Are we being ripped off?

[Robert Taylor]

It is indeed popular to blame the official factory appointed distributors but again that is oversimplistic and ignores many complex reasons for the price distortions that make people think they are ripping off the consumers. In this distorted world most distributors balance sheets will not make pretty reading.

[scott411]

[QUOTE=YellowDog;1130121018]Warrantee is international. If the local dealer wants the work, they can claim on the international warrantee. Not an issue.

[QUOTE]

its not always, NZ has some of the best warranties around, and overseas markets tend to sell extended warranties up to our levels) and some of the strongest consumer laws as well, (with weak laws on imports) and as Robert says, dealers do not really want warranty work as it typically costs you money,

Also, esp with the US, their MRSP does not include delivery to the dealer, local sales tax, or sometimes even assembly, where as NZ prices have to be GST Incl unless otherwise stated,

[Robert Taylor]

[QUOTE=scott411;1130121115][QUOTE=YellowDog;1130121018]Warrantee is international. If the local dealer wants the work, they can claim on the international warrantee. Not an issue.

its not always, NZ has some of the best warranties around, and overseas markets tend to sell extended warranties up to our levels) and some of the strongest consumer laws as well, (with weak laws on imports) and as Robert says, dealers do not really want warranty work as it typically costs you money,

Also, esp with the US, their MRSP does not include delivery to the dealer, local sales tax, or sometimes even assembly, where as NZ prices have to be GST Incl unless otherwise stated,

You were up early Scott! Like me trying to keep on top of running a business in this crazy broken world?
What we also find a lot is that because of the crazy exchange rate distortions and myriad other factors we now spend an inordinate amount of time justifying the whys and wherefores to an increasingly skeptical public. Many who think that all businesses exist in NZ to rip people off. Sure there are many rip offs occuring in ALL industries but its unfair to tar everyone with the same brush

[willytheekid]

Their explanation actually has more than a ring of truth to it, common theme that many small businesses are currently experiencing.

Are you aware of the percentage of small businesses in NZ that made a loss last financial year?

A.This is NOT a small NZ company!..it a global corp!
B.40% mark up!....is Bullshit! Australia is getting them at U.S price's, why are we being screwed so hard?...as for "a ring of truth"
C.This is EXACTLY why I pitty small businesses in NZ (and "try" to support them)

Blame the distributers, not the resellers. Expensive running a business here - rip off banks, rip off utilities, rip off mastercard/visa, rip off eftpos. Combine with VERY strong consumer laws.

I'm sure resellers in this country could be as cheap as imports from other countries if they could compete on an even basis - you know,
a) have more than one distributer for a given item
b) not actually hold much stock or spare parts
c) circumvent GST like most consumer importers
d) tell the customer to basically get fucked if it breaks after 12 months

Completely agree , and for the record, I NEVER pointed Blame at the retailers...in fact I used the word Shame.....because it IS a shame that small NZ businesses are the ones who will be hurt.

[Robert Taylor]

A.This is NOT a small NZ company!..it a global corp!
B.40% mark up!....is Bullshit! Australia is getting them at U.S price's, why are we being screwed so hard?...as for "a ring of truth"
C.This is EXACTLY why I pitty small businesses in NZ (and "try" to support them)



Completely agree , and for the record, I NEVER pointed Blame at the retailers...in fact I used the word Shame.....because it IS a shame that small NZ businesses are the ones who will be hurt.

So what in your opinion ( or experience ??????????????????????) is a fair and reasonable markup for any business to be viable?

[Spearfish]

So what in your opinion ( or experience ??????????????????????) is a fair and reasonable markup for any business to be viable?

0%
the profit comes from goodwill or donation from the purchaser based on experience with the dealers.

No? oh well

[willytheekid]

So what in your opinion ( or experience ??????????????????????) is a fair and reasonable markup for any business to be viable?

Sorry you feel like the ONLY person in NZ to have struggled to run a business Rob.
But perhaps you should do some research into Hewlett Packard...ITS NOT A SMALL NZ COMPANY! (Is THAT clear enough for you??)
I am well aware of how hard NZ businesses are doing it (and have been for many yrs!...been there before...14yr struggle)
My comment was about a HUGE GLOBAL CORPORATION! who can easily absorb some of these cost's, instead of passing them on to the consumer AND the small businesses who stock there products....and yes, 40% mark up IS to much for NZ consumers (who are also struggling to make ends meet & support there familys)

For the record...I actually AGREE with you regarding NZ small business, its a shame that you don't realise this.

