Thread: Why are parts so overpriced in Australia?

Fully agree. An example would be the banks making big profits yet cutting staff.

Fully agree. An example would be the banks making big profits yet cutting staff.

They are not cutting staff they are 'shifting" staff.

I was amused to see the staff from Wetpac Artarmon? call centre demonstrating on TV.
All but 1 were of Indian appearance. Now of course this is speculation, but it appears that these are Indians who paid a lot of money to pay for a tech course in australia (hairdressing?), then used our stupidly generous visa schemes to get in.
Now they are upset that someone in Bangalore who has not taken that decision is getting their job because they are cheaper.

I see a lot of irony in this situation.
Regards Philip A

Not really going to defend business as for far too long have had it their way, now with the internety thingy customers are voting with their fingers. But I'll play Devil's Advocate - regrettably:

With all the complexities of running a business in Australia, and no doubt elsewhere one problem for the Australian economy is that, due to several years of economic boom, managers at most levels didn't really have to be any good to turn a profit. Now we are in hard times it is mediocre middle and senior management who will be the death of many businesses.

For too long, unexceptional individuals have been being paid more than they are worth in Australia. Some still cling to their overpaid positions but not, I feel, for very much longer. Senior manager's who don't recruit decent subordinates will be the death of their businesses.

Another point is, For a business to survive in a competitive market these days it needs a landlord to be realistic about the rent and rates they can expect to charge. Too many shopping centres seem to think they can just shove up rent and rates to make up for reduced funds from dwindling businesses. That'll just turn the shopping centres into a wasteland.

Instead, centre management should be thinking about how they can promote the centre. There's a lot they could do - one example would be a free bus service from free out out town car parks - essentially bringing in shoppers. Another would be putting on entertainment - lots of bands/entertainers would perform for free in return for as chance to pass the hat round.

But ultimately it comes down to the shop. If you're just a clone of every other shop, you're going to fail. To stay in business and flourish you need to raise your game. Some thoughts for business owners:

- Does your shop have a unique selling point? How are you different from your competitors?
- Do you understand your customer base? Have you tried to research what type of customers come into your shop?
- If you know your customer base, do you do tailored adverts or internet web based forums ie AULRO?
- Is your shop's exterior appearance appealing with new fresh paint, a distinctive sign and a good window display?
- Are the products you stock the same as every one else's or have you made an effort to find parts other people don't stock?
- Is the interior of your shop appealing with good lighting, well laid out displays and good signage?
- Are the sales assistants polite, attentive and knowledgeable?
- Are there enough open tills for people to be able to pay promptly when they want to?

Shops that are just pale imitations of other, more successful formats are going to fail. Shops that are innovative and fresh have a chance.

The fate of the bricks & mortar is in the hands of the business owners and centre management.

Rant ranted!

Funny how we've drifted from "Why are we paying more" to small business have to put up with nuff nuffs.

Can't argue with that, I've gotta stand behind them in the queue!;

Maybe I have got it all wrong.
[ame=http://www.youtube.com/watch?v=svSGKJFSl-8&feature=related]No Soup For You - YouTube[/ame]

seems labour costs here are too high. Alcoa can't compete with high Aussie $. Too expensive to produce here.
Ironic here we are discussing being ripped off on part pricing, and the world is complaining about our labour costs are ripping them off

Originally Posted by rick130

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
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.

A good news story amid the doom and gloom....

Usually I buy 4BD1(T) parts from the local ISUZU dealer, most of which need to come from "over east" and I get charged at least $20 per airbag for...

However, one small part I needed they couldn't supply - even from "over east". I finally tracked one down at "Goldfields Truckpower" in Kalgoorlie. I ordered the part over the phone, gave them my CC number. It arrived in an express post bag the next day, but no invoice. I called them, and they said, "it was such a small part, it wasn't worth doing the paperwork to charge you".

p.s. - if anyone who lived in Kal is able to drop a 6 pack in to Goldfields Truckpower, PM me your bank details and how much I owe you for it.

Originally Posted by It'sNotWorthComplaining!

seems labour costs here are too high. Alcoa can't compete with high Aussie $. Too expensive to produce here.
Ironic here we are discussing being ripped off on part pricing, and the world is complaining about our labour costs are ripping them off

oddly enough no mention of directors fees on their web site ..... just that their margins are shrinking...

wonder what % of their margin the above take up... then and now....

Originally Posted by It'sNotWorthComplaining!

seems labour costs here are too high. Alcoa can't compete with high Aussie $. Too expensive to produce here.
Ironic here we are discussing being ripped off on part pricing, and the world is complaining about our labour costs are ripping them off

True, but the argument here is more about the same product marketed in arguably comparable economies. (UK, US )