Results 1 to 16 of 16

Thread: VST filters in Australia. Are we being ripped off?

  1. #1
    Junior Member
    Join Date
    Feb 2010
    Posts
    16

    VST filters in Australia. Are we being ripped off?

    Gene Cafe Coffee Roaster $850 - Free Beans Free Freight
    These filters are costing 9 bucks more in Australia than in the USA, and you can get them mailed here for a flat rate from their website. If you buy 2, its the same, if you buy 3 its cheaper to get them sent from overseas. Why?

  2. #2
    Senior Member
    Join Date
    Aug 2011
    Posts
    143

    Re: VST filters in Australia. Are we being ripped off?

    Because Aussie importers have to pay high import duties and taxes and we have a smaller population here. Larger populations allow for lower costs in doing business. In the U.S. they have a range of services to support small retailers that just dont exist here - dropshipping, for example. Theres a small amount of it here, but nowhere near the volume as in the U.S. and it really helps to reduce the cost of shipping for small business.

    There are other factors, but thats the basics. Im not a retailer, BTW.

    The question is - do you want to support your local specialist so that they can stay in business or do you want to ensure you can only get things overseas?

    That was a thought that occurred to me during my Christmas shopping, if youll allow for a small diversion....

    It used to be the case that Myer was something of a prestige store - you went there to purchase high-quality name-brand stuff. Because they were convenient, stocked a lot of products and were located in supermarkets, we stopped going to smaller specialty stores and just went to Myer instead.

    Now Myer dont stock as much specialty stuff. In fact, when I went there looking for some kitchenware, the place was overrun by Vue (which appears to be some sort of Myer home brand), Maxwell Williams and Bodum. Hardly speciality.

    Theyve performed a bait and switch on us - and its our fault.

    And now we cant have nice things, because the places that sold them before Myer are all out of business.



    Next year, I wont be shopping at Myer - I hope I have the choice.

  3. #3
    Senior Member
    Join Date
    Sep 2011
    Posts
    395

    Re: VST filters in Australia. Are we being ripped off?

    Because Importers have to drink coffee too? and they have to pay tax on top of what they import, which all costs money

    And honestly, Whats 9 dollars? its not like its a huge figure, its what? two coffees and change at a local cafe?

  4. #4
    Sleep is overrated Thundergod's Avatar
    Join Date
    Jul 2006
    Location
    Sydney
    Posts
    10,496

    Re: VST filters in Australia. Are we being ripped off?

    Quote Originally Posted by 7F6F786A1D0 link=1323745772/0#0 date=1323745772
    if you buy 3 its cheaper to get them sent from overseas
    I dont want 3.

  5. #5
    CoffeeSnobs Owner Andy's Avatar
    Join Date
    Mar 2004
    Location
    Internet
    Posts
    16,755
    Blog Entries
    1

    Re: VST filters in Australia. Are we being ripped off?

    Try this math...
    (an educated guess, I dont know the real numbers but it would be pretty close)

    Distributor buys 100 @ $22ea
    +traceable shipping and insurance ($200)
    Total = $2400
    +5% Import duty
    $2520 ex GST
    The distributor wholesales them to a retailer at:
    $27+ GST
    The retailer sells them for $38inc ($35 ex GST)

    The wholesaler would risk $2520 before he made the first sale.* The margin for the wholesaler would be under 10% (if he doesnt discount for bulk) and even then has to pay for warehousing, shipping, packing and distribution to get $1.80 per basket profit.

    The retailer buys 10 at a time for $270 ex + $12 freight
    for a total of $282

    If he sells all 10 then stands to make a margin of $68

    To sell those 10 he spent 20 minutes ordering them from the wholesaler and transfering payment, he spent 10 minutes checking the order and putting it on the shelf, he spent a further 15 minutes with each person that bought one and asked "will this fit my machine"

    $68 margin less bubblewrap (expensive), cardboard box (try and buy one of those for under $1), plastic bag and packing material if he shipped it... leaves $45 profit

    3 hours labour @ $45 = $15 per hour.

