ARB Air Locker Copies

[Chris-Vi]

Unless I have missed it the one thing that is different with USA pricing is that it is less sales tax. All states and county's have different rates and that is added at the checkout. When you buy something on the internet they don't charge sales tax and if under the magic $1000 we don't pay GST on the import.
One thing is that we have been screwed for so long with high prices it is only now that people can shop overseas and see what a product really costs.
ARB have certainly gone quiet.   

[dazzler]

If you do import a locker from os and save $200 or so what do you do about warranty?

Do you send it back os?

[ozbogwam]

Do people seriously expect a company to come into a forum and explain their pricing policies?

Don't like the prices, don't buy. It's simple, no conspiracy, just a business model.

[Bill]

Why should it have to be sent back? At the end of the day it is still an ARB locker and should be covered no matter where it was purchased.

[schmik]

Do people seriously expect a company to come into a forum and explain their pricing policies?

Don't like the prices, don't buy. It's simple, no conspiracy, just a business model.

It's called feedback. Consumers are giving it. If ARB don't like it then they don't have to listen.
I don't expect them to explain their pricing policy.... but if i were them i would listen to the feedback they are getting.

Consumers are going global, things are changing. Innovate or die.
Having an apathetic attitude will get you nowhere.

[jr]

Warranty is valid and controlled in the country you bought it. This is most often strongly covered under that countries laws
Australia has some of the toughest consumer laws in the world and yes this cost has to be added onto products sold here BUT the price difference in this case is a lot and the GST argument doesnt stack up despite what retailers here say.
If the goods were only 10% cheaper, no one could freight them here for that (especially heavy parts) and there would be no internet type sales taking place - there is, so the goods must be cheaper in real terms. The reasons behind this are basically Australians can afford to pay more and we do every day. We love to regulate every process ensuring high standards and protections which is good but costs businesses money in the end.
Its lucky ARB are strongly dependant on Australian market as if it were the US market they were strong in things would be very tight there right now.

Restrictions on pricing, exclusivity are controlled by both manufacturer, importer and retailer depending what strength each brings to the table, ARB are a strong brand and can negotiate some tough deals with suppliers Id say - probably backed by big sales targets. Id have thought it was unusual to have exclusive supply deal within a country like the WA example? Too easy to get around it.

[dazzler]

Its lucky ARB are strongly dependant on Australian market as if it were the US market they were strong in things would be very tight there right now.

I doubt they are dependant on us at all now.  ARB seem to be everywhere in the US 4wd forums.

Just an observation.

On the warranty side if you need to send it back to the US its a $400 round trip.  Thats a pretty big hit I reckon.  (I take it ARB oz has no legal requirement to fix it here?)

[D4D]

I doubt they are dependant on us at all now.  ARB seem to be everywhere in the US 4wd forums.

Read the link I posted, 2/3 of their business still comes from AU

[Bird]

now wheres that PDF of their pricing again

[ozbogwam]

It's called feedback. Consumers are giving it. If ARB don't like it then they don't have to listen.
I don't expect them to explain their pricing policy.... but if i were them i would listen to the feedback they are getting.

Consumers are going global, things are changing. Innovate or die.
Having an apathetic attitude will get you nowhere.

Yes feedback is valuable but I was responding to people aski g for ARB to come on and explain there pricing policy, very different

[letsgoplaces]

Hi guys, I realise this is a concern. As I'm still a relative newbie at ARB, I will do some investigation to try and ascertain why this is the case.

Cheers, Sam.

Sam has stated he will TRY to find out about our queries/gripes/whinges. From his original comment i would expect him to come back to us with something.... anything. Even if it is to tell us to suck eggs and shut up 

[dazzler]

Read the link I posted, 2/3 of their business still comes from AU

Facts are meaningless. You could use facts to prove anything that's even remotely true!  (HJ)

Sorry, I was wrong.   

[Nutto]

now wheres that PDF of their pricing again

On my 'puter.....    Moohahaha 

[ARB 4X4 Accessories]

Hi guys, I've done a bit of digging around re Air Locker pricing in Australia and the US and can offer the following. 

The RRP of an Air Locker in Australia and the US is actually not all that different. Using the Landcruiser 100 Series as an example, the RRP of a rear locker in the US is US$1095.00 (web link) and in Australia it's AUS$1108.00 (+GST). Depending on the US state, there may also be sales tax on top of the listed RRP. 

