Why are ARB air lockers 20-30% cheaper to buy online from the USA inc postage?
Submitted: Wednesday, May 18, 2011 at 20:44
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geocacher (djcache)
Hi all,
Riddle me this?
Why is it that I can buy an ARB Air Locker that comes from an Aussie company for USD845 - about AU$800, and get it out here in a week for about $120 air mail?
BUT if I drive up the road to my local ARB bloke, it's about $1200 for supply only?
It's not just the exchange rate either. Even if you work it out on the older rates in the low to mid USD0.90-0.95 range there's still a substantial saving.
I recently went through the exercise of bringing out a Detroit Soft Locker from the USA from Just Differentials and it was a very smooth transaction which saved me quite a bit based on locally quoted pricing.
I'm happy to support local businesses where I can, but I still have to work to earn what I save and what I saved on the diff lock was spent at a local business buying something else Australian made for my 4wd. (R&R Beadbreaker)
There's something rather screwy going on when a US supplier can pay the freight to get an ARB air locker from where ever ARB make & ship them, then I pay another $120 to get it back here. He's not running a charity so he must have made something on it, and it's still cheaper than here by a reasonably normal retail margin.
Any one know the reason?
Dave
Reply By: AlbyNSW - Wednesday, May 18, 2011 at 20:51
Wednesday, May 18, 2011 at 20:51
The equivalent model cars are much cheaper in USA as
well. Maybe we have a lot more taxes on our goods???
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454757
Reply By: Member - Boobook - Wednesday, May 18, 2011 at 21:09
Wednesday, May 18, 2011 at 21:09
Because ARB can't get away with rude margins in the US but they can here.
Amaizing huh? It is cheaper to buy a diff lock that has been shipped to the US, then ship it back here than it is to buy it from the manufacturers factory door in Bayswater less than 50m from where it is made.
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Reply By: Battery Value Pty Ltd - Wednesday, May 18, 2011 at 21:30
Wednesday, May 18, 2011 at 21:30
The cost of renting a store can be a killer over here. The money's gotta come from somewhere...
Too much rental money, and not enough people to support the product - a bad combination not supportive to low prices really.
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Follow Up By: ob - Thursday, May 19, 2011 at 10:48
Thursday, May 19, 2011 at 10:48
BV you are obviously on the same side of the sales counter as me. I am seriously considering whether it is all worth it. The landlord seems to think rent increases can be covered by the leasee just putting his prices up, don't work like that.
Might close up
shop and when the customer wants to complain about something failing he can send it back to where ever he got it.
ob
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Reply By: Dennis Ellery - Wednesday, May 18, 2011 at 22:40
Wednesday, May 18, 2011 at 22:40
No GST helps a little
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Follow Up By: Travis22 - Thursday, May 19, 2011 at 00:27
Thursday, May 19, 2011 at 00:27
Funny you should post this, ive been singing the same tune of late.
I was after new OME shackles.
New here at the local store, over $200 per end for the shackles only.
From the states, $110USD!!!
So i could purchase something MADE IN AUSTRALIA from the USA, for over 50% off the local RRP... that is simply not right.
Travis.
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Follow Up By: Member - Bruce C (NSW) - Thursday, May 19, 2011 at 08:22
Thursday, May 19, 2011 at 08:22
Hi guys,
GST is not the problem as it accounts for only $120 of the $400 difference.
Another thing I can't work out is if I buy something from the states it gets to me quicker than if i buy it out of
Sydney or
Brisbane. Got me confused.
Cheers, Bruce.
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Reply By: BarryMcKenzie - Thursday, May 19, 2011 at 04:49
Thursday, May 19, 2011 at 04:49
Economies of Scale.
Google it or look it up on Wikipedia.....
There's a few more yanks than us....
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Follow Up By: Member - Beatit (QLD) - Thursday, May 19, 2011 at 07:38
Thursday, May 19, 2011 at 07:38
G'day Bazza,
The economies argument should work for cheaper products here IF they are all made here! I suspect the US stocks are made elsewhere which makes your statement true.
