warranty upgrade to more extensive coverage.   Also be sure the model is sold in your country - for example, XPS notebooks aren't sold worldwide, and there are places where Dell won't support the notebook since it's not sold in those countries.

"The cost of doing business varies by country - and prices vary accordingly.  An economy car in the US costs about $12,000 - in Europe, the cost for a basic car is nearer $20,000 factoring in the exchange rate - at least in part due to taxation."

Labour rates, rent and material cost are cheaper in the US - so yes a car would be cheaper. Labour rates and rent are cheaper in South Africa - the laptop is the same cost - for both markets it is made in Ireland... so this comment is not a valid statement

"If you buy a model in a different country, be sure you buy an international warranty - which generally means buying a warranty upgrade to more extensive coverage.   Also be sure the model is sold in your country - for example, XPS notebooks aren't sold worldwide, and there are places where Dell won't support the notebook since it's not sold in those countries."

Yes I agree - but both were priced on the Dell website, just a different location was selected. The XPS notebooks are sold in South Africa and the UK. The only difference is that it unjustifiably costs twice as much in South Africa - for no apparent reason??

The biggest difference between Europe and the US isn't labor or materials - it's the taxation structure and protection of markets from competition.  Also, bear in mind that the UK is a larger market than the South African - so business overhead is divided into a smaller number of sales.  As for notebooks, Dell Ireland is closing and production is shifting to Poland from Ireland within the next few months.

US-sold Dells are built in Malaysia or China, but the US market for computers, like the US market for cars is far more competitive than elsewhere in the world, which keeps prices down.  Many of Europe's larger automakers have failed in the US, where they succeed in the relatively more protected European market - FIAT, Peugeot and Renault among them.  There may be some similar dynamic at work in the South African computer market - less competition ususally means higher prices.

Why bring the US into the discussion - we are talking about the UK and South Africa - besides Taxes are less here - way less than the UK.

Remember the purchase is being made from the same website so the delivery can be from anywhere that is the cheapest. So if its cheaper to send them from China or Poland - so be it. I would not think that there is any rule that dictates that the Dells for South Africa must come from Europe where they are more expensive than the US, but at the same time half the price they cost for South Africans.

The only argument for higher pricing might be for the actual servicing. This is where your volumes might come into play. Fewer dells serviced in South Africa = higher price for servicing - agreed, however unlikely as the labour rate for an average repair technician in South Africa is probably about a quarter of the UK. - However lets say it is higher, well then the cost of the warranty should be more, not the actual purchase.

Anyway - do you know how I can get an answer from Dell. I have tried asking the call centre sales in SA and they say that the prices are determined by the UK head office and not in South Africa. So why is the UK head office charging 2 X the price it does in the UK??