Online US kitestores vs Aus

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richswing
richswing
WA
724 posts
WA, 724 posts
26 Jan 2010 9:54pm
Hey Guys,

Please could someone explain to me why some (all maybe) US online stores are half the price of Australian online stores and it is not because of the exchange rate.

Had a look at the LF US site and compared it against the OZ site and they are just ripping the ass out of it.

I don't think Australia is that isolated, actually it is better situated than US to China, etc.

Are we just suckers who like to be ripped off or is it just greed? It could be the cost of living but that actually goes back to greed which I suppose starts at the top.

Cheers
Rich
djdojo
djdojo
VIC
1614 posts
VIC, 1614 posts
27 Jan 2010 1:04am
I lived in the US in 2008 and bought a fair bit of camping gear there. Even after currency conversion fees it was generally about 55-60% of what I'd pay for the same item here (the aussie dollar was very high at the time).

The USA is set up as a consumer heaven, and there are obviously pros and cons to that. I am no expert on the different tax structures that affect imports and sales but it's not just kites. So long as the Aussie dollar is above 75-80c, then the USA is significantly cheaper across most goods.

This makes me suspect that it's not just some greedy kite importer exploiting us but that the whole system within which goods are imported, wholesaled and retailed is different here. Perhaps volume has something to do with it, as the USA is clearly a much bigger market?

The question is worth asking though as the differences seem pretty big. Someone on here must know a bit about the tax structures and other factors. I'd be keen for an explanation.
KnutH
KnutH
VIC
427 posts
VIC, 427 posts
27 Jan 2010 1:40am
I went to the US over vacation and bought a new 09 Recoil from the Liquid Force website - 300 USD, incl pads. I heard that Liquid Force is quite keen to clear their stock this time, as they missed it the previous season.

Consumer heaven, as said, but I don't really get it either: Many protein bars (yeah, I am a professional Bodybuilder) are even 2-3 times more expensive here, so it is worth importing them. When I compared the prices I could not believe how anyone would pay 4,50 AUD for one 85g bar.
teako
teako
VIC
37 posts
VIC, 37 posts
27 Jan 2010 7:25am
As someone that used to import fishing tackle from OS (china) we found it was the taxes that killed us and that was direct factory to us imports.

However one massive thing to take into account is the population size. The USA obviously is huge in numbers and i think that would be part of the issue about things being cheaper there than here.
If because of population size , you could sell 10,000 units a year as opposed to 1000 then your price does not need to be as high when selling more.

Until the exclusivity or perceived exclusivity of the sport starts to disappear only then will the prices go down allot everywhere.
It will take some joe average that knows kiting backwards to design a kite , go to the same factories in china and Indonesia that allot of the companies already use and bust open the market with something cheaper but just as good.
I have no doubt that there are ppl here that could design a kite as good as ones that are already out there, maybe better.
Burls
Burls
209 posts
209 posts
27 Jan 2010 8:28am
IMO this is mainly due to:

1) High volume of sales in the States

2) The USA's competitive market

3) Australian TAX!!!!!
pearl
pearl
NSW
984 posts
teako
teako
VIC
37 posts
VIC, 37 posts
27 Jan 2010 12:01pm
having said all of that though, ive had a quick look at kites from there and they really don't seem to be all the much cheaper. For other stuff it is but for the kites not really
chino
chino
VIC
166 posts
VIC, 166 posts
27 Jan 2010 12:07pm
I'm sure one of the store owners will chime in eventually on where the money goes but it's completely not isolated to kiting equipment. Clothes, soft drink at 7-11, fresh produce, cars... you name it. There is nothing in this country that is more expensive overseas. Even Tim Tams are cheaper in the States.

It's just the nature of Aus, and always has been, but with the advent of the internet and being able to shop around theres just more "what the hell? a plasma tv costs HOW much in north america?!" than there used to be.

Still, as for why it is, don't ask me how the economy works.
laurie
laurie
NSW
3902 posts
NSW, 3902 posts
27 Jan 2010 12:57pm
As per the guidelines, sorry, this topic has been locked:

"Overseas Purchasing / "Why Are We So Ripped Off"

These are classic "chestnut" topics that come up now and again, where posters a) accuse Australian businesses of ripping the customer off because an item might appear cheaper from overseas, or b) start publishing overseas deals and invite members to purchase/investigate them too."


This topic comes up once a year, and has always ended badly.

Kiting is a small industry, and I can assure you, it is highly competitive. Just ask your local shop owner.
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