Supporting Australian suppliers

Submitted: Monday, Aug 20, 2012 at 19:27
ThreadID: 97545 Views:1858 Replies:10 FollowUps:7
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I very rarely have a problem buying as much as I can from Australian suppliers however after being quoted around $1600.00 +gst for a Beam in car docking station for my Iridium 9555 sat phone I decided to investigate further. A quick search on google and for $800.00 au which included an optional privacy hand set, postage and USA taxes my car kit arrived today, 8 days after being ordered.
I can't understand why the same unit is twice as much in Australia. If I can buy it from a retail store in the USA then surely our Australian suppliers can do a better job of sourcing and pricing their stock. The Iridium 9555 phone was a similar price in both countries.

Sludgie
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Reply By: Steve M1 (NSW) - Monday, Aug 20, 2012 at 20:41

Monday, Aug 20, 2012 at 20:41
As i posted recently, what I find even more annoying is an Australian-made product being sold in the US for $600 and $700 here, despite the costs of transportation to the states.....and I'm not taliking about a small item here but a "wing awning". If they can sell them at $600 over there, incl shipping, it's no wonder they are being "pirated" and sold on ebay for under $400. That company have lost my business for good. It's one thing being able to import something for less thsnwe can buy here, but when an Aussie product is being sold in the US for less than we are getting ripped off for, I start to wonder about buying Australian.
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Follow Up By: Sludgie W.A - Monday, Aug 20, 2012 at 21:06

Monday, Aug 20, 2012 at 21:06
Gidday Steve, crazy as it sounds this carkit docking station is also made in Australia.

Sludgie
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Follow Up By: Steve M1 (NSW) - Monday, Aug 20, 2012 at 21:17

Monday, Aug 20, 2012 at 21:17
hmmm......there you go. Then there is the issue of caravan prices: but only Aussie brands are suitable for oz conditions you know. We are ripped off from roofracks to spotlights and beyond.
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Reply By: Ross M - Monday, Aug 20, 2012 at 21:23

Monday, Aug 20, 2012 at 21:23
Australian importers must make a profit to stay in business, but,
A set of Bilstein shocks sent from Germany and sold in Australia is $880 with some waranty.
The same set sent from Germany to USA = cost + shipping + profit is sold for Less then $400 Au and with shipping totalling $439 Au.

So to travel twice as far with two profits and two shippings the set are slightly over half what you can get them for here. No warranty though.
All businesses involved have their own overheads and running costs.
Warranty in Australia makes things cost double apparently.

Aussie importer philosophy is a bit different to the rest of the world.
AnswerID: 493291

Follow Up By: Jeff P - Tuesday, Aug 21, 2012 at 14:26

Tuesday, Aug 21, 2012 at 14:26
Hi Ross its not only the rediculous price you pay for bilstein's in Australia its also their crappy service I recommended to a friend to buy bilsteins for his prado well one started leaking they wanted him to send it back to them to access whether warrenty he said what iam I supposed to drive while you access the shocker, he had to buy another shocker!
The system, aussie goes to SEMA USA finds some nice products and sets himself up as a distrubutor (wholesale) then sells to his dealers (retail) then end user all along the way adding their margin! and tyres check the price for tyre's in USA then look at the same tyre in Australia . Dont get me wrong I buy Australian when I think the price is fair ,another can of worms opened !
Jeff
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Follow Up By: kev.h - Tuesday, Aug 21, 2012 at 17:30

Tuesday, Aug 21, 2012 at 17:30
If you can buy two sets out of the states for roughly the same as local price who cares about warranty just buy a one and half sets doesn't cost any more and you have spares
Kev
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Reply By: Steve M1 (NSW) - Monday, Aug 20, 2012 at 21:54

Monday, Aug 20, 2012 at 21:54
I've been in business for 35 years and understand the need to make a dollar after operating costs but this stuff is just wrong - and there's a lot of it about. I can understand anAussie product, made here, being more expensive than an Asian import but when we are exporting goods to other advanced nations/economies for less than we can buy them here, despite the extra shipping costs, you wonder what profit margins they are making. No wonder certain 4x4 accessories companies have their suppliers all tied up to an agreed rrp.
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Follow Up By: Sludgie W.A - Monday, Aug 20, 2012 at 22:11

Monday, Aug 20, 2012 at 22:11
Hello Steve, I also have a business and yes costs have to be covered. Buying the best you can afford makes sense and yet when you mention 4x4 accessories I still have trouble to see how a dual wheel carrier cost cost up to 4 grand or so. I would be interested to see what our Australian brand names of the same product sell for in the USA or South Africa.