Then again they could all be made in China who knows?
Kind regards
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Follow Up By: Member - Bruce C (NSW) - Thursday, May 19, 2011 at 08:43
Thursday, May 19, 2011 at 08:43
A mate of mine used to get over to Europe on a regular basis. He said that there was better stuff available over there and cheaper too. He was talking about electronics and many other things as
well.
He could not understand why those things were not available out here and as cheaply. he decide that we were a dumping ground for old stock and as it once cost a fortune to get anything here there is no reason to reduce that components percentage of the overall cost.
Almost every thing here or in America, I would suggest, is made in Asia so the economies of scale falls down to some extent as they are massed produced in the same factories.
I suspect it is whatever the traffic will bear. I am not pointing the finger at the retail end but more toward someone in the middle.
In this country one of the greatest problems we have is transfer pricing whereby the cost of an article is inflated before it gets here and that extra profit is sent back to head office overseas as a non taxable profit.
Four Corners has done a program on it and I have an example of it from a mate who was the Australasian Financial Controller of a multi national company which gradually moved equipement around to make each location unprofitable just so they could eventually close it down and resort to importing. Then hit the company, what was left, with transfer pricing thereby hoovering more profit out before tax.
Cheers, Bruce.
| At home and at ease on a track that I know not and
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Follow Up By: Alloy c/t - Thursday, May 19, 2011 at 08:45
Thursday, May 19, 2011 at 08:45
Economies of scale is one thing ,but that does not explain how items ordered from the US on the same day as a similar item is ordered from
Melbourne can be deliverd to my door 5/7 days quicker.
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Follow Up By: ben_gv3 - Thursday, May 19, 2011 at 08:46
Thursday, May 19, 2011 at 08:46
AFAIK the airlockers are still made in Vic.
It may be economies of scale but I think our high retail price is due "what the market will bear", ie we've been conditioned to pay the high price so that's what they charge us.
Simple as that really.
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Reply By: Ozhumvee - Thursday, May 19, 2011 at 09:01
Thursday, May 19, 2011 at 09:01
I've been buying stuff from the US for about ten years now, the above example with ARB diffs is only one example of what is basically a ripoff of Aussie consumers by both international and Aussie companies.
On small stuff that is cheap to post the savings can be in the order of 2-300%! My best example is an Australian brand of filters that was invented and made here by an Aussie company. They can be bought online from the US and posted back for a 3rd of the local retail price. Who is having a lend of who? they are clearly stamped made in Australia and are identical in every way to the locally purchased product. One lot from the US even included clamps and a length of hose in the same price!
I've been fitting out a 4wd camper/motorhome for the last six months and I've bought 90% of the gear required online both here and overseas. A couple of items that cost $3-400 here were bought and posted from the US for $120 on my doorstep including postage in less than a week!!
Another thing where some Aussie businesses need to get there act together is getting their shipping sorted. I have frequently bought stuff online that arrives in under a week from the US, the best was three days and I live in a small country town. I've bought plenty of stuff here in Oz that has arrived in a similar time frame but I've also bought other items that while my credit card was debited promptly, have taken two to three weeks to arrive. If one place can ship batteries weighing 23kgs in two days for $10 each but another wants $25 for a 500g packet of electrical fittings and takes two weeks to do it something is wrong especially when the postage on the box is clearly stamped and it is nothing like $25.
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Follow Up By: Member - Craig F (WA) - Thursday, May 19, 2011 at 09:30
Thursday, May 19, 2011 at 09:30
Hi Peter,
For those of us on the otherside (WA) ordering from Hong Kong or US is by far quicker than the East Coast. When ever I order from Sydney/NSW and can track the item I have noticed that it sits in the hub and is only shipped on a Tuesday early AM, thus if ordering on a Tuesday it will sit for a week prior to even leaving the first point. The only way around is to pay for premium postage then it is usually 5 days from order.
