GBP v. USD for a US Buyer

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jcnassoc
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GBP v. USD for a US Buyer

Post by jcnassoc »

Hi all -

I'm sure this is basic, and looking at prior posts (and speaking with my son who was lucky enough to live in London for three years) I believe the general rule for US buyers of CWs is to use a credit card that does not charge an FX conversion fee and buy in GBP--seems everyone is convinced that will result in a lower cost purchase. That's easy.

My (new) question is from today's purchase of a Vintage Oak Leather Strap. Looking at the CW site in USD it showed $37.50 earlier, and £30. So I ordered it as GBP and by the time I hit checkout it was priced at £25! Then, in the email confirmation it shows £26.66! And, now that I re-checked USD the price is up to £39 and $48. Talk about hitting a moving target!

I know that FX rates change second-by-second, but I'm thinking that's not what's happening on the CW site? Or is it?

If someone can help me better understand what I saw today that would be helpful (not that I anticipate making any future expensive CW purchases after picking up my first two last week, mind you... this is purely an academic exercise, and no one (including my better half) should be thinking I'm hooked on CW :lol: ).

Many thanks!
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Re: GBP v. USD for a US Buyer

Post by Hedzlone »

That's odd. The cheapest oak leather strap is $80 for me on the CW website. Where do you see the $48 / $37.50?
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Re: GBP v. USD for a US Buyer

Post by TheBeatles »

Hedzlone wrote: Fri Jan 13, 2023 4:25 pm That's odd. The cheapest oak leather strap is $80 for me on the CW website. Where do you see the $48 / $37.50?
Bottom of Sale page.

https://www.christopherward.com/sale
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Re: GBP v. USD for a US Buyer

Post by rkovars »

jcnassoc wrote: Fri Jan 13, 2023 4:13 pm Hi all -

I'm sure this is basic, and looking at prior posts (and speaking with my son who was lucky enough to live in London for three years) I believe the general rule for US buyers of CWs is to use a credit card that does not charge an FX conversion fee and buy in GBP--seems everyone is convinced that will result in a lower cost purchase. That's easy.

My (new) question is from today's purchase of a Vintage Oak Leather Strap. Looking at the CW site in USD it showed $37.50 earlier, and £30. So I ordered it as GBP and by the time I hit checkout it was priced at £25! Then, in the email confirmation it shows £26.66! And, now that I re-checked USD the price is up to £39 and $48. Talk about hitting a moving target!

I know that FX rates change second-by-second, but I'm thinking that's not what's happening on the CW site? Or is it?

If someone can help me better understand what I saw today that would be helpful (not that I anticipate making any future expensive CW purchases after picking up my first two last week, mind you... this is purely an academic exercise, and no one (including my better half) should be thinking I'm hooked on CW :lol: ).

Many thanks!
So, I am thinking there are probably a couple of things going on.

I think there may have been more than one being added to the sale. One old stock (still up there at $48) and one NN.

As for the one listed at £30: When you go to check out, after you enter your shipping address as the US, the system will subtract the $20% VAT. VAT is included in all of the listings in GBP. It isn't exactly 20% because I assume there are some banking fees involved (£30 -20% is actually £24). At least that is my experience.
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Re: GBP v. USD for a US Buyer

Post by bananapants »

rkovars wrote: Fri Jan 13, 2023 4:34 pm
jcnassoc wrote: Fri Jan 13, 2023 4:13 pm Hi all -

I'm sure this is basic, and looking at prior posts (and speaking with my son who was lucky enough to live in London for three years) I believe the general rule for US buyers of CWs is to use a credit card that does not charge an FX conversion fee and buy in GBP--seems everyone is convinced that will result in a lower cost purchase. That's easy.

My (new) question is from today's purchase of a Vintage Oak Leather Strap. Looking at the CW site in USD it showed $37.50 earlier, and £30. So I ordered it as GBP and by the time I hit checkout it was priced at £25! Then, in the email confirmation it shows £26.66! And, now that I re-checked USD the price is up to £39 and $48. Talk about hitting a moving target!

I know that FX rates change second-by-second, but I'm thinking that's not what's happening on the CW site? Or is it?

If someone can help me better understand what I saw today that would be helpful (not that I anticipate making any future expensive CW purchases after picking up my first two last week, mind you... this is purely an academic exercise, and no one (including my better half) should be thinking I'm hooked on CW :lol: ).

Many thanks!
So, I am thinking there are probably a couple of things going on.

I think there may have been more than one being added to the sale. One old stock (still up there at $48) and one NN.

As for the one listed at £30: When you go to check out, after you enter your shipping address as the US, the system will subtract the $20% VAT. VAT is included in all of the listings in GBP. It isn't exactly 20% because I assume there are some banking fees involved (£30 -20% is actually £24). At least that is my experience.
I can confirm this with my experience - the amount listed on the sales page in GBP will include VAT, and the initial view of your cart, if you put an item in it, may also include VAT. Once you progress to the checkout process and have logged in, where the system can confirm that VAT should not apply, the VAT is removed.

