HumanCartoon said..Tang said..Al Hunter said..
Good paddles are expensive, unfortunately this is a fact...
I meant to say something about this earlier, and expect I may receive a drubbing.
Good paddles appear to be far more expensive in Australia than the US. I don't work in the industry but do appreciate the concept of margins, but I do not understand why I can buy a paddle in the states and have it shipped here and still save $200+. I am not sure if this applies across all brands, but my werner was quoted to me over the phone from Sydney a couple of years ago (only place which stocked them) at $580 and I managed to order it from the states for $370 including $50 for postage. The shop in the states were still making enough on it at that price. I don't understand why the margin here needed to be so high, and wonder if this applies still, and if it's also across the other brands.
I'd have thought my shipping price would be hugely reduced per unit if ordered in volume, and that the distributors here get the same cost price (or close to it) from the manufacturer? The above example might be considered extreme, but if you reduce the freight to even $20/unit, there's a margin of $240 on top of the margin the US shop was ok with.
Hence why I don't understand why good paddles are so expensive. I'd much prefer to support australian shops, but when I feel I'm being dudded it makes it difficult.
Yours is a 3-piece Werner? There's your answer (or at least part of it). A 3-piece would fit within USPS standard parcel limits (max length 42") so the shipping for you is relatively cheap...and the landed cost to you was under the $1000 limit for GST...and you're (presumably) not trying to make a living by importing and selling paddles...there's a couple more pieces of the puzzle...
Let me tell you a story - a couple of years ago when a new paddle came to market, I tried to order one for myself direct from the company in the US. The length of the one-piece shafts was WAY outside the USPS parcel limit of 42". Once you're out of USPS you are at the mercy of UPS, Fedex, DHL and the like who charge exorbitant rates for small consignments, by calculated cube weight - for each paddle the (international) shipping from any of these services was going to cost roughly as much as the paddle. The landed cost for an individual paddle was going to be in the range of $750-800 which was prohibitively expensive. One day, in the chat after a downwinder, it turned out there were a couple of Melbourne blokes who had tried to do the same as me. They wanted these paddles too - because of the way the cube weight is priced, the dollar cost for bringing in ten wasn't too much more than for one but it was still a bit exxy to bring in quantity because then (as husq pointed out), you're into customs clearance, duties, GST etc, GST on your customs costs etc etc. One of those Melbourne blokes (not me*) had an entrepreneurial bent and a personal connection to the business owner, so he negotiated an agency/distribution arrangement and brought in an initial consignment of a dozen or so with some extra bits and pieces, handles & whatnot. And so Ke Nalu Australia was born. In the end everyone got their paddles at a cost that was a lot easier to swallow (and that agency is now in other good hands) but it was a long way around. The paddle importers are entitled to earn a feed and SUP in Australia is a small, remote, low-volume market - I'd reckon they're not all getting rich off it.
(*
I'm not in the industry, BTW, never have been)
As a paddle importer / distributor I can assure you that I'm not doing it for the money!
I do it because I love the product and the sport and thankfully it is not my main gig or my family and I would be out on the street and starving!
If I didn't think the paddles I import were absolutely awesome and Aussies should be able to get their hands on them as cheaply as possible, I wouldn't be doing it.
My accountant and the wife think I'm nuts as the paddle business drags me away from my real job and it ends up costing me money to do it.
A few other factors that haven't been mentioned that add to the cost:
- Retail margins on paddles, and presumably many other products, in Australia are considerably higher than they are in the US.....which is fair enough as I'm fairly sure the cost of running a business in Australia is higher than in the US.....rent and wages for shop staff are!
Everyone is happy to earn a higher wage BUT this flows through to the cost of goods that no one is happy about.
- Exchange rates are having more and more of an impact as the Aussie dollar falls away from parity with the US dollar. The lower it goes the more imported goods are going to cost until it gets to a point that it is more cost effective to manufacture in Australia than it is to import.
Bring it on.....it would be awesome if it stacked up to manufacture stuff in Australia!!
- International freight costs are mega expensive......and duties, GST, etc has to be paid on the freight costs too.....converted to Aussie dollars. OUCH!!
- Any other small business owner in Australia would realise all of the other costs you're hit with that all add up each year.
- Advertising & website costs.....it just goes on and on and on.
It's not just paddles that are expensive in Australia.
All GOOD QUALITY imported products are!!