WHY ARE THE SAME OR SIMILAR ITEMS CHEAPER OVERSEAS?

[ofey]

Long Reading PDF ->

WHY ARE THE SAME OR SIMILAR ITEMS CHEAPER OVERSEAS?


Thoughts?

[R4LLI4RT]

There are alot of factors as to why things are cheaper overseas.
traditionally its the simple supply and demand rule, but today we also have 'market value'.
Ikea do it, they sell the same furniture in australia as they do over seas but the price can be totally different, they justify by saying that in the usa you can get a similar product so they will charge x amount of dollars for it regardless of the production and shipping cost, but in australia if there isnt alot of other alternatives and similar items are higher in price they will closly match the market price.
SHAME SHAME SHAME!

[black_ice]

Not to mention other factors like varying labour charges that will affect production costs, government levied charges, shipping costs, marketing costs, exchange rates, etc etc

[squala]

$50,000 = 335i in America with some options = 316i in Oz without options.

Thanks a lot, taxes (that are hardly seen working for the car owner) I could have bought an Evo in the States with what I paid for the Ralliart.

[black_ice]

^^^ always two sides to the coin!

In Singapore an Evo retails for S$180,000 (approx A$160,000).

335i = S$330,000 (approx A$290,000 or US$260,000)

Lancer Ralliart = S$155,000 (approx A$136,000)
http://www.sgcarmart.com/new_cars/newca ... Code=10776

We should consider ourselves lucky.

[squala]

There are alot of factors as to why things are cheaper overseas. traditionally its the simple supply and demand rule, but today we also have market value. Ikea do it, they sell the same furniture in australia as they do over seas but the price can be totally different, they justify by saying that in the usa you can get a similar product so they will charge x amount of dollars for it regardless of the production and shipping cost, but in australia if there isnt alot of other alternatives and similar items are higher in price they will closly match the market price. SHAME SHAME SHAME!

Yeah, one day, I was looking at the IKEA website for a glass cabinet. To my surprise, it was just $67. But alas, it was the US website, and when I went to the Australian one, wait for it....

$149!

^^^ always two sides to the coin! In Singapore an Evo retails for S$180,000 (approx A$160,000). 335i = S$330,000 (approx A$290,000 or US$260,000) Lancer Ralliart = S$155,000 (approx A$136,000) http://www.sgcarmart.com/new_cars/newca ... Code=10776 We should consider ourselves lucky.

I guess you can look at it that way, but Singapore is making their cars awfully expensive because of their serious lack of roads. The Lancer over there has the Colt 1.5 engine as standard, so even the NA 2.0 is considered excessive. It's one thing to pay triple for the car and another to drive it as intended. There's really no chance to squirt in Merlion City.

[black_ice]

Nah mate it's the same 2L turbo with the SST...check out the website I linked..

To me engine size does not matter cause just like Australia Singapore has speed limits as well...

Yes we may not have the space but people are still buying cars and I can't speak for others but if I was in Singapore I would be saving up to buy a car regardless. Also Singapore may not have the space but Malaysia is next door with many highways and tracks including sepang.

All I'm saying is I'm grateful for being in Australia where I can afford to own such a car. If I was in Singapore I wouldn't be able to afford 4 tyres. Also wages in Singapore are much lower than here.

[ofey]

If you want to be paid high, you have to expect to pay more for the things you buy.

Cuts both ways.

Also, after the comments, did any of you actually read what was written? Or just assumed you knew what would be touched on?

[TheVeeMachine]

did any of you actually read what was written?

I did, and while the writer made some good points, some of his comparisons were a bit... iffy, such as the $28,000.00 Mustang costing $120,000.00 here - the car would have to be converted from LHD to RHD prior to registration in Australia, which would alone cost $45,000.00.

It's all relative. Ikea may charge 2-3 times as much for items here; but they are paying more for rent, employees, transport, consulting, etc. and cannot operate profitably at the same price point as that in countries like the US.

Another thing to note is that the juxtaposition between the cost of cars, computers, phones etc. in Australia vs other developed countries only began in the last half decade, when the Australian dollar experienced an unprecedented appreciation.

Regardless of the above; some industries are 'ripping us off' more than others. Carmakers love to use taxes (among other BS excuses) as the reason mid - premium cars are sold at such high prices in Oz compared to other countries. A simple breakdown of costs shows this to be mistruth.

C63 AMG in US = ~$60k USD MSRP = ~$67k AUD at current exchange rate.
C63 AMG in Oz = ~$167k AUD driveaway

MB Australia's website breaks it down like this:
Recommended maximum dealer delivery1(incl. GST) $3,269.23
Luxury Car Tax (LCT) $22,725.97
Total Registration2 $1,096.42
Stamp Duty $7,040.00

Having the retail price as $132,800.00 AUD including GST = $120,727 ex GST.

After import duty is removed, the actual cost of a C63 AMG is then $115k in Australia; approximately 72% more than in the US. Generally, the gap grows larger for more expensive cars. Sure, these companies could bring up wages, rent etc. as reasons for this, as I mentioned in the Ikea example above; but those are not the primary reasons for the price discrepancies. It's the government's import laws.

There's a long explanation, and a short one. The short one is that the government only allows manufacturers and their agents to import cars into Australia, no one else (bar some private imports that can only be brought in under stringent rules). This means that we have no alternatives, and have to buy up whatever limited supply Australia is allocated by the global head offices, leading to almost year long wait times for the latest performance vehicles, at prices sometimes double (and occasionally triple) of those in other developed countries.

It's a horrible system that has a small chance of changing soon, but until then, I dream of leaving the country and picking up something like a used one of these:



for less than the cost of a new one of these:



You can't tell, but I just rolled my eyes so hard, I detached my retinas.

[squala]

There's a long explanation, and a short one. The short one is that the government only allows manufacturers and their agents to import cars into Australia, no one else (bar some private imports that can only be brought in under stringent rules). This means that we have no alternatives, and have to buy up whatever limited supply Australia is allocated by the global head offices, leading to almost year long wait times for the latest performance vehicles, at prices sometimes double (and occasionally triple) of those in other developed countries. Its a horrible system that has a small chance of changing soon.

I think that the government is trying to protect the local industry by imposing high duties on imports, but then again, Holdens are not Home Brand price like they should be. Gladly though, they will be gone in three years, and here's hoping that taxes get lower by 2017 and cars get cheaper.

[R4LLI4RT]

ill be honest ofey i was at work and i couldnt read it.
i had a conversation while was at a friends after seeing something on ACA so i thought id share my thoughts, the topic seemed wright.

[Beeble]

well now that we have NO local car industry soon.... the govt shouldn't need to protect something that doesn't exist so the import duty on vehicles will be abolished right?


ha
ha
ha
ha
haaaaaaaaaaa
HAAAAAAAAAAAAAAA

[R4LLI4RT]

well now that we have NO local car industry soon.... the govt shouldnt need to protect something that doesnt exist so the import duty on vehicles will be abolished right? ha ha ha ha haaaaaaaaaaa HAAAAAAAAAAAAAAA

they will simply change the name.
although i am excited to see new range of GMC and Ford cars.

Shelby SuperSnake anyone?