Author Topic: The strong aussie dollar - not enough  (Read 7990 times)

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Offline BigJules

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The strong aussie dollar - not enough
« on: February 21, 2012, 08:19:34 AM »
I've been interested in the cost of tyres (tires) form the US, since someone first posted the link to Tire Rack.

A BFG KM2 (285/70R17) for my Cruiser is USD$265, plus freight. A quote for five (they only quoted me 4) came back at USD$365 per tyre, plus GST. With a fudge factor here and there, allowing for an exchange rate of $1.05, each tyre is still about AUD$408.

I saw this site yesterday,SaveOnTyres quoting BFG ATs for $402.

Yes, they're not the same tyre, but shown as an example.

The big cost is freight, at USD$121 per tyre. This is using Fedex and delivery is 3-6 days. I'd be happy with 3-6 weeks for tyres at a good price.

I am talking to my freight people about the cost of containers from the US, but would need to buy a large quantity of tyres to make this feasible. Not out of the question.
Julian
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Offline Matto

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Re: The strong aussie dollar - not enough
« Reply #1 on: February 21, 2012, 09:00:11 AM »
Hey Jules,

If you're that concerned, you could stick a '70 Chevelle SS into the container for me, that should take up some of the extra space, so you wouldn't need to buy as many tyres... ;)

Cheers!
Matto :)
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Offline Mace

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Re: The strong aussie dollar - not enough
« Reply #2 on: February 21, 2012, 09:06:14 AM »
Hey Jules,

If you're that concerned, you could stick a '70 Chevelle SS into the container for me, that should take up some of the extra space, so you wouldn't need to buy as many tyres... ;)

Cheers!
Matto :)

Stick in a Hurst Oldsmobile 4-4-2 for me as well!!  ;D ;D

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Offline Matto

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Re: The strong aussie dollar - not enough
« Reply #3 on: February 21, 2012, 09:48:50 AM »
You keep going like this Jules, and you'll get your tyres for free...

Cheers!
Matto :)
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Offline JCOJ

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Re: The strong aussie dollar - not enough
« Reply #4 on: February 21, 2012, 10:17:43 AM »
Big Jules,

If you are thinking of a container  - I'd buy a set of tyres and help with the freight cost.  The Cooper ST Maxx's here is Aust are $420ea and in the US they are US$219.

Tirerack don't do Coopers but TireSavings do so I would need to get them freighted to wherever the container is.

You might want to get a freight quote off these guys too: http://www.discountedwheelwarehouse.com/BFGoodrich_Mud_Terrain_T_A_KM_Tires_4441.cfm?page=2
« Last Edit: February 21, 2012, 10:32:09 AM by JKohn »

Offline BigJules

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Re: The strong aussie dollar - not enough
« Reply #5 on: February 21, 2012, 10:44:53 AM »
What this demonstrates is that aussie tyre retailers are not ripping us off. By the time one adds a couple of freight charges there is little cost difference.
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Offline D4D

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Re: The strong aussie dollar - not enough
« Reply #6 on: February 21, 2012, 11:46:36 AM »
Yep no BFG or Coopers made in AU, so we have to pay the price, now lockers that's another story :)
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Offline McGirr

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Re: The strong aussie dollar - not enough
« Reply #7 on: February 21, 2012, 11:51:57 AM »
I can see it now " Big Jules Imports" tyres, lockers, winches, 6 B & S wire and asian brides  ;D

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Offline Silvo

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Re: The strong aussie dollar - not enough
« Reply #8 on: February 21, 2012, 11:53:28 AM »
What this demonstrates is that aussie tyre retailers are not ripping us off. By the time one adds a couple of freight charges there is little cost difference.

