Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.



204 posts

Master Geek
+1 received by user: 3


Topic # 87672 3-Aug-2011 21:33

So I got myself a jersy a week or so ago for about $120nz from the US, about 1/2 the price I could have got in NZ, easy decision i thought, and decision that many others have made going by the amount of media coverage its getting the last few days.
  I heard an interview with the Adidas Manager for NZ and he was spouting some pretty lame reasons of why the jerseys were more expensive here.

Anyways the main reason for my post is, the only reason it is the news is because its over a Rugby jersey, wouldnt it make a better story if they dug a little deeper and did a more in depth article on all the other products we get ripped off on by companies and there regional pricing strategies?            

Create new topic
780 posts

Ultimate Geek
Inactive user


  Reply # 501659 3-Aug-2011 21:45 Send private message

throbb: So I got myself a jersy a week or so ago for about $120nz from the US, about 1/2 the price I could have got in NZ, easy decision i thought, and decision that many others have made going by the amount of media coverage its getting the last few days.
  I heard an interview with the Adidas Manager for NZ and he was spouting some pretty lame reasons of why the jerseys were more expensive here.

Anyways the main reason for my post is, the only reason it is the news is because its over a Rugby jersey, wouldnt it make a better story if they dug a little deeper and did a more in depth article on all the other products we get ripped off on by companies and there regional pricing strategies?            


I'd love to know why NZ has such high prices.   Some might say economies of scale but I think it is more than that.

But, it is difficult or impossible to find out who is making the money as the different companies in the supply chain will never release their pricing data, especially to journalists. 

A classic is the itunes store --- we pay more than the australians, yet it is the same product. 

Recently I looked at lenovo NZ vs lenovo US.  In both cases, the product configuration is chosen on the website then the notebook is manufactured in china and shipped to the customer. So, why must the NZ consumer pay 40%+ extra for the same product?  GST does not explain this at all. 



4791 posts

Uber Geek
+1 received by user: 546


  Reply # 501688 3-Aug-2011 23:14 Send private message

economies of scale do explain most of the differences in most products - the USA is simply a bigger market than NZ by several orders of magnitude and so can get large bulk buy efficiencies.

*However*, I seriously doubt that argument holds up for ABs rugby shirts. IMO, there is no way the US market sells more ABs shirts than NZ.

798 posts

Ultimate Geek
+1 received by user: 19


  Reply # 501722 4-Aug-2011 07:11 Send private message

Fonterra said the reason we pay high milk prices it because it mirrors international prices. Adidas say the opposite that it is to protect regional retailers. Basically if the company has no competition, they can set the price and can make up any reason they want.

262 posts

Ultimate Geek
+1 received by user: 6


  Reply # 501734 4-Aug-2011 08:24 Send private message

You charge what the market will pay.  Its really as simple as that.  If we stopped buying $200+ rugby shirts, the price would fall.

We do suffer by being so remote and with a small population so have to expect to pay a little more than the US and even Aus.  But it certainly does not explain the more than double price when compared to the US.

780 posts

Ultimate Geek
Inactive user


  Reply # 501743 4-Aug-2011 08:41 Send private message

NonprayingMantis: economies of scale do explain most of the differences in most products - the USA is simply a bigger market than NZ by several orders of magnitude and so can get large bulk buy efficiencies.

*However*, I seriously doubt that argument holds up for ABs rugby shirts. IMO, there is no way the US market sells more ABs shirts than NZ.


I do not accept that economies of scale 'doubles' prices or even should increase prices in some cases.  

There are too many examples where prices are higher for NZ consumers where economies of scales do not apply.   (see itunes, lenovo, dell where products are sourced and delivered in exactly the same way regardless of global location). 

Even companies like Norton try to force you to use their local website, but the local norton website sells for more than the US website, despite being download content only.   

