How do LV set the prices in stores?

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  1. I know this might sound like a weird question, but I had a friend who went to South America and bought from LV there since their original prices are way lower than ours. Is this just for south america or does it work the same way if youre going to a "poorer" country in europe (Im going to budapest in a few weeks)? So basically, the question is, are the items prices after "local market prices" or are they more or less general all over the world in actual $? Does anyone know?
     
  2. I don't think I have a direct answer for this but I do have some general ideas to share with you. I think it is just South Africa the price is cheaper.

    Budapest is part of EU, therefore, their prices are based on LV's Euro pricing on French website. However, the pricing at each country is slightly different, but not by much. difference between 0 to 30 Euro, depends on which country, which product. If I remembered correctly, the prices in Budapest are slightly higher than France, Italy and Germany.

    However, LVs prices in Europe are cheaper than US b/c of VAT (value added tax) refund. Make sure you bring your passport with you, and ask for VAT refund form, SAs will fill it out for you and you can get the VAT refund at the departure airport. (the last airport you fly back to USA) They usually give you back in USD instead of Euro.
     
  3. Where exactly in South America yor friend bought LV?
    If your friend bought LV in South America cheaper than US, I think your friend may have lie a bit, here's why:

    Prices in South America for imported items are not realated to "local market prices", goods produced in South America however are less expensive.
    So prices for imported items are usually higher as you pay the item, imported costs and local taxes.

    Here in Chile is the price you see at eluxury plus 19% tax
    Brazil way is more expensive than Chile (Most purchases at LV store in Chile are from Brazilian Tourist)
    I think Argentina is slightly cheaper than Brazil, as those countries have much higher taxes for imported goods.

    For example: Apple Computers in Chile used to be 40% more expensive than US a couple of years ago, now they seem according to prices in Europe
    Now:
    Imac 20" in US: 1.199 US
    in Chile: 1.598 US
    in Europe: 1.450 US
    in Argentina: 2.200 US (for real!)
    in Brazil: 2.280 US (FOR REAL!!)

    However, any product made in Brazil for local industry is MUCH cheaper than products produced in any country for internal use. Only imported good pay high taxes.
    That's why Brazil produces cars for their own use, Volkwagen, Citroen, Fiat, Peugeot, Mercedes Benz and Audi own their own producing plants there so they won't pay super high taxes for imports.
    Super shocking example:

    Chrysler 300c in Brazil (imported): US$ 95.000-
    Same car in US: US$26.000-

    I do not have information from any other South American Country.

    Hope this is helpful.
     
  4. Thanks guys! I guess that at least tells me that its probably not worth buying something there instead of at home.

    The person who went to South America, was a few years back and I honestly dont remember where they went. Im guessing it isnt impossible that they *thought* they were doing a much better deal than they actually were. It was just something she mentioned and then it's been lingering in the back of my head and popped up now as Im going to Budapest.

    Well, thank you for the answers anyway!