MySwag.org The Off-road Camper Trailer Forum
General => General Discussion => Topic started by: Dogsbreakfast on February 06, 2012, 09:48:16 PM
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The difflock thread got me interested about the price disparity between prices we pay here and prices for products overseas. I understand the importing costs/staffing etc but some prices really are ridiculous. For instance i was interested in a new camper. Really liked the conquerors, but the price kept going up each year - i was still considering one even at 60k( now they are nearly 70k 8^0 )
Anyway, had the chance to travel to sth africa for work and thought id suss out how much the conqueror commander (uev490) is over there. I nearly feinted when i was told a new one fully optioned was less than half price than here!!!
Now i dont mind paying a bit of a premium if someone does all the workimporting and complying etc but 30k worth?!?
Now i dont mean to single conqueror out as i have seen the same with other products. Surprising was all.
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Yup retail is now global and only a click away. Some companies will wonder where all their sales have gone.
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I am looking at one of these; http://floatron.com/miva/merchant.mv?Screen=PLST&Store_Code=F (http://floatron.com/miva/merchant.mv?Screen=PLST&Store_Code=F)
I can order online from the Australia/NZ agent for $800Au + postage. Dick smith and Gerry Harvey wonder why I would even think of the UN-patriotic option.
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Yup retail is now global and only a click away. Some companies will wonder where all their sales went.
But for how long?
For one example is Harley Davidson. 12mths ago I could buy a part for half the price out of the US than what I would pay here at my local stealer until HD Corporate stepped in and put a clause against there US dealers shipping parts over sea's. Basically banning it and if caught then the dealer faces losing his HD backing. So the flea bay parts trade has almost dried up.
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What really gets up my nose is airfares
Perth - Manchester - Perth around $2k AUD
Manchester - Perth - Manchester around 770 GBP (< $1150 AUD )
Same airline.
:cheers:
Mike
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What really gets up my nose is airfares
Perth - Manchester - Perth around $2k AUD
Manchester - Perth - Manchester around 770 GBP (< $1150 AUD )
Same airline.
:cheers:
Mike
$2600 when I had to fly on xmas day, Mike :(
$6700 for all 4 of us to fly at easter
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(http://www.emoticonizer.com/wp-content/plugins/kaskus-emoticons/emoticons/fd_7.gif)
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For one example is Harley Davidson. 12mths ago I could buy a part for half the price out of the US than what I would pay here at my local stealer until HD Corporate stepped in and put a clause against there US dealers shipping parts over sea's. Basically banning it and if caught then the dealer faces losing his HD backing. So the flea bay parts trade has almost dried up.
Yup, pretty pathetic attempt to protect their channel. This has spawned a new industry, get yourself a US address http://yourusaaddress.com/ (http://yourusaaddress.com/)
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Yup, pretty pathetic attempt to protect their channel. This has spawned a new industry, get yourself a US address http://yourusaaddress.com/ (http://yourusaaddress.com/)
Correct, KTM motorcycles done the same thing years ago. Hasn't stopped people importing from the USA though, they just use a ship it forward company as posted above :)
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We have been using freight forwarding companies for years.
Walmart etc have such fantastic prices that don't come anywhere to ours, and it is normally free shipping to our address in LA. Also, the young girls clothes over there are not nearly as 'sexed up' as the clothes here. Think shorts.
All in all, our retailers really need to be aware of this and make accept haggling as a way of getting the sale.
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OK, so you can source some things cheaper O/S, but what if you need it today? If there is no support for the local distributor/retailer then they'll go out of business or contract to one or tow major cities and sure, you'll get your bits cheaper, but you'll have to wait longer for them. There will be a lack of local expertise in how to fit it, or diagnose the issue. This will be fine for some things, but could have more serious implications for more complex and expensive equipment.
It is overly simplistic to suggest that because something is cheaper O/S it should be a similar price here. The size of our market is miniscule compared to the US, Europe and Asia. Our wages are higher and so are our instructure and utility costs. Where you can sell 10,000 of an item, you can afford to sell it at a lower cost, and perhaps margin, than where you can only sell 1000 units of the same item.
