Caveat emptor!

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gnfb

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Topic # 150821 4-Aug-2014 17:35

I was thinking of calling this "Come in Sucker" but that's a bit on the nose! There is a age old saying "Caveat emptor" Let the buyer beware!

Ok so first things first I am a die hard capitalist and I have been around business long enough to know the most important aspect of business is profit.

Even I get offended by the arrogance of some retailers.

I can justify paying what is it now $4.50 for a cup of coffee? and i can justify $6 for a chocolate bar in a hotel room fridge. I can even justify the difference in fare prices for the same seat on a trip to AKL form WLG Last time i checked it was something like from $49 to $269.
Yep I fully understand how they arrive at those amounts.

BUT

What I don't get is how a USB A - USB Micro-B 2.0 2m lead can sell for $4.59 at Cablemax ($2.86 if you want to risk it with one of the real cheap sellers) against $19.98 at DSE or thats not the worse Noel Leemings go on take a guess? no? how about $28.99! Harvey Normans a little better only $24.
Its not the likes of you and I who are tech savvy, I really feel sorry for the Civilian who gets exploited . Or maybe its just me ?

Is an English Man living in New Zealand. Not a writer, an Observer he says. Graham is a seasoned 'traveler" with his sometimes arrogant, but honest opinion on life. He loves the Internet!.

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Talk DIrtY to me
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Reply # 1101895 4-Aug-2014 17:37

One person supports this post

My sister worked at Dick Smith years ago. Typically, a cable (or similar blister packed item) that DSE paid $1 for, they'd re-sell it for $20.

Whatifthespacekeyhadneverbeeninvented?

sir1963

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Reply # 1101907 4-Aug-2014 17:42

Nice thing with Noel Leemings is I get cost+10%

Its amazing how much consumables (and some appliances) drop in price.

floydbloke

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Reply # 1101989 4-Aug-2014 19:17

Paint and ink-cartridges jump to my mind when it comes to rip-off items.

Most of the trouble in the world is caused by people wanting to be important. (T.S. Eliot)

PhantomNVD

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Reply # 1101993 4-Aug-2014 19:19

or look at VOD's instead... see the Lightbox thread:

http://www.geekzone.co.nz/forums.asp?forumid=151&topicid=150718&page_no=1

might soon be the Netflix of NZ :)

JimmyH

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Reply # 1102104 4-Aug-2014 21:01

I guess you pay for convenience. It's only $20, you want the cable right now to make a $2-3,000 purchase work, and they are right there.

If it's not urgent and/or you need a few cables, you would have to be insane to pay those prices. Personally, if I need a bunch of cables (it has to be a quite few to offset the shipping charge) I quite like monoprice.com.

It does make me shudder to see the difference between what they charge and what Dick Smith et al charge for the same thing.

richms

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Reply # 1102108 4-Aug-2014 21:04

When I see pricing like that, I immediately assume everything else is a ripoff too. They are doing themselves a huge disservice by pricing things like that when anyone with a clue knows what they really cost and can work pricespy and trademe on the spot.

Richard rich.ms

eXDee

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Reply # 1102123 4-Aug-2014 21:13

Margin grows thin on consumer electronics. Accessories, extended warranties and other small high margin items are what pushes up the profit.

It relies on consumer ignorance and convenience - people don't know what it costs the store and that it can be had for cheaper. For those that are aware of this, as mentioned it can come down to the convenience of getting it then and now.

On a side note, the $4.50 coffee you mention i believe is about 40c (plus wages iirc) to make.

gnfb

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Reply # 1102126 4-Aug-2014 21:16

JimmyH: I guess you pay for convenience. It's only $20, you want the cable right now to make a $2-3,000 purchase work, and they are right there.

If it's not urgent and/or you need a few cables, you would have to be insane to pay those prices. Personally, if I need a bunch of cables (it has to be a quite few to offset the shipping charge) I quite like monoprice.com.

It does make me shudder to see the difference between what they charge and what Dick Smith et al charge for the same thing.

I am all for a premium for convenience. Lets say 200% $12 one of you math savvy can work out what percentage $28 is!

What offends me more is the advantage they are taking of the ignorant consumer.

Is an English Man living in New Zealand. Not a writer, an Observer he says. Graham is a seasoned 'traveler" with his sometimes arrogant, but honest opinion on life. He loves the Internet!.

gnfb on trademe travelkit.nz

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richms

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Reply # 1102128 4-Aug-2014 21:17

I accept the price of coffee because they have a reasonable markup on their real costs. Probably not even 1.5x cost of the entire cup/customer transaction etc.

The costs on a 50c cable in a 30c blisterpack hanging on a peg that doesnt go out of date till the store changes their logo is pretty damn low, yet they have the highest margins in the shop.

Richard rich.ms

Behodar

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Reply # 1102134 4-Aug-2014 21:23

floydbloke: Paint and ink-cartridges jump to my mind when it comes to rip-off items.

Especially over here; I imported my current cartridge from the US and even with priority shipping it was cheaper than buying locally.

sir1963

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Reply # 1102297 5-Aug-2014 07:32

richms: I accept the price of coffee because they have a reasonable markup on their real costs. Probably not even 1.5x cost of the entire cup/customer transaction etc.

The costs on a 50c cable in a 30c blisterpack hanging on a peg that doesnt go out of date till the store changes their logo is pretty damn low, yet they have the highest margins in the shop.

When shops are pay $x per square metre there is a REAL costs for that display occurring every day.
There is alway the wages for staff (ACC/Kiwisaver/sickpay) etc
Then there is theft (small stuff walks out the door, big stuff doesn't )
Advertising
etc

sir1963

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Reply # 1102298 5-Aug-2014 07:34

Behodar:
floydbloke: Paint and ink-cartridges jump to my mind when it comes to rip-off items.

Especially over here; I imported my current cartridge from the US and even with priority shipping it was cheaper than buying locally.

They are not "Zoned" ?

We had a staff member who had an Italian printer which would not use NZ cartridges until we rezoned his printer (a ONE off operation !)

Behodar

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Reply # 1102305 5-Aug-2014 07:51

sir1963: They are not "Zoned" ?

We had a staff member who had an Italian printer which would not use NZ cartridges until we rezoned his printer (a ONE off operation !)

I didn't even consider that that was possible, but nope, worked fine.

khull

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Reply # 1102357 5-Aug-2014 09:24

I bet those cables will go for cheaper at dealextreme - if you don't need it urgently

Athlonite

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Reply # 1102365 5-Aug-2014 09:52

you could say that all Cables, cell phones, printer ink or any computer hardware is a complete rip-off in New Zealand full stop but then you also have to remember that costs for the shop holding the product you want now are also high

If you don't own the building you pay rent every year land lords want more rent as their costs increase
cost of power for the premiss increases every year
insurance costs go up
workers want more money so wages have to go up
and the list goes on

If your drop shipping like most of the on-line sales sites do then your costs are a fraction of any bricks and mortar shop selling the same item ergo you don't need an 2000% markup on products

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