I'm also new to this forum - and I'm not out to ruffle feathers.
I see a lot of reasons for higher prices here -but not all seem convincing to me. ( I'm in the business of Global merchandising. Not coffee related)
Coffee machines... for the sake of argument... as this is a forum for it.
For example:
Electrical certification. Yes, it is slightly different from EU spec. But EU spec is very safe (Germans are fussy that way. More so than even Australians. And No. Your house will not burn down with EU CE certified electrics.)
Cost implication - None. Manufacturers will build to foreign Certification.
Coffee machines run hot in Europe due to different beans.
Yes. If the experts say this is true, I have no reason to doubt it. (I have no idea.... I'm not an expert although I love coffee and am here to learn about it)
Cost implication - None. Manufacturers will build/tune for foreign spec. (If the Aussie importers have to tune every machine out of the box to ideal domestic spec... they need to go back to business school)
Australia is very far away.
Yes... I know it. I fly to the EU and NA more than a dozen times a year and I'm growing old on planes.
But shipping costs are lower now than ever before. It costs roughly $3000 to ship a container from Europe to Australia and less from China.
Local vendors provide a complete service and experience compared to 'box movers'.
Yes. I'm sure they do. And I am sure they are also very nice people.
Yet there are many foreign suppliers who also provide similar services to their domestic markets - and even after equalizing the costs (taxes, transportation etc) they are able to provide the same product landed here for a lot less money.
So, it appears that local vendors are essentially victims of higher fixed costs (rent, salaries) and lower sales volumes.
And so we pay more. But in a global marketplace where an arbitrage exists... it will be filled. And if the difference is large enough it will be filled faster and more effeciently than some people would like. (unless you have a monopoly - in which case you are very wealthy. And you are a luxury car dealer in Australia.)
Domestic research indicates that Australians will pay more to source locally. However, that premium is shrinking at an alarming rate.
How much of a premium are you willing to pay ? 10%? 30%? 50%? 100%? more?
How often have you required warranty service for any appliance / household goods that you bought in the last 10 years? Personally, I can't remember ever needing any. Now, if a salesman offers to sell me an extended warranty when I buy something, I ask instead how much of a discount I can get if I get no warranty at all.

MCM.

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