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Why is it so (Aussie pricing)?

Discussion in 'The Pub' started by typhoon, Sep 21, 2007.

  1. I have come across this before, and it's just plain illogical.
    So, a certain brand of Australian made aftermarket radiator costs $850 retail here from an Australian retailer. That does not include freight.
    I can get the same radiator from the US, with shipping for $ 595 including freight to my door.
    I guess the old saying charge what the market will bear is true........

    Regards, Andrew.
  2. higher price due to the importer putting on fees as well as the middle man. However. Products bought from overseas usually don't have the warranty intact.

    Buyer beware.
  3. the same aussie make?? wow that IS illogical...
    but on a similar note, o/s stuff seems cheaper if you get it shipped to your door rather than buying it off the shelf in the store.
  4. The importer pays 15% customs
    then pays GST
    then has normal business costs
    The retail business that buys it off them has costs too before they put it on the shelf

    Maybe there should be a sticky explaining why things cost more here instead of numerous threads?
  5. Yup as tanyathecheeky says there are hidden costs associated with importing for business's that the average punter doesn't see.
    I am the importer of StarCom1 intercom systems, and on each order from the UK there is :- freight ( average $300.00 for a $5k order) , customs entry fee $$, duty $$, security fee $$ and then GST @ 10% on top ( even on the security fee).
    THEN after all that we have to make a living. Admittedly the discount structure allows for a profit margin (reasonable) while selling in Aus at approximately the UK list price converted to $AUS, BUT a lot of overseas companies don't allow too much for the importer hence the price you see here is inflated.
    Being in business is not all "beer and skittles".
  6. Yay our wonderful economy!
  7. Did everyone just miss the point where he said it was Australian Made

  8. Not really related but a six pack of Coopers red is cheaper in Canada than over here...
  9. +1 for the blind.
  10. I know!! He's saying that its cheaper for us to buy a locally made product AFTER its been shipped to the States, taxes paid, dealer markup, more fees and then more shipping back to Australia. Rather than just buying it locally before all that crap takes place. :roll:

    Maybe Aussie dealers are a bit greedy? Or maybe the manufacturer is when it comes to selling locally?
  11. EDITED to be fair to DucFreak. (Don't want to upset an innocent fellow Ducati rider.)

    Okay, DucFreak prompted this inquiry, but it is not his web site listing the price at 250% of international prices.

    Pricing for the Starcom1 Headset with Zumo 3.5mm and 2.5mm connectors for a full face helmet, part SH 550 [sometimes called SH-550-04] (ignoring delivery charges):

    BikeEffects in USA US$74.95
    California Sport Touring in USA US$84.48
    Starcom UK Worldwide pricing US$72.00 (visible on the order form)
    Starcom Australia AU$245 = US$204.08 :mad:

    I can buy from Starcom UK for £40, add the ridiculous £20 they charge for shipment, which still gives me a delivered cost of £60 or AU$140.20. Sure there may be a some duty, but for a small cost item probably not. Maybe GST, but again probably not. The point is, buying retail from overseas and shipping shouldn't be so much cheaper than buying retail locally, when the supplier has bought wholesale and shipped in bulk, rather than paying a 50% premium for shipment.

    I understand and accept a small premium from local suppliers, and always buy local when I can, but not over 100%. Maybe Starcom1 UK is ripping them off on wholesale pricing, but not the Americans.

    Maybe it is just a mistake on their web site. :?:

    Okay, if you want to buy Starcom buy it from Dale at www.dmme.com.au, rather than starcom1.com.au. Those guys are overpriced, particularly on the above item. Starcom1.com.au is run by Ranger Electronics QLD.

    Back on topic, I believe Saintune exhaust systems are cheaper in the USA based on a pure currency exchange rate, so the OP point is valid, and annoying.
  12. Greed, it's the only answer.

    Even if you take into account that some exporters get subsidies from the Govt, therefor being able to sell OS at a far cheaper price than here, which in itself is bloody ridiculous, thanks Mr Howard!
  13. It'd be due to economy of scale - ie they sell for a lower price in the US but at a much larger volume. No different to the way GM sold the Monaro here for around 60k but sold it in the US for under 40. And of course the Government has all sorts of controls in place to ensure companies can keep making nice fat profits off the Oz market.
  14. :rofl:

    RTFQ people, RTFQ!!
  15. Australian businesses have a long and proud :? history of gouging their customers. It's the benefit of what has been, up to the advent of the internet and the credit card, a captive market.

    I'm hoping, probably vainly, that we might see an improvement in both pricing and customer service now that there's a bit more competition. However, the pessimist in me says we'll see a return to protectionist legislation instead . :evil: .
  16. Missus wanted to buy a particular valve mike for her recording studio. It was cheaper to by it in the US than it is here. And it's made here.

    Or, if you are familar with sleep apnoea, there is a machine for sufferers that is made here that sells cheaper in the US than for what it does here.
  17. Yeah mate that site is not me. There are 2 official importers :grin: plus that lot who are not really in the game (just appeared recently). BTW if you wanted the Zumo headset its $110.00 inc GST from me, plus postage.

    As for stuff made here being cheaper from O.S. ( original point of thread) I can't really explain except for greed at the manufacturer or heavy discounting by the manufacturer to the O.S. dealers and the dealers having heavy price competition there. :?:
  18. Thanks DucFreak. My original post has been updated to reflect this new information.

    When I finally get a Zumo and the mounting bracket I want for the Multistrada, I will probably be ordering one of those from you. (Given that I have just about convinced myself the Bluetooth isn't worth it with the Zumo yet.) Cheers. :grin:
  19. Did you read my post??? I was comparing an AUSTRALIAN made product's price sold here, to teh same item imported from the US, which was over $200 cheaper.

    Regards, Andrew.
  20. Update: I placed an order online on Saturday 22nd for some shock absorbers from California in the US. My credit card was debited Monday 24th and UPS tracker puts the shocks in Sydney today the 26th!
    I was emailed back with three different shipping options the same day my order was placed, with comprehensive pricing of every option.
    Mate, Australian companies regularly don't beat that speed of service!
    I am still waiting to hear back from three seperate Australian suppliers who claim to be able to get these shocks, and I sent those emails out two weeks ago or more. [-(
    Their loss.

    Regards, Andrew.