Government planning changes to GST levy on overseas purchases

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freitasm

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Reply # 857820 17-Jul-2013 06:37

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Icebraker is interesting. We now buy all Icebreaker stuff from Amazon. The brand is kiwi but all made in China except, so far, the socks which seem to be made in the USA. "Export" in this case is just a label really, unlike dairy and meat.

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timmmay

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Reply # 857830 17-Jul-2013 08:00

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NZ retailers need a kick in the butt. I've just spent time in the UK, I was amazed how much cheaper things were over there. Fruit and veges were cheaper, despite many of them being flown in from other countries. Toiletries (soap, moisturisers) were cheaper, sometimes 1/3 the price. Beans, bread, premade meals, all around half the price. Clothes are cheaper and better quality. Cars are cheaper.

We're getting ripped off big time in New Zealand. The UK has shipping charges too, just about everything comes from Asia these days, though NZ probably has higher shipping and lower volume. Still, someone's making a lot of money from the NZ consumers.

Retailers need to lower their prices and compete, not cry foul when we find a way around their extortionate prices.

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sbiddle

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Reply # 857863 17-Jul-2013 08:37

I was in Hawaii in May and ended up spending probably US$500 on clothes at the big outlet mall which had the Memorial Day sales on. What still amazes me is the difference in the price of buying products over there and buying the same or similar goods retail here.

A pair of Levi 501's could be purchased for US$39.99 at multiple retailers, and based upon the signage the RRP is around US$49 for a pair. I purchased a few pairs of Hilfiger jeans for the same price, which once again had an RRP of around US$50. A pair of 501's in NZ will cost around NZ$139. Here in NZ however you're not going to be able to buy a pair of jeans literally anywhere that are the same quality for anywhere close to that price - a store such as Tarocash sells their jeans for around $130 and often has these for 50% off, but the quality isn't comparable.

Likewise I could buy shirts from any number of big brand name companies for anywhere in the vicinity of US$40 - $60. Even Boss Orange shirts only sell for US$80 retail, something you won't get for under NZ$200 here. If you look at retailers such as Tarocash again they try and flog shirts off for $130 or so for something that's probably cost them $20 landed in NZ. A retailer such as 3 wise men sells great shirts for NZ$100 - NZ$120, but that's still twice the price I paid for an identical quality product.

I understand retail, but it's clear pricing on many goods here really is just inflated.

freitasm

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Reply # 857864 17-Jul-2013 08:41

sbiddle: A pair of 501's in NZ will cost around NZ$139. Here in NZ however you're not going to be able to buy a pair of jeans literally anywhere that are the same quality for anywhere close to that price - a store such as Tarocash sells their jeans for around $130 and often has these for 50% off, but the quality isn't comparable.

My last few pairs of Levi's came from Amazon (picked them up while in the USA) but the last three or four years I've seen Just Jeans here listing Levi's at $99. The shop you frequent is charging $40 too much.

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profrink

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Reply # 857904 17-Jul-2013 09:49

Won't make a difference for the stuff I usually purchase.

Recently just purchased a bunch of snowboarding gear from the US for $850 NZD to my door. Priced up the same (equivalent last season) items for sale here... $2,200+.

The Icebreaker socks example is particularly amusing.

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Reply # 858351 17-Jul-2013 21:45

Ironic isn't it? Here we are with a low wage economy in comparison to our major trading partners, and we also get hit with the highest prices.

Seems like the whole system is designed to make and keep us as poor as possible!

I do think that the NZ consumer in general is so used to paying the high prices over such a long time that they don't realise the extent of the rip-off, and to some extent are suspicious when a good is offered at what looks like a knock-down price...

timmmay

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Reply # 858416 18-Jul-2013 08:09

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An example of NZ prices.

A 3M mouse gel wrist rest with mousing surface... $56 in NZ, or NZ$38 from Amazon SHIPPED. The item itself is NZ$15 at Amazon. No-one can tell me that bulk shipping can add $40 to the price of a simple item like that.

NZ retailers really need to get real.

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old3eyes

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Reply # 858424 18-Jul-2013 08:37

timmmay: An example of NZ prices.

A 3M mouse gel wrist rest with mousing surface... $56 in NZ, or NZ$38 from Amazon SHIPPED. The item itself is NZ$15 at Amazon. No-one can tell me that bulk shipping can add $40 to the price of a simple item like that.

NZ retailers really need to get real.

They most likely buy it via some company in Ozz who also clip the ticket to the tune of 30% plus expensive shipping. . It seems quite common that a lot of retail items entering NZ come via Australia. The company I work for everything we get comes from AU who in turn buy it from Japan or Thailand. We can't buy it from anyone else..

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Old3eyes

colinuu

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Reply # 861840 18-Jul-2013 20:37

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One comment made several times in this thread is the lack of choice offered by local retailers. They claim it isn't cost effective to hold stock of too large a range.

I work in the electronics assembly industry. One catalogue component supplier is able to deliver orders almost anywhere in NZ from their Sydney warehouse on the day following receipt of order. the vast majority of their catalogue is available this way.

A smart retailer would do well to set up fast supply lines from several points around the globe. He would have his entire extended product range on display in his showroom. Popular fast moving items would be available from local stock. The rest of his range would be available for pickup within 2 to 3 days of order. The freight cost of consolidated shipments would be offset by the reduced cost of locally held stock. It can be done! And I think most people are happy enough to wait a few days if the choice is there and the prices aren't excessive.

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Reply # 862221 19-Jul-2013 15:56

Retailers don't seem like they are making a killing to me, Economies of scale is a real thing!

sir1963

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Reply # 862348 19-Jul-2013 19:23

timmmay: An example of NZ prices.

A 3M mouse gel wrist rest with mousing surface... $56 in NZ, or NZ$38 from Amazon SHIPPED. The item itself is NZ$15 at Amazon. No-one can tell me that bulk shipping can add $40 to the price of a simple item like that.

NZ retailers really need to get real.

Amazon is not always a fair comparison, they often sell products are cost or below.
When you look at their turnover, some quarters they make a loss, and they have been happy to make this loss as it has put much of the competition out of business, just look at bricks and mortar book stores in the US, and when they are gone they will be in a position to crank up profits .

Techwarrior

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Reply # 873328 7-Aug-2013 16:37

If nz retail shops want more people to buy from them then stock a wider range of products for example no nz game shop is offering Eve Online The Second Decade Collectors Edition but Amazon.com is offering it for USD$149.99 and anyone in nz who wants it will pay the price it's offering for on Amazon.com.

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