overseas companies who insist dealing with their 'local agent'

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gareth41

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#151830 6-Sep-2014 20:17

On several occasions ive tried to order stuff from overseas companies only to be told to contact the local agent in aussie or nz, ive done this and price has been exorbitant. One example buying a bulk lot of ceramic npo capacitors from taiwan, one company I contacted told me to contact their agent in Wellington. I contacted several companies through alibaba and the ones who ship direcly to nz were a fraction of the price than the agent in Wellington of the first company I contacted. I think these companies are shooting them selves in the foot by using sole agents to sell their stuff and hence add a rediculous margin. Another example is the company Marian in germany, im trying to get a high end sound card from these guys and again was told to deal with their australian agent who is charging much more and in AUD too! Marian has several agents in europe and im ordering from one of these at a much cheaper rate since Marian wont sell to me directly.

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#1123455 7-Sep-2014 01:24

I feel your pain mate - one of the reasons I purchase straight from Apple rather than dealing with resellers. It frustrates me no end that as we're becoming more globalised we still have companies operating as if it were 50 years ago.

"When the people are being beaten with a stick, they are not much happier if it is called 'the People's Stick'"

sbiddle

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#1123468 7-Sep-2014 06:38

This is pretty much how most companies in the world operate.

How would you feel if you worked for a NZ company that was a dealer or reseller for NZ but your customers could simply buy direct from China and bypass your company?

eracode

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#1123473 7-Sep-2014 07:28

sbiddle: This is pretty much how most companies in the world operate.

How would you feel if you worked for a NZ company that was a dealer or reseller for NZ but your customers could simply buy direct from China and bypass your company?

I might start to think that the agency business model is old-world model that dates back to the days of sailing ships. The world has changed. Why should an agent be able to access the goods, add no value to them but sell them locally at an inflated price due to their local monopoly?

Sometimes I just sit and think. Other times I just sit.

RunningMan

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#1123476 7-Sep-2014 07:45

eracode:
I might start to think that the agency business model is old-world model that dates back to the days of sailing ships. The world has changed. Why should an agent be able to access the goods, add no value to them but sell them locally at an inflated price due to their local monopoly?

I think the value add is the real key here. For some types of goods there is no value add, for others it can be very helpful to have a local agent. The added value can be quite different for every customer though - be it sales advice or support.

eracode

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#1123961 8-Sep-2014 01:58

RunningMan:
eracode:
I might start to think that the agency business model is old-world model that dates back to the days of sailing ships. The world has changed. Why should an agent be able to access the goods, add no value to them but sell them locally at an inflated price due to their local monopoly?

I think the value add is the real key here. For some types of goods there is no value add, for others it can be very helpful to have a local agent. The added value can be quite different for every customer though - be it sales advice or support.

That's true (and I did think of that when posting the earlier comment). However why not let the customer have the choice of either buying locally and having advice/support/after-sales service etc OR buying overseas and forgoing those things for a cheaper price. The latter might be a bit more risky but probably a risk the OP here was willing to take. Under an agency arrangement there is no choice and a higher price.

Sometimes I just sit and think. Other times I just sit.

surfisup1000

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#1123977 8-Sep-2014 07:38

gareth41: On several occasions ive tried to order stuff from overseas companies only to be told to contact the local agent in aussie or nz, ive done this and price has been exorbitant. One example buying a bulk lot of ceramic npo capacitors from taiwan, one company I contacted told me to contact their agent in Wellington. I contacted several companies through alibaba and the ones who ship direcly to nz were a fraction of the price than the agent in Wellington of the first company I contacted. I think these companies are shooting them selves in the foot by using sole agents to sell their stuff and hence add a rediculous margin. Another example is the company Marian in germany, im trying to get a high end sound card from these guys and again was told to deal with their australian agent who is charging much more and in AUD too! Marian has several agents in europe and im ordering from one of these at a much cheaper rate since Marian wont sell to me directly.

Several years back I was looking for a microscope --- googled and eventually found the model I wanted which retailed in the USA for around $250usd (from memory).

They would not sell to me due to 'manufacture shipping restrictions' . Eventually found a NZ store which was selling the model 'down' from the one I wanted for $1100.

I just bought one when I was next overseas.

Maybe in the pre internet days they could get away with this, but at least importers margins are now exposed at the click of a google search.

