Author Topic: Price disparities between o/s and oz (Read 11916 times)

Dogsbreakfast · « **on:** February 06, 2012, 09:48:16 PM »

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.

D4D · « **Reply #1 on:** February 06, 2012, 09:51:50 PM »

Yup retail is now global and only a click away. Some companies will wonder where all their sales have gone.

UIZ733 · « **Reply #2 on:** February 06, 2012, 09:56:08 PM »

I am looking at one of these; 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.

Brett · « **Reply #3 on:** February 06, 2012, 10:01:49 PM »

Quote from: D4D on February 06, 2012, 09:51:50 PM

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.

Manjimike · « **Reply #4 on:** February 06, 2012, 10:04:20 PM »

What really gets up my nose is airfares
Perth - Manchester - Perth around $2k AUD
Manchester - Perth - Manchester around 770 GBP (< $1150 AUD )

Same airline.

Mike

theflyingbadger · « **Reply #5 on:** February 06, 2012, 10:05:45 PM »

Quote from: Manjimike on February 06, 2012, 10:04:20 PM

What really gets up my nose is airfares
Perth - Manchester - Perth around $2k AUD
Manchester - Perth - Manchester around 770 GBP (< $1150 AUD )

Same airline.

Mike

$2600 when I had to fly on xmas day, Mike

$6700 for all 4 of us to fly at easter

Bird · « **Reply #6 on:** February 06, 2012, 10:06:51 PM »

D4D · « **Reply #7 on:** February 07, 2012, 06:12:11 AM »

Quote from: Brett on February 06, 2012, 10:01:49 PM

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/

DannyG · « **Reply #8 on:** February 07, 2012, 07:22:37 AM »

Quote from: D4D on February 07, 2012, 06:12:11 AM

Yup, pretty pathetic attempt to protect their channel. This has spawned a new industry, get yourself a US address 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

Aussie Blue · « **Reply #9 on:** February 07, 2012, 07:45:30 AM »

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.

BigJules · « **Reply #10 on:** February 07, 2012, 07:48:51 AM »

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.

Aussie Blue · « **Reply #11 on:** February 07, 2012, 08:19:17 AM »

Quote from: BigJules on February 07, 2012, 07:48:51 AM

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.

McGirr · « **Reply #12 on:** February 07, 2012, 08:58:42 AM »

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

D4D · « **Reply #13 on:** February 07, 2012, 09:25:29 AM »

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.

MDS69 · « **Reply #14 on:** February 07, 2012, 09:27:04 AM »

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.

BigJules · « **Reply #15 on:** February 07, 2012, 09:28:40 AM »

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...

D4D · « **Reply #16 on:** February 07, 2012, 09:40:21 AM »

Quote from: BigJules on February 07, 2012, 09:28:40 AM

I am just sick of the bleating about it...

I didn't say I buy from Noo Zeeeluund

Tuco · « **Reply #17 on:** February 07, 2012, 10:09:29 AM »

Quote from: Brett on February 06, 2012, 10:01:49 PM

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/

... more than one way of skinning a cat!

Bird · « **Reply #18 on:** February 07, 2012, 10:15:31 AM »

Quote from: D4D

. 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

D4D · « **Reply #19 on:** February 07, 2012, 10:35:47 AM »

Yup, with the AUD up there has never been a better time to travel to the US with empty suit cases.

kiwipete · « **Reply #20 on:** February 07, 2012, 01:08:44 PM »

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....

Mace · « **Reply #21 on:** February 07, 2012, 01:13:30 PM »

Last time I checked it was extra $260 US to ship.

Manjimike · « **Reply #22 on:** February 07, 2012, 01:45:45 PM »

How do the airfares compare?
US - Aus - US
Aus - US - Aus

Is it the same rip-off as going to the UK?

Wandering Tassie · « **Reply #23 on:** February 07, 2012, 01:46:52 PM »

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

BigJules · « **Reply #24 on:** February 07, 2012, 02:12:16 PM »

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.

News:

Author Topic: Price disparities between o/s and oz (Read 11916 times)

UIZ733

Manjimike

Manjimike