Are we going to see the Euro Exchange Gold?

[nelo784]

With the rapid bottoming out of the euro and $USD over the past few months, surely we should see equipment prices heading south? I know all the arguments about running busineses, importing time lags etc. But surely we should see some benefit from the strong $A! Are we that small a market that we will never see the benefits? A $1700 differential on the Alex Duetto in the US market seems huge.

Thoughts from some sponsors.

I hope this is in the right place!

[beanflying]

Re: Are we going to see the Euro Exchange Gold?

Just a general reply on importing into Oz as I buy a fair bit of my stock from overseas. We have 5% import duty and 11% GST for a start and much lower order volumes generally. Frieght costs on less than container lots are also much more expensive/unit too.

Also you really need to be looking at the exchange rates 3-6 months ago when the equipment was actually ordered and or paid for in a lot of cases.

Side issue on importing electrical equipment into Oz is also electrical compliance costs need to be defrayed over X units too.

So the answer is that over the next while we should expect SOME reduction as the benifit of the strong Aussie Peso takes hold.

[TC]

Re: Are we going to see the Euro Exchange Gold?

Just a general reply on importing into Oz as I buy a fair bit of my stock from overseas. We have 5% import duty and 11% GST for a start and much lower order volumes generally. Frieght costs on less than container lots are also much more expensive/unit too.

Also you really need to be looking at the exchange rates 3-6 months ago when the equipment was actually ordered and or paid for in a lot of cases.

Side issue on importing electrical equipment into Oz is also electrical compliance costs need to be defrayed over X units too.

So the answer is that over the next while we should expect SOME reduction as the benifit of the strong Aussie Peso takes hold.

Not to mention currency exchange charges, freight forwarders fees, additional freight in Australia, other miscellaneous charges, interest charges, the cost of providing parts and warranty on small numbers of machines, testing and tagging charges and the fact that whereas USA import machines by the container, we import them by the pallet. Believe me, if we could land them at anywhere near US retail price, Id be over the moon :

Also, keep in mind that this machine has been on the market for 3 months and RRP was set based on the exchange rate at that point. It has since been revised.

Nelo, well assume that there is a level of naivety in your question. You are free to make your own decisions and to to purchase a 110V machine from the USA and then try to get it to work here. Pay the price and the freight as well as duties and charges and additional costs and then buy an appropriate inverter and be happy in the knowledge that we will not be providing parts nor support for any grey imports.

Chris

[nelo784]

Re: Are we going to see the Euro Exchange Gold?

Thanks Chris and others,

Yes the question is based on naivety, rather than having a dig! I really was wondering what the exchange rate shifts will mean. I have no intention of purchasing from the States, it was more a general question as to where prices might go.

It is a running debate in the bicycle industry and that is partly where the question was coming from. I am a proud purchaser of a nice machine and grinder from one of the forum sponsors so please do not take the question as a challenge, but merely as a question!

Cheers. Nelo

[brett230873]

Re: Are we going to see the Euro Exchange Gold?

Thanks Chris and others,

Yes the question is based on naivety, rather than having a dig! I really was wondering what the exchange rate shifts will mean. I have no intention of purchasing from the States, it was more a general question as to where prices might go.

It is a running debate in the bicycle industry and that is partly where the question was coming from. I am a proud purchaser of a nice machine and grinder from one of the forum sponsors so please do not take the question as a challenge, but merely as a question!

Cheers. Nelo

Thanks for asking this! I had wondered about this also especially when prices on American websites seem comparatively low and despite being able to qualify an answer, it is great to have people in the know quantify it!

[Thundergod]

Re: Are we going to see the Euro Exchange Gold?

Id guess a simple answer is the Yanks import a lot more 110v units than we import 240v units.
Bulk purchase always equals lower price.

[Koffee_Kosmo]

Re: Are we going to see the Euro Exchange Gold?

Id guess a simple answer is the Yanks import a lot more 110v units than we import 240v units.
Bulk purchase always equals lower price.

This is a world map of 240 Volt over 110V use



KK

[TC]

Re: Are we going to see the Euro Exchange Gold?

This is a world  map of 240 Volt over 110V use

Yes KK- and that map has no relevance whatsoever to Australian import volumes. Keep in mind that the entire Australian populations is about the same as that of California.

Chris

[Andy]

Re: Are we going to see the Euro Exchange Gold?

Interesting map KK although it does fib a little as most of Europe is 220v/50hz and they have lumped 220-240 all together.

...we should expect SOME reduction as the benifit of the strong Aussie Peso takes hold.

Sea and air cargo had a 20%-40%+ rise when the calendar ticked over to 2010. I thought I was getting ripped but a couple of price quotes later showed that everyone added a 2010 tax and claimed world shipping price movement.

That freight price jump is excessive and then all the customs, import clearances and GST are calculated on the total cost including shipping so all the hidden costs jump too (including the Vic Govt "channel deepening fee" that I copped on the last container!!!).

I could land stuff cheaper in December with a weaker dollar than I can today, so yeah, I can certainly vouch that the strong dollar is not the only factor in the actual shelf price in Oz.
:

[A_M]

Re: Are we going to see the Euro Exchange Gold?

Interesting map KK although it does fib a little as most of Europe is 220v/50hz and they have lumped 220-240 all together.

Ya... And for a few years now teh Australian standard has been 220 to move into line with International standards; but it takes time to implement across every thing and every where.. Thus many products still state and are manufactured for 220 - 240.

In teh old days... The issue of managing 100 - 110 Vs 220 - 240 was a bit harder... Today, electronics and low voltage components make it easer... Except where HEATING and or power control comes into play.

With that being said... 220 - 240 system should be cheaper to make.. But as Any says... The Position of teh Australian dollar is only one small bit in teh whole process.

[cuppacoffee]

Re: Are we going to see the Euro Exchange Gold?

Keep in mind that the entire Australian populations is about the same as that of California.

And spread out over a much larger area!

Not everyone here owns a coffee machine, but I think we all wear clothes, and yet we pay around 50% more for these than our American counterparts. All Im saying by this is that its not exclusive to coffee machines.

I dont see things changing, but then again, I still fervently believe we live in, "The Lucky Country". Medicare, Social Services and the age pension, are just a few areas that help us achieve this.

Unlike our American friends, we have great coffee here too! And thats priceless!!

[Javaphile]

Re: Are we going to see the Euro Exchange Gold?

Keep in mind that the entire Australian populations is about the same as that of California.

Actually its closer to half of the population of California. Current estimates are 22 million in Australia and 39 million in California.


Java "Census 2010" phile

[A_M]

Re: Are we going to see the Euro Exchange Gold?

39 million in California.

Including or excluding illegals ?

[Javaphile]

Re: Are we going to see the Euro Exchange Gold?

Including or excluding illegals ?

They didnt say, but I suspect it includes illegals.


Java "Theres a difference anymore?!?" phile