Quote:
Originally Posted by Camelopardalis
That's even more shameful then...I don't begrudge the small guy trying to make a buck but the distributors shouldn't be so greedy. I appreciate the cost of operations here aren't cheap like the US, but still...
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Yes, it is time the distributors realise that it is a global market place now, and becoming even more so. After all, the Internet has opened a whole new range of products that we didn't know existed, and that are not always available in every country. But, they are just making agreements with resellers to prevent them from selling to OS markets, for example, I cannot buy Celestron gear from the US; not that I want to buy any anyway.
Their argument is that they are protecting local distributors, which may be partially true. The argument becomes weak when you consider someone in the US has a cheaper wholesale price than in Australia, why? The distributors argument is freight, also partially true, but even that doesn't account for the disparity in wholesale prices, and I am talking before tax, so it isn't tax either. Also, I understand that a lot of resellers have very small margins, so it isn't, necessarily, the reseller who is at fault. But, having said that, the resellers mark-up is also influenced by rent and other outgoings, so the retail prices can vary a great deal, as a result. But, my point is that the appears to be a disparity between distributor wholesale rates, but that is something we cannot scrutinise between distributors in different countries. It also must be remembered that each distributor also has costs, such as warehouse costs, etc, which also affects wholesale costs.
My rambling here appears to be a convoluted argument, which simply means it is far more complex than we realise, with many factors affecting prices in each country.
Is it price gouging, I don't know, but suspect that it isn't. Maybe the manufacturers should just cut out the distributors and sell direct, at a much cheaper price. Oh, Meade tried that, in the early days, and it didn't work! There was a problem with that..........it is called service and they had a problem delivering that directly.
And yes, yet another cost is Service! But, it is when you pay a higher price and don't get that service is what gets up my nose. Frankly, service in Australia, generally, is rather poor, in my view, but it is worse in the US, but at least there, you simply don't give them a tip. I tipped generously when I go great service in the US, but that wasn't that often.
I deal with some great companies that give GREAT service, and after sales support, which is why I will pay extra. However, a couple of companies recently took me for granted, and disrespected me, and lost my business as a result. I took that business off shore, as a direct result, because of I didn't like the other Australia alternatives, as they weren't much better, in my view.
One company representative said to me, after I remarked that I had spent well over $10,000 with this company, that that is nothing, as some customers have spent over $100,000, and it was said in, what I thought, was a rather condescending tone. And when I took the company manager to task on this point, he didn't care that I was taking my business elsewhere, and it isn't that I was a difficult customer, for I rarely asked for much. He thought I had everything and wouldn't probably buy much more from them, so I didn't matter any more. They are wrong, as I am in the process of deciding on downsizing to free up capital, and guess what I will do with that capital, upgrading!
The problem with this particular reseller, is that he doesn't think that a customer who ONLY spent $10,000 isn't an important customer. The problem with that, is that I have a voice, and I speak to a lot of potential customers. If they lose 100 potential customers that spend $10,000 each.......... well, you do the math. Unfortunately, they have forgotten that math!
EVERY customer is important and is the lifeblood of EVERY business, period! Oh, I won't disparage this reseller, not at all, I just say to people I would never deal with them again, I simply don't give a reason why, the company was good to me otherwise. But, the point is they have lost my business.
SERVICE is critical to any business, as not many businesses in Australia can compete on price in a global marketplace, but unfortunately, too many businesses are forgetting this simple rule. So, now, it purely comes down to price, where can I get it the cheapest, since I can't get decent service.
Australian businesses need to wake up!