Ractech and a rotting stench

[Katman]

Did you miss the memo?, 2010, The market in International. Perhaps retails need to petition the manufacturers for direct purchases or resort to parallel importing. In this day and age the middle man is redundant, Now they only exists to take a cut and protect their own interest...which is taking a cut. Even worse when teh "middle man" is retailing to the public at an inflated price.

So is it only the postage cost that puts you off buying your home theatre system direct from Sony Japan?

[onearmedbandit]

How many moan about the 100%+ mark-up that the shops put on the price of their TV, their washing machine, their stereo, their playstation etc.

The mark-up in the motorcycle industry is nowhere near that of most other businesses.

Typical maximum mark up in a TV at a major retailer is around 23-24%. And that is RRP. How often do you see 20% off sales on TV's but not 25% off? And when one store is having a sale, then all stores that want to compete have to follow suit. Not uncommon to have to sell a brand new $5000 TV with 5% margin, or less. Whiteware? Well if your selling F&P once again, plenty of 20% off sales, never a 25% off sale. Stereo's? Yip, you guessed it. Playstations? Hahahaha. Around 5-7% margn to the retailer. It's laughable.

[Katman]

Typical maximum mark up in a TV at a major retailer is around 23-24%. And that is RRP. How often do you see 20% off sales on TV's but not 25% off? And when one store is having a sale, then all stores that want to compete have to follow suit. Not uncommon to have to sell a brand new $5000 TV with 5% margin, or less. Whiteware? Well if your selling F&P once again, plenty of 20% off sales, never a 25% off sale. Stereo's? Yip, you guessed it. Playstations? Hahahaha. Around 5-7% margn to the retailer. It's laughable.

Oh well - I heard something quite different from someone in the electrical appliance business.

Maybe they were just feeding me bullshit.

What about the mark-up that the corner dairy puts on a loaf of bread?

[steve_t]

Isn't it hard for NZ resellers to compete with overseas markets due to duty, GST, other taxes, overheads etc? Plus how many people have been shit out of luck trying to return things to the states plus getting stung for the postage again and again?

[pc220]

I need to put some new fork springs on the bandit, Until I read this thread CKT was to be my first choice. But not now as I clearly cant afford to buy from them, and I wont be considering Racetech springs at all. So how many potential customers can a business afford to miss out on for the sake of such a large price differance. Nothing against Robert and CKT it just comes down to $$$$.

[The Pastor]

Or maybe the American market and the New Zealand market are two totally different things.

American importers order items in the thousands - New Zealand wouldn't even get to order them in the hundreds.

Who do you think gets the better buy price from the manufacturer?

why would the manufactorers cost differ if they are making 3000 units + 150 units?

[onearmedbandit]

Oh well - I heard something quite different from someone in the electrical appliance business.

Maybe they were just feeding me bullshit.

I work for one of the major retailers of these products, and these are the sort of margins we have to start with. Customers are price sharp in todays market, once they get the product knowledge they require the hunt for the best price. A Sony TV is a Sony TV no matter where it's bought for most customers, ignoring aftersales service. Of course there are rebates and price drops by the manufacturers but this is only to respond to the market or move current models to make way for the next. It's a volume game.

[Headbanger]

So is it only the postage cost that puts you off buying your home theatre system direct from Sony Japan?

It is the postage cost of large items that makes personally importing them to be cost prohibitive, for the record I bought most of my audio gear from Trademe for a handful of pennies, However I have invested many many thousands of dollars in RC toys (I am after all a big kid) and I get 95% of it either from Asia or the USA.

[Katman]

What about the 50 cents that it cost the takeaway shop for your $3.00 worth of chips?

[onearmedbandit]

why would the manufactorers cost differ if they are making 3000 units + 150 units?

Manufacturing costs don't differ. Put it this way. Picture a major retailer, one that everyone knows and is quite successful, going to their supplier. They want 1000 units of a certain product, but want it at a price that to the manufacturer isn't that appealing. But they know the retailer is a large fish, and if they don't accept the retailers offer (they will still be making money, just far less than their business plan really allows for) the retailer will drop all their products. So, to keep their brand in this companyso to keep selling other products through them, they fold and accept the price. Now picture the same scenario with a small shop that sells only a few of their products.

Who's going to get the better price? Volume earns you a better buy rate.

[Headbanger]

Back when I owned a retail outlet the margins were so tight that the cost of getting an item couried to Wanganui from the distributor in Auckland put my purchase price above an auckland retailer who would supply the item with free delivery, and it would beat my item to the door.

Lmao.

And buying in bulk, 100 minimum units would save me about 22c per item.

[The Pastor]

what about the 50 cents that it cost the takeaway shop for your $3.00 worth of chips?

power oil and wages, news paper and salt bring that right up to 55c

[tri boy]

This is quite a funny thread. I bet 18-24 months ago, when things were humming along financialy for most people, you lot wouldn't have been whining about a lousy hundy.

[Headbanger]

The two Fish n Chips shops down the road had a price war (after one attempted to burn down the other), $1 chips, $1 fish, $1 Hotdog.

Granted its pretty foul food.

[Headbanger]

This is quite a funny thread. I bet 18-24 months ago, when things were humming along financialy for most people, you lot wouldn't have been whining about a lousy hundy.

Personally, If the item was available immediately or within 24 hours I'd pay the extra depending on how much extra the extra is, In fact I rarely even price up other options if its on the shelf, (and yes,what follows is a worst case scenario) but when a major retailer that licks their own balls about how fantastic they are tells you six weeks and $300 when you can get it yourself from the states in 5 days for $116, well, Fuck em.