Craig
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Follow Up By: Member - Bruce C (NSW) - Thursday, May 19, 2011 at 09:58
Thursday, May 19, 2011 at 09:58
Brother had to get a new starter for his ride on and priced it here at $700.
Bought it in America by phone and paid AU$120. plus some freight.
I have often waited a couple of weeks to get items in the post from Ebay sellers.
And it not all Aus Posts fault, some traders are a bit slack with postage times.
Bruce.
| At home and at ease on a track that I know not and
restless and lost on a track that I know. HL.Lifetime Member
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Follow Up By: Ozhumvee - Thursday, May 19, 2011 at 10:35
Thursday, May 19, 2011 at 10:35
Ebay sellers you can understand if they are just people selling stuff due to work commitments etc but anyone in business should be shipping at least two or three times a week. If not they should say that they only post on tuesdays etc as this might influence buyers decisions. Many sellers do do this.
I'm very impressed with Aust Post as they usually provide a very quick service in my experience.
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Reply By: Rob! - Thursday, May 19, 2011 at 10:53
Thursday, May 19, 2011 at 10:53
1. Economies of scale
2. Cheaper rents
3. No physical store for online store hence again less rent.
4. Cheaper labour
5. Competition
Those would be my guesses.
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Reply By: Polaris - Thursday, May 19, 2011 at 11:50
Thursday, May 19, 2011 at 11:50
Another example is Rhino Rack.
The Foxwing awning is US$599 (presently AU$562.34) on the US site.
US site
However here in Oz it is AU$799 !!
Aussie site
Same item - made in China.
Absurd!!
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Follow Up By: Life Member - esarby (NSW) - Thursday, May 19, 2011 at 13:53
Thursday, May 19, 2011 at 13:53
another exaple.............
MICROSOFT is blaming retailers for the fact Australians are paying almost $200 more for the same version of Windows 7 as their overseas counterparts.
The price of Windows 7 in the US and UK is consistently cheaper than in Australia based on the latest currency conversion rates.
For example, an upgrade to Windows 7 Ultimate costs $429 in Australia but only $US219.99 ($236) in the US – a difference of $193 for the same product.
Windows 7 Professional outright will cost Australians $449, but the US gets it for $128 less, with the retail price of $US299.99 ($322).
Elise Davidson of consumer group Choice said it wasn't the first time Australians had been slugged extra for Microsoft products.
Read more:
http://www.news.com.au/technology/why-is-windows-7-so-expensive-in-australia/story-e6frfro0-1225789970152#ixzz1MlcVxijn
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Follow Up By: ben_gv3 - Thursday, May 19, 2011 at 20:13
Thursday, May 19, 2011 at 20:13
But when you factor in postage with the Foxwing from the US, the landed price would be fairly similar.
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Reply By: Tonyfish#58 - Thursday, May 19, 2011 at 15:59
Thursday, May 19, 2011 at 15:59
Has anyone factored in the Import Duty as well - It is ok to buy one off things, you do not pay the duty.
Buy a commercial amount of products and you pay import duty. Yes in Australia it is more expensive - go try to run a business and you will find out how expensive.
Remember you are in the lucky country and wages/costs keep rising
Cheers Tony
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Follow Up By: Member - Mark (Tamworth NSW) - Thursday, May 19, 2011 at 19:27
Thursday, May 19, 2011 at 19:27
What Import Duty?
Unless a country or company has been found guilty of dumping, there are mininal to no import duties any more
Import duties were pre 1990s, just ask the Australian motoring, footware, textiles and food industries.
Only New Zealand has lower industry protection of OECD nations.
The USA has selected import tarrifs on selected Ag products, just ask a sugar producer.
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Follow Up By: geocacher (djcache) - Thursday, May 19, 2011 at 22:51
Thursday, May 19, 2011 at 22:51
Sorry, you can't run that argument.
I'm talking about something which is as far as I know made here.
