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  • #46
    Re: Oz to USA Price Parity...

    Originally posted by 0A3F282A1A223F202C21294D0 link=1305923402/44#44 date=1306251183
    I recently went to replace a pair of shoes--made in Vietnam, exported all over the world as a  "Brand-name".
    Cost over the internet (Australia) $269.
    From a real store (Australia)--Sorry, not made any more. The replacement model costs $259.
    From a US website US$58 (plus US$30 DHL shipping--5 days delivery over Easter).

    Greg
    The first example is "a limited edition"

    The second example is "latest model so expect to pay more"

    The third example is, "a run out, end of line, or no one wants these anymore sale"

    Hope they fit. ;D

    Comment


    • #47
      Re: Oz to USA Price Parity...

      Originally posted by 1E2B3C3E0E362B3438353D590 link=1305923402/44#44 date=1306251183
      replace a pair of shoes
      How can I try on a pair of shoes over the net?

      I like to try before I buy. I put shoes on and walk around the store for a while to see how they fit.

      I have learnt by experience how ill fitting shoes and ski boots can cripple my feet.

      Barry

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      • #48
        Re: Oz to USA Price Parity...

        Originally posted by 4D6E7D7D76504B7A616C6E610F0 link=1305923402/46#46 date=1306277342
        ill fitting shoes and ski boots can cripple my feet.
        Bad ski boots :O

        I think the water or bamboo torture may well be preferable....

        Comment


        • #49
          Re: Oz to USA Price Parity...

          Originally posted by 0E2F242423394A0 link=1305923402/45#45 date=1306269646
          I recently went to replace a pair of shoes--made in Vietnam, exported all over the world as a  "Brand-name".
          Cost over the internet (Australia) $269.
          From a real store (Australia)--Sorry, not made any more. The replacement model costs $259.
          From a US website US$58 (plus US$30 DHL shipping--5 days delivery over Easter).

          Greg


          The first example is "a limited edition"

          The second example is "latest model so expect to pay more"

          The third example is, "a run out, end of line, or no one wants these anymore sale

          Now all the details come out. Now it makes sense why the prices were different.

          Comment


          • #50
            Re: Oz to USA Price Parity...

            Originally posted by 2322776666120 link=1305923402/48#48 date=1306281619

            Now all the details come out.  Now it makes sense why the prices were different. 

            Except that those were two different posts, so it was probably just a theory to explain the pricing difference.

            I too bought some shoes a while back.  Highly recommended by a reputable running magazine. New model, au$259 rrp. Rebel sport $259. Specialist store in Albert Park - 20% discount. au$130 shipped from the uk by an international seller on the bay of evil, with Australian address to process returns.  Made in Thailand. For some products anyway, borders are becoming less relevant and those  businesses that manage the logistics stand to make money

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            • #51
              Re: Oz to USA Price Parity...

              Originally posted by 1D3C3737302A590 link=1305923402/32#32 date=1306125913
              In order to add a little more complexity to this whole discussion, consider the following in the equation of who gets what cheaper.

              Financially, we are far better off than our USA counterparts.  Not only is our minimum wage about 50% better, we get more annual leave plus a 17.5% bonus, enjoy universal healthcare, university fees are cheaper, and more Australians own multiple homes than our American counterparts. 

              Yes, we are the lucky country, and yes, we, as well as other lucky countries, do and will continue to subsidise others for a myriad of reasons.
              Wish the above were true and relevant to the discussion.

              Lets take a look at Canada. In Canada the minimum wage stands above the rate in the US and lower than it is here. However, in Canada they enjoy even more comprehensive health vcare coverage, university fees are lower than they are here, houses and cars average out at half of what we pay for them here and pretty much everyone I know owns a cottage as well as a house. Yet... in Canada the cost of a shiny new machine will still be substantially lower than it is here whether you look at it in the absolute or the net sense of the word. Sorry to burst your bubble but to me living here in a lucky country (one of morer than a few) does not justify or excuse the prices we pay... there has to be another reason.

              Comment


              • #52
                Re: Oz to USA Price Parity...

                What a dud CD thread....

                Weve done this before and I cant see that one new argument has been raised. Pehaps a mod can splice this one to the existing thread... :

                Comment


                • #53
                  Re: Oz to USA Price Parity...

                  Originally posted by 1E2126213C293B3B2D480 link=1305923402/50#50 date=1306303956
                  relevant to the discussion
                  Ok. What I said wasnt relevant yet what you followed up with is. Thats funny. ;D

                  Originally posted by 1E2126213C293B3B2D480 link=1305923402/50#50 date=1306303956
                  living here in a lucky country (one of morer than a few) does not justify or excuse the prices we pay... there has to be another reason.
                  There is Bruce. The reason is that some countries are luckier than ours.

                  Comment


                  • #54
                    Re: Oz to USA Price Parity...

                    America has different wage rates, size of market, consumer protection laws and commercial rents than Australia.

                    so of course they have different prices.

                    Think prices are good in America?

                    Then try living in the minimum wage there

                    Comment


                    • #55
                      Re: Oz to USA Price Parity...

                      Hmm, this reasoning about price parity seems to revert to wages, standard of living etc when people loose track of the point. It is a product, made shipped and a margin put on it. The focus is on why we pay more for things which are imported into america and also imported into australia. We are charged more for things in australia because retailers, and especially distributors can. The interesting one will be the new breville 900 coffee machine when released in Australia and the usa, made in china freight to australia, freight to the usa, designed in australia, lets see how much extra we are charged. The australian prosumer market is lucky that USA is 110v and the weight of most machines exceeds us postal service limits.

