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9th January 2013, 12:52 PM #16
I must say that this theme has been done to death in many,many other threads, and it's likely that this one won't last too long as a result of that.
Suffice to say that nobody has been able to give a satisfactory explanation of the inflated prices here. There are factors that offer some mitigation, such as higher wages, GST, but these never explain the whole 100% and more increase on the overseas price. The fundamental point that retailers will have to wrap their scones around is that I can purchase an item overseas, at retail prices, and pay one-off shipping, all for far less than they are retailing here for. They are buying them at wholesale prices, using bulk freight (often by sea), and then putting massive margins on them - far more than the customary 50-100% that is applied to wholesale prices to arrive at the retail price. A rather well known brand of tools is the worst example of this, with retail prices overseas often being a third or a quarter of the price here (particularly for accessories). Indeed, during a verbal conversation with the head of this company I was told that "with the transparency of the internet, we may have to make some changes".
On the other hand, there are some exceptions. Mid range power tools (say Makita, Bosch) are sometimes even cheaper here than in Europe, or not much more.The point is - if they can do it in the small Oz market then.....
Someone pointed out Lie Nielsen Australia as a shining example, and indeed they are. Their website has a big banner to say that they will match the price from overseas (probably including freight, to be fair). I have worked out that it is not worth buying LN tools from overseas, even at their advertised prices. Again, if they can do it, then how about a bit of honesty from the others?
The whole "we'll all be runed" argument doesn't cut it for me. It's the same argument that people made when computers started coming in - "all our jobs will go". Look at the size of the computer industry now, and how many people it employs. It's a simple redistribution of skills. The shopfront/online argument is analogous to the Horse and Cart when motor vehicles arrived on the scene. Get used to it - online is here to stay, and we WILL see the closure of many shopfronts (the horse and cart of retailing). It's the very shopfront itself that adds so much cost to retailing.
Even Australia's biggest retailing whinger - Gerry Harvey - has had to move with the times (speaking of horses).
For those who are not aware, GST (and any Import Duty applicable) is imposed on imported packages where the goods cost (not including freight) is greater than $1000, and for that calculation the freight cost is included. This limit was arrived at because it is simply not economical to collect less than $100 for the amount of work involved. This threshold may come down to $500, but I very much doubt that it will ever be zero, as it will be a net cost to the Govt.
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9th January 2013, 01:08 PM #17Deceased
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9th January 2013, 01:48 PM #18
Well,Some
are much smarter than others, this is obvious. Take Brett, he's as smart as a tack.
So I guess not all of us want Australians out of work. But that's my last statement on the issue. I'm with Studlee.
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9th January 2013, 02:57 PM #19
Just a quick note on this from a book purchasing point of view, next time your looking at an American woodworking book look at the back where it lists the RRP in American $ and then Canadian $ the Canadian is always more even though the Canadian dollar is worth more than the American
I pointed this out to a book seller in Canada a few years back and asked if this would change if the dollar remained high and he basically laughed and said it would never changed regardless of the $ as it was an import thing and to do with taxes not dollar value.
just one of those things
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9th January 2013, 03:05 PM #20wood butcher
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Agreed, it's frustrating though.
I'm after a power tool that makes the bigger slots for floating tenons, you know the expensive one? I'm not good with hand tools but dynamite with machines.
$1200 in the US - 110v
$1400 in the UK - 240v
$1900 here (various retailers almost the same to the dollar - strange that. Collusion, collaboration, coincidence?)
Anyhoo... Most of the US companies won't ship to Australia because the manufacturer has an agreement with them to protect their market here. This is how they protect their dealers in the internet age. (I work for a US company that does the same thing with computer stuff.)
I'd like to buy local but I can't afford the difference. I might have to move to the US, unless they invade us and make us the 51st state???
Grrrr.
Bryan
PS. If you're buying and downloading a bit of software from the US and get stung for having an AUS IP address, look at subscribing to a US based VPN provider. This will give you a US IP address.
