Thread: Why are parts so overpriced in Australia?

Having previously worked for a Land Rover dealership here in OZ I was disgusted at the mark up on parts prices.
Rarely would a customer leave the forecourt without being slugged for over a $1k.
I think businesses have been abusing the loyalty to the brand for far too long but god knows how many customer LR have lost through this practise.
Now with Online shopping available so readily it is exposing these companies for what they are.

Although there is much concern about unemployment in the retail industry, some of the slack has been taken up by an expansion in employment in Aust. Post parcel delivery and courier services delivering the on line purchases. Swings and roundabouts, as they say.

Is Gerry really setting up online Harvey Norman - based in Ireland?

edited

Originally Posted by Bushranger

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

Who's being ridiculous, mate. I highly doubt anyone is paying more than the land rover list price for any parts they buy over the counter, and if they are they are stupid ignorate consumers.
Buying goods is not a human right its a privilege, you clearly have do not know what you are talking about and have jumped on a bandwagon to now where.
Its simple, market forces change the way retailers/workshops price there parts if you dont like the price, shop around and that retailer will have to lower prices to keep customers, if you have been "ripped off" its your own fault for not checking prices against competitors.
Poeple like you that through around frases like "ripped off" only do so because you can not come up with a more intelligent opinion.

People like Gerry Harvey who take chances to build buisness and jobs for australians always get taken down for trying to protect what they have put a lot of hard work into, how many times do you see farmers on the tv complaining about foreign products, of course people have a vested interest in there market, why cant they be upset when people are changing the playing field buying out of the country to circomvent the tax system and import duties that they all have to abid buy.
Everyone has a right to a living whats yours?

Originally Posted by lr90freak

Who's being ridiculous, mate. I highly doubt anyone is paying more than the land rover list price for any parts they buy over the counter, and if they are they are stupid ignorate consumers.
Buying goods is not a human right its a privilege, you clearly have do not know what you are talking about and have jumped on a bandwagon to now where.
Its simple, market forces change the way retailers/workshops price there parts if you dont like the price, shop around and that retailer will have to lower prices to keep customers, if you have been "ripped off" its your own fault for not checking prices against competitors.
Poeple like you that through around frases like "ripped off" only do so because you can not come up with a more intelligent opinion.

People like Gerry Harvey who take chances to build buisness and jobs for australians always get taken down for trying to protect what they have put a lot of hard work into, how many times do you see farmers on the tv complaining about foreign products, of course people have a vested interest in there market, why cant they be upset when people are changing the playing field buying out of the country to circomvent the tax system and import duties that they all have to abid buy.
Everyone has a right to a living whats yours?

Not sure if you are trolling but the concept that taking my money in exchange for your goods is a privilege is bloody funny. Surely it is a mutual exchange.

As for Market forces, yes this didn't work to well for ol'Gerry but luckily for TATA they have somewhat of a monopoly on the sale of Land Rovers. Oh, and who sets the list price?


P.S. Its ok Ron, I'll get this one, its " Phrases "

Originally Posted by Sleepy

Not sure if you are trolling but the concept that taking my money in exchange for your goods is a privilege is bloody funny. Surely it is a mutual exchange.

As for Market forces, yes this didn't work to well for ol'Gerry but luckily for TATA they have somewhat of a monopoly on the sale of Land Rovers. Oh, and who sets the list price?


P.S. Its ok Ron, I'll get this one, its " Phrases "

Pretty sure lr90freak works for (owns?) a large LR parts place based in Melbourne, Sydney(?) and WA, who announced a while back that they would only be selling wholesale.

I find his attitude says it all, and is the reason I only buy from them (at exhorbitant prices) as a last resort.

For a more enlightened opinion from a business owner (that also supplies automotive parts):

Originally Posted by Nick

I am in 2 states of mind about this, as a business owner I do agree with the consumers. I get complaints from a local competitor all the time about my price's driving them out of business, I explain that it is there pricing driving them out and thats not my problem.

I get a phone call abusing me due to the fact I sell product A for $125,

"you know we use to sell them for $240, and sell ten a week, now we sell none"

I replied "you know you can buy them online for $100 plus freight making them 125 anyway"

"yeah, and"

"and I sell 30 odd a week, 10 online and 20 over the counter, i've meet the market"

"your an idiot"

bottom line is, we pay $55 for the product, so are still making excellent profit on it and yes I could sell the product for more, but why? I believe moving it in volume to make the money and I AM selling more than my competitor.

The other side of the coin, I was buying product "B" from a supplier for $165ea and buying 10-15 a week, I asked if I could get them cheaper buying 50 at a time, they said no as there is no margin in them. I found the supplier in China, bought a container load delivered for $9800 (320units) and now sell them for less than everyone else, I now have 2 more containers on the water.

Business dont need to work smarter, they need to work better for more profit. I dont think I am taking business away from other small business in Australia. I am keeping the warfies, transport companys, fuel companies aswell as 6 Australians employeed.

I have a physical business as well as an online business.

NICK

As I have posted before, the multinational parts manufacturers I have dealings with have commented to me about the "ridiculous" mark ups charged by Australian wholesalers. The Ashcrofts have also commented on here(?) about the high markups that Australian distributors/retailers charge.

Thanks Ben,
That puts LR90freaks comments in context.



Fair dinkum, lr90frk, it really is sad that:

1. You think so poorly of your potential customers
2. You would post it here where thousands of potential customers lurk.

I recently paid a little bit more when buying a detroit locker (from the US), I had 5 quotes and this one fella took the time to tell me about the product, his warranty, after sales help available and then went on to tell me about his long running LR business in Salt Lake City.
Nice bloke - got the sale. It's not always about the money.



Poeple like him don't make me pheel "ripped off"