    Will you come and work for me for $15 hour (including workcover, income tax and medicare)?

    I think instead of asking if you are being ripped off you should be thanking those silly enough to sell you one for just $35ex GST.

    I expect those good enough to sel them are doing so as a service.* I really dont think there is a company in Australia that can sell enough of these to put food on the table.

  6. #6
    Senior Member
    Join Date
    Jun 2011
    Posts
    290

    Re: VST filters in Australia. Are we being ripped off?

    Heres me who just bought a 18 ridgeless VST* *8-) didnt know I was being ripped off! I had a laugh* :D I just hope it works (otherwise I might cross the room Jks ;D) Glad to support!

  7. #7
    Junior Member
    Join Date
    Feb 2010
    Posts
    16

    Re: VST filters in Australia. Are we being ripped off?

    Andy, was that a job offer?

    Quote Originally Posted by 002F2538410 link=1323745772/4#4 date=1323757950

    Will you come and work for me for $15 hour (including workcover, income tax and medicare)?.

    I could work as an importer for you... Buy these things for 20 bucks each, even add on the cost of shipping, import tax and gst, then sell them via website (skip the middle man like you already do with roasters) and make enough to pay my wages x2* ;)

    I think we are being ripped off by someone. Maybe it is VST. But then again whats 9 bucks?

  8. #8
    Senior Member saoye's Avatar
    Join Date
    Jul 2011
    Location
    Adelaide
    Posts
    1,006

    Re: VST filters in Australia. Are we being ripped off?

    Quote Originally Posted by 634C465B220 link=1323745772/4#4 date=1323757950
    $68 margin less bubblewrap (expensive), cardboard box (try and buy one of those for under $1), plastic bag and packing material if he shipped it... leaves $45 profit

    3 hours labour @ $45 = $15 per hour.

    Good maths. The calc is all based on the assumption that the distributor is selling only VST filters ofcourse.
    At the end of the day it is each individuals perception of what they are paying for.. To brew he sees that he can get it cheaper by importing it himself which is fair enough.
    To others they may see the extra $9 as a service of convenience. I just paid $10 for a set of car and desktop charger for my mobile from an Australian based retailer knowing that I can buy the exact same charger from Hongkong for $5 delivered. Why? because I can get the charger now and not have to wait 20 days, because then Id be without a phone for 20 days.

  9. #9
    Senior Member
    Join Date
    Nov 2011
    Posts
    120

    Re: VST filters in Australia. Are we being ripped off?

    Being a new member, I have over the last couple of weeks purchased a number of items prior to the god shot purchase. Basically I am trying spread things out so the wife doesnt do a lot of maths. Things like Metallurgica jugs...... Anyway between four site sponsors I have easy wiped 1k on Accessories. So support the local guy for $9, else he may not be there.

    Im not all squeaky clean, I have used the strong AUD to by some great gear for my motorbike from OS....... ;)

  10. #10
    Senior Member
    Join Date
    Jun 2011
    Posts
    290

    Re: VST filters in Australia. Are we being ripped off?

    Just got my VST in the work mail. First impressions; this is a nice bit of kit. Feels thicker/heavier and the holes are very noticeably uniform.

    Just hope it aims to please. ;D

  11. #11
    Site Sponsor pullman's Avatar
    Join Date
    Mar 2005
    Location
    Adelaide, SA
    Posts
    341

    Re: VST filters in Australia. Are we being ripped off?

    As one of the main importers of VST products, I can say with the basis of fact that Andys figures arent too far off the mark. VST baskets are significantly more expensive to buy than any other basket we carry and our margins are in fact SMALLER. I dont know how much they cost VST to manufacture but when you consider the work that went into the design in the first place, then that each basket after being pressed out is photographed, analysed for defects, serial numbered and you get a geek sheet of data with the basket I dont think its too bad a deal. I can only imagine how much all the gear to do that would cost them. Id be surprised if VST are anywhere near break even point on these yet.

