Are Australians being ripped off?

[Marlea98]

I came across this article this morning that I thought should be shared.

I know we all complain about how much cheaper things are for us to buy overseas ourselves than here.

For us, we have been quoted $65 for a replacement remote for an airconditioner, we bought 2 aftermarket ones off e-bay for $8 - for both and including shipping. DH needed to buy anderson plugs for the camper trailer and was told they're $2.50 each at a store here. He bought a heap of them off e-bay for 25c each. For the cost of one pair of motocross boots for DS in Australia, we kitted him out in boots, jersey and pants from an online store in the US, including postage. DH bought 4 wheels and tyres for his CanAm quad bike from an American store for the cost of one wheel and tyre at a tyre chain here.

I remember watching a tv news show here, possibly on ABC or SBS, and they were investigating cosmetics prices here and in the UK. They reported that the companies and/or wholesalers/distributors price up the items much higher than they could possibly dare get away with in the UK for Australians because we have been conditioned to expect to pay more and that we believe that if a product is priced low then it is inferior. This was a 'luxury' cosmetics/skin care brand, too. Some brands have contracts in place whereby a distributor can lose their licence if they sell to anyone other than an authorised reseller, KTM (motorcycle brand) being a case in point.


http://www.news.com.au/technology/biztech/watchdog-choice-has-tough-questions-for-apple-microsoft-and-adobe/story-fn5lic6c-1226602766888

 

[Ms. Shuttergirl]

I definitely think we are. You only have to look at the price of Levis in the US department stores to know that. Not to mention Nike sneakers, Addidas anything, all of the big brands, it's a joke.

I bought my Clinique foundation for $19 in US, it's $49.95 here. I mean, are they serious.

I try to source things overseas if I can which I think is a real shame. I would love to support Australian businesses but not at the expense of my family's finances.

 

[Melbourne5]

And to add insult to all this add the USA level of customer service at Macy's , Nordstrom and just about anywhere else vs the Aussie space cadets at myer,dj or general retailer version . Can't beleive you pay less for better service!

 

[5ofus]

Yes, we are!

I remember on my first trip to the US when I was 16 and I was so excited about buying a pair of Levi jeans for $30, my host family thought I was nuts. Until I explained that I had bought a pair with my hard-saved money in Australia for $118 the year before.

Sport shoes are ridiculous. Cosmetics ditto. Just about everything actually. Didn't they have a story on one of those 'news' shows recently that even IKEA hike up their prices here?

 

[Marlea98]

Yes, we are!

I remember on my first trip to the US when I was 16 and I was so excited about buying a pair of Levi jeans for $30, my host family thought I was nuts. Until I explained that I had bought a pair with my hard-saved money in Australia for $118 the year before.

Sport shoes are ridiculous. Cosmetics ditto. Just about everything actually. Didn't they have a story on one of those 'news' shows recently that even IKEA hike up their prices here?

I didn't know about the Ikea story.

DH wears Wrangler jeans that cost around $100 here at the outfitters. I love my QBaby's (perfect for horse riding as the waist doesn't pull down at the back) but didn't end up buying anymore in the US. But DH and DS stocked up big on Wrangler shirts and jeans at Walmart - $15 for DS and $20 for DH. The Wranglers are really hard wearing and DH uses his for yard work and stuff and the shirts he bought are cotton drill and he wears them almost every day around the house and yard. They have yet to come apart, get a tear, lose a button and cost the same amount as a cheap chambray style shirt from Big W but the Big W shirts all have torn or worn away across the back.

I bought DD heaps of 80% off the lowest marked price stuff at *********** and Billabong at the outlet stores - we bought heaps of tops for around $5 and the best buy was a pair of fitted cargo style pants for under $2 that were Roxy or ***********! I loved going to JC Penney at the post Christmas sales in Montana and buying Christmas decorations at 80% off

And I won't get started on the mark up on the Le Cruesset stuff here

 

[Marlea98]

And to add insult to all this add the USA level of customer service at Macy's , Nordstrom and just about anywhere else vs the Aussie space cadets at myer,dj or general retailer version . Can't beleive you pay less for better service!

I'm surprised we didn't have the lovely cashiers at Walmart fired for our chatting to them so much! It's a good thing it was quiet at the Buena Park one when we were in The lady packed things brilliantly in the bags - the toiletries in one bag, food stuffs in another, separated the kids clothes so they each carried their own bags and more. Kohl's staff were great, too. Really friendly and polite. And my favourite, the counter staff at Carl's Jnr who bring your order over to you once it's ready

 

[Marlea98]

I definitely think we are. You only have to look at the price of Levis in the US department stores to know that. Not to mention Nike sneakers, Addidas anything, all of the big brands, it's a joke.

I bought my Clinique foundation for $19 in US, it's $49.95 here. I mean, are they serious.

I try to source things overseas if I can which I think is a real shame. I would love to support Australian businesses but not at the expense of my family's finances.

Exactly! We paid 98c for a Chapstick at Walmart that we would be stuck paying $4 or $5 for here! I stocked up on my Burt's Bees lip balms as well, plus the gorgeous stuff from Bath and Body Works

We are the same, we would love to support local businesses especially if they're small business, but sometimes it's just not worth it. I ordered a book off Amazon that came out within a few weeks of ordering that took Angus and Robertson almost 3 months to get in stock (yes, I did order through them first but got sick of waiting). It was almost the same price (slightly cheaper through Amazon after postage was included) but 3 months for one book????? The book is called the Radical Homemaker by Shannon Lush by the way, a great, thought provoking read.

