rant...

[jkhuri44]

can someone explain to me why a certain music electronics company makes a product in Australia...and sells it dearer to Australians than it does to Americans?

I may be oblivious to economics, but i'd love to hear a logical explanation to this one....

/rant...

[rob]

I guess the starting point is who is doing the selling. Are your prices coming from retailers? Retailers are free to decide their margins. From what I've seen US retailers often work with lower margins than Oz retailers. There is also a scale of economy. If you are a manufacturer and sell to two different wholesalers / distributers and one buys 10 pieces and the other buys a 1000, you might give the bigger purchaser a better price which can be passed along the chain to the end consumer. Plus of course in Oz we have a GST which plonks 10% onto the price.

[snouta]

I think I know what company you are talking about and find it rather annoying as I would like to purchase their products but feel a little ripped off. Though I do understand what Rick has said.

[chribble]

C'mon. Say who.

[chribble]

And yes rob is on the money with economies of scale.
This is directly linked to net profit and market share.

[jkhuri44]

the company is selling their products on their website...i use a proxy browser online sometimes and noticed they had different prices for the US and Aus...on their online store, where other companies in the same industry kept online store prices uniform...

really pissed me off....

[jkhuri44]

I think I know what company you are talking about and find it rather annoying as I would like to purchase their products but feel a little ripped off. Though I do understand what Rick has said.

have a read of some of my last posts in some other threads chribble, im sure you'll be able to put 2 n 2 together.
i dont like ratting companies on a public forum with my name on them

[rob]

GST ?
but maybe the go is to just ask them why? Rather than us all idly speculating here at least run the question past them and see what they say.

[jkhuri44]

the difference between prices is 30-40 dollars more than GST.

i wrote them a disgruntled email, and i got some bullshit about how their products are priced comparably to similar products. And he made another point about the US dollar price difference from 0.63 c to 93c...etc etc. (which made me roll my eyes and think the F@#$ing response was just copied and pasted with no thought)

Im probably coming off as a massive sook, but i just get fed up that we have to pay alot for imported stuff, and then, even get bitten in the ass when we buy an Aussie product too (tihs is not the case all round, just this company i know)....i have no idea what the point of buying Aussie is, when Aussies, do this....

[Chinagraf]

I know who you are talking about and it's more than GST, it's close to 30% more.
They must have their reasons whatever they are. Maybe you should email them and ask why?
Use an alias... heheh

[jkhuri44]

i alsready emailed them about it..and got some long winded ridiculous response...

the reasons i got were "fluctuating exchange rates
The USA not having GST
the inability of the company adjusting prices based on exchange rates causing havoc in their market....

All of these reasons are pretty funny/borderline ridiculous....when i see businesses EVERYDAY selling things at exactly the same cost, and only adding taxes...

the price difference ...is...beyound tax, sometimes a full 100 more, or 50 dollars more or whatever...

[Sammas]

I suspect it is largely political. The sheer size of the American market, and pleasing a distributor like Vintage king who has outlets and high appraisal on at least two continents probably prioritises business over there... not here. The company in question has probably priced their microphones deliberately to prevent toes being stepped on.

...there ain't much benefit in a global retailer selling mics if people are just going to go straight to the manufacturer for a cheaper price, is there?

It is pretty ridiculous, if you ask me. Anyone remember when Elysia sold their Xpressor 500 only via their online store? It was priced at under 650 euros with global delivery via fedex. Today you could pinch it for under $750 with the exchange rate... But nope. Elysia canned that plan and now Awave have the price locked in at $999.

...what makes it even stupider is, thomann in Germany will sell you one still with shipping for 690 Euros.

[chribble]

Also guys you have to account for the volatility in hedge rates. (can vary 5% easily)
Not to mention 2% conversion rates.

Unless its hugely different, I wouldn't complain really.

And always, if its a boutique manufacturer. Email them and ask for a better deal?

[jkhuri44]

purchases are made through a form....
its not about big price differences...its just about a local product...that's the issue.

[Drumstruck]

I've ranted about the unjustified price difference on imported products before - this is worse when it's a local product

[jkhuri44]

I've ranted about the unjustified price difference on imported products before - this is worse when it's a local product

im glad some of us agree. it really really grinds my goat, and i've heard about it happening in some other industries too (on the news just recently)...wtf is wrong with people here.... if this happened in America, there would be looting, mad max, etc.

