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Wednesday, October 8, 2014

FIERCE Perspective! | Abercrombie's Not-So-Cool UK Pricing Strategy...

WRITTEN BY CAMERON, TSOF CONTRIBUTOR



         IT'S A WELL known fact that Abercrombie & Fitch prices in the United Kingdom are ridiculously high and not justifiable. I figured that with the new image that the Company is producing that the pricing strategy would be adjusted. How wrong was I? I placed an order this week on the American abercrombie.com (having a friend shipping my clothes to me), and I ventured to see how much it would've cost me had placed the order here.

Before we get started, I'll just say that I ordered an A&F Phone Charger - these aren't available in the UK, and so I've excluded that from my purchase total in the US. Also, I've excluded all taxes (UK VAT + that particular US State's sales tax), delivery fees, etc. I'll also mention that there was a 40% off outerwear discount on the US site and a 25% off the entire purchase (excluding outerwear, clearance, limited edition items, 3rd party merchandise and jeans). What I found was astounding, really. That's the only way I can describe it.

If I placed the order in the UK, it would have cost me £400.64 (US$655.17). Over in the US, it only cost me £189.12 (US$309). That's a staggering difference of £211.52/$346.17! I've broken down the order below in an Excel spreadsheet. You can click on the image to view a larger version.

Note: First two price-columns, items price in the UK with USD conversion; second two price-columns, items price in the US with GBP conversion; third two price-columns, difference in GBP and USD.




I honestly have no idea why A&F feels as if it can have such a large price difference between the UK and the USA. I mean, there's no possible explanation really. The prices shown were excluding VAT, so that's straight off the cards. There's no chance that it's shipping since it doesn't cost US$16.02 to ship a pair of boxers. There is absolutely no explanation that makes these price differences justifiable. A&F needs to make its pricing strategy more fair for all customers, considering the steep and concentrated levels of discounts for those in the US.

What do you think? Are you with me on A&F making price strategies fairer? Let me know below and I'll be sure to reply!

Cameron




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