Fecking markups

[Jantar]

Actually you have to add GST in there twice.

1) gst paid to customs on the total cost of importing the item, ie Aus cost plus shipping.

2) gst on the retail price of the item to be collected and paid to IRD.

No GST only gets paid once. At the retail level the retailer can claim back any GST already paid, then add GST onto the new (lower) total.

[Owl]

I had a similar experience when I wanted a Sargent seat.

My e-mail to Sargent was forwarded to their Australasian (Oz) distributor, who in-turn replied to me. The price increased from about US$360 to AU$750, though the Oz price included freight to NZ. At the time with gst added, I would've had little change from $1k.

By accident, I found one in the US on sale and had it landed here for a total of NZ$503

[ajturbo]

i want a belt for my buell..
phoned up 3 H/D dealers... cheapest was dunedin.. $380....
i got it from American Sports bike DELIVERED $285.00.....

[MSTRS:Me]

$165.00NZD delivered? Are you sure? US RRP is $USD153.95, so = NZD $210.00 +GST which I have to pay upon landing in NZ, so NZD $241.50 plus freight, say I can get it for your $24.00, so all up it's $265.50NZD. My price on the site? $253.95. How on earth am I reaping unjust profits?

As an importer/reseller, you pay retail prices on your stock?

Yeah, it sucks. but frankly, I dont see it ever changing. I meeded a new clutch for my bike. best price i could find in NZ was around $480 or so if I remember correctly. I bought my clutch fibres, steels, gasket, and springs for $270 NZD landed to my door. I dont like the idea of sending my dollars overseas, but when I can get it this much cheaper, why the fuck wouldnt I?

Why not? The importer does...and when you buy off him (or his reseller) you just get to circulate the extra in the local economy.

[Edbear]

As an importer/reseller, you pay retail prices on your stock?

.

Of course not, I get a dealer discount for minimum order quantities. It means I have to spend thousands of dollars each time for an order and see many batteries sitting around for a couple of months or three as they are not as in demand as others but I do have to stock them. This order I was able to spend more on faster moving stock and hopefully as time goes by, I'll build my stocks enough to cover the complete range and have the oddball one for those bikes that are a bit unique.

As another poster pointed out, minimum order quantities are another expense we have to put up with if we want to be a dealer. We can't just import what we want or need immediately. Also, the larger orders mean we can spread the freight cost over a larger number of batteries bringing the per item cost down.

By being realistic and modest with my margins, I am able to keep the NZ retail price within cooee of the US price so customers don't feel they are being ripped off, although to be honest, I should be charging more.

[MSTRS:Me]

OK. Your post I quoted seemed to suggest that you pay the same as any private purchaser.
The point about having to bring in large quantities of varied stock is a good one. There's no money in goods sitting on the shelf. And until you shift them, at a profit, you have no business, and won't be around long. Not a lot of people seem to understand that...

[tigertim20]

$165.00NZD delivered? Are you sure? US RRP is $USD153.95, so = NZD $210.00 +GST which I have to pay upon landing in NZ, so NZD $241.50 plus freight, say I can get it for your $24.00, so all up it's $265.50NZD. My price on the site? $253.95. How on earth am I reaping unjust profits?

that what people forget, or dont understand in the first place, the fact that there are often tariffs and taxes that YOU (as a business) have to pay, that a private person (like me) DOESNT have to. Its often these things that make the biggest difference, - not the small markup a business puts on to stay afloat.

Bottom line for most people though, is how light their wallet is going to be at the end of a transaction, joe-average buyer doesnt give a fuck WHY the cost is different, he just cares that one price is significantly lower. I have almost exclusively used a local shop in Dunedin, because they have never done me wrong, but given the current climate, along with personal circumstances, I recently bought tyres from elsewhere, and a clutch kit from over seas (both in the last week). I have saved, in total over those two purchases, around $400, perhaps a tad more, because I NEEDED the parts, but couldnt afford NZ prices.

[Edbear]

OK. Your post I quoted seemed to suggest that you pay the same as any private purchaser.
The point about having to bring in large quantities of varied stock is a good one. There's no money in goods sitting on the shelf. And until you shift them, at a profit, you have no business, and won't be around long. Not a lot of people seem to understand that...

that what people forget, or dont understand in the first place, the fact that there are often tariffs and taxes that YOU (as a business) have to pay, that a private person (like me) DOESNT have to. Its often these things that make the biggest difference, - not the small markup a business puts on to stay afloat.

