$A=$US - Are we getting ripped off?

[Cabbage]

Guys,

After traveling through the US for the last 3 weeks and seeing the cost of different goods and given the $A is at parity or better than the $US, I have to ask are Australians getting ripped off on goods imported from the US.

Generally I have found the cost of clothes and shoes to be about 50% cheaper in the US than Aus with premium brands costing significantly more in Aus.

Cars as well, yanks pay shedloads less for their vehicles and while I accept a lot of what we pay for imported cars is part govt tax I'm not sure the price we pay is fair.

Probably the item that most angered me was dogfood. Yes dogfood. I have two labs that eat quite a bit of food. In Aus I buy them science diet large breed dry dogfood in a 15kg bag which is usually between $100 & 120. Walked into a pet store in Brooklyn and the same bag of dogfood was $34. Surely it doesn't cost $70 to get it to Aus.

With the rise in the $A things should getting cheaper? I see Gerry Harvey constantly in thevmedia blowing up about Aussies buying on line but who could blame them. I think we are getting ripped. A pair of Brooks beast runners are about $250 in Aus, I can buy them on line from the US delivered to my door in a week for about $130.

Just venting a little but what do people think, do we get ripped off in Aus buying imported US oods.

Clinton

[JG65TE]

course we are, I buy car parts n stuff from america , the major killer is postage. They seem to have hugely inflated postage costs. If there is something i want/need , then i look online before looking local. I buy it and wait rather than gettin ripped on price locally. Someone will come in and say blah blah , support local businesses..... I will , soon as they support the consumer. As for the dog food. I have a budgy who I was training to live without eating, Nearly had it done too, then he died ........

[Cabbage]

Shame about the budgy, what do you think killed him. I was looking at buying a Harley a few years ago in Aus, the $A was at about 75-80 cents. I was looking at a sportster 1200 was going to be about $18,000+. Since then the $A has improved by about 25%, has the price of harleys come down. When I last check 1-2 years ago they hadn't. Harley dealerships will tell just because the $A improves the bikes won't automatically come down as they bought stock when the $A was lower etc etc. It my be too simplistic to expect the bikes to automatically become cheaper when the $A strengthens but I think it would be tempting for dealerships to leave the price up with the Aus economy doing ok.

Having said that the price of Jeep Wranglers has dropped as the dollar improved.

Clinton

[Scott]

I agree, we are still being ripped.

Most companies offer pricing specific to a market which also makes allowance for taxes and tariffs specific to that place. Ultimately, the price they put on the sticker for the consumer is an amount they think someone will pay, not what is simply a fair price covering a fair margin.

More and more though, as the world shrinks, companies are realising that people will shop globally and will exploit opportunities to save a few bucks. Not just on low cost things like shoes and electronics, not just on cars and boats, but full blown business equipment and partners, lifestyles and careers.

At the end of the day though, you won't pull the same margin on a diamond ring in Sierra Leone as you would in Sydney.

Is it cutting the bum out of prices to sell in a cheaper market, or inflating prices to make hay in an expensive one?

[xisled]

The reason why everything is cheap in America is the cost of living is very different. A person can be paid $3 an hour in the USA, where our minium wage is something like $15.00.

Also the cost to import to our country is huge.

I am looking to import around 80 rims from China, the cost for me to do this is around $2000 just for shipping, but if I only look to import 4 rims the cost is around the same. But Basically to get things to Aus it cost a huge amount. So the seller puts the cost of getting the item to Aus onto the price.

[MAD]

Originally Posted by xisled

The reason why everything is cheap in America is the cost of living is very different. A person can be paid $3 an hour in the USA, where our minium wage is something like $15.00.

Also the cost to import to our country is huge.

I am looking to import around 80 rims from China, the cost for me to do this is around $2000 just for shipping, but if I only look to import 4 rims the cost is around the same. But Basically to get things to Aus it cost a huge amount. So the seller puts the cost of getting the item to Aus onto the price.

If the local company here imports the same items, the cost of manufacture doesn't change.
Companies can buy in bulk and save on shipping, they also get wholesale prices. Average Joe doesn't get those benefits and yet still ends up a country mile in front.

[xisled]

Originally Posted by MAD

If the local company here imports the same items, the cost of manufacture doesn't change.
Companies can buy in bulk and save on shipping, they also get wholesale prices. Average Joe doesn't get those benefits and yet still ends up a country mile in front.

Yes I know about wholesale price.

I will give you an example. I can import 20 sets of Rims from China. The cost for 80 pieces (20 sets) is $6000. Cost around $75 per rim. Now this does not cover shipping or tax to get it into the country. Shipping and Tax is around $3000. So the cost to get the product to Aus is half of what I pay per piece.

