Why are parts so overpriced in Australia?

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Originally Posted by lr90freak

absence of a strong informed opinion

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No absence there, I had an opinion - did you miss it?

How do you know my level of understanding of this issue? I cited one experience as my "evidence" yet you provide nothing tangible but attitude.
"Buying goods is not a human right its a privilege" is what you said. If you don't understand how that opinion (its not a fact!) will be perceived then you won't understand why I suggested you have a poor opinion of your customers.

Saying "I know boats" does not convince me.

The reality is we are paying more locally than buying directly from overseas. OK, not paying GST is 10% but that is usually the cost of freight. I pay more for a Land Rover (and its parts) now than when the AU dollar bought 40p (What is it now 67p?)

I have bought parts for my last 5 land rovers from overseas. A good example is a Series 3 speedo. Quoted over $800 here and got one for 100 quid in the UK.

Detroit Locker AU$550 compared with $1200 locally.

I can pull out my receipt book if you like.

Sorry, lets get back to opinion not facts.

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Originally Posted by lr90freak

I'm just sick of the bashing of the retail/wholesale sector, thats all, when there are things out of our control that play a part in it all.

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Ahh, the old "that's not my department" argument. Sorry, cop out by suits with sharp pencils.

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Originally Posted by lr90freak

If you have dealt with me in a professional context you will find i believe in good customer service and i try to help with whatever i can.

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No problems there, we are all different in real life;). Remember this is a forum debate, not a personal attack. Bought 2 new Defenders in the last 10 years, excellent service and support (onya Sneigy!) doesn't mean I can't feel ripped off.

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Originally Posted by lr90freak

All i ask is that you realise this issue is more complex than the fact that everyone is being ripped off.

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Someone is making a profit aren't they?

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Originally Posted by lr90freak

And don't tell someone there view point is ridiculous if you can't back up yours with actual knowledge of the issue!

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Don't think that was aimed at me, but let me retort. You haven't given us any facts other than the "I know Boats" argument. Sorry it doesn't wash with me.


As for pricing experience, try dealing with 6 ACCC accountants asking questions about pricing structure for a multi million dollar industry.

I know ships!




I know you didn't fire the first shot here LRfreak but you came out with your six shooters blazing. You must have expected opposing opinions.

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Originally Posted by lr90freak

Oh i must have unconsciously mispelled phrases on purpose to point out the fact, that in the absence of a strong informed opinion all you have is to attack me on, is the way my opinion is conveyed and not that I am wrong!

I do work for such a company ( i wish i owned it ) but i also have worked in the retail sector for a number of years and this is what my opinion is based on.

And if you think i am worried about sharing my opinion on a forum which contains potential customers i am not!
I don't think poorly of my potnetial customers, (how did you come to this conclusion?) I'm just sick of the bashing of the retail/wholesale sector, thats all, when there are things out of our control that play a part in it all.
If you have dealt with me in a professional context you will find i believe in good customer service and i try to help with whatever i can.

All i ask is that you realise this issue is more complex than the fact that everyone is being ripped off.

And don't tell someone there view point is ridiculous if you can't back up yours with actual knowledge of the issue!

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I note you have sidestepped the valid opinion I posted on the previous page from an (automotive spare parts) business owner who believes that (automotive spare parts) companies need to revise their pricing structure.

You have also not responded to Pat's reply to an early post of yours:

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Originally Posted by PAT303

Td6 service kit Aus price $320 plus delivery,UK price $72 Aus delivered to my door.Someone is making money. Pat

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Sure it is a more complex issue than many think, and pricing structures need to account for overheads, etc, etc... However, the fact remains, that Australian retail prices for automotive components from 3rd party (non manufacturer) suppliers are some of the highest in the world.

I have a 2008 PUMA Defender. As most would know the vacuum pump oil seal is suspect on the early pumps, to point of immanent failure.(just a matter of time)

I have Cape trip planned for August, so I want to either carry a spare or up grade to the new type before the trip.

Now to the point - New replacement vacuum pump (genuine) from Brit Car in the UK is 90GBP or 145AUD's plus delivery.

Quote from Trivett's $574.00 or 400GBP.

Now that is over the top.

If any one thinks that I should buy local, you must have rocks in your head.

I was over on the Jeep forum (don't ask!) and some are buying bull bars for Wranglers from the US, $800 delivered. Nice looking bars too.

Wow Paul! Who rattled your cage? I've never seen you so fired up. :o All valid points you've made though. :( I recently imported a flasher unit for the Disco, why? Because I couldn't find one in Brisbane or Ipswich and received no response from email enquiries down south. I had the part from the UK within a week, for under $20.00. Where will I look for my next (maybe $1,000+) purchase? The UK.

Not restricted to parts supply or Australian vs overseas - it also applies to regional vs capital city, probably for similar reasons.

A couple of years ago I found excess wear on the spline on the rear prop shaft of the County. I looked at either a new shaft or rebuilding the old one locally. I was not entirely surprised to find that I could get a new one cheaper than getting it rebuilt. What did surprise me was that I could get a new genuine part cheaper than rebuilding it. But what really surprised me was that the quote for rebuilding included a freight component for two cross and bearing and a sliding joint from Sydney to Dubbo that was twice the cost of freight for a complete prop shaft from Melbourne to the local village out of Dubbo. In a similar vein, after getting a price on a set of points from a Dubbo business, they had to get them in - and charged an additional $6 over their quote for freight from Sydney. Next time I will get them by mail from a capital city.

