AU$ climbs but Ozzi scope prices stay constant

[Stephen65]

Trying to buy when the dollar is up is not unlike waiting for the next generation in technology to hit the market, it never happens

AEC vary their Tak prices daily based on A$/Yen movements, I was interested in a Tak scope and I couldn't resist the lower A$ price when the A$ hit 104 yen about eight months ago.

If a retailer had stock on hand which they had bought at lower A$/US rates then I could see where they get squeezed selling now (though the reverse will apply for stock bought now and sold when the A$ drops), but many of the larger scopes are only ordered by the retailer when an order is placed by a customer and there is no justification for not applying the current rates.

[mick pinner]

so if you can wait order it today and get it at todays exchange rate? would this be correct? maybe a retailer could reply.

[Peter Ward]

Originally Posted by mick pinner

so if you can wait order it today and get it at todays exchange rate? would this be correct? maybe a retailer could reply.

It is possible.

However, many US manufacturers have long wait/delivery times
(eg Paramounts are currently running at about 3 months...and Astro-Physics....8 years and counting!!).

Sure if you want to pay up-front, the retailer should be able to do a forward hedge (the banks never give you a rate quite as good as the spot rate) or use a $US trading account....but even then, who is to know where the $A will be next week, let alone in 3 months, and this may significantly effect shipping and GST on landing.

Unfortunately the $A is the 5th most traded currency in the world, yet accounts for just 2% of the worlds economy. Speculators push it all over the place, while the Reserve sits there and does SFA to stop it.

The fact that it can, and has, lost 10% of its value in a few days is disgraceful.

[skwinty (Steve)]

In Australia you still have it stable notwithstanding a 10% drop in value.
In South Africa the government just has to say something and the currency goes into freefall.
Viva democracy
Regards
Steve

[OneOfOne (Trevor)]

Originally Posted by Kal

...For your example, the value of the goods is $US1000 = $AU1057.56. You pay 5% customs fee on this value, which is an extra AU$52.88. You then have to pay GST on the $1057.56 + $52.88 + shipping, and the shipping was US$100 which is AU$105.76, so GST is an extra 10% of AU$1216.2, which adds AU$121.62 bringing the total to AU$1337.82

Note, conversion rate used in this example was 1 AUD = 0.945576 USD...

Actually, there is also another ~$48 for the customs handling fee too, bringing it to almost $1400

[netwolf]

Originally Posted by Kal

Not quite right.

For goods purchased over the internet with a value up to AU$1000, no duty or GST is payable. For goods over AU$1000, customs tax + GST is payable.

For your example, the value of the goods is $US1000 = $AU1057.56. You pay 5% customs fee on this value, which is an extra AU$52.88. You then have to pay GST on the $1057.56 + $52.88 + shipping, and the shipping was US$100 which is AU$105.76, so GST is an extra 10% of AU$1216.2, which adds AU$121.62 bringing the total to AU$1337.82

Note, conversion rate used in this example was 1 AUD = 0.945576 USD

For the correct laws and rules regarding purchasing from overseas, see this customs page

Andrew,

Perhaps this earlier post by me in a similar thread will explain better
http://www.iceinspace.com.au/forum/s...0&postcount=31
Essentially the Customs Tarif act exempts Duty on Astronomical Instruments (non radio astronomy) and mounting.

Regards
Fahim

[digby dart]

Yes... there was too much journalistic licence in my US$91.93 per AU$1 claim. Having put the claim in 'bold' adds substantially to the embarrassment. As of tonight the Commonwealth Bank Mastercard exchange rate is 0.93 Greenbacks per Ozzi dollar.

From memory the Free Trade Agreement between Australia and the USA sees the end of duties and other applicable taxes - just GST for imports over $1000.

To be fair after reading 'Peter Ward"'s post I looked up ATS Losmandy prices tonight. The Losmandy G-11 (with Gemini GoTo) was listed for approx $A4800 plus GST. That's AU$5280 inc GST. I guess freight could be free?

The price in the USA is US$3195. Freight and GST added, that comes to AU$4084 all up delivered to the Australian Astronomers door from the USA. Over AU$1000 difference.

