Why are parts so overpriced in Australia?

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.

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Originally Posted by PhilipA

Maybe you should take English comrehension lessons.

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what's a "comrehension"?
:)

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Originally Posted by Marshall

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Originally Posted by PhilipA

... Maybe you should take English comrehension lessons. ...

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what's a "comrehension"?
:)

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Something to do with Muphry's Law I think! :D

Diana :angel:

( For that you will have to check with Ron: http://www.aulro.com/afvb/general-ch...law#post805822 )

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Originally Posted by lr90freak

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?

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Standard retail mark up is 38% or double the price of an item (which includes GST). If you are making less than that you are going out of business. Which is why gun shops dont hang around - they only have a mark up of 10% (its the reps and wholesalers that make the money there).

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

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And sorry if we are boring you, but everyone has to count their pennies these days.

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

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And yes, I believe its the wholesalers fault. Wait a minute - hey fellas, this bloke sounds like a wholesaler pretending to be a customer! :D

I think the word directly from the horses mouth, so to speak, is right. If you have a monopoly on a business and have a legal licence to be the only wholesaler of that business then you can charge what you like.

Others have tried to start up businesses where they sell stuff cheaper than the big wholesalers but the wholesalers run them out of business and then jack the prices back up. What do you think Coles-Myer does? Have you ever seen a bakers delight set up next to a ma and pa bakery? I know which one survives. And they still do crappy bread......:)

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Originally Posted by omnibus

JUst my opinion but when ever i have dealt with anyone regarding Landrover parts and the said person has been of pommy lineage they have wanted exorbitant prices or if the price is right the parts have been of inferior quality. my examples are and you wont like it. but here they are and i stand by this .
Sunshine coast Landrover parts dealer YOU know the ones (exorbitant pricing) lots of poms in there and very ****ty service that I have experienced
1 member from aulro ( no names) here,, but he was pom( has parts, that I need. offered for ridicualous price then when i agreed told me parts werent for sale yet he sent me the message saying they were in the beginning
A local gentleman lives close to me wanted to sell me stuff and then come round to my parts stuff and take wat he needed for nothin that friendship didnt last long .

I may enjoy landrovers and they maybe from england but I am yet (and I am 36) but I am yet to meet a english gentleman .
thats my 2 bob
i know it is a bit of a pom bash but TBH that is the only problem i have had buying parts for my landies is when i have to deal with a pom
no offense intended

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I think you are being just alittle un fair to the English here, Theres good and bad of all nationalities out there, The English are no worse than anybody else.

Is this the case when buying none land rover things from a English Person?, are the Irish, Scottish, Welsh as bad??

Hmmm land rovers are a lot like bread!

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Originally Posted by gusthedog

Standard retail mark up is 38% or double the price of an item (which includes GST). If you are making less than that you are going out of business. Which is why gun shops dont hang around - they only have a mark up of 10% (its the reps and wholesalers that make the money there).





And yes, I believe its the wholesalers fault. Wait a minute - hey fellas, this bloke sounds like a wholesaler pretending to be a customer! :D

I think the word directly from the horses mouth, so to speak, is right. If you have a monopoly on a business and have a legal licence to be the only wholesaler of that business then you can charge what you like.

Others have tried to start up businesses where they sell stuff cheaper than the big wholesalers but the wholesalers run them out of business and then jack the prices back up. What do you think Coles-Myer does? Have you ever seen a bakers delight set up next to a ma and pa bakery? I know which one survives. And they still do crappy bread......:)

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Who's pretending to be a customer? I work for a land rover parts wholesaler! The example i gave is a sample of how wholesaler pricing works.

Your maths doesnt sit right with me, 38% or double(100%) which is it?
Most retail buisness's ive worked for its around 50% mark up.
Are you talking about gross profit?

what's a "comrehension"?
:)
I needed to take a p at the time so I did.
Regards Philip A

38% margin and 50% markup are two different things. I wasn't clear. Actually I forgot the difference and had to think about it for a minute!

38% margin is 38% of the total going to you, the business owner. 50% markup covers your 38% margin and GST etc. It does not include staff and other on costs etc.

Anyway, that's what they teach you in small business school but that was a long time ago....

Kmart and Coles work on 120% markup. Even during a sale, K-mart will never make less than 100% markup. Company policy. Don't even get me started on Krapmandu....

Are you both a wholesaler and retailer? Can you explain then how I can pay retail for a part in England, ship it to Australia and it still be cheaper than buying a part from a local retailer with all their buying power? I think that perhaps the wholesaler is shipping it to the retailer at English retail prices. Then with a 50% markup, which the retailer requires (generally speaking of course) the products seem to almost always be double the English retail.

Also, as a wholesaler one would think that you have more buying power than me - a single person buying one item. I just dont understand the difference in price between England and here. Freight costs and other oncosts is simply an excuse. I believe that retailers are forced to pay too much for a wholesale item. This is confirmed for me when I hear retailers saying that its the wholesalers problem. Who am I supposed to believe?

just a warning to all

i don't much care whether some one says you can name them or not

don't do it here

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Originally Posted by gusthedog

__________________
Pricey

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amusing....