Are we being ripped off?

[ukusa]

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.

yep, looking at a new Arai at the moment, seen on trademe selling for NZ$1050, in Sydney for AUS$599 (marked down from $799). I'm in Sydney later on this month so may just have to have a close look.

[Taz]

200% correct, its the very best way of losing money given the abysmal reimbursement rates and the even more abysmal flat rate times. Typical example 6 hours allowed to do a crankshaft change on a multi cylinder bike when it often takes double that amount of time, or more. Who pays for that shortfall? And if the dealer didnt sell the bike there isnt even a measly profit margin to eat into.
Its amazing how many people simplistically think they are being ripped off when the reality is often quite the opposite.

Surely you could just tell the distributor that you're not doing any warranty work for that amount of re-imbursement?

[Katman]

Surely you could just tell the distributor that you're not doing any warranty work for that amount of re-imbursement?

And lose your franchise?

[jellywrestler]

And......
there is


coffee
tea
milk
bog rolls or nail clippers
soap

Bog rolls how extravagant???
Just gather up old copies of the Yellow pages (tm) but you've got to use at least three sheets otherwise your fingers will do the walking...

[avgas]

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

not on stock that you on-sell.

[avgas]

And......
coffee
tea
milk
bog rolls or nail clippers
soap

Don't forget the porn for the engineers, the timtams for the accounts people and the private part wax for the sales people.

[avgas]

Bog rolls how extravagant???
Just gather up old copies of the Yellow pages (tm) but you've got to use at least three sheets otherwise your fingers will do the walking...

But then you end up with a plumber ad next to the plumbing.

[Robert Taylor]

Surely you could just tell the distributor that you're not doing any warranty work for that amount of re-imbursement?

If only it were that easy. The distributors do not set the flat rate times and reimbursement rates, the factories do. I may be a little qualified to confirm that as I worked as National Technical Manager for then NZ Yamaha distributor Moller Yamaha in the late 80s and early 90s. Prior to that working for a huge multi franchise dealer in London. Running the workshop and part of that included filing warranty claims to 7 different manufacturers distributors. All factories are tarred with the same brush in being very minimal when it comes to warranty reimbursement. The reality is if they were more liberal with warranty it would reflect in higher end prices to the consumer and dishonest dealers would be more predisposed to ripping off the system. Its a fine line.

[Robert Taylor]

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.

The inability to bulk buy ( because we have so few people in NZ ) and the exchange rate distortion makes up a lot of the discrepancy

Also two margins distributor to dealer, dealer to customer. Notwithstanding that the US economy is in such a mess ( Putins comments are bang on ) that resellers are falling over themselves to firesale many lines of stock

The end result is that while its wonderful to be able to currently buy many goods offshore so cheap its actually putting people out of work ( our own countrymen ) That is NOT good.

The traditional business model is not perfect and the writing is on the wall that wholesale will become the new retail, in which case you wont be able to just drive a wee down the road to the convenience of your local, it wont be there anymore. Not even to try on clothing or helmets, with the full intention of buying such goods offshore. ( as some with no conscience do )

[DR650gary]

( as some with no conscience do )

I resent that a bit. My recent attempts at parts purchases have met with the "ex Japan" response. No stock was held in NZ for many parts, including cush rubbers. Why pay 100% plus more when I have to wait for them ex Japan plus pay freight when I can do the deal via the net and have the goods on my doorstep in a faster time as it turned out.

We are a global economy now and perhaps you are right, the day of the tiny town shopkeeper is over if that shopkeeper chooses to specialise themselves out of the market.

Before you criticise others, look at the clothes you are wearing, the furniture you are sitting on and even some of the food you ate in the last few days. Then count the number of local jobs that represented 15 years ago.

Move on and compete in the real world, not the fantasy one.

The industry that I work in is now very much internet based and I have to compete by providing a good service, albeit with a lower margin than what we had in the past. That service is also lacking in many retail outlets that i have visited in the past few purchase attempts.

Just my opinion, however, when advised that the $A299 price was out of line with the Europe price of 100 euros, the email came back with a price of $A149. Big change but I will go with it, although still a smidgeon more that the $US149 already offered as Oz is nearly local.

Cheers

[Digitdion]

The inability to bulk buy ( because we have so few people in NZ ) and the exchange rate distortion makes up a lot of the discrepancy

Also two margins distributor to dealer, dealer to customer. Notwithstanding that the US economy is in such a mess ( Putins comments are bang on ) that resellers are falling over themselves to firesale many lines of stock

The end result is that while its wonderful to be able to currently buy many goods offshore so cheap its actually putting people out of work ( our own countrymen ) That is NOT good.

The traditional business model is not perfect and the writing is on the wall that wholesale will become the new retail, in which case you wont be able to just drive a wee down the road to the convenience of your local, it wont be there anymore. Not even to try on clothing or helmets, with the full intention of buying such goods offshore. ( as some with no conscience do )

I totally agree that not being able to pop down the road and try something on could be on the way out. But hay, thats not much difference to what I have now anyway.In the south island theres bugger all choice. Like it or lump it! Times change. We all have to adapt to change, whatever that is. Some win some lose. i personally feel its time to get rid of the fat out of the sales process. Why should i pay over inflated prices because so many businesses are taking there cut of the pie.

[Robert Taylor]

I resent that a bit. My recent attempts at parts purchases have met with the "ex Japan" response. No stock was held in NZ for many parts, including cush rubbers. Why pay 100% plus more when I have to wait for them ex Japan plus pay freight when I can do the deal via the net and have the goods on my doorstep in a faster time as it turned out.

We are a global economy now and perhaps you are right, the day of the tiny town shopkeeper is over if that shopkeeper chooses to specialise themselves out of the market.

Before you criticise others, look at the clothes you are wearing, the furniture you are sitting on and even some of the food you ate in the last few days. Then count the number of local jobs that represented 15 years ago.

Move on and compete in the real world, not the fantasy one.

The industry that I work in is now very much internet based and I have to compete by providing a good service, albeit with a lower margin than what we had in the past. That service is also lacking in many retail outlets that i have visited in the past few purchase attempts.

Just my opinion, however, when advised that the $A299 price was out of line with the Europe price of 100 euros, the email came back with a price of $A149. Big change but I will go with it, although still a smidgeon more that the $US149 already offered as Oz is nearly local.

Cheers

Yes we are all hypocrites and I really hate that the clothes we mostly wear are Chinese, made with sweatshop labour by those doing the graft and being paid peanuts.

We ourselves are competing by good service and being the local. Its a major help that we sell products that require technical expertise.

But what really concerns me is where do all the people go that are getting laid off by purchases that for myriad justifiable or unjustifiable reasons are offshore?

Yes retail service is very haphazard in all industries, not only in NZ.

[scott411]

mmm, adidas new all blacks jumper NZ $199, in Adidas store in the UK £55, (aprox $110)

[Robert Taylor]

mmm, adidas new all blacks jumper NZ $199, in Adidas store in the UK £55, (aprox $110)

How much are the hookers Scotty?