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Old 07-25-2013, 04:29 PM   #15
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After a lot of years negotiating multi-national contracts for global manufacturers, I can add a few items to ponder..
1. Often prices set based on expectations of currency rates, and manufacturers hat adjusting more often than annually.. If Loonie was weak versus Yen when pricing planned that can explain some difference
2. Legal requirements for warranty (term/transfer/covered conditions) do vary by country, and Canada may have more consumer-friendly warranty.
3. VAT or other embedded taxes are going to be baked into Local Currency price, even though not visible to buyers
4. Pricing is "manipulated" by region to reflect local markets and competitive conditions.. Manufacturers use warranty denial as way of enforcing partitions between markets.. That is why DVD players and DVD's in Asia won't work in US, and vice versa.. Mercedes in Asia very pricey, and in Germany pretty reasonable. Computers and ink cartridges in Asia much cheaper than in US or Europe. Manufacturers also use warranty limits to keep their own distributors from selling "gray market" by shifting product by container-load from one country to another where they aren't authorized...

All that said, if you are willing to assume warranty risk, you can save money.. In our experience we did need Honda generator warranty for failed valve/valve stem, but allegedly because of poor quality gasoline used during initial run/break-in period.. Dealer made deal to exchange complete unit plus some cash since I needed unit that day and couldn't wait for repairs, which would have been done for free in 10 days.. Your mileage may vary...
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Old 07-25-2013, 04:56 PM   #16
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It can be just good old gouging, based on what the manufacturer thinks he can get away with in a given market.

I bought a branded pair of shoes in Canada and happened to price check it with an identical pair in the UK (both made in Vietnam, of course). Taking the banks' exchange rate, the UK price was more than double that I paid in Canada. I wrote to the company to ask why this should be the case and they replied saying that it was "currency fluctuations". I know the GBP has its ups and downs but twice the price? No, it's just what the market will stand - darned shoes probably only cost a couple of dollars to manufacture
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Old 07-25-2013, 05:05 PM   #17
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Apple computer stuff in the UK usually has the same price number with the British pound symbol that we have with the dollar sign. The 1.6+ multiplier for dollars to pounds plus 20% VAT is still not an equal price. The Brits are fond of saying, "grab your socks".

In the 2009 model year, the Honda Gold Wing had fewer features in the UK and cost significantly more than the fully loaded top model here. I was in the market for a UK bike at the time.
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Old 07-25-2013, 05:14 PM   #18
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You're less than 100 miles from Buffalo and if there's a problem with a US bought Honda, the price difference seems to say take it to Buffalo to buy and for warranty work. Our Honda has always worked flawlessly.

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Old 07-25-2013, 05:24 PM   #19
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The price difference is just based on taxes. I believe the warranty issue is related to the fact that those generators sold in the USA are from a corporation called Honda North America, which is a different corporate entity than Honda Canada. One sibling doesn't want to do warranty work for the other.
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Old 07-26-2013, 08:20 AM   #20
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Yes those are two different companies on paper, but the money pocket is common and the profits flow back to Honda in Japan.
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Old 07-26-2013, 03:33 PM   #21
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Much conjecture here, some of it off-base- like the speculation about Canadian vs. US tax rates. (Reminds me of all the misinformation down there about our medical care system).
Condoluminum in #15 above pretty much gives all the correct answers in his knowledge based post.

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