Economics

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Yoshi
Yoshi
WA
16 posts
WA, 16 posts
23 Feb 2004 9:38pm
Hi all,
Can someone please explain why kite prices in Perth are so expensive compared to so many other parts of the world. After bit of research I am finding it hard to comprehend why you can buy an Airush 12m flow for under $900US overseas which equates to less than $1200 AUS whith current exchange rates, whilst the same kite is retailing in Perth for around $1900 dollars. I understand that kite stores have to cover overheads etc but surely there is a happy medium which allows them to make a fair profit whilst retailing kites at more realistic and comparable prices. With online shopping becoming more popular and so readily available surely its in there best interests to be more realistic as its them who will ultimately suffer in the long run. Anyone else feel the same way or am I just being naive
laurie
laurie
NSW
3904 posts
NSW, 3904 posts
24 Feb 2004 12:13pm
Hi Yoshi!

Crikey mate, you know how to start juicy threads!

Can folks posting in here keep it on topic, refrain from getting personal, pumping their own product, and bagging other retailers? (just for a change?)

Cheers .. Laurie
Beer Bong
Beer Bong
WA
350 posts
WA, 350 posts
24 Feb 2004 10:34am
Maybe they're pricier here because there's so much wind that people are just desparate to get going. If you don't buy it, some other fanatic will!!
Keysey
Keysey
WA
109 posts
WA, 109 posts
24 Feb 2004 10:50am
Hi Yoshi
I reckon you should not let the Perth prices worry you to much. The shops proberly have the same mark up as overseas but there are more costs to take into account.
Join the converted, get a credit card get online and save some dollars. No need to go into it again but there are some good brands that can be delivered to youre door from o/s at the cost of some second hand gear.
Its like being a kid at Christmas, the door bell rings you hurry to the door and there it is. AAHHH that new kite smell.
Shannon
Shannon
WA
489 posts
WA, 489 posts
24 Feb 2004 11:07am
I was a kid at Christmas yesterday afternoon
LouD
LouD
WA
642 posts
WA, 642 posts
24 Feb 2004 1:13pm
Not another new kite, Shannon???!
bolgo
bolgo
WA
912 posts
WA, 912 posts
24 Feb 2004 1:24pm
saw your post on kiteforum shannon
did you get hit for gst/duty?
i have one on the way also
is like xmas anticipation, being buying bike gear os for years
heaps cheaper than here for most things
Shannon
Shannon
WA
489 posts
WA, 489 posts
24 Feb 2004 1:38pm
Yep Louie, a new kite. I'll have her at Pinnas this afternoon about 5:30.

Hey Bolgo!, this was a "special" deal so I cant really say that I got hit with anything at all..

Shannon.
Kiteboy
Kiteboy
WA
30 posts
WA, 30 posts
24 Feb 2004 1:40pm
Hey Yoshi,
I am originally from the UK and brought all my kit out with me. There is a bit of a price difference here but I have also noticed that the shops here are a lot friendlier to selling you something that exactly suits your needs and not just bumps up their tills! Also, you have to consider that if you don't buy local and the kite has something wrong with it then it will b a lot harder to get after-sales........
Just a thought mate
stoff
stoff
WA
248 posts
WA, 248 posts
24 Feb 2004 1:44pm
I too recently bought 2 kites overseas. The only reason for doing so was the cheap price which worked out to be exactly half what the retail price in perth is.
They were bought from a legitamate dealer and not some backyard operator. He no doubt has the same expenses of wages and rent etc. that we do here and would buy the kites at the same price. The only difference's that i could determine are freight costs, import duty and GST.
However even by incorporating these costs into the equation you could still get a 12m kite delivered to your door for less than $1300 AUS. A fair bit different to the $2000 - $2200 that you will pay here.

I would like to support the local guys but i honestly feel that with the strength of the Aussie dollar the importers/ retailers are just taking the p...
I work too hard to line someone else's pockets with money.

Chris.
P.s. I would welcome any response from the Importers/Retailers on this issue.
Shannon
Shannon
WA
489 posts
WA, 489 posts
24 Feb 2004 1:48pm
quote:
Originally posted by stoff

I work too hard to line someone else's pockets with money.




Yeah right! You're always kiting!
stoff
stoff
WA
248 posts
WA, 248 posts
24 Feb 2004 2:23pm
Damn! Busted!!!
Andrew
Andrew
WA
148 posts
WA, 148 posts
24 Feb 2004 4:02pm
stoff... you can get an awesome brand new 12 metre kite from a very popular Perth based retailer for only $899

mattressbuster
mattressbuster
WA
177 posts
WA, 177 posts
24 Feb 2004 5:21pm
or you can get a quality super high performance 03 kite for around $1450 with back up service from many shops. And you don't have to wait - u can get it today, and you can choose your color and touch and feel and smell the kite before you buy it. If you factor the VALUE you get per dollar i think it compares well.