Bottom line for most people though, is how light their wallet is going to be at the end of a transaction, joe-average buyer doesnt give a fuck WHY the cost is different, he just cares that one price is significantly lower. I have almost exclusively used a local shop in Dunedin, because they have never done me wrong, but given the current climate, along with personal circumstances, I recently bought tyres from elsewhere, and a clutch kit from over seas (both in the last week). I have saved, in total over those two purchases, around $400, perhaps a tad more, because I NEEDED the parts, but couldnt afford NZ prices.

You're both right. If my retail price was significantly more than the US price, I would find the same, that customers will import their own, so despite wanting a bit better margin I am counting on the business growing through reputation so that the volume I shift makes the whole enterprise worth while.

Being the sole agent for NZ means also that I am looking to sign dealers throughout the country and for them to want to sign up, they have to have a reasonable profit margin themselves. This means, a/ that my margin to them is minimal and I very much rely on bulk orders to make it worthwhile to supply them, but b/ that as sales volumes increase and the number of dealers increases, my overall dollar profit is larger and my role reduces to a supply role. Most would-be dealers are cautious if I am also retailing the batteries as they see it as unfair competition, which is true. When I sign a dealer, I ask him what his market is and what does he want to protect, then I assure him that I will not sign a competing dealer within his area for the same market. My aim is that the dealers have a good customer base with little or no competition in their sphere of the market. This keeps them happy and leads to enhancing the reputation of the brand through less discounting for competition. I don't want dealers reducing the prices in order to achieve sales. Shorai batteries are unique and there is no other battery with their technology in the market currently. So be careful if wishing to compare Shorai with other Lithium batteries. There simply is no other battery similar.

I am in discussions with a large NZ company, one of the oldest in New Zealand with a very strong reputation, to market the batteries to another type of application and if they come on board, which looks likely, I'll be ordering in the hundreds! That will raise the business to a whole nother level and will mean I go from percentages to dollars in calculating profit margins.

[ducatilover]

If memory serves correct, your Hornet has the same disk as a VTR250, VT250 Spada, CBR250R MC19 and I think CB250 Jade.
They're all cheap on eBay and readily available.

Of course there is mark up in NZ, you start a shop and beat the prices and I'll buy from you.

[PeeJay]

that what people forget, or dont understand in the first place, the fact that there are often tariffs and taxes that YOU (as a business) have to pay, that a private person (like me) DOESNT have to. Its often these things that make the biggest difference, - not the small markup a business puts on to stay afloat.

.

Appropriate "tariffs and taxes" apply to any imports, regardless of who is doing the importing.

In fact business' have an advantage because any expenses, eg brokerage fees, are tax deductible, whereas they arent for a private individual

[Jay GTI]

Appropriate "tariffs and taxes" apply to any imports, regardless of who is doing the importing.

Not true, I recently bought a helmet off a German website and didn't pay any sales tax (for either country) or any import duty or in fact any tarrif or tax at all. Which is why my Fox V3 Carbon was a little over NZ$300 landed, whereas it is $600-700 off the shelves here.

[BoristheBiter]

Ok so I have have jumped up & down a little bit when I say massive , but I would think that the NZ agent would not be paying $170per disc I am figuring that there would be a "cost" price lower than that , Why would the NZ agent pay Aust Retail ? ..... Remember .... Retail , Trade , Cost .........

The way see it is you were made to go through an Aussie web site and at the moment their dollar is much higher than ours.
I had this same problem when buying a map for my Garmin gps.
I pick the one i wanted, charged in $US at the checkout part but when it went through to pay by visa it had changed to $AS (local agent) so the price went up by $80.

And surly there is more than one brake disc or site to use. I used a UK site to get my new helmet.

[PeeJay]

Not true, I recently bought a helmet off a German website and didn't pay any sales tax (for either country) or any import duty or in fact any tarrif or tax at all. Which is why my Fox V3 Carbon was a little over NZ$300 landed, whereas it is $600-700 off the shelves here.

And if a business did the same as you they would land it for the same price as well.

[Jay GTI]

And if a business did the same as you they would land it for the same price as well.

Would they? Or (assuming they are just bringing in a single helmet) would they not be under a legal requirement to pay tax and duty, being that it's being imported for the purpose of resale, they are a registered business, have to file tax returns, pay GST etc? Can't see anything on the NZ Customs website that explains that, so am curious how it works.

[Quasievil]

Threads like this make me laugh, Motorcyclist have unintentionally yet collectively fucked the NZ bike market by supporting overseas business instead of their own, then Bitch and moan about the prices in NZ compared to the overseas ones !!

Seriously WTF !!

Threads like this pop up from time to time, bikers accusing NZ based retailers of ripping you "Oh so poor bastards" off while they "go under" for lack of support with monotonous regularity

Okay so you found the international Market, good on ya, DONT compare the tiny NZ market to it expecting the same prices.