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Rent and trade volumes may account for some of the disparity, especially for low volume retail items, but sometimes it is just gouging, and not necessarily in Aus. I know of a case (quite a while ago now) of a certain scientific instrument, a very new type and only made by this one company who held the patent, where it was sold in the US for about 60% of the local agents purchase price. By the time the local agent added their markup the local price was >>2x the US price. (It was a desktop instrument and the prices were >$100,000 so shipping wasn't the reason.)
At work we buy consumables off a large local company at the NSW Gov't contract price, prices the company rep assures me with a straight face are very competative. Recently I found out that another Uni, who negotiated their own prices without the 'advantage' of volume and who are further from the depot, are paying far less for some items than we do. Having words with our rep is on my 'to do' list.
My experience is that
Sale price = true cost to retailer + whatever they can get away with adding
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