I know of several brands from several shops selling 12 and 15-16 m kites at this price. And you get a super high quality bar - many of these cheaper kites are actually older designs copied or modified with some different materials (the big kite company's tend to have exclusive supply deals on the super good quality fabric and colors in a bid to gain competetive advantage). Many of the bar set ups are less than flash with less R&D put into their quality and quick release systems.

A few more dollars for a lot more service, faster turnaround, tech knowledge , some demo boards to use for free for a couple of days, some local knowledge on where the weather is firing and when (like how to score sea breezes nearly every day in September and march, places in asia that fire and are cheap to get to, the best places to go in qld to catch the se wind season when our seabreezes have gone,why lancelin was firing 20- 30 knots all arvo and perth only had a 6 knot south easter blowing )- not to mention the ability to project our local young talent internationally via connections back to an international company with a strong marketing program.

would it be possible for local shredding hell crew like Dan Anderson, Luke Walmsley, Ty Body Coat , Theresa and Jake, Tina ,Ryland to travel as easily as they do without a distributor or a brand behind them. These are crew that go forth and promote a super positive image of WA as a contemporary force in world kiting / sailing talent. Also as a place with tons of kiting coastline that is barely scratched on a daily basis. And if people from other countries wanna come here then thats great - they bring in tons of tourist dollars to help WA kick arse. we need to think globally, not locally. We all live on the same planet.

There is definitely a bigger picture here if you can try to see it.

Economics is about more than a dollar or a price -its about economies of scale , competetive advantage ,vision, local talent in design ,testing AND riding and finally -leverage- The ability to influence what happens in the world of kiting / windsports FROM AUSTRALIA rather than waiting for the latest image to trickle down to us from Hawaii or Europe 6 months later. The ability to project OUR AUSSIE brands on the world market rather than creating those jobs in another country for another brand. The ability to run our own comps locally the way we want to see them run - not to mention organising comps in hawaii that reflect the aussie can do mentality.

All this stuff is happening , right here, in Australia - today. Be proud of it.



pain don't hurt !
Beer Bong
Beer Bong
WA
350 posts
WA, 350 posts
24 Feb 2004 5:41pm
Excellent read, too true, who can argue with that. Loyalty was a word that was left out though. Can't be measured in dollars.
Keysey
Keysey
WA
109 posts
WA, 109 posts
24 Feb 2004 9:04pm
Youre right that was well said.
I was loyal to a couple of shops for 6 years as a windsurfer and over that period i spent thousands of dollars. With a good portion of that gear still in my back shed as the resale value is terrible.
I brought a new kite last year and a new board for $2,400. This was the only way to go at the time because i knew nothing about the sport and had no friends involved in kiting so i didnt know my way around second hand gear. My kite i sold for $150.00 granted it had several magor repairs and the board is still for sale, will get $450 if luky.
But after buying some electronic gear on ebay i got a taste for online buying, and to date have not paid duty or gst on anything including kites.
If youre serious about youre kiting you want 3 kites and maybe 2 boards. Every year or two you want to update to the latest and the greatest, you add up the cost.
Allan
shunter
shunter
WA
441 posts
WA, 441 posts
24 Feb 2004 9:12pm
quote:
Originally posted by mattressbuster

or you can get a quality super high performance 03 kite for around $1450 with back up service from many shops.

And if people from other countries wanna come here then thats great - they bring in tons of tourist dollars to help WA kick arse. we need to think globally, not locally. We all live on the same planet.


pain don't hurt !



ah spoken like a true shop/distributer.... let the cat amougst the pigions ya have Yoshi...WTF i will buy into this for a bit of sport, works boring me to tears and this looks like heaps more fun


Matt

We will see how happy you are when you work all year long to have two weeks off at a distance wave spot only to get up there and find 30 tour terroists all over the grave yard. Tell me that you would be happy about that matt...

Not sure why shops can sell 2003 gear at 1350 and still make a profit but not the reduce the latest.

its all great speaking about loyaity but it goes two ways.. Dollar has risen by more than 30% against the greenback and 20% on the eruo. I dont think the shops have got much to do with this but the distributers have been taking the pish. Shops that can direct sell in perth do do kites cheaper

But you are right kiters are thinking of this as a global system, you can now buy your gear globally.....