Also if I did not buy 80 rims and I bought 4 rims. The cost to get them to Aus is around $2200. I still need to pay for a shipping container.

So you tell me know that Aus is getting ripped off. yes I may buy the rim for a heap less over seas, but to get it to Aus is half the cost.

So end of the day, the cost to get 1 rim to Aus is $112.50. A set $450.

Now if you include the cost to rent a Shop with a show room, Eletrcity, water Gas and pay an employee, the cost of my the rim is now around the $160.00 Mark, $640 a set. I sell the Full set for around $700.00.

So all that work I make $60.00 on the Rim.

The prices I have worked out are very basic and do not include tyres.

[Murph-51]

Guys,
You will find that America is clawing their way back out of a massive slump in their economy!
Their unemployment rate is extremely high, millions of people lost their houses.
America was and still is living on credit which is what drove them to financial disaster. They have a massive debt that will never be able to be paid back in over a 1000 life times, Australia is heading the same way.
The cost of everything in the states will be massively reduced in order to try and kick start their economy again

[EDManual]

I was in Germany a few months back, even there I realise how much of a rip off australia is!

For example, go to the supermarket and buy something like custard desert with some jelly for one, here that would cost perhaps $1.50 or even more, over there the cost was!! you wouldnt believe it. euro 0.07! Go to france and buy packaged salads, at the supermarket in a large famility size, you wont find much over 1 euro! Here if you get something like that for under $5 you are lucky!

[Pis-ton broke]

I buy dvd,s from the US and the postage is stupid. I get large text books from os. and the shipping is not much more. I get special metal trade tools from the US cause they are sometimes more than double in price here.I got a 9 piece dewalt cordless kit from US an saved a packet.

some of the tools and stuff come warped in USA newspaper,2011 ram 5500 crew cab=$44665, 2012ram truck 2500 crew 4x4 =$36252 new, 2012 chargerR/T =$32152new, 2011 300c =$34287. all new stock. just to name a few.

[flappist]

Next time all you jetseters are over in USA/Europe have a quick talk with a shop worker.

Ask them about their 4 weeks holiday with 17.5% loading, their 9% super, their sickies, their free hospital cover, their workers comp, their penalty rates and all the other the other things that Australian workers take for granted.

Then ask them what would happen if they lost their job, their dole, their government paid retraining, their squillions of other benefits etc.

The price of everything in Australia including importing would be a lot lower if we were all not so grossly overpaid and nannied compared to almost all the rest of the world.

[Cabbage]

Originally Posted by flappist

Next time all you jetseters are over in USA/Europe have a quick talk with a shop worker.

Ask them about their 4 weeks holiday with 17.5% loading, their 9% super, their sickies, their free hospital cover, their workers comp, their penalty rates and all the other the other things that Australian workers take for granted.

Then ask them what would happen if they lost their job, their dole, their government paid retraining, their squillions of other benefits etc.

The price of everything in Australia including importing would be a lot lower if we were all not so grossly overpaid and nannied compared to almost all the rest of the world.

This is partly true but these are American products made by poorly paid workers in America not Australia. The wages of those manufacturing these goods is borne in the US or China or wherever they are made. The only cost extra cost in australia besides shipping and govt taxes would be the better paid Aussie salespeople and that does not equate to $70 on a bag of dogfood. Shipping is a significant cost but in bulk would not be a major cost addition. If these were Australian made goods then the prices would naturally be more expensive to cover better paid Aussie workers.

I think yellow festiva is right, we have become accustomed to paying what we do for American imports and when our $A improves most retailers take it as profit rather than pass on the savings.

[GT0132]

Originally Posted by flappist

Next time all you jetseters are over in USA/Europe have a quick talk with a shop worker.

Ask them about their 4 weeks holiday with 17.5% loading, their 9% super, their sickies, their free hospital cover, their workers comp, their penalty rates and all the other the other things that Australian workers take for granted.

Then ask them what would happen if they lost their job, their dole, their government paid retraining, their squillions of other benefits etc.

The price of everything in Australia including importing would be a lot lower if we were all not so grossly overpaid and nannied compared to almost all the rest of the world.

Can understand this being an issue where the cost of the labour input varies between countries.

For example , even after their 17% VAT, eating out at an average Thai restaurant in Bangkok or Phuket is cheap compared to Australia, but that can be rationalised because service staff in Thailand are paid peanuts compared to those in Australia. The business owner in Australia needs to jack up their pricing accordingly to cover this cost and to make a reasonable profit. The Bangkok restauranter doesn't need to charge as much hence it is cheaper to eat out.