    Whatever price you could secure a VST basket for, the cost of the product is only the starting point when youre an importer.* Go back over Andys figures mate and youll realise it aint no cash cow.

    The other thing we do is record diameter measurements of the VST baskets we get, which obviously takes somewhat longer than just sticking a box of baskets in the corner of a warehouse and shipping them out as required. This adds extra time costs to the process for us.

    Look at it on the surface and what you say sounds plausible. Scratch the surface and you realise there are a heap of unavoidables which make the situation more than reasonable. Bottom line is, no-ones sitting around cashing in the big bucks on these.

    Greg

  12. #12
    KJM
    KJM is offline
    Senior Member
    Join Date
    May 2007
    Posts
    688

    Re: VST filters in Australia. Are we being ripped off?

    OK - disclaimer first - Greg works one floor below me in the same building, for the same employer (although he is only part time ::) ). And Ive just bought a nice shiny thing from him (Hmmmm - the Expobar is shiny).

    But - the VST baskets arent cheap (as pointed out) and he does have a shed full of the blighters. So if you add in to Andys analysis the cash up front (think of it as interest..) then the small margin is pretty, well, small. I could import one cheaper, maybe. But I know if I opened the box and it had a dent in the basket Greg would just exchange it no questions asked. So there is also that on-cost that the local importers carry.

    While I dont have a lot of money to spend, I do value the "value add" that the local support gives. Especially the site sponsors.

    Id rate this as the equivalent of the "Fair Crack" fund, actually...

    Cheers
    /Kevin

  13. #13
    .
    Join Date
    Aug 2004
    Posts
    2,312

    Re: VST filters in Australia. Are we being ripped off?

    well said, and the answer to the question is.....No.

    Just as with a humble cup of coffee, where the cost of the ingredients has nothing to do with the selling price of the cuppa, the selling price of the goods and services has to encompass the importers and selling agents /retailers cost of doing business.

    Hope that helps.

    A.

  14. #14
    Junior Member
    Join Date
    Aug 2011
    Posts
    23

    Re: VST filters in Australia. Are we being ripped off?

    Im a bit confused do US retailers not have the same storage, stock outlay and wage costs? Surely the big difference here is quantity, since the US has a pop of over 300 mill compared to our 22 mill they can afford to make less profit per item, have more buying power and have a faster stock turnaround?

    I have no retail experience, so have no idea if this is correct :)



  15. #15
    Senior Member trentski's Avatar
    Join Date
    Nov 2009
    Location
    Altona, Melbourne
    Posts
    1,577

    Re: VST filters in Australia. Are we being ripped off?

    Australian rents are said to be the highest in the world, although that could just be Gerry Harvey saying that ;)

    wages are considerably higher in Australia than the US though, so if you are paying people to sell stuff then that money has to come from somewhere, and everytime someone new handles the product the cost goes up.

  16. #16
    Member
    Join Date
    May 2008
    Posts
    52

    Re: VST filters in Australia. Are we being ripped off?

    Behmor Brazen - $249 - Free Freight
    Not sure what the problem is here, if your unhappy paying someone a few dollars extra to do the work for you, take the risk and import the basket/s yourself, simple solution.
    If your not comfortable doing it, youve answered your own question, dont complain. ;)



Similar Threads

  1. VST filters
    By luke.chiew in forum Brewing Equipment (non-machine specific)
    Replies: 1
    Last Post: 6th October 2012, 11:46 AM
  2. What Filters??
    By oldman in forum General Coffee Related...
    Replies: 3
    Last Post: 3rd July 2011, 05:17 PM
  3. Am I being ripped off?
    By Kitty in forum General Coffee Related...
    Replies: 8
    Last Post: 21st June 2008, 02:11 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •