American Black Friday

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Master Geek
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#1176143 14-Nov-2014 22:45

MrJonathanNZ:
21brandon21: http://au.ign.com/wikis/black-friday-cyber-monday/Best_Buy_2014?utm_campaign=fbposts&utm_source=facebook

When will we ever see prices like this in NZ?

When you accept a vastly lower wage for your current job and no protection from unions etc.
Oh and yes the population.

This makes no sense as we already have low wages and no union protection.

Life is a daring adventure or nothing at all...

Batman

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#1176147 14-Nov-2014 23:02

Geektastic:
MrJonathanNZ:
21brandon21: http://au.ign.com/wikis/black-friday-cyber-monday/Best_Buy_2014?utm_campaign=fbposts&utm_source=facebook

When will we ever see prices like this in NZ?

When you accept a vastly lower wage for your current job and no protection from unions etc.
Oh and yes the population.

Why would I need to accept that? Also I have never had 'protection' from a union in my life.

I'm not even sure population is always an excuse.

Take trainers. How many pairs in boxes fit in a 40ft container? 1000?

Let us say cost price ex Vietnam is $40 a pair. Shipping for 1 container to NZ from Halong City or somewhere perhaps $4000.

So landed price ex GST and Duty around $44.

Add 25% GST and duty to get $55.

Yet same shoes retail here for almost $255. What does the population size have to do with that?

We are just ripped off and fed lines like "it's the shipping costs" or "the market is too small" which in many cases are just excuses.

The main problem is 'distributors' who do nothing whatsoever to add value - they just add margin for the pleasure of receiving goods from overseas and sending them out to retailers. In many cases the retailers could just order direct if they were allowed to.

Umm ... cost price ex Vietnam is around $1-2 US. If you walk the markets there you will buy for $3 US for locals' price. Foreigners' price is around $10-30 US

richms

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#1176148 14-Nov-2014 23:03

I don't accept high prices which is why I look on my phone in store at prices elsewhere and leave without buying.

Richard rich.ms

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Master Geek
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#1176157 15-Nov-2014 00:13

Geektastic:
MrJonathanNZ:
21brandon21: http://au.ign.com/wikis/black-friday-cyber-monday/Best_Buy_2014?utm_campaign=fbposts&utm_source=facebook

When will we ever see prices like this in NZ?

When you accept a vastly lower wage for your current job and no protection from unions etc.
Oh and yes the population.

Why would I need to accept that? Also I have never had 'protection' from a union in my life.

I'm not even sure population is always an excuse.

Take trainers. How many pairs in boxes fit in a 40ft container? 1000?

Let us say cost price ex Vietnam is $40 a pair. Shipping for 1 container to NZ from Halong City or somewhere perhaps $4000.

So landed price ex GST and Duty around $44.

Add 25% GST and duty to get $55.

Yet same shoes retail here for almost $255. What does the population size have to do with that?

We are just ripped off and fed lines like "it's the shipping costs" or "the market is too small" which in many cases are just excuses.

The main problem is 'distributors' who do nothing whatsoever to add value - they just add margin for the pleasure of receiving goods from overseas and sending them out to retailers. In many cases the retailers could just order direct if they were allowed to.

Parallel importing is perfectly legal, if retailers want to they can direct import.

I don't get the "distributors add no value" argument.

If they didn't add value then either the retailer or the manufacturer would cut them out and take that profit.

In most cases in NZ the distributor does all the CGA and warranty work on behalf of the manufacturer. You get one company who take on a lot of clients, i.e. Brightpoint who do Apple, Samsung and other mobile phone companies. As each company doesn't have to have an office here with their own legal department etc the costs are actually reduced by having distributors as they split the overheads between multiple companies.

As for the prices companies charge, its basic 3rd form supply and demand, you charge the price that makes the most money from the demand that is there

If you think you can sell quality shoes for $55 a pair and still make a profit, then put your ideas together and take it to a venture capitalist, I look forward to you shaking up the pricing of shoes in New Zealand

Geektastic

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#1176185 15-Nov-2014 07:54

Predated:
Geektastic:
MrJonathanNZ:
21brandon21: http://au.ign.com/wikis/black-friday-cyber-monday/Best_Buy_2014?utm_campaign=fbposts&utm_source=facebook

When will we ever see prices like this in NZ?

