Tired of being robbed.

**GraemeCook** · 10th July 2011, 07:39 PM

Good Morning All

We are in process of rebuilding our kitchen including replacement of all white goods. Have talked to most local suppliers - range is bewildering - and have also looked on the web and have been astounded at the differences. Many models are never sold in Aus, often superceded models are still on sale here, and price differences can be astounding - often 50 - 75% cheaper in Europe.

Biggest % price differential we have found so far is for a mid-range stainless steel wall oven - quad glazed door, 5 heating methods - Seimens HB43AU550A. Best price locally is A$2,399: best price in UK is £446, or about A$670.

Spoke to a clown in HN and he said the price differences were due to freight and high taxes.

Absolute garbage.

* In UK the VAT is 20%. In Aus Customs is 5% of the FOB price overseas, and GST is 10% totalling to just under 15% of retail price.

* A freight forwarder has quoted £199 to ship to Tasmania and that is for a single item. Full container loads would cost much less per item.

As I can buy ex-VAT in UK then the deal looks even more attractive. We are seriously looking at three months in Europe, financed by the cost differential from a kitchen full of white goods.

Only downside is the warranty issue. But price differential more than pays for that risk. Thank you Gerry.

Cheers

Graeme

**Bushmiller** · 10th July 2011, 07:49 PM

LifetimeBan and Dropcat

I am not defending pricing discrepancies at all, but the rag trade (your levi jeans reference) has always had a huge mark up. 200%, 300% are fairly common. The jewellery trade is another where a 300% markup is the norm, which is why as an investment, it is a nonsense.

It may be misleading to compare those trades to hardware and tools.

My apologies, as it does not make the pill any less bitter

.

Regards
Paul

**FenceFurniture** · 10th July 2011, 08:00 PM

Shmiller! I knew you wouldn't be far away!

**lightwood** · 10th July 2011, 09:00 PM

Originally Posted by Bushmiller

LifetimeBan and Dropcat

I am not defending pricing discrepancies at all, but the rag trade (your levi jeans reference) has always had a huge mark up. 200%, 300% are fairly common. The jewellery trade is another where a 300% markup is the norm, which is why as an investment, it is a nonsense.

It may be misleading to compare those trades to hardware and tools.

My apologies, as it does not make the pill any less bitter

.

Regards
Paul

Paul,
I've been in The Jewellery trade as a manufacturer and retailer in Melbourne, in my own business for 35 years.
Your statement above that....

300% markup is the norm

is just complete and utter nonsense.

Regards,
Peter

**Dropcat** · 11th July 2011, 07:07 AM

Originally Posted by GraemeCook

Spoke to a clown in HN and he said the price differences were due to freight and high taxes.

In defense of Gerry there is that fools wages, and that building he's in etc, plus the horses to be taken care of. But yes, a slight easing of the shafting would be nice.

You might find this interesting: http://forums.whirlpool.net.au/forum...4240&p=17#r327

**GraemeCook** · 11th July 2011, 04:26 PM

Originally Posted by Dropcat

In defense of Gerry there is that fools wages, and that building he's in etc, plus the horses to be taken care of. But yes, a slight easing of the shafting would be nice.

You might find this interesting: http://forums.whirlpool.net.au/forum...4240&p=17#r327

Thanks Dropcat, I rests me case.

Forgot that the retailers in London have rent-free shops, the staff pay for the privalege of turning up, advertising costs nothing, etc

Cheers

Graeme

**Dropcat** · 11th July 2011, 04:58 PM

Originally Posted by GraemeCook

Forgot that the retailers in London have rent-free shops, the staff pay for the privalege of turning up, advertising costs nothing, etc

It's the horses that makes the difference.

**Dropcat** · 11th July 2011, 05:12 PM

Originally Posted by Bushmiller

but the rag trade (your levi jeans reference) has always had a huge mark up. 200%, 300% are fairly common

So given the US price is $50 and ours is $150, then there must be very little margin in the US prices, or is there? I wonder what the cost price of jeans is in the US... not that it would matter much. Would the same exist for tools?

The age of the Great Aussie Shafting appears to be over. Hooray for the internet and boo to Gerry and his horses.

**Bushmiller** · 11th July 2011, 07:25 PM

Originally Posted by lightwood

Paul,
I've been in The Jewellery trade as a manufacturer and retailer in Melbourne, in my own business for 35 years.
Your statement above that....

300% markup is the norm

is just complete and utter nonsense.

Regards,
Peter

Peter

I have to defer to your 35 years in the trade. It easily beats my 6 months where we had an association with a manufacturing jeweler. It is not a time I relish, I couldn't get out of that industry quick enough (an indictment on our associate more than the jewlwery trade per se) and it was admittedly over 10 years ago now. Also it was not in a large city where competition may be keener. I also should have pointed out that I was refering to jewelery items as opposed to watches, clocks and gift lines.

My memory is that our associate was working on a markup of 150%. As a manufacturing jeweler he easily outpriced the opposition. In fact the opposition came bleating to us requesting that we ask him to increase his prices so everybody could make a reasonable profit. It was pathetic.

Having said that, this period holds bad memories and we divorced ourselves from it as soon as we could.

I accept that in you area life may be different.

Regards
Paul

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