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Topic # 205013 26-Oct-2016 16:16
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It's really painful how much more we pay for consumer devices in New Zealand, when compared to the same item in the US.

I'll use US dollars amounts in this post to highlight the difference. Both are non-sales prices.

I used a Sony Kdl55w650d 55" TV for comparison.

And I used Amazon USA versus JBHi-Fi NZ

$1,201 in USD from JBHiFi NZ (NZD 1,677)

$548 in USD from Amazon USA

Over twice as much.

And we're closer to the TV factories than the US

I wonder if I could fly to the USA, and put a 55" TV on a plane, offset the ticket price. (Just joking)

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  Reply # 1658340 26-Oct-2016 16:28
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Provided that the TV will work in NZ, you are willing to pay the freight cost (its unlikely to survive as oversized checked luggage) and pay the GST at the border then you can certainly fly to the US and do that.  No warranty, no service but thats the risk you take.

 

I did exactly that about 12 years ago.  Went to Singapore bought a LCD TV, shipped it, paid the GST and saved about 30-40% compared to the NZ price at the time.  It effectively paid for my holiday in Singapore (although I would have been hard pressed to justify paying the NZ price at the time). It gave me 10 years of good service.  

 

I didnt both doing it again tho.  Price crash in TV prices over the last 10 years meant easier to buy local than bother.




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  Reply # 1658341 26-Oct-2016 16:28
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And the Sony is not a fluke

Here's a comparison of a LG 55" TV

$1287 USD for an older 2014 model in New Zealand

$567 USD for a newer 2016 model in the USA

 
 
 
 


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  Reply # 1658345 26-Oct-2016 16:31
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You can't compare TV's because they're completely different models and insides with different tuners and drivers. The vast majority of TV's sold in the US will NOT accept 50Hz inputs as they're only designed to work in a 60Hz environment.

 

 

 

 


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  Reply # 1658349 26-Oct-2016 16:37
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When looking at prices you need to remember all US prices are excluding sales tax (which you pay on top) vs NZ that includes 15% GST.

 

 


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  Reply # 1658350 26-Oct-2016 16:37
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and the fact the US is what 100x bigger than NZ? so they have way better buying power from the manufactures.


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  Reply # 1658417 26-Oct-2016 18:13
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I don't have such a problem with electronic devices. however the price we pay for building materials compared to overseas, including Oz prices, is terrible. Especially considering we have a building boom, so economies of scale should be bringing prices down. The big difference is that there is a lot of competition in the electronics market, while very little in the building materials market, and different brands tend to be owned by the same parent companies. So the more competition there is, the better the pricing should be. 


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  Reply # 1658425 26-Oct-2016 18:23
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I suspect a large part of the price difference of building materials is down to freight. A retailer in NZ has to calculate their revenue on top of landed cost, so the price difference is product price + freight * markup.

For electronics the CGA should have a lot to say. The warranty laws in the US is great for retailers but not consumers.




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  Reply # 1658489 26-Oct-2016 19:37
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sbiddle:

 

You can't compare TV's because they're completely different models and insides with different tuners and drivers. The vast majority of TV's sold in the US will NOT accept 50Hz inputs as they're only designed to work in a 60Hz environment.

 

 

 

 

 

 

I don't think that is the point -- the prices should be similar. 


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  Reply # 1658494 26-Oct-2016 19:43
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Freight within the US is a hell of a lot cheaper than up and down NZ as well. Retailers dont seem to like to charge more for things in the south island, so we get lumped with the higher prices in Auckland as well from the big chains.

 

CGA obligations and if they were peddling "Interest free" for suckers at the time also play a big factor in prices here. That and they have absurdly high standard prices so they can do big "30% off all sony" type sales as well.





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  Reply # 1658506 26-Oct-2016 20:02
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jarledb: I suspect a large part of the price difference of building materials is down to freight. A retailer in NZ has to calculate their revenue on top of landed cost, so the price difference is product price + freight * markup.

