Duty Free Price Inflated

[Captain_John]

One evening on my recent cruise, I strolled through the duty free shop on the Jade. I spotted a sales table with some watches. I picked up a nice looking Invicta watch. The salesman pointed out its functions. I tried it on and it looked good on me. I examined the price tag and noted that the original price for the watch was $599.00 on sale for $169.00. I thought why not and purchased the watch. A couple of months pasted and had a question about the watch. I Googled the watch and was surprised to find that I could have purchased it new at many places between $80.00 and $100.00. I am disappointed in NCL for putting a false price on it. The actual list price of the watch is $159.00. I know that I was willing to pay their price but I believe NCL should not be inflating the list prices. It makes me wonder about all the prices in the duty free shop. My watch doesn't look as nice on my wrist as it use to.

[NLH Arizona]

I thought the shops on cruise ships are own by outside companies, not the cruise lines.

[asctony]

They sell the same watches on other cruise lines with those totally inflated prices. Before you buy them on the ship, do a search On-Line and if you find the watch at a cheaper price they will match the price if it is from a store and not Ebay. This also applies to finding something at a port. Ensure that you bring proof of the price back on the ship with you.

[garycarla]

Not unusual on ships. Or in shops in foreign ports. Or "duty free" in airports. Unless you really know your prices and/or they have something you can not get at home - buy at home.

 

Here in the states we have all kinds of stores from Walmart to Macy's and everything in between.

 

It is beyond me why people buy all this stuff far from home with little chance of going back to the merchant.

 

But - I apparently do not understand lots of things - like buying art on a cruise ship or getting botox on a ship at sea.

 

LOL

[fshagan]

I am disappointed in NCL for putting a false price on it. The actual list price of the watch is $159.00.

 

Which model Invicta watch is it and what month / year did you buy it? Then we can see if you really got a raw deal.

 

Watches go through a sales cycle where they debut with a high list price, are then discounted, and finally the list price is lowered and they are sent to mass marketers. Like electronics, they are rarely sold at list price. The computer you bought for $800 a few months ago is now being sold for $500. Caveat emptor applies.

 

BTW - you didn't trigger it, but if you buy more than a certain amount in the duty free shop you will be reported and (for US citizens anyway) will pay Customs 3% on your purchases upon re-entry into the country. I think the limit is $800. "Duty Free" is not "tax free".

[70SS350]

OP don't be so disappointed. NCL did not use false pricing. The $599 price you saw is the MSRP (manufacturers suggested retail price) set by Invicta. If you look on Amazon you will find several Invicta watches around $895 "marked down to $90-125". So was the price you paid too much, yes. But not by that much. At least now you're more educated on the "sales" they have on the ships. You thought it was a good deal at the time so try to enjoy it.

[gtaylor]

I have three Invicta watches that I am very happy with.

 

Got all three of them at Costco for a fraction of the 'discounted' price onboard.

 

gary

[sfaaa]

Buyer's remorse has nothing to do with false price. What you saw was the price of the watch on the ship, not the price on eBay or amazon.com. They are not the same nor should they be comparable with each other.

[Flatbush Flyer]

Not unusual on ships. Or in shops in foreign ports. Or "duty free" in airports. Unless you really know your prices and/or they have something you can not get at home - buy at home.

 

 

 

Here in the states we have all kinds of stores from Walmart to Macy's and everything in between.

 

 

 

It is beyond me why people buy all this stuff far from home with little chance of going back to the merchant.

 

 

 

But - I apparently do not understand lots of things - like buying art on a cruise ship or getting botox on a ship at sea.

 

 

 

LOL

 

 

Duty Free in airports is usually a monumental rip off - particularly when it comes to booze. The prices are so inflated that the lack of sales tax still means a net cost that exceeds what you'll find at BevMo or Total Wine.

 

 

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[ExpatBride]

This is why I only ever buy alcohol from duty free... I know the lowest price I can get it for at home so I instantly know whether or not it's a good deal.

[hawkeyetlse]

The actual list price of the watch is $159.00.

