Re: Why do we Aussies pay so much? Tyre Down - Kya Racing
Posted: Sun Nov 25, 2012 8:20 am
From the other side.
At work we have problems with price difference between local and US. A product is shipped to the US where our office there sells at retail, minus GST, so 10% less. The thing is the US shops will then advterise at this price with free shipping back to Oz so we look like we are ripping off the local market. The free trade where you dont pay GST on imports from certain countries is what causes some of this problem.
Yes there are market differences too. What if an aussie manufacturer has something that sells for lets say $100 here but only sells 5 units per year, yet the US market wants 5000 per year. If you were a US distributor would you not be arguing your point for a massive discount? They might say they want to pay $60 or you can shove it! So what does the manufacturer do. He takes the offer or faces closing down, and then raises the local price to $150 to cover the loss on his exports. You would do the same wouldn't you?
The unfortunate situation we are in is that our market is incredibly small. For the most part it is insignificant to most manufacturers. I read an interview with one of the Audi bosses here in Oz and when asked why the cars are double the price of what they are in the US he said it was because we were willing to pay double! Why drop the price when people are still buying. How do you answer that, other than not buy an Audi even if it is what some people might want to buy. Obviously there are enough people who are willing to pay double, for this business model to still be working.
So back to the OP, if you want to get one cheaper find ALOT of people who want to buy it and then hit the company up. Find 5 and they will laugh, but find 50 and you might get their attention.
At work we have problems with price difference between local and US. A product is shipped to the US where our office there sells at retail, minus GST, so 10% less. The thing is the US shops will then advterise at this price with free shipping back to Oz so we look like we are ripping off the local market. The free trade where you dont pay GST on imports from certain countries is what causes some of this problem.
Yes there are market differences too. What if an aussie manufacturer has something that sells for lets say $100 here but only sells 5 units per year, yet the US market wants 5000 per year. If you were a US distributor would you not be arguing your point for a massive discount? They might say they want to pay $60 or you can shove it! So what does the manufacturer do. He takes the offer or faces closing down, and then raises the local price to $150 to cover the loss on his exports. You would do the same wouldn't you?
The unfortunate situation we are in is that our market is incredibly small. For the most part it is insignificant to most manufacturers. I read an interview with one of the Audi bosses here in Oz and when asked why the cars are double the price of what they are in the US he said it was because we were willing to pay double! Why drop the price when people are still buying. How do you answer that, other than not buy an Audi even if it is what some people might want to buy. Obviously there are enough people who are willing to pay double, for this business model to still be working.
So back to the OP, if you want to get one cheaper find ALOT of people who want to buy it and then hit the company up. Find 5 and they will laugh, but find 50 and you might get their attention.
.Oh well.