Fecking markups

**nzmikey** · 16th November 2011, 10:38

Ok so can someone EXPLAIN to me how & why this happens .
So I am looking for a new Front Brake Disc for my CB250F Hornet ( simple right ? )

Check Ebay ..... Dont ship to NZ
Goto MetalGear.com ....... Aud$170 ( Mint )
Send email off to Metal Gear asking for a cost of shipping to Auckland , Nz
Reply back ( from Nz agent ) :
Hello Mike,

We are the NZ distributor for MetalGear and as such your email has been forwarded to us.

We carry this disc in stock, so it is available directly to you through any motorcycle dealer in your area, or alternatively through www.bits4bikes.co.nz
The link to your disc is here: http://www.bits4bikes.co.nz/parts/honda/2367.aspx

Sweet this should be easy ........ Click link ........ & fair shit

Nzd$402 you have got to be kidding me .
so I phoned the guy up & asked him what the price is for said Item ( I was thinking that the site may have been out of date )
I got the same answer .

Me: Yeah Hi calling about a Break Disc for a CB250F Hornet
Agent: Yeah the direct link is in the email I sent
Me: yeah I saw that , I just wanted to check the price was current .
Agent: Yeah it is whys that ?
Me: coz it is fucking $402 , that is retarded , I can get this from MG @ Aud$160
Agent: Yeah but they wont sell it / ship it to you , you have to use an NZ agent .
Me: If i get my F.I.L to send it to me I can get it cheeper than Nz$402 even with the exchange rate & SHipping ..... What gives ?
Agent : We dont set the costs , we just sell it ........
Me: Bullshit thats fucking retarded ..... *click*

Yeah ok I was a little harsh on the guy but come on , I am sick of getting screwed over buy company's who have MASSIVE markup's on products , If there is a cheaper way of getting parts then I will find it .

Now you cant tell me it is Supply in demand etc & the fact that they are running a company , I am in the sales industry & yes we have mark ups but they are not MASSIVE .

TL;DR ....... Why are we getting screwed on prices here in NZ when we can buy it cheaper from overseas
MetalGear Link VS Bits4Bikes Link

**nodrog:Me** · 16th November 2011, 10:54

Holyshit! parts are really that expensive in NZ? thanks for pointing that out

**avgas** · 16th November 2011, 10:55

There is a guy selling disc in Waihi. He lists them on trademe. Give him a bell. Last time I saw his prices they were around half that.

**Latte** · 16th November 2011, 11:14

Originally Posted by nodrog

Holyshit! parts are really that expensive in NZ? thanks for pointing that out

I know!, we should go protest and occupy something. I like occupying my couch, and protesting lack of beer by diminishing the available resource I currently have.

**bogan** · 16th November 2011, 11:20

Why did you ring the supplier? seems better to ring up the NZ distributor (edit, or did you ring b4b, i can't really tell), as they are to blame for the price. Also, you can get an EBC from UK for metalgear NZ money, put in some HH pads and it'll be fookin mint!

**gijoe1313** · 16th November 2011, 11:25

Ah yes, the premium for living in god's own country! Tard'me often has some discs for sale now and then, may even be the guy mentioned earlier!

**Ronin** · 16th November 2011, 12:03

Right.

Convert it to NZ Sheckels
Add Freight
Add GST
(there may be a middle man here in which case add more GST and freight)
Add markup - which believe me, will be fuck all compared to what you think it is
Sell... After being abused for how fucking expensive it is
Pay all your overheads

Now work out how much you have left. Good on the supplier for protecting their resellers.

**nzmikey** · 16th November 2011, 12:05

Originally Posted by bogan

Why did you ring the supplier? seems better to ring up the NZ distributor (edit, or did you ring b4b, i can't really tell), as they are to blame for the price. Also, you can get an EBC from UK for metalgear NZ money, put in some HH pads and it'll be fookin mint!

Went into Cycletreads , They looked up the part ... nill stock , on advice of a mate I checked Ebay , found what i wanted ( ended up being MG , so i emailed them & ended up with the reply at the top with an answer of $402

**Brian d marge** · 16th November 2011, 16:47

roughly ,

225 cost

250 incl post

50 % odd mark up to cover everything what thats about 120

sell price 450 odd

no I'm not reaching for a calculator .... but hes probably got between 30 and 50 % mark up

So , you can suddenly see how many of these thing ya need to shift to pay the salary ....