John

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Originally Posted by Drover

I have a 2008 PUMA Defender. As most would know the vacuum pump oil seal is suspect on the early pumps, to point of immanent failure.(just a matter of time)

I have Cape trip planned for August, so I want to either carry a spare or up grade to the new type before the trip.

Now to the point - New replacement vacuum pump (genuine) from Brit Car in the UK is 90GBP or 145AUD's plus delivery.

Quote from Trivett's $574.00 or 400GBP.

Now that is over the top.

If any one thinks that I should buy local, you must have rocks in your head.

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But you have no idea what Trivett are paying through Land Rover Australia and I could hazard a guess it's well above what you pay retail from the UK.

This happens in all industries and has done since white man first came here.

An example is Stihl.
Their wholesale pricing structure to local Stihl dealers is higher than what a dealer can land a part here from the US at full retail + freight, but they are tied in to buying from Stihl Australia.

I've also had this discussion with Makita.
I can buy a certain part, landed from the US for nearly 1/3 the price locally.
The problem is that the wholly owned Makita Oz subsidiary are quoted, in this case from another Makita wholly owned subsidiary in Germany for x number of bits which is probably 1/100th what the US buys, and so their per unit price is over double what the US importer pays, then the little matter of freight raises it's head.
It's much more expensive to send containers here compared to Asia or the US, then we have our overheads and compliance costs.


Of course you don't have to buy genuine from a dealer, there are other genuine parts sources locally, as well as OS.


I still buy local for most everything Land Rover related but I'm well looked after by a major importer/wholesaler and have things air bagged to me overnight.


I'm just glad I'm not in retail, from the small dealings I have had there is such a sense of arrogance and entitlement with some of the general public I think I'd be reaching across a counter and ripping a few throats out :angel:

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Originally Posted by Sleepy

I was over on the Jeep forum (don't ask!) and some are buying bull bars for Wranglers from the US, $800 delivered. Nice looking bars too.

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Winch bar for my puma,Oz price $1250,UK price with light bar,four lights,wiring kit etc $900 delivered. Pat

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Originally Posted by JDNSW

[snip]
In a similar vein, after getting a price on a set of points from a Dubbo business, they had to get them in - and charged an additional $6 over their quote for freight from Sydney. Next time I will get them by mail from a capital city.

John

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I cop this daily as all my parts for my business are freighted in.

One supplier can send bits for $11 incl. GST that will cost $66 from someone else :eek:
The cheaper freight price comes from the Dubbo branch of a major wholesaler while the dear one comes from Newcastle, only 2.5 hours away.
Oh, and Dubbo is overnight, if I can get an order in by 3:30 I'll have it at 11:30 the next day while Newcastle is two days minimum :(

This isn't a case of loading the handling charges but a straight freight cost from the freight company.
It's a case of better freight deals with different companies, the big wholesaler have a national freight deal with TNT and Tamex, the smaller Newcastle based wholesaler just doesn't have a good Tamex deal, which hurts them further as I won't buy parts I require urgently from them.

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Originally Posted by V8Ian

Wow Paul! Who rattled your cage?

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Yes your right Ian, probably an overreaction. But I'm a little old fashioned:angel:

I have the same feelings towards the fuel industry, when I fill up on a Friday before a long weekend. I'm assured there is no gouging or colluding on pricing.:angel: <<insert sarcasm smilie here>>

I am in an industry that is a monopoly on the service we provide. We don't deal directly with the public (although our charges eventually end up, downstream, with the consumer.) We have twice in recent years been denied, by ACCC, price increases. The business therefore had to reduce profit or become more efficient to absorb cost increases. This is an important part of the system to ensure we dont just keep getting fatter at the consumers expense. (Probably another debate here - wont go too much further)

What I have seen in the last two decades is the consumer becoming more aware and familiar with buying overseas. (Mainly due to the internet). We gradually the chasm of pricing differences.:eek::mad:

I understand rick's comment

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But you have no idea what Trivett are paying through Land Rover Australia and I could hazard a guess it's well above what you pay retail from the UK

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and this is probably true. Some would be happy with the "higher" charge because they want the support and service of a main dealer (if you are within 1000km of one!). Others are happy to install the part themselves or are so far from a dealer it is the only option.

But if I can import the same part individually, for less, someone somewhere along the chain is scooping the cream!

Ok, we have moved on from "The Customer is Always Right" approach to sales, but the future is all about a mutual respect between sales/service and consumer. Yes I'm dreamin', but if you price yourself out of the market then don't blame the consumer for shopping elsewhere.


As for me, I buy locally and overseas. If it is a significant price difference I will buy it O/S however if it is a smaller percentage or a much better service, I am happy to support the local businesses. Luckily I am in Melbourne and there are quite a few options that I am satisfied with. :)

And I'll end with this little gem. Whilst I am not normally a fan of the USA, (and they aint doin' so well at the mo.) but I think there is a lot we could learn from how the yanks deal with their customer/sales relationship.