When you accept a vastly lower wage for your current job and no protection from unions etc.
Oh and yes the population.

Why would I need to accept that? Also I have never had 'protection' from a union in my life.

I'm not even sure population is always an excuse.

Take trainers. How many pairs in boxes fit in a 40ft container? 1000?

Let us say cost price ex Vietnam is $40 a pair. Shipping for 1 container to NZ from Halong City or somewhere perhaps $4000.

So landed price ex GST and Duty around $44.

Add 25% GST and duty to get $55.

Yet same shoes retail here for almost $255. What does the population size have to do with that?

We are just ripped off and fed lines like "it's the shipping costs" or "the market is too small" which in many cases are just excuses.

The main problem is 'distributors' who do nothing whatsoever to add value - they just add margin for the pleasure of receiving goods from overseas and sending them out to retailers. In many cases the retailers could just order direct if they were allowed to.

Parallel importing is perfectly legal, if retailers want to they can direct import.

I don't get the "distributors add no value" argument.

If they didn't add value then either the retailer or the manufacturer would cut them out and take that profit.

In most cases in NZ the distributor does all the CGA and warranty work on behalf of the manufacturer. You get one company who take on a lot of clients, i.e. Brightpoint who do Apple, Samsung and other mobile phone companies. As each company doesn't have to have an office here with their own legal department etc the costs are actually reduced by having distributors as they split the overheads between multiple companies.

As for the prices companies charge, its basic 3rd form supply and demand, you charge the price that makes the most money from the demand that is there

If you think you can sell quality shoes for $55 a pair and still make a profit, then put your ideas together and take it to a venture capitalist, I look forward to you shaking up the pricing of shoes in New Zealand

And how much CGA work do you think is involved with trainers? Replacing 5% of pairs perhaps? Probably less than that.

Certainly not enough to account for a $200+ markup.

And take Nikon cameras: warranty is provided by Nikon (international on lenses). If I buy a lens at 65% of NZ cost in the USA, Nikon have to pay to have it fixed anywhere in the world by any of their repair facilities. What value does a NZ distributor overcharging me add in that case? The dealers in NZ could easily go online to a Nikon intranet and just order what they need direct from Nikon.

There's just so much over-charging slushing around. I bought parallel imported Finish Quantum dishwasher tablets the other day (from the EU - sold at Mitre 10) in 1kg 60 tablet boxes for $15/box. The official NZ price is $34 for 30 tablets! Why? No reason - Mitre 10 will still be making money importing the EU ones.

Batman

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#1176187 15-Nov-2014 08:06

my point is, economics is as complicated as the weather.

- without the factories in 3rd world countries they will have no jobs.
- can they leverage for more pay? it's an entire chain, not just the workers, but the fabric producer. the dye producer. the truck drivers. the petrol station workers. the train operators. the shipping workers. legislation. in the ideal world, every one of those gets a cut. which is what happens in 1st world countries. which makes it expensive to make ONE shoe. bcos OSH comes in and says - umm you need to spend $10 million upgrading your factory. then the unions decide to strike. or people take more sick leave than you anticipated. or parental leave.
- hang on a sec - who takes all the cut? well, a bribe here and there in viet. managers travel. big shots have conferences. advertisements in tv, magazines, trademe, facebook .... and then there's distributors in 1st world countries who also have to pay your truck driver, your office worker, hire your offices, use mobile phones, lease cars ...
-- so let's say I just buy from Vietnam for $3 US bcos I know a local and get local price ... if everyone does that, these people will have less business/income: hotels, magazines, artists, computer designers, video editors, graphics editors, truck drivers, office workers, property owners, Telco companies, car companies - and NZ will be in the 1900s in the feudal system ...

so which one is worse - a feudal system or capitalism? or is communism better? what about ...

