Why are parts so overpriced in Australia?

**Lotz-A-Landies** · 8th December 2011, 07:49 AM

Originally Posted by Brian Hjelm

A mate entered into a partnership in a small chain of ladies wear shops selling in the upper middle and lower high price range. I asked about the mark-up as being what? 100-150%? I was told 250% at the very least. This way they can have 1/2 price sales at season end and still make 75%.

But autoparts don't usually have an end of season and even if they did, in my water intercooler prices, there would still be better than 400% mark-up on US prices.

**Bigbjorn** · 8th December 2011, 09:14 AM

Originally Posted by Lotz-A-Landies

But autoparts don't usually have an end of season and even if they did, in my water intercooler prices, there would still be better than 400% mark-up on US prices.

Diana, can you PM me with the source of the wet intercooler. I may be building a blown engine for a street rod if the proposer gets his design accepted by the ASRF.

**bidds** · 10th December 2011, 07:48 AM

My previous post has rung true.
Yesterday I started getting a slight squeal from the front brakes, checked and the pads were worn. Did the web check, genuine are about $150 from Aus online shops and $100 from The USA.
Called my local specialist - expecting closer to $200; he apologized for the price and then quoted $105. SOLD! Installed 30 minutes later at home - all good.

**Warb** · 10th December 2011, 09:06 AM

But I'm guessing that "pads" means that it's a reasonably new vehicle, so you're probably talking about a standard service part in common and frequent use? For such parts LR have to compete with the other manufacturers because they can't afford to get a reputation for massively high service costs, or they risk losing both new car sales and service customers. This is also why Toyota do fixed price servicing etc. They also have to compete with the bulk "third party" suppliers like Repco.

The "rules" about pricing aren't fixed for all items. In '99 I purchased a brand new Discovery II in Australia for less (given the exchange rate at the time) than the price of same vehicle in the UK.

There is, of course, always the issue of "online bargains". I frequently see items for sale on eBay, and other online retailers, at higher prices than I can buy for locally. That's just another rip-off based on people's assumption that online must be cheap - much like people buying goods in shops that have a "SALE" sign on them, when the price is actually no less than it is anywhere else......

However, generally speaking Australian prices are higher than other countries, and the further from "mainstream" the item is, the higher that increase becomes.

**Grumbles** · 10th December 2011, 09:56 AM

This thread really caught my attention. Not that there is anything wrong with my Rangie at the moment but with 275Km under its belt one day there will be. I've rebuilt/replaced most things but not the ZF transmission and transfer box. I believe prices for a tranny rebuild here are in the $4G to $5G but don't know how much for a transfer box rebuild.

So I did the financial excercise of importing privately from Ashcrofts.

A Reconditioned ZF Transmission with reconditioned Viscous Coupling and Transfer Case landed in Melbourne by air freight are a maximum of $3300.

Then there is the import and GST but I don't know how to work this out.

Anyone please?

**101RRS** · 10th December 2011, 10:09 AM

Add 5% import duties on the cost of the goods - then add 10% on the total of the goods, import duties and shipping then add $50-$100 Customs processing fee.

If coming in via sea freight - clearing agent fees etc would also be required.

Garry

**Grumbles** · 10th December 2011, 10:38 AM

Thank you Garry - much appreciated. That makes for a total import price of about A$3900.

I suppose this import total price can now be compared to the local scene as being a good price for a tranny rebuild with the reco transfer box done for free.

That is something to think about.

**HangOver** · 11th December 2011, 02:10 AM

RRC trailing arm polybushes (set of 4) from local supplier $190

Full set of polybushes from the UK, front, rear, shocks, damper, anti-sway, to my door $180

comment as you see fit

Bushranger · 6th February 2012, 08:59 AM

Originally Posted by lr90freak

wow........
Its the wholesalers fault..... grab your pitch forks, were going after these evil business's.

May i ask all the buisness genius's on here what an appropriate margin of profit a buisness should run? Does 30% sound to greedy?
what do you think of this scenario?

Part X uk cost 35.40 pounds
landed price( included freight/taxes) $81.42 + 30% = $105.84

$105.84 is the wholesale price of part X
Land rover list $358.70

How can a wolesaler make that any cheaper?

whats going to happen when you start buying all your parts overseas and the local workshop cant compete, and puts his labour rate up so he can feed his kids, but then goes out of buisness anyway and you have to take you TD5 discovery to the local mechanic doesnt know what his doing!
You will all know what it feels like to pay thru the nose for you servicing then!

Enjoy your land rover, shop around and stop complaining, its so boring!

Mate, is your name Gerry? What a ridiculous thing to say, people are feed up with been ripped-off.

Bushranger · 6th February 2012, 09:11 AM

Originally Posted by Lotz-A-Landies

Not saying it is wrong to shop overseas, however for a business to operate anywhere there are certain costs that must be covered from the income generated from sales.

Cost of the premises, usually rental.
The costs of furniture, fittings, cleaning and maintenance of the premises.
The costs of services (electricity, gas, water, telephone, internet)
Employment costs, (workers comp insurance, super guarantee, sick and annual leave(remember we have 4 weeks paid leave where the US has 2))
Other insurance costs (public liablity, business and fire)
Accounting, BAS and Government business taxes.

The less they sell, the greater the loading that must be added to the price of each item sold of the lesser volume. This is before you start to calculate the purchase price, shipping and taxes on the products they do sell.

The risk we run escaping overseas for shopping, is not that the parts vendors need to become more efficient, the risk is more that they will go out of business, the employees end up on the dole and we pay more taxes to cover the unemployment from lack of manufacturing and retail sector jobs.

It is all, as others have said, a factor of a small population, smaller Land Rover ownership rates and vast distances between Land Rover owners.

In short it's a dysmal cycle until we get to a place where we either pay the earth for local LR parts or have no Aussie parts vendors left.

...actually, are you Gerry? What B.S. Caveat Vendor!

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