Duty Free – just a marketing gimmick?

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Viewing 15 posts - 1 through 15 (of 24 total)

  • Anonymous
    Guest

    MyFlightsApp
    Participant

    I’ve never cared that much for buying in duty free… but as I’m about to buy an iPad 2 and off to DEL from T5 in a week, I thought it’d probably be worth picking one up then…

    …is it so incredibly wrong to expect high street companies (e.g. Curries) who have outlets in Duty Free to be a similar price less the VAT? I’d expect a £659 ipad to be around the £550 mark… but the reality is I’ll be lucky to see it below £600.

    So, while the products may not have tax on them, they don’t even come close to the same pre-tax prices.

    Is this the same all over the world, or is it just rip-off Britain?


    Ozavanti
    Participant

    My flight app,

    Alas not limited to Britain by any stretch of the imagination.

    I looked at buying an iPad2 from Sydney dutyfree where they now have an Apple Store airside in the International Terminal.

    I stupidly assumed that the price would be current retail less GST (10% in Australia = Minimum AU$55 discount). When i checked the price at the airport it was only $15 less than retail.

    In many respects you are probably better off trying to win in the currency game if flying afar or finding someone that could buy you one via the Apple Schools program.

    Hope it helps.

    Ozz


    RichardB
    Participant

    it is the same all over the world. the important word is competition. There is no need for airport outlets to compete on price, they instead offer convenience which you will pay for.
    Even airports in tokyo, singapore or hong kong are a waste of time when it comes to electronics. You will get better prices in normal shops.


    VintageKrug
    Participant

    Duty Free at Heathrow is among the best places in the UK to purchase Apple products (but not accessories, which are usually actually more than in the High Street) as while not strictly VAT Free, they are considerably less expensive. I think you’ll do better than £600, but probably not the full 20% off.

    You can also “double dip” with BAA’s Worldpoints, which can be quite lucrative if converted into bmi miles.

    There is also a £5 voucher which will have a modest effect on the purchase cost:

    http://wdfonline.com/vouchers/5Q1-4MZ/summer2010.aspx?result=success

    Personally, I would buy a bog standard iPad1 on the cheap, and wait for the iPad3 with retina display, which can’t be too far off as I personally feel iPad2 is more of an iPad1.5.

    iPad3 is rumoured to be premiering in time for Christmas…


    LuganoPirate
    Participant

    Technically if you buy a £600 iPad duty free at LHR, you’ll have to declare it when you come back and pay 20% on top making it £720. Better to buy it in the High Street in the first place.

    If you’re non UK resident, or intent on smuggling it back, tell the high streeet shop you live overseas and ask for a vat refund on leaving the country.


    Bucksnet
    Participant

    Better still don’t buy an iPad in the first place, try the Adam Tablet which is much better.


    MyFlightsApp
    Participant

    Unfortunately that wouldn’t help with iPad App development 🙂

    I’m thinking maybe purchasing from a country with significantly less tax…


    Gin&Tonic
    Participant

    The big electrical retailers at Britains airports are not duty (tax) free, I had this discussion with one of them sometime ago when the Ipad 1 was first introduced. They offer prices below the high street but dont start to back out VAT as you will not arrive at such a discounted price in the majority of instances.
    Items such as Ipad do not attract import duty into the EC


    LuganoPirate
    Participant

    Just checked with HMRC.

    Goods bought in duty free when traveling to a non-EU country are subject to import duties (if applicable) and VAT when you return if they cost more than £390= on the full amount paid.

    Further, and I did not know this, if you spend more than £390 you have to pay VAT etc on the full amount spent. They do not take off the £390 and charge you on the difference.

    I think the message is to stick to the High Street!!!


    VintageKrug
    Participant

    The real message is that HMRC hardly ever check, and as long as you remove your iPad from its packaging and use it a bit before bringing it home you would be very unlucky if they caught you (they do check from time to time, but it’s very, very rare).

    If you want to make a saving, and are heading through LHR anyway, then much as I am not a fan of BAA, Dixons Travel Duty Free is among the most cost effective retailers in the UK to purchase an iPad2, especially if you take advantage of the voucher I posted and also have a Worldpoints card. You can telephone them to confirm prices.


    LuganoPirate
    Participant

    I agree with you VK, but not getting caught does not make it correct! I have been asked on entering the UK if I bought any duty free on the way out. It was not the case.

    Now I’m not trying to be impose moral standards here, and I’m probably as guilty as the next man when it comes to maybe not declaring everything purchased, but I think it’s something travelers are not aware of and could end up costing them dear.


    VintageKrug
    Participant

    Does anyone have the iPad2 prices in Dixons Travel LHR?


    MyFlightsApp
    Participant

    Yup….

    Wifi:
    16GB: £387.38
    32GB £465.05
    64GB £542.72

    Wifi+3G:
    16GB £484.47
    32GB £562.74
    64GB £639.81

    So… What could have been more than 100 quid saving on the 64gig+3G is actually 20 quid…


    Bucksnet
    Participant

    Considering 32GB of flash RAM storage can be bought retail for only £20, I can’t see how Apple justify charging £78 for an extra 16GB and another £78 for a further 32GB.

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