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9th January 2013, 03:22 PM #21
For every man earning an honest buck there's a hundred scheming how to get it out of him.
Hugh
Enough is enough, more than enough is too much.
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9th January 2013, 03:32 PM #22Jim
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The 'problem', if that is what it is, will solve itself as we all vote one way or the other with our wallets. What many of the retailers complain about is that basic tenet - an informed market.
Cheers,
Jim
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9th January 2013, 04:13 PM #23Senior Member
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the importer/distributor would give em all a set rrp, its in their interest not to undercut each other (so collaboration by proxy ), but if your lucky you can usually wangle a way to convince the sales people (always speak to the boss) to give some discount
there's probably another option or two , but without going into them over a forum, just working on those sums you gave, i guess you have to add a few things on, like shipping (assuming you mean the festy tool? could be something else for all i know) shipping which might be another $70 or so, the US version not much good on 110V so the UK item add on another $70 for import duty, then another $147 GST , strictly speaking gst would normally be paid on the freight as well but they dont seem to charge that lately, least if its sent via courier , they seem to waive that, not always if it goes through customs though, so your up for a least $1687.00, i reckon a local warrantee (on a power tool) has to be worth something, say 10% but maybe more, add 10% on and its cost you about $1855.00 , the other $50 is probably worth paying depending on how much you like to keep friendly with the local retailer or perhaps you can knock him down that much....i'm not taking a neg stance to what your saying, it often is frustrating! just thats how it looks to me atm. one saving grace that may or may not be applicable (i havnt researched the prices or where exactly its available from) is that if you buy from the right place in the UK (that removes VAT for international sales) then you can save about 16% off the initial $1400.00 price tag, assuming that $1400 included VAT to begin with?
cheers
chippy
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9th January 2013, 04:44 PM #24Senior Member
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Some products cannot be or won't be mailed from overseas so we need brick and mortar shops who will buy in shipping containers from overseas. We also need brick and mortar shops if we need something in a hurry to make something by a particular date.
People look for bargains - fair enough. Just support some of the specialist shops too. I would think it likely that few of the contributors to this thread buy all of their equipment and finishes etc online. Bunnings may be all that is left if we all follow the main approach advocated in this thread.
In fairness, however, Bunnings may be all you need.Graeme
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9th January 2013, 05:05 PM #25.
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9th January 2013, 05:37 PM #26
I suspect 'one of those things' is the same genre of answer you get when you are talking to a car dealer about price - 'I'd love to give it to you at that price, let me just go and check with the boss if we can do a deal like that' - ie 'I'm on your side buddy, as it's (someone else) who is stopping me from giving you a better price, and not at all because I like my profit margins just where they are!'
And I thought those expensive power tools were sold in a similar manner to Miele appliances or Apple products - direct from the distributor, who doesn't wholesale the product but leases floor space and retail support from the store, so in this case the retailer is actually powerless to sell them at a lower price.
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9th January 2013, 05:40 PM #27
Agree with the done to death theme.
Get a Shipito or BongoUS etc, etc account so you can have a US postal address. Buy the LV router plane for 149 when they have the free shipping on. Item will free ship to Shipito etc. Buy some other stuff , consolidate it (get them to put it all in the same box) ship the 3-5 kg for about 50 bucks.
Get out in the shed use the stuff. The end.
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9th January 2013, 05:45 PM #28GOLD MEMBER
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I like to save a dollar just as quick as anybody else - it does more good in my pocket than any where else.
That being said - I also think that we need to be aware that "We sometimes need to buy our kids a job." This does mean that at times we need to pay more. If all of the jobs end up overseas then we will be a captive market to be charged what ever is asked as there will be no retailers here to at least provide a semblance of competition.
Expand on the thoughts of what the major grocery / hardware / fuel chains have done to the smaller competitors.
Just a thought.
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9th January 2013, 10:55 PM #29Retired
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As has been said here this has been done to death and nothing has been added to the arguments either way.
It was also running way off topic and fair play.
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