Supporting Australian suppliers

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.

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.

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.

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.

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.

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.

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

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.

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

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.