Goods that are made in juridisctions where labour is cheap, say China or India, should not see a price variation at the retail level between Australia or the US (except to cover differences in freight, exchange rates and local consumption taxes) as there is no local labour component.

If I can buy a car part direct from the US for the equivalent of AUD $500 to my door , why is it that I must pay $850 to buy that same part locally from an importer who has added no value (including any additional labour) to the finished product?

[nstg8a]

Originally Posted by GT0132

If I can buy a car part direct from the US for the equivalent of AUD $500 to my door , why is it that I must pay $850 to buy that same part locally from an importer who has added no value (including any additional labour) to the finished product?

so you expect that importer to import the part, store the part, service the warrenty on the part, pay any import costs etc etc all for free?

people go into business to make money, not do things for free so some can get a better deal.

[Scott]

Originally Posted by nstg8a

so you expect that importer to import the part, store the part, service the warrenty on the part, pay any import costs etc etc all for free?

people go into business to make money, not do things for free so some can get a better deal.

I agree with GT0132 here, clipping the ticket and adding delays does not substantiate an argument for "support local business".

There are plenty of [most] things that I could buy O/S but choose to buy locally due to some degree of value the local operator is adding to my purchase. Be it warranty, advice, availability, support or even just comfort that I can see who I'm giving my money to.

But simply existing is not an excuse to be fed.

[GT0132]

Originally Posted by nstg8a

so you expect that importer to import the part, store the part, service the warrenty on the part, pay any import costs etc etc all for free?

people go into business to make money, not do things for free so some can get a better deal.

I said they are adding no extra value than if I were to buy it myself...The import costs would be the same whether i buy it or he/she buys it so that doesn't even come into the equation...warehouse and warranty costs to a point agreed .

I also agree that there should be a profit for the importer , but a 80% markup?

The only real value being added by the importer is that he's taking the trouble to put in the order rather than me. Something that can be done in 2 minutes.

[flappist]

Originally Posted by GT0132

I said they are adding no extra value than if I were to buy it myself...The import costs would be the same whether i buy it or he/she buys it so that doesn't even come into the equation...warehouse and warranty costs to a point agreed .

I also agree that there should be a profit for the importer , but a 80% markup?

The only real value being added by the importer is that he's taking the trouble to put in the order rather than me. Something that can be done in 2 minutes.

In your profile you state you are a CFO and you ask these questions?

I suppose your company could lower its rates if you were paid the same as a CFO in China or Thailand after all you are all exactly the same.....

[XR Martin]

I think its more that Australian's are tight asses and dont realise how good they get it.

They want their current quality of living but want to pay what countries with lesser living standards pay.

Just be thankful that the garbage gets emptied every week, water flows out of your tap, toilet flushes, continuous electricity supply, and you dont get robbed walking to the corner store.

[myxr6]

All you have to do is look at things from Apple and Bose and see that they havnt come down with the dollar.Plus we are paying more before the dollar went up anyway , so yes we are being royally bent over.

[Murph-51]

Originally Posted by myxr6

All you have to do is look at things from Apple and Bose and see that they havnt come down with the dollar.Plus we are paying more before the dollar went up anyway , so yes we are being royally bent over.

Thats just ridiculous, Europe and America are basically financially screwed.
These continents arn't run or propped up by electronic businesses, while their exports remain high for their products, so will their prices

[flappist]

Originally Posted by myxr6

All you have to do is look at things from Apple and Bose and see that they havnt come down with the dollar.Plus we are paying more before the dollar went up anyway , so yes we are being royally bent over.

So you are in favour of bringing in foreign workers and paying them $2 an hour to do your job?
Of course there will be no dole, you work for $2 per hour or starve.

Apple and Bose in Australia still have to abide by Austrailan laws.

How about no warranty, no fair trading protection, pay for tech support etc.?

The price will be heaps lower but then you may not be able to afford them.

[GK]

Originally Posted by flappist

So you are in favour of bringing in foreign workers and paying them $2 an hour to do your job?
Of course there will be no dole, you work for $2 per hour or starve.

I've recently been going through a period of unemployment. I did some work as a mechanic (general easy type work such as parts stripping) and was given roughly $11 an hour, taking home $90 a day. I would have made more working at Macca's! It didn't take me long to work out that if I worked 6 days a week, I would be struggling to make ends meet.

It was below average wage, and I knew I was getting ripped, but when you have no income, you are inclined to take what you can get, and some employers will take advantage of that.