For electronics the CGA should have a lot to say. The warranty laws in the US is great for retailers but not consumers.

 

 

 

In terms of building materials, a lot are made in NZ. Also freight is a minor component of the cost when you are dealing with the large quantities they are dealing with. Also ironically imported building materials that one retailer brings from overseas are substantially cheaper than the ones made in NZ. You often see that certain building material retailers stock exclusive brands, so you can't price match either. It is far more competitive with electrical stores. Also price spy allows you to easily compare pricing. No such comparison tool is available for building materials, which isn't good for consumers.


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  Reply # 1658507 26-Oct-2016 20:07
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watches are another thing, i brought a Casio watch of Amazon after checking the price here . in NZ rrp $120. To buy it of amazon and ship it to NZ $38. why would you but it here and even if Amazon charges gst , it would still be cheap.





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  Reply # 1658522 26-Oct-2016 20:31
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Appliances are not large quantities. Theyre often shipped non palletized to individial stores here, so each box is handled seperately at multiple points along the journey. Average up the cost of the TVs to the small stores in the south island and the ones that customers collect from the DC in penrose and that is the "cost" of freight on each TV. So again people in auckland near the DC picking up or paying for delivery are subsidizing those in the south island that have it come from a store there that has had to have them trucked in from the DC.

 

 





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  Reply # 1658523 26-Oct-2016 20:31
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surfisup1000:

 

sbiddle:

 

You can't compare TV's because they're completely different models and insides with different tuners and drivers. The vast majority of TV's sold in the US will NOT accept 50Hz inputs as they're only designed to work in a 60Hz environment.

 

 

 

 

 

 

I don't think that is the point -- the prices should be similar. 

 

 

 

 

Sony / Samsung / LG / Panasonic decide the maximum price NZ consumers can handle... and sell them at that price.

 

While they may make a little bit of money in America per TV... there's a LOT of people buying TV's.

 

As in 324 million people.

 

 

 

NZ has what... 4.5 million people.

 

So if the price is the same, they'll need to make more profit to make it worth their while / get a result for the risk involved.

 

 

 

Want cheaper prices, either move overseas or buy from those countries.


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  Reply # 1658547 26-Oct-2016 21:20
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surfisup1000:

 

sbiddle:

 

You can't compare TV's because they're completely different models and insides with different tuners and drivers. The vast majority of TV's sold in the US will NOT accept 50Hz inputs as they're only designed to work in a 60Hz environment.

 

 

 

 

 

 

I don't think that is the point -- the prices should be similar. 

 

 

*Why* should they be similar? I don't think they should be.

 

Yes we pay a lot more for many things here in NZ. Some of that comes down to freight costs and the cost of importing product for a small country. Some of it is the fact we don't pay staff minimum wage. Some of it comes down to retail chains having to make margin off much smaller volumes of goods because we're a lot smaller country. Some of it comes down to GST and retailer obligations under the CGA that can is effectively a margin that needs to be added by the retailer simply as cost of doing business. Some of it comes down to the fact a manufacturer often makes a specific product for the NZ market because of the customisation required which is the case with many TV's.

 

Do we pay too much for many things in NZ? Yes we do. But thinking we should be paying a similar price to the US simply isn't logical.

 

 

 

 


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  Reply # 1658695 27-Oct-2016 07:49
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Even in Canada (right next to USA)---

 

 

 

http://www.cbc.ca/news/canada/country-pricing-a-cause-of-canada-u-s-price-gaps-1.1405894

"Marketplace's investigation found a bottle of Bayer Aspirin, which costs $5.96 at a U.S. Wal-Mart sells for $13.86 at a Canadian one, a 132 per cent difference.

 

Prices are local, and on the day of the investigation, the Canadian dollar was trading at 99.3 cents US."

 

"Edmonton resident Christine Maligec was shocked to find the playpen she bought from Toys "R" Us cost $129.99 in the U.S., but jumped to $249.99 in Canada."


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