tyre prices

Submitted: Wednesday, Jun 24, 2009 at 17:34
ThreadID: 70118 Views:2746 Replies:10 FollowUps:12
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Can anyone tell me why we in oz pay up to $150+ extra per tyre more than you do in the good old USA for the same thing?

I know I would expect to pay a premium for import etc but hell I would not have thought it would be that much

EG: I was told $350 each tyre which at the time I thought reasonable given some of the other prices I got and the dealer sent me a link to check them out on the web (USA link)
When I did there where other links for purchase prices same tyre at current exchange rate converted $224AUD are we being ripped off by the importers or is our good old government making a killing on import duties

feel like I've been had again and cant do bugger all about it.
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Reply By: olcoolone - Wednesday, Jun 24, 2009 at 17:40

Wednesday, Jun 24, 2009 at 17:40
Bigger customer base, cheaper frieght, cheaper import taxes and dutys, differant tarifs and where they are made.

"feel like I've been had again and cant do bugger all about it."

What choice have you got?

Move to America, import them yourself, buy a cheaper tyre or do what most people do...don't worry about it and learn to live with it.
AnswerID: 371674

Reply By: The Landy - Wednesday, Jun 24, 2009 at 18:10

Wednesday, Jun 24, 2009 at 18:10
The temptation to check prices available in the US is overwhelming, and it is disappointing when you find what appears to be a disparity in the pricing.

But are you comparing apples with apples?

That tyre is available for delivery in the USA, not Australia. Consider the cost of insurance and freight and than add administration costs for processing through customs. It is starting to add up, and we are yet to price in the wages, rent and electricity bills at the tyre shop that you are getting a price from here in Australia.

When you get a price from a local tyre retailer all you have to do is hand over the plastic card and sign, the tyre shop had to expend all that money to get it to you, not too mention the time involved.

Try doing it yourself, I think you’ll be surprised at the cost…and the grief..

Good luck out there………
AnswerID: 371678

Follow Up By: George - Wednesday, Jun 24, 2009 at 18:36

Wednesday, Jun 24, 2009 at 18:36
Landy,
your reasoning could be used only to justify the pricing disparity only in regard to tyres manufactured in the USA. If the tyre comes from China, Thailand, India, Japan or anywhere else outside the US the American tyre shop have to go through similar process and incur similar cost to get it to the customer as would the Aussie shop,
Cheers
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Follow Up By: Member - Barnray (NSW) - Wednesday, Jun 24, 2009 at 20:42

Wednesday, Jun 24, 2009 at 20:42
With all due respect I went thru the process trying to buy air bags for my trailer and was quoted about $900 delivered by a Australian supplier, After searching and ordering from the States it cost me $385 to the door for the same part and I mean the same part. All it took was a Credit Card and an Account with the supplier. Barnray
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Follow Up By: Member - Graham H (QLD) - Thursday, Jun 25, 2009 at 00:32

Thursday, Jun 25, 2009 at 00:32
To Barnray As the item you bought was under $400 you probably got it in duty free.
A bit different if you bought a container load in and got hit with Duty and GST

Apples with apples makes a difference


Try buying a Sydney paper in Alice Springs Will cost you about $4.

You cant have big wages and low costs Or no one would be shifting off shore for cost saving reasons.

The Americam selling ethos is a bit different to here

Buy a container full and sell them for cost plus say 10%

Turn the money over lots of times

Whereas here its put on 50% and wait for the suckers to buy it



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FollowupID: 639021

Follow Up By: The Landy - Thursday, Jun 25, 2009 at 10:16

Thursday, Jun 25, 2009 at 10:16
And there is no doubt there will be items that can be pointed to that will be cheaper to order on-line, pay for by credit card and have it shipped direct. This would equally apply to locally sourced products versus imported from other countries.

I guess one of the points I was also alluding to, but perhaps didn’t make clear, is that retailers have a business that enables you to walk through the door, view products and purchase. They are also bound by consumer protection laws and need to warranty products. They also employ staff and have employee costs that, in Australia, are very different to other countries (leave loading, guaranteed super etc). So comparisons of this nature are never straight forward. Sure from a buyers’ point of view it comes down to the price and if that is your only criteria than go right ahead.

But the retailer is providing a service that costs money to provide. Bearing in mind that if your product from the USA turns up and is the wrong item, or faulty, or requires some sort of warranty action in the future, the only recourse you will have is to pursue it directly. Often something easier said then done. Buy locally and you can visit the retailer to have it rectified.

Nothing wrong with doing it yourself, if it suits, but that doesn’t mean you are getting ‘ripped’ off by local retailers selling the same product at a higher cost.

I’m not in retailing, but a number of people I know are. One of the pet hates they have these days is people walking through their door, picking their brains on products and using their knowledge, but have no intent of purchasing from them, but are going to order online from someone who can provide cheaper because they don’t have the same cost base and don't have to provide the same level of service.

So often we hear media beat-ups about jobs going offshore…this is where it starts I guess!