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OK, so you can source some things cheaper O/S, but what if you need it today? If there is no support for the local distributor/retailer then they'll go out of business or contract to one or tow major cities and sure, you'll get your bits cheaper, but you'll have to wait longer for them. There will be a lack of local expertise in how to fit it, or diagnose the issue. This will be fine for some things, but could have more serious implications for more complex and expensive equipment.
It is overly simplistic to suggest that because something is cheaper O/S it should be a similar price here. The size of our market is miniscule compared to the US, Europe and Asia. Our wages are higher and so are our instructure and utility costs. Where you can sell 10,000 of an item, you can afford to sell it at a lower cost, and perhaps margin, than where you can only sell 1000 units of the same item.
BigJules, I totally agree with all you have said.
I do haggle on loads of items locally, and if get a fair price then buy there.
On large, expensive items, that the average person would not buy on a whim, research is the order of the day.
I believe we all do this in today's economic climate.
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Just some facts when I was working in Retail.
The manufacturer LG could make every white good appliance that Australia buys ( fridges , dishwashers , washing machines etc) in a year in one afternoon from their factories. American market is 40% to them.
The Australian market for Sony is .05% and that is with them turning over $600,000,000. The American market is 48% to them.
Naturally it is cheaper over seas for the majoirty of things and with the power of the internet you can shop , compare for everything.
As consumers we all want the cheapest price available but it also comes down to service. I bet members on this site who run a business are aware of what is happening and I cannot see a problem with them making profit to survive. But we seem to want them to make very little if any.
Dont get me wrong I like to buy a "bargain" like everyone but if I have to pay that little extra to support Australia I will.
Mark
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I understand the difference in size of markets etc. and this is a complex problem. What I take offence to is companies saying do not sell to another country because they can't solve their channel problem. There are lots of things you can buy that don't need warranties etc. For example, other than RM Williams boots, I haven't purchased any clothes in AU for about 5 years. I do travel over there and bring stuff back but even with shipping it is way cheaper to buy from the US. I don't know what the solution is but companies had better work it out quick as their survival is riding on it.
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Relating to the post of McGirr and BigJules with relation to market sizes, I read last week that Australian consumers purchased around 1 million new cars. Americans purchased 750,000 F series trucks alone.
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Look, I ask for a discount when I buy milk, and I too like to shop around and am not averse to buying online or overseas. Agree, for those items that are generally not made in OZ, like most clothing it makes sense if you know how to do it.
I am just sick of the bleating about it...
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I am just sick of the bleating about it...
I didn't say I buy from Noo Zeeeluund :)
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But for how long?
For one example is Harley Davidson. 12mths ago I could buy a part for half the price out of the US than what I would pay here at my local stealer until HD Corporate stepped in and put a clause against there US dealers shipping parts over sea's. Basically banning it and if caught then the dealer faces losing his HD backing. So the flea bay parts trade has almost dried up.
KTM did the same.
Can get around it by having it shipped to a US address.
See http://www.shipito.com/ (http://www.shipito.com/)
... more than one way of skinning a cat!
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. I do travel over there and bring stuff back
Lee or Levi Jeans (cant remember brand, it was 10yrs ago) at factory outlets in US - $5-10.... in AU $150+ea
cant blame u
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Yup, with the AUD up there has never been a better time to travel to the US with empty suit cases.
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a 47litre ARB fridge in the USA is $US799.98 and $AU1,199.00 in Australia???
I thought they were an Australian product? and if they were made in China is there that much of a shipping cost difference between the USA and AU $400 difference in price.. ????
I paid the $AU1,199.00 last year... :(
We are frigg'n mugs at times.... or is ARB treating us as mugs just like our Swedish IKIA mates....
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Last time I checked it was extra $260 US to ship.
:cheers:
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How do the airfares compare?
US - Aus - US
Aus - US - Aus
Is it the same rip-off as going to the UK?
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BigJules has hit the nail on the head, small market, high wages, high instructure and utility costs. Unless are market increases or our costs come down retailers are going to struggle.
Add to this that the Govement is trying to free up trade to other countries. They see this as a way of increasing our exports, but it will work both ways making it even easier for other countries to send to us and putting more pressure on the local retailers.
Trevor
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Freight charges between China and the US are significantly lower than from China to Australia (but even that is cheaper than Syd-Perth). Once again it comes down to volume. Even flights, China US return is only $800.
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I bought a Warn 9.5XP from the US.
Cost me $979, + $290 in fees and freight to get it here. $1269 total.
I can't understand why anybody shops o/s............ ???
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I remember having a 'discussion' with an old bloke a few yrs back.
He was talking about "buy Aussie" - "support the Aussie Farmer" - etc etc. Later, he jumped in his Fiat & drove home ???
I don't have much experience from the retail side of things, I'm a consumer. But I've got a mate who had a shop selling 2nd hand items - furniture, clothes, tools etc, you know the type of shop!
His wife would run it through the week, & he'd run it Saturday morning...because she'd been working all week, & his "day time job" was finished for the week - but that's a whole other 'female logic' topic ::) ;D
His idea was quick turnover with some (reasonable) profit, hers was get as big a profit as possible. I don't know why, but that shop was non-stop trading with LOTS of merchandise going out the door on Saturday mornings!
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Asics GT2160 runners in Aus = $190. US = $59 including postage (1 week) to Aus. It's hard not too......
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Harry Potter blue ray dvd set around $54 from Amazon UK with free shipping over xmas, JB hifi $115. Go figure
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everyone is complaining, we all know our anus are being ripped apart, what is the solution to the 'stop shoppin overseas' problem??
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Asics GT2160 runners in Aus = $190. US = $59 including postage (1 week) to Aus. It's hard not too......
Got a link? I need a new pair or runners.
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The average wage in Australia in 2011 was $69,000. In the USA, $47,000. That's $22,000 difference and perhaps the price of items in Australia reflects this. In my opinion, products are sold at a percentage of what the average income is, eg. less income = cheaper, more income = more expensive.
As far as shipping costs, mate, we're talking about 1,000s of items being shipped in a cargo ship. I don't think the price reflects on shipping costs at all, perhaps only a couple of $.
If I can get a bargain overseas, I'd buy it.
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I dont think anyone begrudges a bit of markup, as oz isnt exactly a major player in the scheme of things. Kind of like tasmania whingeing about prices of goods being more expensive than the mainland ( sorry taswegians). But to charge over 40 grand extra per item for a small volume import is a bit rough.
Gonna head back over, take the family for a safari, buy the camper and import myself - before doing the lap of oz for six months and still have change from the 40k. Sure i take a bit of a risk, but 40 grand fixes a lot of problems, and taking the easy way sucks. :p
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Two years ago the clutch went on my Jeep (release bearing failed and cut up the release fingers). Jeep didn't have one in Australia (go figure), needed 4-6 weeks to get one in and wanted $760 for it.
I bought one over the phone from a Jeep dealer in the UK. Cost $260, with another $230 to send it express air freight. Arrived within a week of payment clearing.
The packaging was marked "Made in Mexico". Genuine Mopar part, not an aftermarket.
OK, I know that Aus wages etc are more than Mexican, and probably more than in the UK, but the UK dealer was making a profit on $260 on an item imported from overseas, so how can anyone in Australia justify charging three times as much? I accept that low volumes make for higher shipping and handling costs, and there are import duties which I didn't have to pay, but they don't add up to $500 on a $250 part - and you can't get much lower volume than the single item I imported for $230 freight and handling.
Is there anyone out there who imports as a business who can throw some light on the reason we pay such high prices for goods available internationally?
I asked Chrysler Jeep Australia this question and they came up with, amongst others, "We have to warranty the part". Really? Parts supplied in other countries don't have warranties? Parts supplied in Australia are so bad that you need a 100% markup to cover warranty claims?
I don't know any knowledgeable Jeep owner (I don't count soccer mums and Toorak tractors) who buys their major service parts in Australia any more.
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Asics GT2160 runners in Aus = $190. US = $59 including postage (1 week) to Aus. It's hard not too......
Got a link?
For everyone that finds a good deal os can you post the link up for everyone else.