Sludgie
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Follow Up By: Member - Boobook - Tuesday, Aug 21, 2012 at 07:42

Tuesday, Aug 21, 2012 at 07:42
If you buy an ARB diff lock in the Bayswater Vic ARB HO store, approx 50m from where it is made, it is about $1300. If you have one shipped from the US ( still made in Bayswater Vic), it is about $830 plus $80 shipping back to Australia. And that is from a reseller.
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Reply By: Member - Matt M - Tuesday, Aug 21, 2012 at 09:34

Tuesday, Aug 21, 2012 at 09:34
Hi Sludgie,

Like you I do genuinely try to support Australian business. I work for an Australian company that sells product here and overseas, so I am conscious of trying to do the right thing. Question is, what sort of premium is fair to support local businesses? I have a Superwinch fitted to the Prado (Toyota factory fit) and the solenoid is stuffed. Mr Toyota quoted me $580 + fitting for the solenoid. Ten minutes on the internet and I have one on the way from the US in my mailbox for $120. It is not an 'aftermarket' knock off, it is precisely the same unit from precisely the same manufacturer.

I understand that there is a cost associated with warehousing, inventory management, etc, but in this case they told me they would have to order it from overseas anyhow. A nearly 500% markup, I just cant see how that could be justified.

Cheers,

Matt.

AnswerID: 493309

Follow Up By: Capt. Wrongway - Tuesday, Aug 21, 2012 at 10:20

Tuesday, Aug 21, 2012 at 10:20
Unfortunately most big businesses are no longer happy with a profit/mark-up of 10 - 20%. They now want at least 100% out of a sale. IMO it's has little to do with associated costs and more do to with just plan greed. The is becoming more evident in this country, just look at the escalating cost of living. Only this morning it was reported by charity organizations that they are now seeing middle income working families seeking food parcels. This is the result of profiteering and greed in our economy.

People want to support Australian companies with their purchases but not at exorbitant prices as it will eventually kill our economy.
Bazza ( stepping down from soapbox
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Reply By: Witi Repartee - Tuesday, Aug 21, 2012 at 10:49

Tuesday, Aug 21, 2012 at 10:49
Australia is a land of plenty. Unfortunately that includes plenty of mark up....
What these posts are demonstrating is how uncompetitive Australia is in the big picture. The biggest loyalty I have is to the nerve in my Debit Card...I'll buy on my terms from locals if they are competitive or offer a service advantage, if not, the world is my oyster.
AnswerID: 493316

Reply By: MEMBER - Darian, SA - Tuesday, Aug 21, 2012 at 11:21

Tuesday, Aug 21, 2012 at 11:21
I've never been a retailer but it seems obvious to me that successful international retailers have been aware for a long time that people in certain places will pay more for goods, simply because they don't know what they really are worth. Online global marketing has simply put paid to that scam. There are still good reasons to buy locally though - service and support is a biggy.
AnswerID: 493319

Reply By: didjabringabeer - Tuesday, Aug 21, 2012 at 11:39

Tuesday, Aug 21, 2012 at 11:39
Hi Sludgie
The hand pump on my camper tap went. Yesterday I went to caravan parts shop
to see what I needed to fix it. A new unit was $111 or a kit. I banked on the kit.
The kit was $47.50.Changed the Gasket and Diaphragm put it back all OK.
So my piece of rubber and paper cost $47.50
Brian
AnswerID: 493321

Reply By: Member - Bruce C (NSW) - Tuesday, Aug 21, 2012 at 14:24

Tuesday, Aug 21, 2012 at 14:24
There is a clear wake up call for Australian retailing in all this but I wonder if anybody is listening.

When it comes to anything recreational it seems the sky is the limit.

Our OH and S laws make doing business more expensive but some prices are mind boggling.

If they concentrated on volumes rather than markup everybody would be better off in my opinion.

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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AnswerID: 493335

Reply By: Oscar H - Tuesday, Aug 21, 2012 at 17:07

Tuesday, Aug 21, 2012 at 17:07
Ditto to everthing that has been said.

The Transaxle on my 9 year old MurrayRide on mower gave up, I rand Morayfield, $1700, Enogerra $2000.

Did my research found Small Engine Suppliers in Lee's Summit MO USA.

Their price US $169.95, but the kickker is freight, US $563.21. Total $733.16.
about AUS $719.

Delivery by UPS from USA 6 days total, fully tracked all the way, Kansas City, Louisville, Honolulu, Botany then Brisbane.

The Part No was 2000-0002B. Check it out if you like.

Regards
John H
AnswerID: 493346

Reply By: Steve M1 (NSW) - Tuesday, Aug 21, 2012 at 20:01

Tuesday, Aug 21, 2012 at 20:01
The other aspect of all this is the protectionism that goes on. With the 4x4 accessories market, for instance, you will have real job on your hands to get a well known brand to budge from their inflated rrp that they impose on their distributors and installers to be competitive, no matter how quiet or slow demand may be. It's quite obvious from my contacts with our local trade that they would be more than willing to compete, but the supplier would cut them off at the knees if they dared to undercut/discount to get the business.

AnswerID: 493357

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