The heavily discounted pricing that can be found in the US actually comes primarily at a reseller level. With a much larger market (ie greater sales volume) and subsequently a higher level of competition, the resellers have a tendency to discount prices and make a minimal margin to remain competitive. 

We are even aware of some US resellers using the Air Locker brand as a ‘loss leader’ due to its popularity. This means they’re happy to sell an Air Locker at a loss in order to attract new customers and generate exposure to their wider product range. This in turn puts even greater pressure on other stockists to reduce prices.

Furthermore, many of the discount sellers in the US are solely web based and therefore don't have showrooms or offer fitting services like our Australian network which substantially reduces their overheads.

Obviously, the strong Aussie dollar at the moment is exacerbating any price difference and, in the ideal world, we'd increase the price in the US to account for this. However, with current market conditions in the US, this is just not commercially viable. 

For comparison's sake, our Australian pricing is actually pretty competitive with our main competitors. For example, a rear Pro Locker for a 100 Series Cruiser is $1167.00 (+GST) so it's really more a matter of US resellers discounting than Australian pricing being excessive. 

Hope this helps explain things a bit.

Cheers, Sam.

[LJs GU]

On that note, I'm sure there's going to be a few Columbo's out there ("Just one more question") but time to bring the thread lock out I reckon.
LJ

[McGirr]

Well said Sam.

Know what was the myswag discount again !!!!! Only joking 

Mark

[schmik]

Now we'll all have to whine about the unjust margins of the retailers.

Need a few more web stores in AU.

Makes sense. Thanks Sam.

[Bird]

On that note, I'm sure there's going to be a few Columbo's out there ("Just one more question") but time to bring the thread lock out I reckon.

I think lock is in order, as it doesnt really answer much.
Im not a business owner, but I can't see shops selling lockers at over 50% loss in price to sell 1 locker a month to AU. They arent going to get you in the door for a bullbar and set of recaros off them. people are saving 400each locker LANDED.. freight on that weight from USA would be hideous...

[JCOJ]

Hi guys, I've done a bit of digging around re Air Locker pricing in Australia and the US and can offer the following.

The RRP of an Air Locker in Australia and the US is actually not all that different. Using the Landcruiser 100 Series as an example, the RRP of a rear locker in the US is US$1095.00 (web link) and in Australia it's AUS$1108.00 (+GST). Depending on the US state, there may also be sales tax on top of the listed RRP.

The heavily discounted pricing that can be found in the US actually comes primarily at a reseller level. With a much larger market (ie greater sales volume) and subsequently a higher level of competition, the resellers have a tendency to discount prices and make a minimal margin to remain competitive.

We are even aware of some US resellers using the Air Locker brand as a ‘loss leader’ due to its popularity. This means they’re happy to sell an Air Locker at a loss in order to attract new customers and generate exposure to their wider product range. This in turn puts even greater pressure on other stockists to reduce prices.

Furthermore, many of the discount sellers in the US are solely web based and therefore don't have showrooms or offer fitting services like our Australian network which substantially reduces their overheads.

Obviously, the strong Aussie dollar at the moment is exacerbating any price difference and, in the ideal world, we'd increase the price in the US to account for this. However, with current market conditions in the US, this is just not commercially viable.

For comparison's sake, our Australian pricing is actually pretty competitive with our main competitors. For example, a rear Pro Locker for a 100 Series Cruiser is $1167.00 (+GST) so it's really more a matter of US resellers discounting than Australian pricing being excessive.

Hope this helps explain things a bit.

Cheers, Sam.

It's not just lockers Sam - it's everything to do with ARB.  During last year an ARB booklet for for retailers was posted on this forum and alot of us downloaded it - me included.  The Australian dealer price for an ARB bullbar for a JK Wrangler according to the booklet is $1071.43.   ARB retail is $1472 (not fitted) Quadratec are selling it for US$912.99.  The Australian dealer price is even more than what the US retail price is!!!

I can find plenty of other items that show exactly the same.  I am sure the US sites are not selling everything as 'loss leaders'!!