[jkhuri44]

lol, ok...so my last email from this company...the tech support rep signed off with Mr xxxxx (with a headache)

and asked me "to cope with wildly fluctuating currency exchange rates, you reckon we should increase our US prices on a daily basis, so that Australian and US prices are always the same, and vice versa"....

advice on my next move....i dont think i feel like emailing back, but if i feel bored, i might....

[Drumstruck]

That gent is forgetting rule 1 - don't engage in banter with the client.

You're evil Jamil How about asking for a special price?

[jkhuri44]

hahaha, f@#$ that! i'm not evil at all...before i even started arguing with this fuckwit, i already politely said "i dont think the tech support department is the correct person to complain to, but since there are no other appropriate contacts,,,,blah blah"...

if he wants to play, fair game imo....

but its far too much headache at this point, and i still will prob buy their shit...and i dont want this guy to piss on them or wipe his ass with the product before its shipped

[Thirteen]

Don't forget that when you see American adverts and quoted prices from America it is quoted tax ex, you cannot buy it at that price in America, you have to add your state's applicable sales tax at time of purchase, so US prices appear less than they really are over there.

[Julian Nichols]

Didn't this same company write a reply letter that was published in AT, after someone called them out over it? I seem to remember the representative saying something like "Freight is negligible, just think of how many microphones you can fit into a sea container." If I had the inclination I'd dig through my stack of AT mags and find it.

I am similarly peeved after pre-ordering an Arturia Minibrute in February and promised a June 30 delivery. Production was delayed, and the entire first shipment was sent to the US, even if the customers in question ordered it months after I did. Now they are saying I will get my synth in September or later, while I sit back watching YouTube vids of Americans playing with what should by all rights be my synth.

The bottom line seems to be : if the US has the largest amount of clout on sites like GS, etc, then keep them happiest. Keep it cheap for them, and make sure they get it first. Because that seems to be what they expect.

[Chris H]

I think we have a right to be a bit jaded over the prices charged for pro audio here in oz. I continue to be mystified over this little price comparison for a product made here in Richmond.

C2 compressor.

Price from Uk distributor direct:
Uk pound
1950 --------------Au $2895

Us Mercenary price:
US $ 2950 --------Au $2817

Australian distributor direct:
Au $3515

As a certain infamous fish and chip proprietor would say......... Please Explain?

[jkhuri44]

i dont know many other products as examples....

Which C2 compressor is made in richmond Chris?

but i do know that something made on my doorstep, that i can knock on the door of the maker and buy myself....should not cost me more.....the world is broken....well and truly. no economic theorum will make me understand this BS. tax/shmax! Market demand/shmand!

[Chris H]

The Smart C2

[jkhuri44]

oh, i had no idea it was Aussie.....damn, well, f@#$ that....i think im making a point not to do business with any company who does this bullshit.

[Junction]

This will also be compounded by the local manufacturer will have a deal with the local retailers that they will not undercut the retailers pricing, otherwise no one will buy from the retailer as they would be going direct to factory .... the manufacturer wants the retailer to deal with entertaining the customer with enquiries, tyre kicking, warranty, support etc. It sucks!!

[Drumstruck]

All you have to do is impress them with your technical wizardy Jamil - they'll be chasing you to endorse their products .......

[jkhuri44]

endorsing products is for devils spawn. no thanks. Endorsing a product publicly is lame, you never know if they're a shill or, they actually think its a good piece of gear....

oh shit, im starting another rant, i should stfu before thread lock!

[Drumstruck]

hahaha hook, line and sinker - love the rant

[Gian]

Dont forget imput duty and GST, following calc based on customs.gov.au

Customs value (Cval) = $2817
Customs duty (Duty) @ 5% of Cval = $140.85
International transport and insurance or postage (T&I) = $50 (I'm guessing this amount)
Value of the Taxable Importation (VoTI) (Cval+Duty+T&I) = $3007.85
Goods and Services Tax (GST) @ 10% of the VoTI = $300.79
Total payable Duty + GST = $3308.64