lemo87 said...
Simple,
SUPPLY AND DEMAND
Thats sadly about it, more people in Australia obviously want to drive a Porsche. Hey here's an idea, lets make more money for Mr Porsche, because everyone wants one.
In America, everybody wants a Cadillac, or so im led to believe.
*Prepares to be shot down in flames*
Lemo
No mate. If you want to give an economic argument as to why Australians get ripped off, its not a supply and demand situation issue.
An economist could argue that the economies of scale favour the yanks when it comes to Porsches. The ship leaving Germany with new Porsches for America is filled up with thousands of them. Its a big market. Meanwhile the ship leaving for Australia has a couple of hundred.
So just say Porsche makes $10,000 per car sold in America. They sell 3000 of them. So they make $30,000,000. Meanwhile Porsche decides they want to make $30,000 per car sold in Australia. They sell 300 cars. Porsche makes $9,000,000. So Porsche makes more money from selling more cars at a cheaper price in America. Even if Australians buy five times the amount of Porsches per capital than Americans do, we will not buy anywhere near the amount they do. I am pretty sure we don't buy that many Porsches. The only place I see then is around Sydney's north shore and in eastern suburbs.
However the real reason we get ripped off when it comes to consumer item prices is the uncompeditive market in Australia and the fact that some companies are quite happy with this arrangement.