[Robert Taylor]

Sorry you feel like the ONLY person in NZ to have struggled to run a business Rob.
But perhaps you should do some research into Hewlett Packard...ITS NOT A SMALL NZ COMPANY! (Is THAT clear enough for you??)
I am well aware of how hard NZ businesses are doing it (and have been for many yrs!...been there before...14yr struggle)
My comment was about a HUGE GLOBAL CORPORATION! who can easily absorb some of these cost's, instead of passing them on to the consumer AND the small businesses who stock there products....and yes, 40% mark up IS to much for NZ consumers (who are also struggling to make ends meet & support there familys)

For the record...I actually AGREE with you regarding NZ small business, its a shame that you don't realise this.

So whats a fair markup?

[The Pastor]

I was told that if you dont markup at least 30% you wont make a profit.

But the evil companies make too much money.

[ukusa]

Being the normal web surfing and used the Triumph wen site to compare Triumph Bonneville SE prices in different countries.
NZ = $15,800
US= US$8,600 = NZ$9,700
GB = 6749 pounds = NZ$12,600
Canada =Ca$9899 = NZ$11,800
I know GST and slightly higher shipping costs need to go on top, but right now it looks cheaper to pay the GST and shipping and import direct from the States.
$9700 for a SE + GST $1500 + shipping $1500 = $12,700 which leaves $3,000 left over.
I know the local guy has to make a profit, but hay so does the States guy.
Something doesn't seem fair?

Parts prices are worse, sometimes as much as double the price here. There have been several threads on that topic recently & I think the conclusion from reading most of them is that one third of the biking population will support local sellers no matter what the cost, & the rest will buy overseas, leaving them more moolah to spend on other shit.
Buying a bike overseas is a little more hassle & risk than just buying parts, so is less common (plus you end up with a bloody mph speedo). I don't think resale is as good on an import either (a bit like on cars).

[avgas]

I was told that if you dont markup at least 30% you wont make a profit.

But the evil companies make too much money.

Sort of true.

As a general rule when I was in sales for very expensive bits of kit it worked like this.

15% is GST
7% covers expenses such as labor, support, shipping etc
So thats 22% before you make a single $.

Now to put this in perspective, the boxes I was selling were worth $2K-$25K
So imagine the mark up required if you sell a product is say under $1K

You would need 30% markup before you made a single $.

[Pogo2]

Just came back from the Gold Coast on Friday and I had a look at the bike shops while I was there. Five shops in total.

Really concentrated on backpacks as that was what I was after.
The backpack I wanted in NZ was $130 but was out of stock for the next 6 weeks. I priced the same thing in Oz and it was AUD$129.95 - so in fact dearer with the exchange rate.

Ended up buying a Ogio No Drag backpack for AUD$229. Have never seen them in NZ. Upon returning with said bag I see that there is a NZ agent and are available for NZ$199. So I got done over in that respect - however if it is a great bag that I would recommend to anyone.

Other stuff did not seem significantly cheaper unless I had earned and spent in AUD$. Suzuki M50 was about $8.5-9K vs about NZ$12-13k

Customer service was also interesting. Ranged from very poor to really good. So no different to NZ in that respect.

[breakaway]

Sort of true.

As a general rule when I was in sales for very expensive bits of kit it worked like this.

15% is GST
7% covers expenses such as labor, support, shipping etc
So thats 22% before you make a single $.

Now to put this in perspective, the boxes I was selling were worth $2K-$25K
So imagine the mark up required if you sell a product is say under $1K

You would need 30% markup before you made a single $.

Doesn't being a business allow you to claim back the GST on new purchases?

[Spearfish]

And......
there is insurance
commercial rent so that includes the council rates, building maintenance etc
staff
keeping up "good will" to customers often at a loss
advertising is farken expensive but also includes sponsorships
currency exchange fees that some banks charge
Accounting fees
Computer software and hardware - internet connections-web page maintenance-
tools- specialist tools are often disproportionately expensive.....
ACC
EMPLOYERS ACC
PAYE
PROVISIONAL TAX
FRINGE BENEFIT TAX
SOON TO BE IMPLEMENTED IF THE COUNTRY HAS A BRAIN FADE- CAPITOL GAINS TAX
Credit card companies feel off a layer
EFTPOS rental fees and regular upgrades

Some bike sales technicians are farken expensive to, aye Jimmy?
The owners mortgage against the family home to kick off the business.

coffee
tea
milk
bog rolls or nail clippers
soap

[DR650gary]

Got a quote from a US company to supply an item, $US149 plus freight $NZ172.00 plus freight. Looked at the Europe site, 100 Euro inc vat $NZ164 plus freight. Europe site can't supply so they referred me to the OZ supplier, $A299 plus freight $NZ371.

I will buy from the US site and expect freight to be close to $US60 but I am still ahead.

I think we are being fitted by local, OZ and NZ suppliers due to restrictive trade practices.

Looked at a nice helmet in UK recently. Was carbon and about 250 pounds or $NZ500 ish at the time. Thought it was expensive until I got home.

The above numbers do not add up to a 40% margin for downunder traders.