Although I've always been happy with my previous pay and conditions as a teacher, I've come to a new appreciation of just how blessed I am, and how hard it is for those with not much choice.

I thank God that my parents pushed and pushed for me to go to Uni!

GK

[Yellow_Festiva]

We have been CONDITIONED to pay what we pay over a long period of time. How many people honestly think twice before paying $3.20 for a 600ml Coke?? (Whats that per litre.. $5 ish??). While in Africa 3 x 450?ml bottles set me back a whole dollar.... Whats that per litre? Yet petrol jumps 15c (or LPG for that matter) and we are up in arms.

Shipping has a bit to do with it, as does taxes and our pay rate. Our 'way of life' is pretty much the best in the world as well IMO. We are the envy of MANY other nations.

Pet food you say?? I just got some guinea pigs... all the sites say I ned to feed the little tikes "Timothy Hay / grass / straw" whatever.... the US sites state a 25 pound box of the stuff costs $19... Can't be that much more here... right???

Local livestock / bulk feed supplier sells it for... wait for it... a 1.13kg (whats that... 3 pounds?) bag of the same stuff for only ... ONLY $31 (down from $35)... must be 'on special'....

We are not getting ripped off.... we are being charged (and paying it seems) what customers are happy to pay. I won't be buying the Timothy hay either... the neighbours weeds / grass that stick through the fence is fresher and cheaper.

Often, you ONLY see then when you have travelled a little...

[Pis-ton broke]

just a little note on the guinea pig Yellow fesitiva. My ex,s 10yo left out our little guinea pigone cold night , it had a little guinea pig house to, however it died. I got rid of the body and I bent the bars apart on the cage and said that the guinea pig was upset about the poor treatment and has escaped, well she was in tears. I didn,t have the heart to tell what really happened. So bring them in at night. We just feed our pig grass and it was fine... for a while

[Yellow_Festiva]

Originally Posted by Pis-ton broke

just a little note on the guinea pig Yellow fesitiva. My ex,s 10yo left out our little guinea pigone cold night , it had a little guinea pig house to, however it died. I got rid of the body and I bent the bars apart on the cage and said that the guinea pig was upset about the poor treatment and has escaped, well she was in tears. I didn,t have the heart to tell what really happened. So bring them in at night. We just feed our pig grass and it was fine... for a while

The ironic thing is, I had one when I was 10 and left it in the shade outside one day... problem was it wasn't in the shade for long and it was a really hot day...

We have 3, they stay indoors and get to run around on the weekends when we visit the inlaws. They get a good variety of food as well so all is well in that regard!

Cheers

[EDManual]

its the big buisinesses that try for big profits for shareholders that are the biggest rip offs in australia. A good example is coca cola. They have near no workers at their plants. Its all automated. We must have the most expensive coloured water in the world. And notice they have about doubled the price over the last 2 years at the checkouts! Why? Because they can.
Some freinds in the beverage industy at MAJOR hotels tell me coke costs them at the point of sale about 5 to 7cents for a glass including gas and equipment! AND THEY SELL IT FOR $3! (they rake in cash from fizzy drinks!) So what does cca make the bottle of 600ml for at the plant for! Must be at the most 7 cents! What do they sell it to Woolys for? maybe 50c? And Woolys sell them for $2.50! or the servo sells for $3.50!

Its all a joke.

[XR Martin]

Whinging about the price of coke, if only the rest of the World had such few things to whinge about.

[Iggypoppin']

You don't have to pay the prices for the products you want. Studying economics has given me an insight into why the prices are the way they are. If you don't like it, you don't buy it, but you will have to substitute the good for something else.

[XP6]

This comes up frequently on the www.woodworkforums.com.au usualy about tool prices(we pay up too X4 the price).
Its not really about postage costs as postage cost are the same in any country its only the distance that varys... and taxes adds little every country has them.

The main thing that dictates cost in aust is our tiny market size we barely have 20mil people yanks are well over ten times that.
If you import products here you have less than a tenth of a market to sell too, there was someone bangin on about the price for some quality handmade boat extractors here the other day... imagine if you imported 100 sets of these to get a good bulk price how many of our 20mil peeps would buy them? in yanky land your market is ten times the size, there are more customers pure and simple that is what dictates price...

[Yellow_Festiva]

Originally Posted by XP6

Its not really about postage costs as postage cost are the same in any country its only the distance that varys... and taxes adds little every country has them.

You really think postage is the same in any country????

I assure you we pay very dearly for postage compared to many other countries. Often we pay 3-4 times what many countries pay. This is internally as well as the globe.