Cheers
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FollowupID: 639041

Reply By: steve21 - Wednesday, Jun 24, 2009 at 18:24

Wednesday, Jun 24, 2009 at 18:24
blame kevin !
AnswerID: 371682

Follow Up By: WYSIWYG (Bundaberg Qld) - Wednesday, Jun 24, 2009 at 18:48

Wednesday, Jun 24, 2009 at 18:48
Maybe 747 can bring some back with him for you and save on freight LOL :)
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FollowupID: 638955

Reply By: Members Paul and Melissa (VIC) - Wednesday, Jun 24, 2009 at 18:50

Wednesday, Jun 24, 2009 at 18:50
Yup!! just got 4 new boots for the Adventra from Bridgestone as they were cheapest for the Adrenalin RE001,$280 ea. not cheap at all anymore but thinking about it i remember buying tyres for one of my old Calais' in about 95 and i payed $495 ea for 235/45/17s, they were a premium tyre but 17s were not as common as now, they are on most new models at a minimum, the RE001s are 225/55/17.4WD tyres are and always have been, i bought Procomp Muddies in 2003 and payed $350 ea for them(305/70/16) and cant imagine they have gone up too much since then. if you bought tyres from the US and got them here i think it would cost you double unless you buy a container full of them. i dont think you have been had it's just called life-build a bridge as you can not do without them unless you dont drive!!
AnswerID: 371690

Reply By: OzTroopy - Wednesday, Jun 24, 2009 at 18:53

Wednesday, Jun 24, 2009 at 18:53
Whats disappointing is seeing australian products sold in america for way less than in australia.
AnswerID: 371691

Follow Up By: rk-oz - Thursday, Jun 25, 2009 at 06:35

Thursday, Jun 25, 2009 at 06:35
I know where you are coming from with that I priced an exhaust system that's made in Oz for a motorcycle and could get it cheaper from the USA delivered to my door than I could off the manufacturer
that really had me confused
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Reply By: Tenpounder (SA) - Wednesday, Jun 24, 2009 at 19:05

Wednesday, Jun 24, 2009 at 19:05
Hi. Some of you seem to overlook that the Oz dollar is worth about 75 cents US at the moment. So without any other considerations, something sold in the US for $100 would be 'worth' $133.33 Oz dollars, even if the cost of getting it here from China was the same, and all the same local markups applied.
But, heh, we've always paid a heap more because we are in a different market (less retail competition, smaller volumes, bigger distances). I'll put up with Oz, happily, even paying twice the retail price as we often do.
That's what being a tenpounder is all about!!
AnswerID: 371692

Follow Up By: OzTroopy - Thursday, Jun 25, 2009 at 11:18

Thursday, Jun 25, 2009 at 11:18
Actually ...

The aust stuff looked even cheaper in the US when looking at the U.S. dollar price.

The 25% cheaper U.S. prices I saw ... were $au.

Just confirmed my lack of need for certain brands overpriced bling.
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FollowupID: 639048

Reply By: Outbacktourer - Wednesday, Jun 24, 2009 at 20:38

Wednesday, Jun 24, 2009 at 20:38
I just paid $195 fitted and balanced for a set of Nexen Roadian AT 10PR in 265/65-16. These are made in Korea, quality made, sold in USA etc. Drive/brake well, low noise etc. I could get Chinese tyres cheaper but feel Korea offers better quality. This brand was completely unknown to me unlike the majors whose advertising costs are likely to be the difference between the $195 and the $300+ for the "known brands" I was quoted.

OT
AnswerID: 371699

Follow Up By: olcoolone - Wednesday, Jun 24, 2009 at 21:34

Wednesday, Jun 24, 2009 at 21:34
I would at a guess say the $300+ are better then the $195 ones.
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Follow Up By: Outbacktourer - Wednesday, Jun 24, 2009 at 22:16

Wednesday, Jun 24, 2009 at 22:16
I'll report any problems..stay tuned.
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Reply By: Member - James Bruce G (VIC) - Wednesday, Jun 24, 2009 at 20:46

Wednesday, Jun 24, 2009 at 20:46
Did anybody mention GST? That will go on the price of the tyre as well as on all the import and administration costs already mentioned by others. In the USA it is normal to quote prices without local state sales taxes which usually add 8-10% to the quoted US price when they buy the product at home.
AnswerID: 371702

Follow Up By: Member - Kingsley N (SA) - Wednesday, Jun 24, 2009 at 20:53

Wednesday, Jun 24, 2009 at 20:53
Correct! USA prices are quoted without state taxes. And probably another 15% to be added for the serviceman!

Kingo
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Follow Up By: get outmore - Thursday, Jun 25, 2009 at 10:56

Thursday, Jun 25, 2009 at 10:56
not to mention the australian price would include fitting and balancing
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Follow Up By: Member - Kingsley N (SA) - Thursday, Jun 25, 2009 at 11:57

Thursday, Jun 25, 2009 at 11:57
And a $5.00 fee to dispose of the old casing!

K
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FollowupID: 639058

Reply By: Stu & "Bob" - Wednesday, Jun 24, 2009 at 22:43

Wednesday, Jun 24, 2009 at 22:43
Two years ago I bought a pair of Westlake tyres CR857 in 235/85 x 16 for the princly sum of $160 ea fitted and balanced.

Last friday, I went to get another pair of the same tyres, and was told there had been a number of increases, and the price was now $270 ea fitted and balanced.

Nothing short of mind blowing...I don't mind the odd increase, but nearly 100%?


.





AnswerID: 371726

Reply By: rk-oz - Thursday, Jun 25, 2009 at 05:58

Thursday, Jun 25, 2009 at 05:58
Thanks for all your views

I guess the bottom line is, suck it in take the ruff end of the pineapple pay the price and just get out there and enjoy this great country of ours.
Cheers
AnswerID: 371735

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