A thread about America, Australia, ARB and many other points

[Bird]

Yep those bloody Execs 
swannie

Do you need an assistant or trainee?? Im ready willing and able.. afterall your mega overworked.

[BadSeed]

Interesting thread and some good points.

I bought all my camera gear from HK. It worked out about 1/3 cheaper than the best AU price. I couldn't have afforded the gear I have in Australia.
I asked a photography retailer (independent) about the mark up for AU and he said the prices are set by the suppliers. He can't even buy stock for the price I can get he gear from HK.
The suppliers charge the retailers what they think the market will bear.

I go to the US for work once every couple of years and I take an empty suitcase inside another one.
Last time I came home with 8 pairs of shoes. Mostly Vans and Converse for my kids at $30 each but also school shoes, clothes and a pair or runners for my wife.
I bought a pair of running shoes for myself for $99 the same pair are $240 here, that's no small mark up.

Billabong and Crumpler are two Australian businesses that spring to mind as being notably cheaper in the States than at home.
I asked Crumpler about this. Here is the exchange (and yes, it's bullShit):

"Price enquiry: Hi Please can you tell me why the 8 million dollar home camera/laptop bag is $48 more expensive in Australia than the US?"

"Hello <whingey arse>,
 The price appears to be more expensive because the US price doesn’t include all the sales taxes they add when it comes to purchasing the bag."

This has generated a culture where people go into shops and try clothes and shoes on, try out electronics, ask advice etc then go home and buy the gear online.
I find that pretty bad form and it doesn't sit well with me, but at the end of the day it's down to the bottom line and I can see why people do it.
They just see the cheaper dollar amount and think the shop keeper is gouging the price.

Obviously this can't continue and the real cost is the loss of the independent retailer.
It's a shame, but I don't have any answers I shop online and I buy when I'm overseas, like I said, for most people it comes down to the bottom line.

The future sadly looks like online shopping, Coles, Woolworths, Target, Kmart, SAB Miller and CUB.

[MDS69]

Story time
We were in the US in 2013.  We went to Walmart for an experience. Looking at softball gloves there was one for $28.00US plus tax probably. I wasn't sure what glove to get as it was my first one and wanted to talk to n experienced person so waited until I got back home and went to a baseball/softball shop. The exact same glove I looked at in Walmart was over $90.00 in Aus.

[ozbogwam]

They are still mking a profit on the item sending it 1/2 way round the world, going through 10 sets of hands, and shipping it back to AU going through 10 sets of hands AND STILL making a profit!!!!!!!!

Yes but only because they are selling loads more due to a much bigger market.

Seriously you have been going on and on about this for years and no answer is ever going to satisfy you. You obviously aren't a customer that falls into their business plan so why go on about it? Or just buy it from the US

[ozbogwam]

Still no answer to the ARB question 

Yes it's been answered many times in this and other threads but it seems the answer isn't what many want to hear so apparently it is "wrong"

[alnjan]

http://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=United+States&country2=Australia

http://www.news.com.au/finance/money/yes-australia-is-expensive-but-there-are-fringe-benefits-if-you-live-here/story-fnagkbpv-1226630603809

I know they are a bit old and give lots of figures but it all comes down to basic economics, not so much as a lot of other reasosn

[koshari]

I think it's more to do with "what the market will bear" people in aus will always pay overs untill the ass really falls out of our economy.

[muzza01]

There is a clear difference between profit and profiteering.

Exactly 

Still no answer to the ARB question 

That's right. I have read a whole lot of BS and "who shot John" but no answer as to why an Oz company continues to rip us off.

[D4D]

...but no answer as to why an Oz company continues to rip us off.

Because they can. If you have a problem with it, you should have purchased shares 5 years ago.

That said they're running at 12% profit after tax so they are not exactly 'profiteering'.

[ozbogwam]

Exactly 

That's right. I have read a whole lot of BS and "who shot John" but no answer as to why an Oz company continues to rip us off.

Yes there have been the answer you just choose to not accept it

They aren't ripping you off, just don't buy their stuff. You don't need any of their products so I fail to see why this is such a huge issue

[Garfish]

Exactly 

That's right. I have read a whole lot of BS and "who shot John" but no answer as to why an Oz company continues to rip us off.

Are they? 

 For the last 6 months to dec 31, ARB are making approx 12% after tax on sales. And about the same based on gross assets invested. ( with the average Aust govt bond rate at 6.8% over the last 40 odd years this utilising this as a risk free return on investment. ARB are currently making 5% above the average risk free rate)   


Reasonable returns, but shrinking,  in. The 6 months to dec in the prior year, it was ~14% on sales

Real estate now that is a rip off, how can an ageing house requiring increasing maintenance cost increase in value.? Therefore anyone who has ever sold a house is ripping off everyone. 

[xcvator]

Yes it's been answered many times in this and other threads but it seems the answer isn't what many want to hear so apparently it is "wrong"

Sorry Oz, it has NOT been answered. Market size has absolutely nothing to do with it either. If 500 units of a product is made here that manufacturing cost is fixed at that point.
You then send 200 of those units to market in Australia at $1500-00 each and the remaining 300 units to the USA at $500-00 each
WHY is there a price difference, WHY isn't the price very similar. How can a product made here be shipped 1/2 way around the world, shipped to various warehouses/distribution centers then sent back to Australia individually  and still be cheaper than the same product on Australian retailers shelves

It's called price gouging , and a lot of businesses see Australia as a sucker market, Adobe is 1, Apple is another, ARB is another and that's the tip of the iceberg, yes you can sit back and say "don't buy the product", but what about the people and businesses that NEED the product, why should we have to pay double or triple the overseas prices ??