No, what it demonstrates is that they are charging what the market will accept because we can't beat it. How many tyres do you think they bring into the country at a time? 1 container? 50 ? 100 ? and then what is the cost that they actually pay for the tyres originally. quantities of scale would make it A LOT cheaper for them to bring them in, then they charge what we will pay. The items are only worth what someone will pay for them.
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Offline BigJules

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The strong aussie dollar - not enough
« Reply #9 on: February 21, 2012, 12:02:24 PM »
I can see it now " Big Jules Imports" tyres, lockers, winches, 6 B & S wire and asian brides  ;D

Mark

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Offline BigJules

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The strong aussie dollar - not enough
« Reply #10 on: February 21, 2012, 12:06:20 PM »
No, what it demonstrates is that they are charging what the market will accept because we can't beat it. How many tyres do you think they bring into the country at a time? 1 container? 50 ? 100 ? and then what is the cost that they actually pay for the tyres originally. quantities of scale would make it A LOT cheaper for them to bring them in, then they charge what we will pay. The items are only worth what someone will pay for them.

Dan, for sure the bulk transport cost is lower but then you've got national freight from the importer, cost of funds, handling charges on the wharf and then GST.

Plus marketing, sales, order management an more for the importer.

For sure they're making a profit but I'd suggest it is a modest one.
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Offline Bird

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Re: The strong aussie dollar - not enough
« Reply #11 on: February 21, 2012, 12:10:29 PM »
Sadly I found the same as you Jules, after reading dozens of threads where people are saving close to a grand. I was very disappointed... :(

but theres good deals to be had around AU, try our own forum member Oakleigh for example... hes a great bloke.

At last Muzza did well, saved 800... :(
http://myswag.org/forum/index.php?topic=13728.msg207601#msg207601

« Last Edit: February 21, 2012, 12:13:53 PM by Lost »
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Offline Matto

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Re: The strong aussie dollar - not enough
« Reply #12 on: February 21, 2012, 12:14:03 PM »
How many tyres do you think they bring into the country at a time? 1 container? 50 ? 100 ?
Do you reckon? I've got no idea myself, but I'd be surprised if Aus really is that big a consumer of things like specialist 4WD tyres. We just don't have the population that's that far into it. I think that's part of the "problem" with things costing so much more here, especially when you get into a niche item like serious 4WD accessories. Lets face it - the majority of 4WD's sold won't go offroad, and of the set that DO, I'd go out on a limb to say that most people won't really care that much about tyres. Sure, we all do, but again this is a pretty niche forum to start with.

Figures from Jan 2012 - 42,555 Passenger Vehicles sold new, against 22,123 "SUV"s sold new. So 4WD owners are already in the minority. Contrast that to the US, where someone like BFG makes 3 or 4 different types of 38" MT tyre to suit the specific different applications (desert racing, rock crawling, mudding, etc) and still manage to sell as many of them as they can make.

Your points are valid though - the local BFG distributor will (or at least should) be getting a better price that the rack rate that you or I buy from the US. And they will be getting a better deal on shipping and transport. Once you take into account the longer supply chain (import company, national distributor, state distributors, additional transport to dealers, dealer's themselves) I'd be surprised if that advantage wasn't eaten up by everyone adding on their cut.

But at the end of the day "they are charging what the market will accept" is spot on. If everyone stopped buying Coopers or BFGs, they drop the price to stimulate the demand. It's the same reason that iPads/iPhones are expensive, and the same reason that milk is now under $1/L. It's not bad, it's just how the world works.

I would really be interested to know how many tyres are bought into the country though. Might have to do some digging - you've peaked my interest Silvo!

"BJ Imports" - would you buy tyres from them?

Cheers!
Matto :)
(Ahh - beaten by Jules' reply which basically says the same thing without the waffling  ;D)
« Last Edit: February 21, 2012, 12:15:59 PM by Matto »
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Offline LJs GU

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Re: The strong aussie dollar - not enough
« Reply #13 on: February 21, 2012, 12:21:26 PM »
I can see it now " Big Jules Imports" tyres, lockers, winches, 6 B & S wire and asian brides  ;D

Mark 

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Offline Mandrake

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Re: The strong aussie dollar - not enough
« Reply #14 on: February 21, 2012, 01:41:10 PM »
On of my former clients brings tyres in for trucks / buses mainly .
Usually about 200 to the 20 foot container load . One a month was his average .
Cost of the tyres USD100 = USD 20,000
Freight to Aust             = USD  3,000
Import GST               = USD  2,300
Clearance and delivery    = USD  1,000

Total                   = USD 26,000 or USD 130 per tyre !!

