What are some particularly egregious examples 'kiwi tax' or companies creaming the NZ market vs international prices?

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#2639222 20-Jan-2021 22:02

frankv:

In NZ, (I think 10%) duty still applies to shoes (except children's shoes below size 10). So, take the American price, convert to NZD, multiply by 1.1 * 1.15 and you get $221.375. There's also a $55 Customs fee, and freight and GST on freight.

Looks like the $245 price is a bargain.

If that's too steep for you, try the Warehouse for a $20 pair of shoes.

Not to mention the US price excludes their sales tax, so that needs to be added onto the US price as well at the time of purchase to make a fair comparison. So many people forget this when comparing prices.

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#2639227 20-Jan-2021 22:20

A stand upgrade for some speakers I was looking at.

UK price approx NZ$900 equivalent including 20% GST. NZ price? $1500.

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#2639228 20-Jan-2021 22:21

sbiddle:

frankv:

In NZ, (I think 10%) duty still applies to shoes (except children's shoes below size 10). So, take the American price, convert to NZD, multiply by 1.1 * 1.15 and you get $221.375. There's also a $55 Customs fee, and freight and GST on freight.

Looks like the $245 price is a bargain.

If that's too steep for you, try the Warehouse for a $20 pair of shoes.

Not to mention the US price excludes their sales tax, so that needs to be added onto the US price as well at the time of purchase to make a fair comparison. So many people forget this when comparing prices.

True - although they have options such as buying from states where no sales tax is charged. Also their sales taxes are usually single digits not 15 or 20%.

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#2639230 20-Jan-2021 22:23

frankv:

In NZ, (I think 10%) duty still applies to shoes (except children's shoes below size 10). So, take the American price, convert to NZD, multiply by 1.1 * 1.15 and you get $221.375. There's also a $55 Customs fee, and freight and GST on freight.

Looks like the $245 price is a bargain.

If that's too steep for you, try the Warehouse for a $20 pair of shoes.

Can anyone give a good reason why shoes should have a random 10% duty? We have no significant NZ shoemaking industry and almost every pair of shoes in NZ is imported.

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#2639231 20-Jan-2021 22:23

Its getting less of an issue since importing is so much easier on things now that local retailers have to compete, but still with powertools its quite bad on some of the dewalt and milwaukee ones, with them being massivly expensive here unless you use a parallel importer vs off the shelf at home depot etc in the US.

Its more the range, availability and good service that had me ordering from the US rather than just price. I cant be stuffed with dealing with the bunnings and mitre 10 parts ordering process when I can usually hit up amazon or someone and just order, pay and have shipped either to me or a reshipper without dealing with people.

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#2639233 20-Jan-2021 22:33

Tools.

Just brought a Dewalt Oscillating Multi-Tool (DCS356). Got it from the USA via ebay. Brand new in box, shipped to my door, GST paid for NZ$205.10.

Bunnings has the same tool (with 18v stickers rather than the 20v max) at $337 (Although that has a sanding pad and sandpaper with it that I didn't see with mine)

Miter 10 has the same tool at $359.

Obviously I am giving up local support & CGA protection, but the price differential is significant, even with paying $31 in international freight.

Brought a 5 pack of blades for the above. Shipped to my door from the USA (amazon) for NZ$67.66. Bunnings has the same kit is $129. Given I paid $21.50 in freight in the imported price, the differential in underlying price is epic.

Cars (especially Luxary) would be another one. 2021 BMW 330i MSRP is US$43,650. Add 15% for NZ GST and convert currency = NZD70,312. List price of a 330i here is NZ$92,900. Big differential. As a general note sometimes there are trim differences, with only higher trims offered in the NZ market. But still $22k difference.

Big brand rental cars are definitely way cheaper in the USA.

Cosmetics have a big price difference. Partner would buy a years worth of eyeliner in one hit when she visited home in an Asian country. (although this has decreased in recent year's. Having the Chemist warehouse in NZ has been a help).

Clothing always seems substantially cheaper in the USA & Asia

As a counterpoint, I am glad the following things offer pretty good value in NZ.

Telecoms (Cellular & fixed internet) - an epic improvement over the last 15 years.
Good condition used cars (excl Utes & Diesel 4x4's) - Thanks to used imports from japan.
Electricity (although given our generation base it could be better still)
Medical / hospital / Subsidies pharmaceuticals (Thanks NZ government)

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#2639255 20-Jan-2021 22:49

Cars in America are often sold in relatively low standard form with a looooonnnngggg list of options for you to select from.

I think we often tend to get the same cars where the manufacturer selects a package of options at 3 or 4 levels, gives it a name like "Overland" or "GT" and has very few customer selections (Subaru do this, for example).

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#2639256 20-Jan-2021 22:51

was looking at kitchen something - i think sink

100euro in germany

1500 nzd

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#2639296 21-Jan-2021 00:11

I’ve seen it in action. Person A supplies Person B.

Person A has an item listed for $2500 in their online shop.

Person B offers me that item. For $3800.

It wasn’t what I wanted so it didn’t matter, but that level of profiteering at each clip of the ticket between manufacturers and retailers in NZ it’s what causes this.

Plus you get distributors who also retail what they distribute and make extra margin.

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#2639343 21-Jan-2021 06:56

You pay for the container hireage too. It's not as easy as a simple currency conversion 1:1, a company has overheads like wages to pay as well.

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#2639369 21-Jan-2021 07:25

There are so many variables that also haven't been mentioned particularly because of Covid. Shipping prices have increased exponentially and are still incredibly high both for sea and airfreight. A company I know (not a huge multinational) is currently paying about 5x normal pricing for seafreight to NZ. Airfreight prices from Asia are still at least 2x what they were previously.

Anybody importing also has to allow for currency fluctuations or hedge. In the past 12 months we've seen the NZD-USD drop as low as 57c and in recent weeks hit 73c before dropping back. Companies can't necessarily keep changing prices every time they order goods so have to make allowances for this.

The simple reality is NZ is not a cheap place to do business. We're a small country where economies of scale simply can't be achieved for many things.

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#2639370 21-Jan-2021 07:26

I posted this in the 'what annoys me' thread about a year ago so prices may have changed abit now but still relevant to put here I think.

Did Eric Clapton really think she looked wonderful...or was it after the 15th outfit she tried on and he just wanted to get to the party and get a drink?

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#2639393 21-Jan-2021 08:22

I had a similar experience with Grohe taps.

I needed an incredibly specific tap to fit some existing holes in my shower box and needed a Grohe one. The local reseller would get it for me (with a 6+ week lead time) for over $1000...I got it from Amazon through YouShop for under $250.

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#2639398 21-Jan-2021 08:50

Geektastic:

Can anyone give a good reason why shoes should have a random 10% duty? We have no significant NZ shoemaking industry and almost every pair of shoes in NZ is imported.

Skellerup has a large manufacturing facility in Christchurch, Gordons in Auckland, McKinley’s in Dunedin, Paraflex, Bobux, Kumpfs, Minnie Cooper all manufacture in NZ.

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#2639404 21-Jan-2021 09:12

BlinkyBill:

Geektastic:

Can anyone give a good reason why shoes should have a random 10% duty? We have no significant NZ shoemaking industry and almost every pair of shoes in NZ is imported.

Skellerup has a large manufacturing facility in Christchurch, Gordons in Auckland, McKinley’s in Dunedin, Paraflex, Bobux, Kumpfs, Minnie Cooper all manufacture in NZ.

I'm not actually sure if Skellerup actually manufacture any gumboots in NZ still. They're mostly made in Malaysia and China.

Bata still make gumboots in Wellington.

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