[xcvator]

Are they? 

 For the last 6 months to dec 31, ARB are making approx 12% after tax on sales. And about the same based on gross assets invested. ( with the average Aust govt bond rate at 6.8% over the last 40 odd years this utilising this as a risk free return on investment. ARB are currently making 5% above the average risk free rate)   


Reasonable returns, but shrinking,  in. The 6 months to dec in the prior year, it was ~14% on sales

 

I'd like to see their accounting procedures , you've heard the expression "rubbery figures"

[ozbogwam]

Because you aren't comparing similar economies. Cost of living is very different. Also they are shipped to a central warehouse and distributed from there. Very few of the stores offering the low prices are actual store fronts most are just distributors with no actual real estate

Market size has everything to do with it as does pricing structures where some U.S. companies are willing to take a hit on the price to get a customer

[D4D]

I'd like to see their accounting procedures , you've heard the expression "rubbery figures"

Rubbery figures went out with Enron for public companies. Directors and Auditors now face jail terms if the numbers are found to be 'rubbery'. Now your average private small business, have a look there for some 'rubbery' figures.

[Moggy]

Now your average private small business, have a look there for some 'rubbery' figures.

Yeah... thats it, lets all now attack small business, God knows there "all" ripoff ba $tards. They probably still think Glen Mcgrath is a good bloke

Sent from my SM-G900I using Tapatalk

[Garfish]

Rubbery figures went out with Enron for public companies. Directors and Auditors now face jail terms if the numbers are found to be 'rubbery'. Now your average private small business, have a look there for some 'rubbery' figures.

Or personal income tax returns now that's some rubbery accounting


Sent from my fingers via my brain

[muzza01]

Yes there have been the answer you just choose to not accept it

They aren't ripping you off, just don't buy their stuff. You don't need any of their products so I fail to see why this is such a huge issue

I am not making it a huge issue, just posting my opinion on a thread like you have.

That's right, there have been answers to whigh I choose not to accept as rational or justifiable. A lot of forum members from LCOOL have imported ARB gear from the US saving a fair amount of coin, a shame they just couldn't get it in Oz.

You will get no arguement that ARB make quality gear but the whole locker thing being a lot cheaper in the States is crap.

[shanegtr]

why should we have to pay double or triple the overseas prices ??

Thats the beaty of the internet and global shopping - you dont have to pay it if you can handle the wait for shipping. Obviously to ARB it makes absolutly no difference if you buy a locker here or overseas as either way they are selling the same number of lockers - it just hurting the local retailers instead.

[Artie01]

Thats the beaty of the internet and global shopping - you dont have to pay it if you can handle the wait for shipping. Obviously to ARB it makes absolutly no difference if you buy a locker here or overseas as either way they are selling the same number of lockers - it just hurting the local retailers instead.

I actually don't agree with this, ARB would MUCH rather that you pay the higher prices in Aus and allow them to make a MUCH higher unit profit margin, but the US market is so large they have to do, what they have to do, to get a market share (unit volume).

As was mentioned earlier, the manager of the Ford production line in Thailand when asked about the disparity between the cost of a Ford Focus in Thailand compared to Australia (almost twice) his response was pricing DOES NOT reflect a fixed percentage over costs, its purely down to what the relevant economy can afford to pay.

Same US vs Aus costs....we are called the lucky country for a reason..... wanna go to the US and become ill/or injured without private health??? (yeah, I know we are threatening something similar).

[Marschy]

I actually don't agree with this, ARB would MUCH rather that you pay the higher prices in Aus and allow them to make a MUCH higher unit profit margin, but the US market is so large they have to do, what they have to do, to get a market share (unit volume).

As was mentioned earlier, the manager of the Ford production line in Thailand when asked about the disparity between the cost of a Ford Focus in Thailand compared to Australia (almost twice) his response was pricing DOES NOT reflect a fixed percentage over costs, its purely down to what the relevant economy can afford to pay.

Same US vs Aus costs....we are called the lucky country for a reason..... wanna go to the US and become ill/or injured without private health??? (yeah, I know we are threatening something similar).

I don't think Thailand has a free trade agreement with Australia, what I do know is they have a 60% import tarriff on vehicles in to Thailand that hasn't helped anyone but Thailand.

[Artie01]

and 300% on wines...... but they are our biggest purchaser of wheat..... apparently....

[D4D]

http://www.news.com.au/national/australian-workers-overpaid-hard-to-fire-says-us-economist/story-fncynjr2-1227245882063

Interesting perspective...

The economy is struggling to grow because Australians get too much pay, too much annual leave and are too hard to fire, an American economist says.

[Bird]

http://www.news.com.au/national/australian-workers-overpaid-hard-to-fire-says-us-economist/story-fncynjr2-1227245882063

Interesting perspective...

The economy is struggling to grow because Australians get too much pay, too much annual leave and are too hard to fire, an American economist says.

yep... its no surprise why we cant compete

[muzza01]

http://www.news.com.au/national/australian-workers-overpaid-hard-to-fire-says-us-economist/story-fncynjr2-1227245882063

Interesting perspective...

The economy is struggling to grow because Australians get too much pay, too much annual leave and are too hard to fire, an American economist says.

Ouch, 2 weeks annual leave . I just negotiated with my employer for 6 weeks per year. I couldn't survive on two.