The whole retailing is out of whack I reckon , maybe we are going towards a more centralized market ???

Stephen

still works out to under 20 k yen which ain't a lot

**Jantar** · 16th November 2011, 16:47

Originally Posted by Ronin

Right.

Convert it to NZ Sheckels
Add Freight
Add GST
(there may be a middle man here in which case add more GST and freight)
Add markup - which believe me, will be fuck all compared to what you think it is
Sell... After being abused for how fucking expensive it is
Pay all your overheads

Now work out how much you have left. Good on the supplier for protecting their resellers.

Convert it to NZ Sheckels AUS170 = NZ$224

Take off AUS GST = $NZ201

Add Freight AUS$30 = NZ$39 Total = NZ$263

Add GST NZ$40 Total = NZ$303

(there may be a middle man here in which case add more GST and freight)

No middleman as MG directly linked their NZ agent

Add markup - which believe me, will be fuck all compared to what you think it is 30%= NZ$91 Total = NZ$394

Yes, the NZ agent is ripping off the customer to the tune of $8.

Now, is it any wonder why so many of us buy direct from overseas?

**Gremlin** · 16th November 2011, 17:01

NZ$402 is probably the NZ RRP. The people you rang probably won't sell it for that. They'll sell for less to the dealer, the dealer then adds their margin, sells to customer for around NZ$402.

At this point, you may have a good relationship with the dealer, they cut you a deal on the margin etc, and make a smaller one, and you pay less than NZ$402.

**Brian d marge** · 16th November 2011, 17:45

Originally Posted by Jantar

Convert it to NZ Sheckels AUS170 = NZ$224

Take off AUS GST = $NZ201

Add Freight AUS$30 = NZ$39 Total = NZ$263

Add GST NZ$40 Total = NZ$303

(there may be a middle man here in which case add more GST and freight)

No middleman as MG directly linked their NZ agent

Add markup - which believe me, will be fuck all compared to what you think it is 30%= NZ$91 Total = NZ$394

Yes, the NZ agent is ripping off the customer to the tune of $8.

Now, is it any wonder why so many of us buy direct from overseas?

hey for a wild guess I wasnt fat out ! ,,,8 dollars ,,, and 91 to pay staff with,,,

eeeewwwwwww

Stephen

**Edbear** · 16th November 2011, 18:13

As an importer, I know the difficulties of trying to keep the price as close as possible to the US price. It's a tricky calculation as I pay freight, (air), and fees and GST upon landing, I have to account for fluctuations in the exchange rate, and my last order went through just as the exchange rate dropped 6c, costing me a lot more, (you'd be surprised what a difference a day makes to your bottom line!). Customers want stable pricing, too, not up and down according to the exchange rate, I have to absorb that.

Being the sole distributor for NZ I have to carry warranties until I can send the batteries back to the US at my cost in freight, and they refund or replace, leaving me out of pocket for a couple of months. (Fortunately it is rare for a Shorai to go wrong). I cannot afford to upset my customers and dealers by making them wait and Shorai's philosophy is to satisfy the customer first, then worry about the dud.

I have to invest heavily in stock and of course the most popular sizes sell out first meaning I have to re-order with a minimum quantity before I get the money back for the previous order. I am relying on volume sales to make my money and as yet have taken very little out of the business as I need to build it up and that means putting the profits straight back into it.

Some models will take a long time to sell and they are just sitting on the shelf, money in waiting. I think I have the pricing about right even though I feel it is a wee bit more than I'd like to see. I do agree the OP's example seems a rip-off but there may well be a good reason behind it. For example I usually offer KB'rs a discount and free shipping which means I miss out on the best profit, but as I say, I am looking towards the future and increasing volume.

Hope a bit of insight to the importing business helps.

**Madness** · 16th November 2011, 20:19

There's also the other glaringly obvious differences;

Metalgear AU - AU Bike Dealers - Aussie GST @ 10% - Retail $170

Vs.

Metalgear AU - NZ Distributor - NZ Bike Dealers = 1 additional link with another minimum 30% markup and our GST at 15% every link in the chain. This, coupled with an exchange rate at $0.76 and a difference in average wage and cost of living.

If only Australians weren't so fucking irritating.....