I am not aware of any Invicta watch with a list price this low. As 70SS350 said above, their sales model is to attach a completely imaginary MSRP to every model and then let all of their resellers advertise huge discounts.

 

I don't doubt that you could have bought the same watch for a lower price somewhere else, but your accusation is that NCL inflated the list price of your watch. Which model it is? We can look it up on the Invicta website and see what they say the MSRP is.

[EmeraldCoastCruisers]

Happens to the best of us! Before the ship and local wifi options, we bought three high end watches. One at a port and two on the ship. Came home and found we could have bought them cheaper. Had to let it go so we wouldn't let it eat at us. Another expensive mistake, but has probably saved us a ton of money since then. Why? We don't buy anything high priced at the ports or on the ship anymore!!!!!

 

 

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[April42749]

My husband got a Bulova as well as an Invicta on NCL cruises....at their "discounts".

 

Those discounts are the going "discount prices" for the same models on land....at stores that I know are giving us good prices (know the owners).

 

So...although it's not "the wonderful discount" as advertised...it's not overpaying.

 

As I always say....if you can afford it, and like it, buy it. Whether art, jewelry or watches....they make wonderful souvenirs of a wonderful vacation.

[Demonyte]

As I always say....if you can afford it, and like it, buy it. Whether art, jewelry or watches....they make wonderful souvenirs of a wonderful vacation.

 

Exactly this. I later found out that I could have ordered my two Ice-Watches and one Skagen little cheaper from Amazon compared to what I paid for them in St Maarten, but especially the Skagen that I only use when dressing up (meaning that I almost exclusively use it on cruises) always reminds me of that one special cruise (in Dawn's GV) when I bought it.

[garycarla]

And, you might find a retailer in the states selling at a price similar to NCL. My thought is that anything at sea MUST cost more. They have limited storage, limited access to suppliers, have to drag it all around the world, etc.

 

Just easier for us to shop at home and relax on a cruise.

[Sissaaaaaa]

One evening on my recent cruise, I strolled through the duty free shop on the Jade. I spotted a sales table with some watches. I picked up a nice looking Invicta watch. The salesman pointed out its functions. I tried it on and it looked good on me. I examined the price tag and noted that the original price for the watch was $599.00 on sale for $169.00. I thought why not and purchased the watch. A couple of months pasted and had a question about the watch. I Googled the watch and was surprised to find that I could have purchased it new at many places between $80.00 and $100.00. I am disappointed in NCL for putting a false price on it. The actual list price of the watch is $159.00. I know that I was willing to pay their price but I believe NCL should not be inflating the list prices. It makes me wonder about all the prices in the duty free shop. My watch doesn't look as nice on my wrist as it use to.

 

I would never buy anything on the ship thinking it's a "deal". It never is.

[April42749]

I would never buy anything on the ship thinking it's a "deal". It never is.

 

I wouldn't say "never".

DH is an excellent bargainer (for example, the other day he did a deal on a 24K heart pendant that amazed even me).

 

On our last cruise the "zoltonite expert" was on board. Now, I know exactly what this gem is...and although the same gem with different names is sold "on land"...it's a really difficult one to find (and I go to the jewelry exchange in NYC way too often). Actually, I never saw it in person. Although I never cared for the stone itself, they had one setting with pink sapphires that enhanced the gems colors. I believe the asking price was $2500. I got it (custom made...size and gold color) from their factory for $2225. I'm sure they still made a profit, but my point is....I could have never found anything similar on land for any price...and the fact that "we bargained" it down made me feel like we didn't get completely ripped off.

 

I've also found some excellent prices at non-cruise ship endorsed stores. And some complete rip offs at the stores they send us to....and some outright lies about quality and origination of the gems at their so-called "selected stores".

[sfaaa]

 

As I always say....if you can afford it, and like it, buy it. Whether art, jewelry or watches....they make wonderful souvenirs of a wonderful vacation.

 

Speaking like a seasoned professional shopper. We all have regrets of 'the one that got away' and wish we bought it when we had the chance.

[hawkeyetlse]

Everything doesn't have to be a "deal" to be a fun, satisfying purchase. And if you've got lots of incentive OBC to use up during the cruise, it can be a deal to buy on board even if it's not the lowest price on the planet.

