Buy from NZ? I tried but come on...

[R-Soul]

The cost of any article is in the distribution chain.

A pen is manufactured for 10 cents...it goes through several (in some cases, many) points, each one putting their costs on top, before it is available for you, the customer, to purchase at a cost of $2.00.

The manufacturer and the retailer put on their profit margin but most of that extra $1.90 cents is put on by the distributers/warehousers/freight companies, not the manufacturer or the retailer, which is why you can buy cheaper overseas...it passes through less hands.

No - it may pass through the same number of hands, but when teh number of players are reduced, and competition is reduced, then each set of hands adds a bigger chunk on.

[MarkH]

No - it may pass through the same number of hands, but when teh number of players are reduced, and competition is reduced, then each set of hands adds a bigger chunk on.

If a NZ company has the sole distribution rights for a brand in NZ and a company in the US has the sole distribution rights for the same brand in the US then that would be the same number of players each way. But if the NZ company moves a thousand units a month and the US company moves a hundred thousand units a month then it is obvious why one might make a lot of money with a 10% markup while the other scrapes by with a 50% markup.
This doesn't matter to me, what matters is that I can buy the item in NZ for NZ$X or from the US of A for US$Y and that is what I look at.

How NZ companies run their business is up to them, how I spend my money is up to me. If anyone doesn't like me buying stuff from overseas - tough!

[R-Soul]

I think that it is pretty well known that supermarkets operate on high volume/low margins, so no need to whine about their margins. .

Dont be too sure about that either. There is a lack of competition in that sphere too. Just the other day there was a skit on Campbell about a 500% (!) markup on strawberries or something.

My wife's mum can get NZ lamb in Cape Town for a third less than I can buy it in Auckland. Ditto NZ wine.

Have you seen the price of fish lately? Last time I looked, we were an island? Why can Aussie fishermen pull the same fish out of the same ocean for so much less? We are being drilled at every level of the distribution chain because of lack of competition.

We need a competition commmission with real teeth that can HEAVILY fine anti-competitive behaviour (such as collusion).

[zeocen]

If you want to crucify the real crooks here look no further than the likes of Suzuki NZ, Triumph NZ and Bluewing Honda.

The rest of us are just trying to survive.

That's pretty much how I feel. The Hornet 900 centrestand required removing headers and exhaust where an SW motech version requires no cutting or removing of any bits, bolts straight on and is 250 - 350 cheaper and arguably better made.

I've also heard some nightmares about the OEM Predator heated grips being upwards of 700+

These are consumables that would require no followup, if I were to get a suspension upgrade it would come from Robert because of the follow up and support - that is worth its weight in gold. Some things, though, are just well above what I would consider a proper price.

Unfortunately it's rarely the fault of the dealership (if at all) and rather the distributors. My local dealership, bless them, were trying to get the pipes down to a real world price for me - nearly as close as cost, but when there's around about 1500 savings from overseas, well... That's 1500 that can be put to better use on my bike than putting it straight into an distributor's pocket.

[R-Soul]

Wholesalers and importers do not have a bottomless money pit to have lots of dealers with consignment stock, cash flow problems are as similiar as what dealers have, if not moreso.

What you also have to realise is that manufacturers do not have endless production capacity and stock has to often be pre-ordered months in advance. Sometimes or more than sometimes it is out of phase with the main selling seasons in the Northern hemisphere and it doesnt suit us so well.

The issues are more complex than people realise and as we are so tiny and insignificant we havent got clout, quite the opposite.

How the friggin hell you can negotiate REALLY LOW PRICES especially when you are in world terms buying bugger all is beyond me and all the other distributors. Thats fantasy land.

Mate when the man in the street can get the same stuff for 30% of your cost from retailers offshore, then I have got to ask why you dont just get the same stuff from the same retailers and sell it at a reasonable markup? Even if you paid the offshore RETAIL price for it, and put 60% markup on it, on demand, without holding stock, the price would STILL be some 30% down on what the retail prices are here.

That line of "we are not big enough to negotiate good wholesale prices" just doesn't cut it in some cases (note: I have not dealt with you or know nothing of your products, and am not directling this at you personally).