Perhaps ATS sees itself as an exchange rate business.

The same product being AU$5495 as listed at Bintel. AU$4950 from Telescopes and Astronomy.

As for "The cost of operating a business (wages, taxes, outgoings) in Oz is higher than in the USA"... piffle. Distributors are not making the stuff, just reselling it.

Australian Astronomers are likely being denied easy access to better USA made equipment. They often make do with cheap Chinese equipment.

[citivolus (Ric)]

Originally Posted by digby dart

The price in the USA is US$3195. Freight and GST added, that comes to AU$4084 all up delivered to the Australian Astronomers door from the USA. Over AU$1000 difference.

While you won't normally see me on this side of this argument, I get much closer to $4500 AU when I do the math, including .93 exchange rate, $500 or so US shipping for the mount, customs processing fee, and GST on the sum of the above. $800 difference on a piece of hardware like this is fairly reasonable to get domestic warranty service, if you consider the cost of shipping a mount once to the USA and back. It is 15% of the price, which is nowhere near, say, the CGE mark up of 40+% you'll see elsewhere (based on what my CGE cost me last month, new, shipped from overseas.)

There are some responsible importers out there. There are also some dubious ones. Avoid the dubious ones and get on with life.

Eric

[netwolf]

Does not the US3195 for G-11 and 925USD for C8price listed by Optcorp and others include a margin. Is it correct to assume local suppliers are paying this price per mount, surely they get a discount. This price seems to be the RRP. So assuming there buy price is less then they have room to add margin in there to cover warranty and there profit etc.

Most of these discussion always begin with an assumption of the price from retail stores in the US. Surely we should consider the cost price to the store before we add shipping/insurance, freight, and margin. If they are selling for 995 or 3195 what are they buying it for?


Regards


Regards
Fahim

[Zuts]

Hi Guys,

Sometimes you cannot ignore overseas suppliers. Let's go for a big saving:-

Losmandy Titan, inc tripod and goto in OZ at $12,250 (average of a number of suppliers)

Losmandy Titan, inc tripod and goto at OPT

Base USD 6,995
Minus members discount USD 100
Plus GST 700 USD
Plus Shipping USD 818, from the OPT shipping calculator
Customs USD 100 (no import duty as free trade with USA, lets add USD 100 clearance)

Total USD 8,513

Convert to AUD at say 0.93 gives AUD 9,153

Well that is over 3,000 AUD difference at the current exchange rate or nearly 30% markup . I wonder how many Titans get sent back for warranty claims?

Paul

[Peter Ward]

Digby,

Our website is quite specific, and says "price subject to $A to $US".

If you'd actually inquired you with ATS you would have discovered with the current stratospheric $A, our G-11 Gemini price is $4850.00 inc GST.

GST is levied on goods+shipping. There is also about a $64 customs entry and secuity fee, and if you use one off customs broker about $120 in brokerage.

ATS also keeps spares in stock and does repairs and EPROM upgrades in Sydney. It is not up to me to say whether someone will find a less than 10% local service premium worthwhile, but many do.

I have known Scott Losmandy for 20 years now, travel to California virtually every month of the year and am very much aware of his cost, concerns and operation.

You may be surprised to know setting up the HGM operation in Oz had been looked at over a decade ago. The Oz tax, wages, lack of third party suppliers/processors, equipment, transport and materials costs simply made it a joke. Retailers have the same if not similar hurdles.

I am curious as to discover what makes you so well informed to consider this as piffle?

Originally Posted by digby dart

As for "The cost of operating a business (wages, taxes, outgoings) in Oz is higher than in the USA"... piffle. Distributors are not making the stuff, just reselling it.

Australian Astronomers are likely being denied easy access to better USA made equipment. They often make do with cheap Chinese equipment.

[mick pinner]

and a very good price it is too.

[g__day (Matthew)]

Without wishing to wade in too deeply here - I presume for some suppliers (e.g. Celestron and ExtraVision) its the distributor that shapes the market more than the local retailers.

It is a free market and you can shop where you like, just think that for some items local after sales service and warranty support is more important and this will incur some level of compensation, you have to judge where this is reasonable.