Thread: Can someone tell me why???

I've been involved in retailing from a few different angles and it is hard to make a buck. The US crowd are probably selling the stuff cheaper than what the Aussie stores can get it wholesale from their suppliers. I see that all the time. The big chains do that with the likes of Rebel and JB Hifi selling a lot of gear under listed wholesale price. Anyone thinking smaller Aussie retailers are making a killing is way misinformed I'm afraid. A lot are getting squeezed out by the big boys or online traders. We'll be left with no competition soon. It's happening with food now. Our food is dear. The same food in Europe is a lot cheaper even with 20% gst. You could get a loaf of bread for about a euro last time I was there, that's around $1.50? Wages were smaller as well but taxes in places like France were pretty high with a lot going towards health care. Mike

Interestingly, I've bought stuff from Lucky8 a hell of a lot cheaper than what I could in Australia, and still significantly cheaper than what I could do directly from the UK. For Ashcroft Disco2 front axles and CV's it was something like $1200 from Lucky8, $1400 from Ashcroft direct and about $1900 or something from a local supplier. Its hard to think of a reason to shop local at a cost of $700. Postage times are not all that different be they to somewhere else in the country to other places like the USA, and service internationally is as good as whats available locally, if not better.

Well if it is not the retailers then the wholesalers are getting their share out of us.

I just imported a number of VDO gauges from the US, the price was a fraction of what the auto shops wanted for them here. The cartons/blister packs say printed in the US but the gauges are made in Europe.

It is a complex issue.

1) Export rebates: Ozzie manufacturer makes a product for AU$100. AU Gov gives this guy a US$30 rebate if he exports. The same manufacturer sells the same product to a Ozzie reseller who marks this up by 15% and sells locally for AU$115.
2) So the US importer buys at AU$70. Since he buys 100,000 of the product, his shipping costs drop to AU$5 per item. Per item cost is now US$75
3) US reseller marks this product up by 15%. Per item cost is now UA$86.25
4) Ozzie buyer buys over the internet and only pays AU$10.00 shipping. He pays AU$101.25 for an item that would have cost AU$115 at the corner store.

That's a simple explanation, but is a good example of trade agreements and export and import levies. taxes and rebates.

Originally Posted by slug_burner

Well if it is not the retailers then the wholesalers are getting their share out of us.

I just imported a number of VDO gauges from the US, the price was a fraction of what the auto shops wanted for them here. The cartons/blister packs say printed in the US but the gauges are made in Europe.

A friend of mine is a wholesaler and he is calling it quits as well. The big boys squeeze him for price so they can sell it at the ridiculous prices. They have so much grunt because of their turn over that they can get away with it. Then they will get a further discount because they guarrantee payment inside 30 days. The little boys are struggling so much that a lot can't pay their bills so they are out to 90 -120 days and counting. So it's either sell it cheap to the big boys or have a big debtors list and no cash dealing with the little boys. A lot of wholesalers are now selling direct for this reason to make a buck further hurting the little guy.

Sorry to rave on but I'm thinking that the same thing would be happening big time in the US. I wouldn't like to be a little fish in that pond.

Originally Posted by mikehzz

Sorry to rave on but I'm thinking that the same thing would be happening big time in the US. I wouldn't like to be a little fish in that pond.

true

But the cost of the fridge alone is HALF... thats the bit that bothered me. It happens here all of the time, especially when looking for parts for my land rover. New tortional damper, here $300, its a 40 pound part... WTF