Price disparities between o/s and oz

[GeoffA]

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............

[bobnrob]

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   
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!

[Sixtys Guy]

Asics GT2160 runners in Aus = $190. US = $59 including postage (1 week) to Aus. It's hard not too......

[Trackaprado]

Harry Potter blue ray dvd set around $54 from Amazon UK with free shipping over xmas, JB hifi $115.  Go figure

[Bird]

everyone is complaining, we all know our anus are being ripped apart, what is the solution to the 'stop shoppin overseas' problem??

[Burnsy]

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.

[centipede]

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.

[Dogsbreakfast]

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

[Pipeliner]

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.

[JCOJ]

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.

[BigJules]

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  , 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.

[schmik]

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.

[Kiv]

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

[Manjimike]

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 % 

[Bird]

[D4D]

And NZ GST is 15 % 

Shhh don't give Wayne Swan ideas...

[Dogsbreakfast]

Where can i get one of those stickers!

[Sixtys Guy]

Got a link?  I need a new pair or runners.

Got a link?

www.endless.com

[jr]

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.