They don't pay import duty when they ship it from Kilsyth to Bairnsdale, because even though some people in
Melbourne think East Gippsland is just west of New Zealand it's still actually in
Australia...
If I don't pay import duty to get it here as a one off from the US it's still an apples with apples comparison as I don't pay import duty to get it here from
Melbourne either.
Several of the mob's that are cheaper from the USA have multiple retail outlets so are still paying rent.
And the GST isn't a reasonable argument unless the price difference is only 10%.
The "market will tolerate it" excuse is certainly plausible, but that's just a polite way of describing "ripping people off". In which case it justifies the decision to import it myself.
So much stuff is cheap enough that warranty isn't even an issue, as if you have to buy another one to replace something that fails (which doesn't often happen) you are still at break even or sometimes infront.
Dave
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Follow Up By: Member - Mark (Tamworth NSW) - Friday, May 20, 2011 at 07:38
Friday, May 20, 2011 at 07:38
Sorry you misunderstood me.
I am saying you do NOT pay import duty when you bring it from the USA (or anywhere else) to
Australia. On a manufactured good I would be surprised if you pay duty when it goes from Oz to USA.
So I agree with you it is right it is apples with apples.
I am refuting the myth that you pay import duty to bring manufactured goods to
Australia (unless it is from a country/ company which has an antidumping actiopn found against it).
Certain US states also have state retail taxes applied after the list price, though I am uncertain whether that applies on overseas consignments.
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Reply By: Bigfish - Thursday, May 19, 2011 at 16:48
Thursday, May 19, 2011 at 16:48
I own a harley fatboy. $32,000.00 from a dealer here. In NZ the same price. Their dollar is 1/3 cheaper. Once again we are getting screwed. Harley Davidson in the good old USA has now ordered that no dealer shall send any parts to Oz. GOUGING BY OUR LOCAL STEALERS AT THEIR BEST!!!
Remember when Harvey Norman starting mouthing off about the internet being unfair for Oz retailers? Guess who, s giving it a real workout now!!
There is absolutely no doubt vthat the average Oz consumer is getting screwed by trying to do the right thing and purc hase locally. Not all companies, just the majority.
Do yourself a favour and
shop on the internet for comparison pricing. The Oz markup is over the top.
cheers
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Reply By: awill4x4 - Friday, May 20, 2011 at 19:53
Friday, May 20, 2011 at 19:53
I'm currently looking at updating my 10+ year old Tig welding machine with a new USA Miller Tig welder and the prices in the USA are around the 7600-7800 US$.
I've just been quoted this week a price here of around $12000 AUD for the same machine so I'm thinking seriously of buying it in the USA and getting it shipped in.
Even paying shipping, duty and GST it looks like I'll be saving around $3000 AUD.
I've just got to beg or borrow the money while the AUD is hot.
Regards Andrew.
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Follow Up By: geocacher (djcache) - Saturday, May 21, 2011 at 23:14
Saturday, May 21, 2011 at 23:14
Yeah, but it'll be 110vAC not 240vAC. Unless it's got a universal input that accepts 110-250.
Still a big difference even if the 240v market isn't a big part of their business.
Dave
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Follow Up By: awill4x4 - Sunday, May 22, 2011 at 11:28
Sunday, May 22, 2011 at 11:28
No Dave the current Miller
inverters have autoline voltage sensing and will run the machine on whatever the voltage supplied is.
Anyway the machine I'm after is a 3 phase 350 amp machine for industrial use, I already have a very nice AC/DC 230 amp Kemppi inverter Tig for home.
Regards Andrew.
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Follow Up By: geocacher (djcache) - Sunday, May 22, 2011 at 23:03
Sunday, May 22, 2011 at 23:03
Nice.
You might want to
shop around a bit on freight buyer a suggestion. If you get onto one of the guys importing bream/bass boats or ski boats you might find they have container space. Boats have those pointy ends that you would think a welder would slot in beside just nicely. Might get a better deal if you are in spare space.
Dave
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