                      The arguement about "we are lucky in australia to have such a great standard of living of so we pay more" .... not sure what that has to do with margins and prices.

                      Only one point distributors could argue is we are a smaller market, they sell less machines, and they need to make enough to run their business on less volume, so they charge more per machine ..... its all about margins.

                      Comment


                      • #56
                        Re: Oz to USA Price Parity...

                        Originally posted by 44435252435447524E494B43260 link=1305923402/54#54 date=1306783963
                        price parity seems to revert to wages, standard of living etc
                        Thats because price parity, or rather purchasing power parity, is influenced by wages, standard of living, etc. Some reading here to explain: http://en.wikipedia.org/wiki/Purchasing_power_parity

                        Comment


                        • #57
                          Re: Oz to USA Price Parity...

                          The manufacturing costs of course affect the retail price. What many people either dont realize or forget are all the design, tooling, and setup costs involved in a manufacturing process. Then of course there are the indirect costs for things such as certification and market research for a particular market. These costs are higher on a per unit sold basis in a small market vs a large one.

                          Metal stamping and plastic injection molding dies are not cheap. In fact theyre rather pricey. And no matter whether youre going to use that die to make 10,000 parts or 150,000 parts it costs the same to make the die. A small die can easily run $10,000. That means that in a market where 10,000 units will be sold the per unit price to pay for that die is $1. For the larger market where 150,000 units will be sold the per unit price to pay for the die is 6 and 2/3rds cents. Add up all the parts from the plug, to motors, to the heating elements etc that differ from a machine sold in AUS to one sold in the US and you start to get an idea why machines are more expensive in AUS.

                          Even for parts that arent made using a die you still have pre-manufacturing costs for the designing of that part. Once again the cost of doing the designing is the same regardless of the size of the market so the cost per item sold is going to be 15 times (This assumes the same number of units will be sold per capita with 20 million population in AUS vs 300 million in the US.) more expensive on the machine sold in AUS than for the one sold in the US.

                          This difference in scale/per unit pricing carries over into far more parts/areas than most people realize. Not only in the above examples but also into things like the printing of the packaging. The same box can be used in both markets but the printing on the box will obviously be different yet will cost the same in total dollars to design. Market research in the two countries costs roughly the same in terms of total price so once again the per item cost is 15 times higher for the one sold in AUS. Certifications are expensive to obtain and again cost roughly the same in total dollars spent to certify an item in AUS and the US. So guess what. Yup, the per unit cost is once again 15 times higher on the one sold in AUS.

                          So far all of the expenses described are one-offs. But the same economy of scale carries over into the actual manufacturing process as well. Manufacturers charge a fee every time they have to swap a die or printing plate out or change over an assembly station. When those items used differ between AUS and the US that fee per unit sold is going to be 15 times higher on the unit sold in AUS.

                          The same economy of scale carries over into the retail side of things as well. Each unit will take up the same amount of shelf space in both AUS and the US but with the higher prices of commercial space in AUS that translates once again into a higher cost per unit in AUS. The same thing goes for other indirect expenses for the retailer such as higher employee costs. An employee in both countries is expected to sell the same number of items yet the cost of that employee to the retailer is several times higher in AUS than in the US due to higher wages and better benefits. Ergo once again there is a higher price per unit in AUS.

                          So while there may be some of the Because we can. higher pricing going on in AUS when the true cost of bringing an item to market is looked at and added up it quickly becomes apparent that the vast majority of the higher prices are in fact caused by a higher cost per unit for items in the Australian market over that of the US market.


                          Java "Here endeth the Economics lesson" phile
                          Toys! I must have new toys!!!

                          Comment


                          • #58
                            Re: Oz to USA Price Parity...

                            Comparison of recommended prices of the BDB between Aus and USA doesn’t mean much. What counts for the consumers is what the retailers in both countries are prepared to sell it for.

                            At a local discount store, when I asked for their best price for a Breville popper ticketed at $54.90, I was told $25. I bought one and went back the next day and bought another three at that price, as spares. I know there are cheaper poppers at times as specials.

                            I know that store hopes that I will go back again for a more pricy item.

                            I first got into bargaining in Asia years ago. In Nepal then I often bought trinkets for 1/3 of the original asking price.

                            I was told that then the Yanks on the whole wouldn’t bargain. They were more likely to pay the asked price. This may have changed since then. For us Aussies it was a game to get the lowest price.

                            When we go into a discount, department or speciality store here looking for any home goods, most prices are negotiable.

                            Who knows where the price of the Dual Boiler will go when the market forces occur such as supply, demand, promotion, popularity, competition etc.

                            Barry

                            Comment


                            • #59
                              Re: Oz to USA Price Parity...

                              Re: the price of the BDB. My prediction is that it will be possible to get one for under $1001000 within 6 months of initial availability in the stores.
                              There will also be package deals of the machine with smartgrinder at or slightly below the machines rrp.

                              Be interesting to see what the initial early adopter prices offered to snobbers will be.

                              Edit - missed a zero, mea maxima culpa :-[

                              Comment


                              • #60
                                Re: Oz to USA Price Parity...

                                Originally posted by 3E3638303228283438305B0 link=1305923402/58#58 date=1306822578
                                Re: the price of the BDB. My prediction is that it will be possible to get one for under $100 within 6 months
                                Ill have 100 then ;D

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