sparksy

iTrader: (14)

I'm quite happy to slag off both the LHS and the importers given the oportunity.

You are 100% correct though. There are 3 links that make up our being overcharged. The manufacturer being unwilling to offer the same prices to our low volume importers as they do the bigger markets... ie HK. The importer wacking on his markup. (remember he has to support the sponsored drivers he has) And finaly the LHS who has to make his markup and support his team drivers.

One thing I dont understand (there are many) is if the racing market is so small compared to the other items the LHS sells(as they keep reminding us), why do they bother with it at all?


The best way to pay less and still support the local industry is using the trackside dealers. They only cater to racers, and 95% of them dont markup anywhere near the LHS. As its an extention of their hobby and they are in it for the good of the hobby not to put food on their table.

WC

iTrader: (28)

yep, barking up wrong tree.

REASONS FOR PRICE DISPARITY

Assuming all stock comes from the same 1 factory in the world.

Your national distributor buys direct from the factory... but it
don't mean they all buy at the same price. Like any business,
volume discounts are rife... and if a distributor only buys a few
of each item, they won't get much discount. The volume sold
through HK is staggering, could be 20-30x what Oz buys.
(eg how many R40 owners do you know?)

Now that the stock is free-on-board shipped... you're up for
-shipping costs (quite competitive)
-container rental (not too dear)
-stevedoring costs (how much do our wharfies earn again??!)
-customs clearance via an agent (=fees)
-taxes & duties
-local transport costs

The distributor now has a big container sitting in his yard,
he's gotta get aid to empty it onto his warehouse shelves.
That don't come cheap at Ozzie rates for:
-wages
-workcover
-payroll tax (mention this to any Asian and they LAUGH..!! )
-rent for premises
-interest on monies invested into stock & to buy distributorship
Plus the distributor guy still has a family to feed and his palatial
mansion with a fleet of Porsches to maintain, don't forget.

By now your LHS would know of the stock coming in, so they've
gotten their orders in early. The price each pays... well there's a
pricelist but each gets their own level of trade discounts too.
LHS then has to pay for:
-freight from distributor to his shop (eg Sydney to Perth?)
-usual biz running costs eg wages, rent, rates etc.
+profit enough margin to make it worthwhile doing


Knowing the current levels... your LHS don't make much profit.
I'd say if they changed to being a grocery store or fruuitmonger
they'd easily improve their margins & turnover many times.

They'd also markup the "beginner" cars more than the high-ends.
LHS don't make any more out of selling a race chassis than a
basic kit... this is totally different to 1:1 world where Holden
profits a lot more out of a Calais than a base Commodore
(costs to build either spec isn't significantly different, but
a Calais costs 2x the Commodore?).



Look... if you really want to real ask questions, why not call up the
distrubutors and ask them why local prices are 2x same thing o/s?

Their contact details are all in Racing Lines or Dirt & Track...

rjl

Sandwich bar,300% + profit, no complaints.
Chemists, minimum 100% markup, still no noise.
Restaurant, pay double for a bottle of red and leave a tip?
A 750ml bottle of Cola twice the price of a litre of petrol, seems fair.
Hobby shop trying to keep the door open and make a living, nah, lets do our best to put him out of business. When someone asks what local shop a newbie might get good advise from, lets just give him a web sellers site so he will not get the best from his purchase.
I,ve tried making a living out of the hobby game but I just can't live on $5 an hour.

black-knight

Woolies were having go about the Chemists, minimum 100% markup just last wek.

WC

iTrader: (28)

If you stood outside a LHS telling ppl "you can buy it cheaper mailorder from HK/USA"... wonder if the LHShopkeep can sue you for damages...?

Food for thought!

rjl

Pro'ly just beat him about the head with restricting trade.

GUNPOWDER

You can still make the sandwich yourself and you don't have to pay 300% markup... Same Wine can be purchased from a bottle shop for half the price.. 2lt Cola at Big W is nearly the same price as 1 lt of petrol ... But in the case of this hobby, we simply do not have options in retail stores. (or I haven't discovered yet) ...

If you're in the business and wanna get rich quickly, you might consider your business strategy and remember that it is a global market....

Coxy

Buy a delivery van to ship all the EMS stuff to us. You would make a killing.

Coxy.

OZDC

iTrader: (16)

From the for sale thread


If my conversion is right, you can get GRP rubber for about $12AUD/Pair delivered from OS.

Looks like buying from OS may start hurting the 2nd hand market as well

DC

mark123