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I manufacture and import agricultural equipment from China. I can tell you with certainty that freight to Aus is significantly more expensive than frieghting the same products and load to the US, to the tune of double at present.
If I use my equipment as an example.
You could possibly buy it from the factory, and cheaper than I can sell it to you. But do you know where to go? Do you know what you're buying? Have you spent months working with the engineers remotely and in their freezing cold factory going over every component and specification? Are you going to include a wide range of spare parts with your import, just in case something goes wrong?
Yes, if you buy equipment from me, and you should ;D, you will pay more than if you bought it off the internet. This is because I must warrant the equipment, with no real warranty or rebate provided to me if your item does fail. This is not uncommon, where the Australian retailer has to wear any warranty cost.
I must pay myself and one FTE deisel mechanic/fitter/auto electrician, plus contribute to the administration, rent, utilities, insurance etc that come with running a real business that you as a consumer can rely upon. This is as opposed to an internet trader who hold minimal stock, little or no parts and operates out of their garage. Good luck getting service and support from them, but don't worry, you saved a hundred bucks on an implement or a grand or two on a tractor.
Not to mention shipping charges, duty and clearance which add at least 25% to my purchase price before it's even hit my premises. And the cost of funding the products from time of order to time of sale, which can be months.
All of this has to be funded by the margin I put onto my purchase price from the factory.
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I guess we started with Off-Shoring manufacturing to china and now we will Out-Source (or Off-Shore) retail to other countries too.
We started walking this slippery slope many years ago.
I am in IT and I have faced redundancy 5 times since 2003. Do you think it will be different for the retailers?
IMO, real estate and wages in this country are far too high. I can go to the Hills District in sydney and have lunch with the Mrs in a real restaurant. Hot fresh lunch + a drink for $10. If I go to Mac Center in Nth Ryde the same meal is $17.
If they didn't have to pay thousands per week in rent then it would be $10.
There are a lot of fat cats in this country getting paid for doing nothing. I think they WILL be getting leaner soon.
WTF, does 'joe average' care about the 'value' of real-estate and his wages??? He works 40hrs per week regardless. As long as his quality of life is the same, he doesn't care.
Why on earth is Aus SO expensive for wages and housing. It doesn't add up.
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How about Australian made Vegemite far cheaper in a New Zealand supermarket than Woolies or Coles here?
Or Australian Beer cheaper than NZ made Beer in the same supermarket and cheaper than what we pay here.
I know there are tax differences but surely exchange rate, freight and import costs would add up.
Also NZ has GST on all products in a Supermarket so I can't understand it.
Cheers
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How about Australian made Vegemite far cheaper in a New Zealand supermarket than Woolies or Coles here?
Or Australian Beer cheaper than NZ made Beer in the same supermarket and cheaper than what we pay here.
I know there are tax differences but surely exchange rate, freight and import costs would add up.
Also NZ has GST on all products in a Supermarket so I can't understand it.
Cheers
And NZ GST is 15 % ;D
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(http://rlv.zcache.com/proud_member_of_the_angry_mob_bumper_sticker-p128295431840835339z74sk_400.jpg)
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And NZ GST is 15 % ;D
Shhh don't give Wayne Swan ideas...
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(http://rlv.zcache.com/proud_member_of_the_angry_mob_bumper_sticker-p128295431840835339z74sk_400.jpg)
Where can i get one of those stickers!
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Got a link? I need a new pair or runners.
Got a link?
www.endless.com (http://www.endless.com)
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There are 2 debates here
1. OS manufactured goods being more expensive here than say the US or direct ex China - fair call but there are real costs in handling stock/parts etcetc. If you buy direct you may or may not save money depending if you get the equivalent kit as the local one, let alone back up, service and warranty. Warranty on direct sales from China is nil no matter what the ebay add says.
2. Australian made goods are cheaper in the US than here it could be that the distributor in USA buys a bulk lot and gets discount accordingly.......... or just gouging.
Re Harley. KTM and others blocking OS sales by their US dealers, keep in mind these manufacturers dont care where the gear goes, its the local Aust distributor who is kicking up the trouble. This also bites as more and more local distributors dont keep stock here and order from US when they receive order from you.