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Thread: Why are parts so overpriced in Australia?

  1. #171
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    A guy who works at the Nike store in midtown Manhattan told me that, round figures, their rent is $1,000,000 per month.

    A marketing exec of a big cosmetic company gave me this breakdown of every dollar the retail customer spends. 45 cents is the retailers gross margin, 31 cents is the cosmetic company's operating expenses including fit-out and staffing the outlets in the big retail stores, yes, they have to provide these to get their product into the big chains, 10 cents packaging and marketing, 5 cents product, 9 cents profit.
    URSUSMAJOR

  2. #172
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    well the challenge has been put out there
    i won't mention specifics, but i can tell you what we did last month ( major electronics retailer in a small town)
    we did over $1m turnover at 3.56% profit ( thats not a typo )
    and we are one of the ones that people complain are "ripping you off"
    I bet you won't beleive me, but hey, i have the figures, but as i said previously
    "don't confuse me with facts my mind is made up"

  3. #173
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    Quote Originally Posted by Rosscoe68 View Post
    owning a landrover in Aus is a CHOICE YOU MAKE
    having good wages, good working conditions, good health care is something you get by default living here.
    stop whinging about your choice and appreciate what we have

    Yep, I made the choice to buy my 2 Range Rovers, knowing what they are and where they come from. That also gives me the choice to buy parts from where I want - if that means overseas because I don't like the prices locally, then so be it - IT IS MY CHOICE.

    If you are in the retail electronics game - which it sounds like you are, I know margins are small, but there are instances in the parts industry where this is not the case, and people are beng ripped off. Even with import duty, warehouse and staff costs, how can anybody justify some of the price hikes we see over here for parts. I'm about to order disks for my L322 - from OS they are $32 each (yep, that's not a typo) The same part over here (from the same manufacturer) is $240 each. WTF??? Even with postage, duties, etc, they are still gouging the customer because they "Own a Range Rover - they must be able to afford it" type of attitude. This gives me the ****s, and very little sympathy for retailers always dredging up the "poor us, people should buy local". I'm sure there all not like this, but these people give your industry a bad name...
    If you need to contact me please email homestarrunnerau@gmail.com - thanks - Gav.

  4. #174
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    Quote Originally Posted by Rosscoe68 View Post
    steaks are dearer and taste worse.
    You can afford to eat steak?

    Guess you can afford lamb chops to!

  5. #175
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    nothing but chicken for me

  6. #176
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    Quote Originally Posted by bacicat2000 View Post
    If you are in the retail electronics game - which it sounds like you are, I know margins are small, but there are instances in the parts industry where this is not the case, and people are beng ripped off. Even with import duty, warehouse and staff costs, how can anybody justify some of the price hikes we see over here for parts. I'm about to order disks for my L322 - from OS they are $32 each (yep, that's not a typo) The same part over here (from the same manufacturer) is $240 each. WTF??? Even with postage, duties, etc, they are still gouging the customer because they "Own a Range Rover - they must be able to afford it" type of attitude. This gives me the ****s, and very little sympathy for retailers always dredging up the "poor us, people should buy local". I'm sure there all not like this, but these people give your industry a bad name...
    and yet the very same argument was used not long ago on this same forum for complaining about electronics and how we are "gouging" and with my figures it proves we aren't, and still i get customers that come in with ebay quotes $100 and sometimes higher less than i can land the product in my store and get upset when i wn;t price match.

    Having 10 years retail experience in consumer electronics, and 10 years before that in auto spares, i know what the margins are, and i know that you guys are incorrect when you suggest you are being ripped off in australia by the australian agents. but again, you only care for your back pocket and the truth is irrelevent in this argument.

  7. #177
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    Quote Originally Posted by Rosscoe68 View Post
    Having 10 years retail experience in consumer electronics, and 10 years before that in auto spares, i know what the margins are, and i know that you guys are incorrect when you suggest you are being ripped off in australia by the australian agents. but again, you only care for your back pocket and the truth is irrelevent in this argument.
    Well, I worked for two automotive manufacturers/importers. The parts prices of one were landed cost into store plus 210%. They gave trade discount. The other firm's prices were landed cost into store plus 150%. They did not discount.
    URSUSMAJOR

  8. #178
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    G'day Folks

    Yup! I can also backup Brian Hjelm's figures,as I too worked for the great Leyland conglomerate and even Aust made parts were subject to similar pricing structures,one example was the Mini/Morris 1100 interior door handles,black plastic thingies,which in summer would soften in the daytime heat then in the cooler evenings they would become brittle and snap off,into store cost was 18cents,over the counter $1 plus 15% sales tax,only trade discounts to dealers,nice little money spinner that one,they could have changed the compound of the plastic,but why, money is the word,cheap to produce,maximum profit was the creed

    BTW. In the 70's & 80's, when answering phone enquiries for both Range Rover & Jaguar the phone sales staff were directed to pencil in $100 at the top of their order sheet, with the knowledge that is what to aim for with that phone order!

    cheers

  9. #179
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    Quote Originally Posted by Rosscoe68 View Post
    Having 10 years retail experience in consumer electronics, and 10 years before that in auto spares, i know what the margins are, and i know that you guys are incorrect when you suggest you are being ripped off in australia by the australian agents. but again, you only care for your back pocket and the truth is irrelevent in this argument.
    Well, you may know your plasma's from your LCD's, but the proof about car parts (the subject of this thread) is something else. You still haven't explained why my disks cost $32 from OS but $240 here, or why others that work in the parts industry know that customers get ripped off.

    You may not be ripping off your customers, but there are others that certainly are - maybe you should get out of TV's and start flogging LR parts - there should be a better profit margin that 4% in that...

    And yes, I do care about my back pocket, along with most people I know - not because I have a choice sometimes - I need to keep my spending as tight as I can - like a lot of people here, so if I can save some $$$ on parts, I will.

    I'm not saying it's perfect for our economy, I and many others would like to support local buisness more, but there doesn't seem to be a magic bullet here - if you know how we can keep the $$$ in Aus and get competitive prices for some things, I'm all ears.
    If you need to contact me please email homestarrunnerau@gmail.com - thanks - Gav.

  10. #180
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    I get a bit tired of the winging from retailers...

    First point: it is a free market ...so called. Retailers are entrepreneurs and traders. They see an opportunity, establish a business and then buy and sell stuff at a profit. No-one forces them to start a business or take risks.

    Their pricing philosophy is to sell at whatever the market will be prepared to pay.

    Our friend is complaining about the 3.6%...my argument is: get some help and change your business plan or get into a different business. The text books are full of case studies of those who did and those who did not change with the times to stay ahead...

    By buying overseas the consumer is telling the local retailer that "the market" is not prepared to pay their often outrageous prices. So let the retailers get over it and rejig their business accordingly to compete...

    end of rant

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