[garycarla]

Speaking like a seasoned professional shopper. We all have regrets of 'the one that got away' and wish we bought it when we had the chance.

 

Or the fact they missed the chance to " save some money".

 

I know many folks that can no longer afford to "save some money". LOL!

[hoopics]

BTW - you didn't trigger it, but if you buy more than a certain amount in the duty free shop you will be reported and (for US citizens anyway) will pay Customs 3% on your purchases upon re-entry into the country. I think the limit is $800. "Duty Free" is not "tax free".

 

This is a conflation of a few easily confused concepts. A "duty" is a tax -- specifically a border tariff, assessed by a customs service on goods entering a country. Now for that $800 limit -- U.S. Customs provides for personal use / gift exemptions for otherwise dutiable goods. That's most commonly $800, but can also be $200 or $1600 for certain classes of goods. Details on that are here: https://help.cbp.gov/app/answers/detail/a_id/246/~/duty--free-exemption A nice summary on the concept of duty and some of the complexities here: https://www.cbp.gov/travel/international-visitors/kbyg/customs-duty-info

 

So what makes a "duty free" shop duty free? It means that the merchant selling the goods didn't have to pay a duty on them to bring them into that country where the store is, before selling them to you. This is why you buy duty free goods when LEAVING a country, rather than arriving into it -- if you were to take goods from the duty free store into the country outside that store, you might have to pay a duty on it.

 

Theoretically, duty free stores can pass their duty savings on to you as a reduced savings. Once upon a time, when duties where high, you might have a 10 or 20% import tariff on products -- particularly luxury goods. Duty free shops had a measurable price advantage relative to shops outside the duty free zones, who had to account for their own import costs in reselling the goods. Now, however, free trade has greatly lowered a number of previously high tariffs. Indeed many goods are "duty free" (or nearly so) for merchants outside the duty free zone too, meaning the applicable tariff rate is 0%, and the duty free store has no duty advantage. Same thing goes if they're selling products made in the country where they are selling them; duties aren't part of the equation [this is all simplified, of course; excise taxes can sometimes be a thing].

 

Bottom line, with very limited exceptions involving certain luxury goods in certain countries, as well as some alcohol / tobacco products where additional tax savings can exist in the country of sale, "duty free" savings are largely a thing of the past. If we see current geopolitical trends head back towards protectionism, duties might rise and duty free shopping could become relevant again. But it'll be because tariffs increase prices outside the airport, not within the duty free stores.

 

As for your watch on that cruise ship, from a quick look at the tariff schedule U.S. rates on watches vary between 0% and about 7% depending on type of watch and country of origin. So there might theoretically be duty savings out there. But the mark-up for a captive audience on a cruise ship is almost certain to eat that up and then some. I wouldn't expect to ever find a meaningfully better deal by virtue of duty treatment. If it goes on sale, it's for the same reasons as at a land-based retailer.

[DirtyDawg]

One evening on my recent cruise, I strolled through the duty free shop on the Jade. I spotted a sales table with some watches. I picked up a nice looking Invicta watch. The salesman pointed out its functions. I tried it on and it looked good on me. I examined the price tag and noted that the original price for the watch was $599.00 on sale for $169.00. I thought why not and purchased the watch. A couple of months pasted and had a question about the watch. I Googled the watch and was surprised to find that I could have purchased it new at many places between $80.00 and $100.00. I am disappointed in NCL for putting a false price on it. The actual list price of the watch is $159.00. I know that I was willing to pay their price but I believe NCL should not be inflating the list prices. It makes me wonder about all the prices in the duty free shop. My watch doesn't look as nice on my wrist as it use to.

 

NCL or the shop operator did not put a false price on the watch. For most products the manufacturers cannot dictate the price the retailer charges. That's why you see "manufacturer'ssuggested retail price" (MSRP) on many price labels. It's only a suggestion, or guideline. If the MSRP is $159 and the retailer wants to charge $599 for it that is his/her prerogative. These shops are not in business to give you a good deal, they are in business to make money.