[TOY80ST]

Front locker landcruiser 80 series Australia. Was quoted $1050.00 over the phone from ARB (best price no compressor). $765.00 in the US including V sales tax, add $76.50 for duty taxes when I get back to Au. If a store is willing to take that much of a loss to sell your product then so be it. I know your not going to tell me the sell price as that is just bad business. The guys in the US would pay around the same as the stores here because of their quantity of sales but it would work out about even because of the cost of shipping to the US. I have a shipping crate on the way back from the US now and it was bloody expensive. They still have a shop front and the workers in the US get paid on their sales. They all work for minimum wage and get paid on percentage of sales profit. Very different to here. Here sales clerks get a flat rate no matter what they sell. Sales reps work on a quota but that is different again. ARB set the prices they want their product sold for by their retailers.

Americans earn much less than Australians so every thing is cheaper but right now if you say a dollar US you may as well say a dollar Au. For those that are interested a $80,000 wage here is equivilent to $55,000 us as far as what you can buy for your dollar. coke in servo here $2.30 to $2.80 in the US 75 cents. Beer in woollies here $14.00 six pack in a service station in VW $9.50 packet of Malrborough 25s $6.40 from servo, when I cam home i looked and they were $15.80 from my corner store. Pair of levi's 505's here $150 in the US $40.00. So I can understand the cheaper prices for the US but it does not reflect the dollar for dollar value.

This is only an example as I have never made a diff lock or worked for a company that has.

Lets say an article costs $500 per unit to make this includes being made on a CNC machine which will need replacing after around 10,000 units (machine upgrades are not included because machines are normally sold of or put into production requiring less quality. Packaging and QA $60 per unit and dispatch about $8.00 per unit laned in store company profit on top 25%.  ($710) we sell the unit here for $1000.00 because of 30% profit margin by stores which is dictated to by manufacturer as a minimum sale price if the store wants to sell the company's products) but we ship the same item to another country add about $80.00 to the cost price because of freight and it gets sold much cheaper. Go figure. Don't forget the company would have costs minimised to obtain maximum profits without compromising quality or quantity so it may even be cheaper than this.

I wasn't that bad at maths at school to work out something isn't right. If the company are taking a huge slug to sell these units at a cheaper price that you say you can sell them here for where are they making up the sort fall? On the Australian market? On other products they sell? someone called conspiracy no there isn't, there is a company making profits but at who's expence the Australians or the country it exports to?

No need to lock any threads they usually just burn out . No one here is heated I am certainly not and I hope others aren't . They are only words and I am only asking a question and trying to put a bit of logic into how it all works. If that is Sam's responce so be it. ARB loses a little more confidence in the Australian market and I get dubbed a DH for asking a question that I don't understand the meaning of. So be it I have been called a DH by many a CEO fellow engineer or my wife before. I am still a happy camper.

[Bird]

Pair of levi's 505's here $150 in the US $40.00. So I can understand the cheaper prices for the US but it does not reflect the dollar for dollar value.

actually if you go to their factory outlet we went to on our way somewhere from Sth Dakota to Arizona, they are $5-10 a pr... my ex is a yank, and when she came here she went to buy some jeans, and nearly had to call 000 when she was given the price.... Needless to say her bags were empty on the way over when she went on her first return visit to USA full on way back!

[BigJules]

The sentiment expressed here is clear, but I don't think ARB is going to outline their pricing structure on this forum. Take some satisfaction from the fact that Sam is clearly reading these responses, and surely feeding the dissatisfaction back to his colleagues.

I'd hate to see this go one for pages more, as it will not serve us any better.

[D4D]

Hypothetically, if a local AU dealer tried sell under RRP,as a loss leader, and start a price war they will find it hard to source stock....

[dazzler]

This is all a bit silly really.

If you dont want to give ARB your money keep it in your pocket or give it to someone other retailer.

Its a business, not a charity.

Just like Toyota they sell a premium product (whether 'premium' is real or imagined) and seem to be managing the business ok given the current world economic outlet.

Just like Toyota people whine about the price.  But they still sell like hotcakes so the business model is sound. 

[medion]

Being that most of ARB's money from Austrailan customers come from businesses (additions to new cars from dealers, company cars, mining, commercial cars/ trucks etc) they probably don't really care if they don't sell the lockers in Australia.

They make way more from there commercial clients, as the cost of the parts get added to the lease and the client doesn't question the price.

I do agree though, it seems a bit stupid you can buy an Australian product cheaper in the US inc delivery.  :'(