Why are certain items so much more expensive in Australia than the US

TrevorW · #1 04-05-2012, 12:02 PM

Apart from market size which IMO is irrelevant when the item(s) is being massed produced out of the same factory and shipped from the same country to both markets

ASUS T300/TF201 in Aust $900 in the US $400

A subscription to Wired in Aust $70 US $15

A Barska 15x40-50 spotting scope US $30 Aust $150

The list goes on and on, and this is why I refuse to buy certain items, I'd rather go without

a Julius Sumner Miller used to say

"why is it so"

steve000 (Steve) · #2 04-05-2012, 12:21 PM

yea I cant understand it either. Ebay with free shipping from the other side of the planet is often cheaper than local online stores (if you can find them)

MrB (Simon) · #3 04-05-2012, 12:39 PM

I have the same problem with many items I want.

One that really frustrates me is anodising supplies from Caswell Plating in the US. They have an Aussie distributor and will not deal direct. The Aussie distributor is double the price, considering the distributor is getting this stuff at wholesale prices with the strong $AUD, it's a no-brainer that I have never purchased from them.
Unfortunately I have found no other supplier, not even on ebay

TrevorW · #4 04-05-2012, 01:25 PM

According to one source it's the Govt's fault

http://www.cis.org.au/images/stories...phs/pm-125.pdf

traveller (Bo) · #5 04-05-2012, 01:33 PM

Seriously, this topic has been covered to death already, do we really need another thread on it?

MrB (Simon) · #6 04-05-2012, 01:46 PM

Quote:

Originally Posted by traveller

Seriously, this topic has been covered to death already, do we really need another thread on it?

Yep

TrevorW · #7 04-05-2012, 01:48 PM

Sorry Bo can you explain it then, because I can't. Is it the Govt, is it big business, is it market size

or is it a case of we just lie down and be screwed, that is our lot in life

mental4astro (Alexander) · #8 04-05-2012, 01:52 PM

From an inside source:

Some multinational companies demand a minimum amount of income shipped over to their parent company every month, regardless of the local branch's turnover. It is then upto the local reps to then do whatever it takes to get that amount of money coming in, which includes over inflated prices. This includes sticking it to the retailers as the "distributors" are often just off-shoots of the parent company.

In other situations it is simple greed, aka "what the market can bare". Waverly Council take note - your greedy parking meters at Bondi Beach have killed off the patrons from the shops. Your market has collapsed, but you are just too greedy to see or care.

In other situations it is legalised protectionism - CORPORATION LAW at its best. Question them about it, and all you will get in response is "That is OUR policy." - and that one is a quote from Adobe. And the Trade Practices Act protects them.

Enjoy your shopping experience.

traveller (Bo) · #9 04-05-2012, 02:05 PM

Like many things in life, there are many factors:
1. Supply v demand: Aust is a small country with a small population. Therefore any niche products simply dont move as fast or in the same volume. This means there are fewer suppliers, therefore less competition, therefor higher prices.
2. Free trade v tarrifs: Even through we have "free trade" agreements with many countries, many of them have high tarrifs against imported goods. So Aust retaliates in return and slap on high import tarrifs on niche products - we end up paying more.
3. Labour v currency: Countries like China have almost endless cheap labour. They also artificially keep their currency low in order to keep their products competitive. The rising Aussie dollar only made it even more attractive. This is realised for TVs and high volume consumer goods, but not for niche products, see points 1 and 2 above.
3. Subsidies v middlemen: Many countries subsidise their industries (think car manufacturing in Aust). That means overseas suppliers can artifically keep their costs down, but once their products move down the supply chain, the prices increase in order for the Govt to recoup their subsidies.
4. IP v innovation: Many tech/intellectual products carry hefty IP rights and they are not covered by free trade. Patents on these products also have a very long shelf life, so the developers can recoup their R&D investment. In the industry I work in, a scientific journal is marked up by 400-600%, and similarly for standardised scientific tests/testing products.
The list can go on, but I think you can get my drift.

My whole point is, there is no simple explaination, nor is any attempt at simply explaining it going to resolve the issue.

To misquote a smart person: I dream the day when chickens can cross the road without someone questioning their motivation

Bo

TrevorW · #10 04-05-2012, 02:19 PM

To misquote a smart person: I dream the day when chickens can cross the road without someone questioning their motivation

Bo[/QUOTE]

Profound

I recently purchased a buttered roll from a deli

$3.50

now that is markup 600% in my mind

JB80 (Jarrod) · #11 04-05-2012, 04:44 PM

Over here it's all down to customs and import taxes, I'm not certain how it works in Oz anymore but if you know somebody in the US and they can send it as a gift not goods and services then you don't have to pay any tax on it at all. Unfortunately I don't know anybody in the US.

That said I had to give the postie 50 euro the other day to pay for presents for the kids that she sent from Adelaide, presumably because the parcel contained chicken salt.
In retrospect i should of questioned that.

tlgerdes (Trevor) · #12 04-05-2012, 05:54 PM

If you arent satisfied, start up your own business and import these items for us.

That way you will know the real story for the price difference.

Remember it is not about importing an item, it is about running a business to import the item. Big difference!

When I have an office, a car, telephones, computers, insurance, staff, superannuation, etc etc it makes a big difference if I buy 10 and sell 10 or if I buy 1000 and sell 1000, who is going to be buying and selling at cheaper prices. What happens when I buy 10 and can only sell 4?

MrB (Simon) · #13 04-05-2012, 06:38 PM

Quote:

Originally Posted by tlgerdes

If you arent satisfied, start up your own business and import these items for us.

That doesn't work when there is an exclusive dealer and the parent company is not interested in other dealers. This used to be the case(still is?) with Meade I believe.

Quote:

That way you will know the real story for the price difference.

I know where the price difference is... profiteering.

Quote:

Remember it is not about importing an item, it is about running a business to import the item. Big difference!

When I have an office, a car, telephones, computers, insurance, staff, superannuation, etc etc it makes a big difference if I buy 10 and sell 10 or if I buy 1000 and sell 1000, who is going to be buying and selling at cheaper prices. What happens when I buy 10 and can only sell 4?

This doesn't change the fact we are being ripped off when the products are double the price locally, half the price elsewhere, but the parent company will not export to anyone other than the overpriced exclusive dealer. It's almost anti-competitive in a way.

ballaratdragons (Ken) · #14 04-05-2012, 07:12 PM

Here we go again

Octane (Humayun) · #15 04-05-2012, 07:16 PM

Ken,

I had the same idea, but neither the patience nor bother!

H

gregbradley · #16 04-05-2012, 07:25 PM

You know the price differences between Oz and the US on many goods has narrowed a lot over the years.

I was checking out 5D mark ii's at one stage and they are cheaper here than the US on ebay.

Greg.

TrevorW · #17 04-05-2012, 08:13 PM

It's a sour point with me Ken, it's just like many other threads eg: the Apple v everyone else debates

iceman (Mike) · #18 04-05-2012, 08:43 PM

Good idea ken.