This is just the way it is, not much you can do.

Coil

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#1123981 8-Sep-2014 07:50

"Youshop"

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insane

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#1123983 8-Sep-2014 07:56

If enough people stop buying locally they will have to change their business model. As for a local distributor not adding value, the value might come in after sales service, or the simple convenience of being able to view/test an item before purchasing it.

As soon as you purchase from overseas don't the various laws etc designed to protect NZ consumers no longer apply?

eracode

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#1124050 8-Sep-2014 09:42

insane: If enough people stop buying locally they will have to change their business model. As for a local distributor not adding value, the value might come in after sales service, or the simple convenience of being able to view/test an item before purchasing it.

As soon as you purchase from overseas don't the various laws etc designed to protect NZ consumers no longer apply?

Those are the risks I was referring to above. Depending on what you are buying, there may be very little risk or at least risks you are prepared to take in exchange for a lower price.

Sometimes I just sit and think. Other times I just sit.

macuser

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#1124051 8-Sep-2014 09:44

This is the pain Sky/TVNZ feels when everyone can access Netflix via Slingshot

Glassboy

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#1124054 8-Sep-2014 09:46

sbiddle: This is pretty much how most companies in the world operate.

How would you feel if you worked for a NZ company that was a dealer or reseller for NZ but your customers could simply buy direct from China and bypass your company?

If NZ companies aren't going to add any value then they don't deserve to be in business. NZ may be be broadly socialist, but we're not completely.

Geektastic

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#1124174 8-Sep-2014 11:41

gareth41: On several occasions ive tried to order stuff from overseas companies only to be told to contact the local agent in aussie or nz, ive done this and price has been exorbitant. One example buying a bulk lot of ceramic npo capacitors from taiwan, one company I contacted told me to contact their agent in Wellington. I contacted several companies through alibaba and the ones who ship direcly to nz were a fraction of the price than the agent in Wellington of the first company I contacted. I think these companies are shooting them selves in the foot by using sole agents to sell their stuff and hence add a rediculous margin. Another example is the company Marian in germany, im trying to get a high end sound card from these guys and again was told to deal with their australian agent who is charging much more and in AUD too! Marian has several agents in europe and im ordering from one of these at a much cheaper rate since Marian wont sell to me directly.

I get this with photographic stuff.

The dealers here still have to buy from a 'distributor' who adds precisely bugger all to the process by way of value.

Why the dealers cannot simply log into an intranet portal and order stock direct I have no idea.

I've seen things that cost $800 in NZ sold for $300 elsewhere - and I am darned sure that a huge part of that difference is a distributor in NZ slapping a good percentage on the ticket on the way through for doing nothing at all other than accepting Fedex deliveries and then sending them out again...!

Zeon

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#1124188 8-Sep-2014 12:09

Just buy from Aliexpress? The times of local distribution is becoming redundant with global commerce and shipping these days.

Speedtest 2019-10-14

graemeh

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#1124207 8-Sep-2014 12:33

Zeon: Just buy from Aliexpress? The times of local distribution is becoming redundant with global commerce and shipping these days.

Aliexpress are great for buying generic things.

If you want a specific brand then you need to be very careful.

I'd expect any capacitors bought from Aliexpress to be counterfeit. Sure, they'll be capacitors but who knows what quality.

I bought some electronic components from Ebay recently and the IC included in the package was clearly fake.

clinty

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#1124264 8-Sep-2014 13:21

Geektastic:

I get this with photographic stuff.

The dealers here still have to buy from a 'distributor' who adds precisely bugger all to the process by way of value.

Why the dealers cannot simply log into an intranet portal and order stock direct I have no idea.

I've seen things that cost $800 in NZ sold for $300 elsewhere - and I am darned sure that a huge part of that difference is a distributor in NZ slapping a good percentage on the ticket on the way through for doing nothing at all other than accepting Fedex deliveries and then sending them out again...!

Note: Am not a photographic reseller or distributor

I would think they do more than just clip the ticket. They would be responsible for managing advertising in NZ, providing technical back up to the resellers, setting up and managing the service network, stocking and maintaining spare parts, arranging govt required certifications ( maybe not on photo equipment, but you get the idea), supply local brochures, attending trade shows, distribution product knowledge and probably a lot more I can't think of

Clint

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