... I also picked up that vintage oak strap, and hoping for old stock, as I much prefer the old vs. new version of that strap
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Re: GBP v. USD for a US Buyer

Post by JAFO »

rkovars wrote: Fri Jan 13, 2023 4:34 pm
jcnassoc wrote: Fri Jan 13, 2023 4:13 pm Hi all -

I'm sure this is basic, and looking at prior posts (and speaking with my son who was lucky enough to live in London for three years) I believe the general rule for US buyers of CWs is to use a credit card that does not charge an FX conversion fee and buy in GBP--seems everyone is convinced that will result in a lower cost purchase. That's easy.

My (new) question is from today's purchase of a Vintage Oak Leather Strap. Looking at the CW site in USD it showed $37.50 earlier, and £30. So I ordered it as GBP and by the time I hit checkout it was priced at £25! Then, in the email confirmation it shows £26.66! And, now that I re-checked USD the price is up to £39 and $48. Talk about hitting a moving target!

I know that FX rates change second-by-second, but I'm thinking that's not what's happening on the CW site? Or is it?

If someone can help me better understand what I saw today that would be helpful (not that I anticipate making any future expensive CW purchases after picking up my first two last week, mind you... this is purely an academic exercise, and no one (including my better half) should be thinking I'm hooked on CW :lol: ).

Many thanks!
So, I am thinking there are probably a couple of things going on.

I think there may have been more than one being added to the sale. One old stock (still up there at $48) and one NN.

As for the one listed at £30: When you go to check out, after you enter your shipping address as the US, the system will subtract the $20% VAT. VAT is included in all of the listings in GBP. It isn't exactly 20% because I assume there are some banking fees involved (£30 -20% is actually £24). At least that is my experience.
Just to clarify. If a gross price includes VAT then you don't take away 20% to get the net. You take away 1/6th, approx 16%.

So £30 represents £25 plus 20% VAT. Hence the net price reduced to £25 and then it's converted to USD or whatever, by the currency rate CW use.

As to the actual calculation that CW use to quote in USD, or to adjust a price in GBP to USD, I've no real idea. I suppose the assumption is that CW have used a certain exchange rate in the list prices, but if the actual exchange rate favours the US, a US buyer "wins" by buying the GBP price at today's rate.
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Re: GBP v. USD for a US Buyer

Post by jcnassoc »

Hedzlone wrote: Fri Jan 13, 2023 4:25 pm That's odd. The cheapest oak leather strap is $80 for me on the CW website. Where do you see the $48 / $37.50?
It was listed under Watches > Sale (none there now, though)
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Re: GBP v. USD for a US Buyer

Post by jcnassoc »

Thanks all for the education on buying GBP and VAT, etc. Will come in handy quite soon (how many days till the July sale?).
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Re: GBP v. USD for a US Buyer

Post by jkbarnes »

jcnassoc wrote: Fri Jan 13, 2023 8:54 pm Thanks all for the education on buying GBP and VAT, etc. Will come in handy quite soon (how many days till the July sale?).
That’s assuming the exchange rate is still dramatically favoring the dollar in July! Good for us, bad for our UK friends.
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Re: GBP v. USD for a US Buyer

Post by jcnassoc »

jkbarnes wrote: Fri Jan 13, 2023 8:57 pm
jcnassoc wrote: Fri Jan 13, 2023 8:54 pm Thanks all for the education on buying GBP and VAT, etc. Will come in handy quite soon (how many days till the July sale?).
That’s assuming the exchange rate is still dramatically favoring the dollar in July! Good for us, bad for our UK friends.
Good point. Perhaps we can hope for the rate oscillating every six months so everyone on either side of the pond is happy. :)
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Re: GBP v. USD for a US Buyer

Post by Bident »

jcnassoc wrote: Fri Jan 13, 2023 9:53 pm
jkbarnes wrote: Fri Jan 13, 2023 8:57 pm
jcnassoc wrote: Fri Jan 13, 2023 8:54 pm Thanks all for the education on buying GBP and VAT, etc. Will come in handy quite soon (how many days till the July sale?).
That’s assuming the exchange rate is still dramatically favoring the dollar in July! Good for us, bad for our UK friends.
Good point. Perhaps we can hope for the rate oscillating every six months so everyone on either side of the pond is happy. :)
One other thing to keep in mind for US buyers: CW now charges sales tax even though the VAT will drop off once you enter a US shipping address. This is a relatively new thing as US buyers previously enjoyed no sales tax charges. Unfortunately, in my county of California, it is an 8% combined State and County tax charge.

And of course there is the customs fee if your order exceeds US$800 when shipping to the US as well.
Best regards,
John
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