They sell for AU $250-300 for a truck / bus .

Thats roughly a 110% Profit margin ...

Thats fairly modest ....

Get into it Jules there's HUGE cash in tyres - Just bring in a few
specilaised ones for you and the mates and the rest standard road tyres for Holdens and Fords .. Make a killing !!

Become an entrepreneur like me !!

Cheers

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Offline Silvo

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Re: The strong aussie dollar - not enough
« Reply #15 on: February 21, 2012, 02:50:24 PM »
Jules - I understand all of the on costs associated, but I still think the volume would be significant enough to lower the overall starting price. I do work in an importers business and can see what quantities of scale offer when bring in product from overseas.

Matto - you have to think that this isn't just 4wd tyres I'm talking about, also include passenger car tyres in that equation.
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Offline Pipeliner

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Re: The strong aussie dollar - not enough
« Reply #16 on: February 21, 2012, 02:57:00 PM »
When working things like this out, bear in mind that you can import goods to the value of $1000 without being bothered by customs - go over that value and you suddenly find import duties, customs clearance agent fees, GST, and heaven knows what else being added to the price.

Personal imports of a container load of tyres is just not on.
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Offline Garry H

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Re: The strong aussie dollar - not enough
« Reply #17 on: February 21, 2012, 03:01:30 PM »
maybee (tongue in cheek!) you could stick a couple of ARB lockers in the container as well......

Offline Matto

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Re: The strong aussie dollar - not enough
« Reply #18 on: February 21, 2012, 03:12:57 PM »
Matto - you have to think that this isn't just 4wd tyres I'm talking about, also include passenger car tyres in that equation.
Sorry mate - had 4WD tyres stuck in my head, since that's what we started off talking about. Was fixated on that.

As I said, I've got no idea what these volumes would be like - I don't work anywhere near the industry.

Thanks,
Matto :)
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Offline Bird

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Re: The strong aussie dollar - not enough
« Reply #19 on: February 21, 2012, 03:17:13 PM »
Dont we have a free trade agreement with USA??
Doesnt that mean no duties on items made in USA?? Get US made tyres..
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Offline ozbogwam

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The strong aussie dollar - not enough
« Reply #20 on: February 21, 2012, 03:55:29 PM »
Jt imports in Vic bring back containers of stuff each month. If you can get the tyres to their depot in California it was $35 per tyre to
Chuck them in the container

Offline cruisindub

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Re: The strong aussie dollar - not enough
« Reply #21 on: February 21, 2012, 08:50:17 PM »
I'll take a share of that container.....
Salomon shoes and boots and gortex,... (ridiculous price differences)
Merrell shoes and boots,...(ridiculous also)
Specialized mountain bikes,...(also ridiculous)
I'll also take a bunch oif camping gear at same time......

Crazy as it sounds, its actually cheaper to buy from Europe and have shipped than buy local.......



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Offline JCOJ

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Re: The strong aussie dollar - not enough
« Reply #22 on: February 21, 2012, 09:03:52 PM »
I'll take a share of that container.....
Salomon shoes and boots and gortex,... (ridiculous price differences)
Merrell shoes and boots,...(ridiculous also)
Specialized mountain bikes,...(also ridiculous)
I'll also take a bunch oif camping gear at same time......

Crazy as it sounds, its actually cheaper to buy from Europe and have shipped than buy local.......

Got a link to each of your sites?

Offline theflyingbadger

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Re: The strong aussie dollar - not enough
« Reply #23 on: February 21, 2012, 09:07:34 PM »
merrells are a PIA, none of the US sites (which are cheap as chips) will ship to oz.
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Offline JCOJ

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Re: The strong aussie dollar - not enough
« Reply #24 on: February 21, 2012, 09:55:36 PM »
merrells are a PIA, none of the US sites (which are cheap as chips) will ship to oz.


They don't need to - that's where these guys come in handy: http://www.reship.com/?gclid=CJ3_zJuBr64CFYVMpgodyy0KPQ

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