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MikeB4

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#1176188 15-Nov-2014 08:08

I believe markets like NZ are subsidizing the US consumer. This is evident in the pricing company A will sell widgets to company A's NZ division, the NZ division then has to gain its margin on that price.

Here is a crazy notion, lets give peace a chance.

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#1176191 15-Nov-2014 08:11

4 million people buying at 50% more at around 1/3 the buying rate of the 320 million people in the US (I assume the buy more per head bcos it's cheaper, much cheaper) - not sure if that will have much effect - someone do the maths

gsr

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Master Geek
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#1176201 15-Nov-2014 09:18

Coming from another small remote country, what I've experienced is big manufacturers are not even interested in dealing with distributors in small countries. They'd rather have regional offices (probably Oz in case of NZ). That increases overheads,l making pricing less reasonable. It's just the way it works sometimes.

old3eyes

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#1176214 15-Nov-2014 09:47

Unfortunately the "we're a small country" is always used as an excuse to rip us off. Some people in this group are always advocating this as the reason..

Regards,

Old3eyes

sonyxperiageek

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#1176384 15-Nov-2014 18:08

21brandon21: http://au.ign.com/wikis/black-friday-cyber-monday/Best_Buy_2014?utm_campaign=fbposts&utm_source=facebook

When will we ever see prices like this in NZ?

Oh my gosh their TVs are so cheap!!

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gmball

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#1176410 15-Nov-2014 18:58

I think a few people are missing the point re population.

Sure, its easy enough to workout the landed cost of goods, in fact from memory, shipping a container to NZ from the main factories in China is cheaper than shipping to the USA.

Where the price difference occurs, retailers whether they are in NZ or the USA, generally pay around the same in store lease costs etc, if a retailer in the USA has a market of 300+ million people to sell to (take a online retailer), even if only 10,000 people purchased from that retailer each month, it would still dwarf the maybe 1000 people who purchase from a retailer in NZ each month, thus the NZ retailer has less people to sell to, resulting in less sales each month, and hence charge a higher margin on each product to cover their costs.

The size of our population has a direct result on why we are charged more for the items we buy.

In fact, when you consider what we pay for goods compared with Australia, we are doing quite well for a population less than quarter of AU.

Geektastic

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#1176523 15-Nov-2014 22:36

gmball: I think a few people are missing the point re population.

Sure, its easy enough to workout the landed cost of goods, in fact from memory, shipping a container to NZ from the main factories in China is cheaper than shipping to the USA.

Where the price difference occurs, retailers whether they are in NZ or the USA, generally pay around the same in store lease costs etc, if a retailer in the USA has a market of 300+ million people to sell to (take a online retailer), even if only 10,000 people purchased from that retailer each month, it would still dwarf the maybe 1000 people who purchase from a retailer in NZ each month, thus the NZ retailer has less people to sell to, resulting in less sales each month, and hence charge a higher margin on each product to cover their costs.

The size of our population has a direct result on why we are charged more for the items we buy.

In fact, when you consider what we pay for goods compared with Australia, we are doing quite well for a population less than quarter of AU.

They need to cut costs, not jack up prices. They are charging the consumer for their inefficiency. Where, for example, is the Zappos of NZ?

We aren't changing our retail models very fast - we are just expecting that consumers will continue to allow their legs to be lifted despite price transparency courtesy of the web.

Handle9

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#1176585 15-Nov-2014 23:10

Geektastic: They need to cut costs, not jack up prices. They are charging the consumer for their inefficiency. Where, for example, is the Zappos of NZ?

We aren't changing our retail models very fast - we are just expecting that consumers will continue to allow their legs to be lifted despite price transparency courtesy of the web.

Why would they change? It's a free market and unless there is a compelling reason to change they won't. It's not a very attractive market, it's small, it's a long way away from everything so it will be the last market to be disrupted, not the first.

21brandon21

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Master Geek
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#1176586 15-Nov-2014 23:13

https://www.youtube.com/watch?v=78yigV0GYGQ No excuses m8.

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