 

[teddykins]

We definitely are, nike max airs (which I've wanted to buy for a bit) are $220 here and only $170 in the us and its the same with Skechers $30-$60 over there $60-$100 here. I just got a fitbit one and here its $120 so I ended up getting it from amazon for a measly $106 and that includes shipping - its the SAME product with the same fitbit support so why is it a premium here?

Same with airfares, we're looking at booking our L.A - Miami - Orlando - L.A fares and AA.com quoted $843.20us where as AA.com.au quoted $906.60au for the SAME flights..why!? Because we're the "lucky country" so must have a lot of money to spend?

 

[WAMUMOF4]

They use to blame our $ but they haven't had that excuse in quite sometime it is extremely frustrating and we also now only buy what we have to here everything that possibly can be is purchased in the USA sad for Australia but when We can have a holiday as well for the same money as buying clothes here what does that tell you.

 

[Marlea98]

Friends in SF did a SF to Melbourne or Sydney flight years ago (return) for under $900. Return. $900! Return

 

[Marlea98]

They use to blame our $ but they haven't had that excuse in quite sometime it is extremely frustrating and we also now only buy what we have to here everything that possibly can be is purchased in the USA sad for Australia but when We can have a holiday as well for the same money as buying clothes here what does that tell you.

I can totally understand if something is manufactured here that it would cost more because of labour costs etc. But if it is something that is manufactured overseas, or is a digital download, then I can't understand how they can justify the high prices. Even the mobile phone rates in America are breathtakingly cheap compared to here. And the roads, well, let's not compare them to the Bruce Highway once you leave the South East of QLd

 

[hydrotony]

I just checked the tax rates for Australia and saw that there is a value added tax of 10% and a corporate income rate of 30%.

So, if an Australian company wants to be sure of recouping everything it may need to pay the government, they would charge 40% more. US sales tax and corporate tax rates are much lower and for overseas sales, they may not charge sales tax at all.

 

[Marlea98]

I just checked the tax rates for Australia and saw that there is a value added tax of 10% and a corporate income rate of 30%.

So, if an Australian company wants to be sure of recouping everything it may need to pay the government, they would charge 40% more. US sales tax and corporate tax rates are much lower and for overseas sales, they may not charge sales tax at all.

Thank you Hydrotony. We are a very highly taxed country, indeed!

Sent from my iPhone using DISBoards

 

[WAMUMOF4]

I can totally understand if something is manufactured here that it would cost more because of labour costs etc. But if it is something that is manufactured overseas, or is a digital download, then I can't understand how they can justify the high prices. Even the mobile phone rates in America are breathtakingly cheap compared to here. And the roads, well, let's not compare them to the Bruce Highway once you leave the South East of QLd

Unfortunatly that's not always the case DHs Cpap machine was Australian made and it was still $1200 cheaper to buy from the USA

 

[Sugarglider]

The House of Reps Inquiry into international pricing disparity is still underway, however this old story from the SMH doesn't hold out much hope.
Apple, Adobe and Microsoft appeared today to explain themselves, but i haven't seen any reports yet.

I suspect the govt will get caught up in bamboozling legalese and whitewashing

 

[battymum]

My 15 year old son just started working in retail - his wage is $8.41 per hour, and that is 45% of the award as he is under 16. On top of that he is paid 20% casual loading and 50% for working on Sunday.

While that seems a pretty poor wage to most, i am sure it compares to the minimum adult wage in the US. The retailers have to mark their prices up to cover our relatively high wages.

 

[battymum]

Oh and the SDA is campaigning to abolish junior rates, after all, they do the same work - so wage costs for retailers are going to be even higher.

 

[BecBennett]

It's going to be impossible to get your first job if they do that. Why hire untrained teenagers if you can get mature adults for the same cost?

I just bought an Roomba 780 for less then half the price harvey norman has them for. I looked into it a fair bit before purchasing, and 2 months ago I could have bought it for the same price (around $600) from Harvey Norman but the Australian importer has changed, and the new importers have jacked up the price to the stockists.

There's no reason I can see why this new company is charging so much more for them, they just got greedy I guess...

 

[battymum]

I think they are campaigning to have full pay at 18 - which is reasonable, although DD says,then I just won't get any hours!

 

[Sugarglider]

Like all of you I bought so many things at half the price in the US and pretty much restrict my shopping to those trips. My electronic / microchip cat flap for which the pet shop here wanted $350 cost me only $150 (incl postage) off ebay from a pet shop in the UK!

Anyway - did you see the news reports of the Inquiry last night?
Apple blamed the record and movie companies saying it was them who had the disparate pricing which they are forced to pass on.
Adobe was vague saying they like to give clients a personalised service and it costs more to do that in Australia; and
Microsoft came out and said "yes we have disparate pricing in different markets cause we treat the markets differently and they are different
(I interpret to mean - more volume in USA means lower margin needed for profit target. Lower volume in Australia = higher margin need to reach profit threshold %