5911 posts

Uber Geek
+1 received by user: 287

Trusted
Subscriber

  Reply # 501744 4-Aug-2011 08:42 Send private message

Companies blame shipping costs. I suspect shipping costs for bulk items, by ship or economy air delivery, will be cheaper per unit than consumers get. Chains of middlemen adding markup may be to blame, or excessive markup from the distributor or retailer. Some retailers make things up heaps, like Dick Smith marking their cables up 1000% (or whatever). Some sell things just above cost, TVs for example.




Asus eee pad transformer
iPod 2G
Windows 7 PC
Lots and lots of Nikon camera gear

500 posts

Ultimate Geek
+1 received by user: 15

Subscriber

  Reply # 501762 4-Aug-2011 09:22 Send private message

The price for most things is what the market will support, with some consideration for the RETAILERS needs.  

Its always been this way and for the most part I don't have a problem with it.  Retailers needs to cover their risk and make a profit, and if people are willing to pay more for living in an isolated market (i.e less choice) then it makes sense that retailers will charge more.  Which is obvious in the case of drop shipped products.

The thing I found most amusing about the Adidas jerseys was the article in the Herald.  Badly titled article for a start but the marketing manager certainly didn't help his cause :D

IT Professional
1305 posts

Uber Geek
+1 received by user: 33

Trusted
Subscriber

  Reply # 501776 4-Aug-2011 09:51 Send private message

I remember the huge sell off of Americas Cup clothing by Canterbury after it was all over and done with. Picked myself up a nice windbreakers for $50, down from $250. And they still made a profit on it.

It's a bit like the $500 Katmandu puffer jackets.

We should all refuse to pay those prices and see how quickly the prices drop!

428 posts

Ultimate Geek
+1 received by user: 15


  Reply # 501787 4-Aug-2011 10:01 Send private message

Talking to someone in the retail industry that I know, I can get the jersey for just under $150 from them. Gives an indication of what the markup the retailer is making, then the local distributor making their cut, and then the international distributor.



204 posts

Master Geek
+1 received by user: 3


  Reply # 501800 4-Aug-2011 10:12

Apparantly the cost price of the jerseys are $105+GST, which is more than retail cost from the US.

1156 posts

Uber Geek
+1 received by user: 73

Trusted

  Reply # 501808 4-Aug-2011 10:21 Send private message

 
*However*, I seriously doubt that argument holds up for ABs rugby shirts. IMO, there is no way the US market sells more ABs shirts than NZ.


I think this is why the media has gravitated to this story. We're living in the home of the All Blacks, but we are getting shafted on merchandise prices.  

Create new topic








Twitter »
Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when new jobs are posted to our jobs board:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:




News »

Trending now »
Hot discussions in our forums right now:

Telecom introduces unlimited broadband data plan
Created by freitasm, last reply by NonprayingMantis on 23-Apr-2014 23:13 (93 replies)
Pages... 5 6 7


Stonedine
Created by Lizard1977, last reply by surfisup1000 on 23-Apr-2014 21:27 (58 replies)
Pages... 2 3 4


Telecom has started metering their TiVo customers' broadband usage (WITHOUT PRENOTIFICATION)
Created by Peteriv, last reply by mxpress on 23-Apr-2014 14:22 (69 replies)
Pages... 3 4 5


Forms of government for New Zealand
Created by charsleysa, last reply by KiwiNZ on 23-Apr-2014 20:57 (169 replies)
Pages... 10 11 12


Parallel imported product
Created by Wills1, last reply by joker97 on 23-Apr-2014 21:01 (53 replies)
Pages... 2 3 4


MH370 - Call for Search & Rescue Help
Created by DS248, last reply by joker97 on 23-Apr-2014 22:37 (737 replies)
Pages... 48 49 50


Labour MP Shane Jones to step down
Created by jeffnz, last reply by jeffnz on 23-Apr-2014 20:41 (32 replies)
Pages... 2 3


Upcoming Freeview Restack AUCKLAND
Created by Brunzy, last reply by richms on 23-Apr-2014 21:05 (13 replies)


Geekzone Live »
Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.

Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.