Why are parts so overpriced in Australia?

**Veryan** · 26th October 2011, 03:49 PM

There is no doubt that this country is a rip. Many are forgetting that we get parts that are cheaper from the US and UK, that have undergone UK and US tax/customs and are at retail prices in there respective country are still cheaper than getting it in this country. The US is not exactly renowned for its protectionist free trade system

From my own personal experience, importing stuff legit is expensive - container transport fees, other port charges, duty and gst (remember you have to pay duty on car parts, not just cars) which makes a semi profitable idea very much sub economic. The ports have a strangle hold on this country and the massive unionisation and non -standardisation of taxes and tariffs from port to port is nuts. Then we will ad on all the other taxes, rent, power, transport blah blah that you have to pay if you own a business...it gets worse. I can see why the parts are expensive, but also there is greed involved.

It'sNotWorthComplaining! · 26th October 2011, 05:27 PM

Originally Posted by Veryan

There is no doubt that this country is a rip. Many are forgetting that we get parts that are cheaper from the US and UK, that have undergone UK and US tax/customs and are at retail prices in there respective country are still cheaper than getting it in this country. The US is not exactly renowned for its protectionist free trade system

From my own personal experience, importing stuff legit is expensive - container transport fees, other port charges, duty and gst (remember you have to pay duty on car parts, not just cars) which makes a semi profitable idea very much sub economic. The ports have a strangle hold on this country and the massive unionisation and non -standardisation of taxes and tariffs from port to port is nuts. Then we will ad on all the other taxes, rent, power, transport blah blah that you have to pay if you own a business...it gets worse. I can see why the parts are expensive, but also there is greed involved.

In regards to USA, workers salaries cannot be compared to our salaries, a lot of the population is on minimum wage and rely on tips. Their economy reflects this in prices of their goods.
It's cheaper also as population is many times ours. UK also has many times our population so it can not be compared to our country.
One can say food is cheaper in Asia, yes you can sustain yourself with very little money if you are thinking in our dollar terms, but the residents only earn what we earn in a week takes them a year.
Australia is going to head to an Importer society, we will rely on imports for food, clothing, everything and nothing will be produced here as we let it happen by not supporting our local industries. Once that happens those outside Australia will dictate what we will pay.
The writing has been on the wall for long time. The two big supermarket chains are doing it now. Local sources no longer compete. The argument from some we have to save what we can, have to remember their high wages and expected level of lifestyle are all contributing to Australia going down the sewer. The Govt present and past, Liberal and Labor are allowing it under our noses.

**sanderm2** · 26th October 2011, 05:27 PM

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

Sorry your experience with the English has been a bit poor , there are a lot of us that are quite nice.
Not sure I'm a gentleman though

**Loubrey** · 26th October 2011, 05:28 PM

We are never going to get past the point of a Safari Snorkel made in Australia that can be bought in the UK and express delivered in 4 days to rural West Australia for half the price you can buy it over the counter from a retailer in Perth. Yes, you don't pay GST if your purchase is under $1000, but the UK retailer has already marked it up on his side!!!!

The other issue is the local parcel services. If you break down in the sticks, say a smallish place like Fitzroy Crossing, you can have a part express delivered to the local caravan park in less than 4 days from the UK, but buying it in Australia and paying express delivery charges, it will take as long as 10 days. ( experienced with JCB part not Land Rover, but same concept!)

**sanderm2** · 26th October 2011, 05:35 PM

Originally Posted by It'sNotWorthComplaining!

Australia is going to head to an Importer society, we will rely on imports for food, clothing, everything and nothing will be produced here as we let it happen by not supporting our local industries. Once that happens those outside Australia will dictate what we will pay.

It's been like that in the UK for some time , everything is imported and things are still cheap to buy . A lot of the stuff we buy in Australia comes from the same place as the ones sold in the UK .

**UncleHo** · 26th October 2011, 06:11 PM

All motor importers/dealer distributors in Aust have a base mark-up on their in store cost, the % of mark-up just varies, from 25% to 250%

I can remember one spare part in my spares career with a major manufacturer/importer, this part, manufactured in house had an into store cost of 0.18 cents, over the counter it was $1.00 plus 15% sales tax, this was a very common interior fitting with high breakage rate, a nice little spare parts earner

cheers

**Bigbjorn** · 26th October 2011, 06:17 PM

Originally Posted by UncleHo

All motor importers/dealer distributors in Aust have a base mark-up on their in store cost, the % of mark-up just varies, from 25% to 250%

I can remember one spare part in my spares career with a major manufacturer/importer, this part, manufactured in house had an into store cost of 0.18 cents, over the counter it was $1.00 plus 15% sales tax, this was a very common interior fitting with high breakage rate, a nice little spare parts earner

cheers

back in the day, a popular brand of spark plug retailed at 8/6d plus sales tax. If you worked for certain organisations and had an order form from them for "cash sale" you could buy the plugs for 2/9d plus sales tax. I am sure they still made a profit.

**Lotz-A-Landies** · 26th October 2011, 06:28 PM

Originally Posted by Brian Hjelm

back in the day, a popular brand of spark plug retailed at 8/6d plus sales tax. If you worked for certain organisations and had an order form from them for "cash sale" you could buy the plugs for 2/9d plus sales tax. I am sure they still made a profit.

Yes but back then, there weren't any cars so no one needed any spark plugs!

**UncleHo** · 26th October 2011, 06:40 PM

Ooh! that was a tad sarcastic!!!!!!!!

**flagg** · 26th October 2011, 06:41 PM

A lot of the arguments around distributors, warehousing etc are missing the point.

Business models change. Dell Computers made bazillions of dollars because they came up with a new business model of 'just in time' logistics. Osbourne et al went out of business they had a traditional model, and parts would be obsolete before they were even sent out to retailers (too many middle men, or unable to manage the supply chain or sales!!)

There is nothing stopping someone in Australia setting up a Quality LR parts shop, online and drop shipping directly from the UK. In fact, I have thought of this 10000 times.

You have no warehouse, no distributors or stock. You get an order, its shipped to your customer direct from the UK. This is how most of the computer shops work - its all shipped direct from the manufacturer.

It does have some negatives:
- You can't manually inspect parts to make sure they are OK. but I'm not sure of many traditional places in AU that do that.
- You can't serve off the street sales.
- You have to rely on your wholesalers overseas. But you have rely on a wholesaler anyway.
- You have to fit the bill for warranty items, or what ever you agree with your suppliers.

For currency fluctuation, sometimes you win, sometimes you loose.. but at least you don't order 100 widgets at 100USD each when the dollar is at 70c and then have to sell them when the dollar is parity and people can buy it cheaper than what you paid for it direct.

I don't know, I really try and support local business.. and I know that no one in the LR parts game is making mega $$$ but business models have to be realistic or everyone loses. This is the only model that I know that allows that. It keeps jobs and money in Australia. When you buy online now, its all going to the UK or US or a mixture of both. That isn't sustainable. That damages Australia's future.

FWIW I thought about this so much that I actually have all that is required to set up shop, just need to turn on a virtual server, flick a switch at a bank and sign a form with a supplier. Too many other things to do though!!

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