In some cases, the fantasy land is on the retailers/importers side - actually more like GREED land. In those cases- fuck 'em!

[R-Soul]

Suggesting there's a monopoly/duopoly responsible for our high prices doesn't provide evidence that either or both the wholesaler or retailer is applying a large markup. You suggested that you don't believe that the retailers are as innocent as they pretend to be because they protest too much. You don't think they're protesting because they're struggling? Survival of the fittest right? Won't that end up with less competition and increase prices in the long run?

Some are stuggling. Some are complaining because they "only" make 200% markup.
If a business is not viable, it should not be open. The talents of that entrepreneur should be directed towards a better business with a viable business model.

The competition HAS increased - from online shopping. Its here, and its here to stay. Now business retailer need to either:

1) Stop price gouging their customers, or
2) Have a no-nonsence talk with their distributor
3) Find another differentiator that will make consumers want to remain visiting their shop (and do it very well!)

Either way, their prices must go down, or their businesses will.
Consumers should not be required to pay for the greed tangled up in the distribution chain - especially now they have alternative options....

[dipshit]

That's 1500 that can be put to better use on my bike than putting it straight into an distributor's pocket.

But someone has to pay for Hayden's or Andrew Stroud's gazebos somehow.

[Katman]

Some are complaining because they "only" make 200% markup.

Are you serious?

Where the fuck did you pluck that sort of mark-up figure from???

[ynot slow]

Are you serious?

Where the fuck did you pluck that sort of mark-up figure from???

Retail prices for furniture are usually (x) 2.1-2.2 on top of wholesale,i.e $1000 plus gst w/s to floor price of $2250-2395 inc gst(at 12.5%)when I was selling,but then again you can buy 6 lounge suites and 5 are still there 6 months later,tough choice buying floor stock,my tastes differ from managers,owners etc.

We were selling a range of beds which had a radical spring invented by the company 20 yrs ago,so confident of this the manufacturers advised the members of the bedding group not to discount the beds as they didn't need to be discounted if staff were up to date with product knowledge and could sell benefits and so on,lasted about 10 months or so,until most retailers found out others were discounting.The idea was with a good mark up(had to stock at least 10 queen beds in range to show differences in quality)and stocking each floor bed at least in storeage for delivery,maybe 5 of popular range,the idea was without heavilly discounting the firm could make a good return,etc.


As an aside,my chain needed adjusting after trip away,my socket wasn't large enough,took it to bike shop as they said just pop in when I rang yesterday,dropped it off,chain tensioned while I waited,no charge,but will drop a dozen beers.

[Horse]

If you want to crucify the real crooks here look no further than the likes of Suzuki NZ, Triumph NZ and Bluewing Honda.

The rest of us are just trying to survive.

Funny, I think that's precisely what some of us are saying.

[Katman]

Retail prices for furniture are usually (x) 2.1-2.2 on top of wholesale,i.e $1000 plus gst w/s to floor price of $2250-2395 inc gst(at 12.5%)

So does everyone bitch and moan about the price they're expected to pay for their furniture?

I can assure you that the mark-up for motorcycle clothing and accessory retailers is nothing like that figure.

[Mully Clown]

So does everyone bitch and moan about the price they're expected to pay for their furniture?

I can assure you that the mark-up for motorcycle clothing and accessory retailers is nothing like that figure.

That's probably because we don't see television adverts every second week advertising 20-40% off all stock*

[imdying]

Attention off topic retards. This isn't a thread about retailers running their business to whatever model they see fit. This is a thread about what happens when you join the Honda family. When you do that in NZ, by buying a new bike, you're not welcomed into the family at all, you're treated like a handicapped second cousin and arse raped for all you're worth. The only question is, who's the rapist, Blue Wing, or Honda Japan?

[Katman]

The only question is, who's the rapist, Blue Wing, or Honda Japan?

Refer post #284.

[short-circuit]

Triumph parts is exactly the same - 2 and 3 times the price on everything across the board. We all know Honda owners like being arse raped anyways.