All ya need to do is get on the net and look at long range forecasts and current wind readings and most experienced wind junkies can pick where to go, its not some sort of special SHOP voodo man. agin why should i pay a premium for a service that 80% of us will not use...

Sure its great to see the young guys sponsored and ripping but thats all marketing how many kites have these guys help sell, How does it help Joe average kiter.

theres always going to be twoooo sides to the story. but if the distrubuters are landing a top of the line 12m kite in oz for (US)$550, shipping, gst and duty paid someone is making a killing.

I will be in this week to buy a board bag... so yes i still need a local shop down the end of the road, I have also brought kites off local shops this year dispite what i would call an aggressive monopoly marketing move buy one distrubuter.

dont take this as personel critism just a view from a Joe average kiter with a wife, two kids and a dog and a mortage that would rather see money in his back pocket.

If kites where cheaper i reackon people would buy more i know i would get a couple of smaller ones so in the long run you would probally get the same money anyway..... The sport would be safer with people rigging the right size kite.

anyway thats my tuesday whinge....


shane

let the games begin....

browneee
browneee
WA
114 posts
WA, 114 posts
25 Feb 2004 1:09am
I think there could be an analogy between the old local service station of years gone by, where you knew the guy who owned the place, he would fill your car, check your tyres and oil, even wash your wind screen without a question or a charge. Try asking a console operator at your local BP stop & go if he/she will wash your wind screen, he/she probably doesnt even know how to remove a radiator cap without scolding him/her self. Actually here a classic example I got a flat battery once at one of these stations and asked if they had a battery on wheel's to jump my 4wd off, Na nada zip. Never mind the rack of batteries in the shop.

The point is, shops still have a place and will retain some loyal customers. While the rest of us shop the ever increasing web for bargins. I agree with shane as I too have a wife, daughter and dog all on a single income with a morgage. It not easy to make end meet these days for anyone.

The service your local shop provides is invaluable for the begginer, I too once apon a time was loyal to a shop, still am too a degree even thought I produce my own kites these days. But when something breaks and I dont have spares his shop is the only place I will go (JG's SOS).

When you have a web based business yes you dont have that sight, touch, feel and even face to face rapore, you have to relie on emails, which is not hard as you can really understand what the customer wants as he has to tell you streight up.

I think the most successful shop would take note of all the Web based business and realy open that area up within their own shop. You cant fight it so why not join it. Yeah you've got more over heads but its a "golbal market".

anyway just my bit....

regards BROWNEEE
stoff
stoff
WA
248 posts
WA, 248 posts
25 Feb 2004 10:15am
Over the past couple of years i've spent over $10000 dollars on new kites,boards and kiting related equipment from local Perth retailers. So I'd so say I've been a fairly strong supporter of the local guys.
My only real gripe is that the price of new kites and boards hasn't come down in line with the rise of the dollar.

I looked into getting my kites overseas last season but the difference in price was only about $300-$400 so I bought locally.
Now with the difference more like $1000 someone is pocketing alot of money.(but not mine).
larry
larry
WA
13 posts
WA, 13 posts
25 Feb 2004 12:25pm
Well, lucky we're in a capitalist country!
If there's so much money to be made selling kite gear (as induced by these threads), everybody can give it a go ...
Dalai Lama
Dalai Lama
WA
58 posts
WA, 58 posts
25 Feb 2004 3:15pm
My Friends,

Everyone must understand that buisness is like life. It is a balance, we all must understand that you can't suddenly say now the dollar is in the Australian Importers favour that they should lower prices.

You must realise that they where selling at the same prices when the dollar was at 48-55 cents to ther USD. (for years) Sometime they where doing this with no profit.

As you are all very wise, I can see this from the un-educated comments. So you all must be naturals at importing.

You must realise you must take the up's with the down's. Then over 3-5 years balance the profits out's.

I know for a fact people where not asking the shop's etc to put the price's up when the AUD was bleeding against the USD.

Just a bit of reason from a Monk from India

Peace,

Dalai Lama

One cannot step twice into the same river.
kitemattsurfer
kitemattsurfer
WA
95 posts
WA, 95 posts
25 Feb 2004 6:15pm
u're lucky cause over here in europe most of the prices are 30% over your prices and WE STILL DON'T HAVE GOOD WIND AND SPOTS TO RIDE ON.............this is europe for a kiter........have been in perth and i ride from september to january almost every day......now i'm back in europe, i have been kiting once last weekend with a ****ty gusty wind from 25 to 40!!!!!!!i couldn't get in the water for most of the time......the wind was too strong.....anyway in europe we pay a lot and we can't kite till the summer......don't complain about price......KITE AND HAVE FUN........
i'll come back over in perth!!!!!!!!
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