Geekzone: technology news, blogs, forums
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.

340 posts

Ultimate Geek
+1 received by user: 49

Topic # 245310 28-Jan-2019 20:04
4 people support this post
Send private message quote this post

Do NZ retailers and wholesalers rip us off?


I need a new electric starter motor for my ride on lawn mower, 


- here in NZ retailer sells for $480 incl GST (RRP was 550+GST)


- in USA it sells for NZ$200, $250 landed (excl GST).


Surely the wholesaler in NZ is getting for a reasonable price and can ship via sea for cheaper pricing..


I would have considered buying here in NZ if was $300.


This is also why building costs as high due to wholesalers and retailers taking huge profits

View this topic in a long page with up to 500 replies per page Create new topic

This is a filtered page: currently showing replies marked as answers. Click here to see full discussion.

378 posts

Ultimate Geek
+1 received by user: 72

  Reply # 2169320 28-Jan-2019 21:19
Send private message quote this post





One thing some retailers do seem to do in NZ, is have a higher RRP, and then regularly apply discounts.



Briscoes immediately comes to mind, with their seemingly never-ending "50% off everything!" Consumer did a piece on them a few years ago and found that their initial price was fairly high, and once the discount was taken off, it was only slightly cheaper (or the same) as a lot of other retailers.



Yeah, Briscoes is a pretty big partaker in that. They do, however, have some items that are always cheaper than everywhere else, which they either make a very small margin on, nothing at all, or an actual loss to get people in the store to buy more things while they're there (loss leaders) 


The number of times I've needed something from Briscoes and it hasn't been on special money-mouth

2616 posts

Uber Geek
+1 received by user: 1286

  Reply # 2173704 5-Feb-2019 21:27
One person supports this post
Send private message quote this post



You assume the local supplier pays they price as the UK supplier for the same part.


The local supplier will only get one pallet and that will last them a year or two ( depending on what the suppliers MOQ & MOV is )


The UK supplier could be doing a container a month of parts so of course gets a way better price.


I used to work for an importer, one example from my boss was that it was cheaper for him to buy a bunch of Maglights from wallmart than buy them from the local suppler. We were the also the distributor of a brand of semiconductors ( same boss different company ) and it was cheaper for us to buy a lot of our components from an autherised distributor in Singapore, the downside was that it did not go against our sales, once we dipped below a certain level we would lose the agency. When you lose the agency you lose support. 


There are so many factors involved.


Simply put NZ is a small fish in a very big pond and we will never have the volume.


Also manufacturers in most cases do not want to deal with end users and that is why they have distributors.


Manufacturers may also dictate a minimum stock hold you must keep, that costs money. 


Distributors will often consolidate orders to A - keep freight costs down & B - The manufacture does not want to deal with piddly little orders.


One of my colleagues when to work for a lighting company, he had an order for 750,000 light bulbs, he thought it was an amazing order, the manufactures responce was to buy them from a retailer as the order was too small.


There are many factors involved when dealing with an authorised channel, I dont believe in most cases we are being ripped off ( Briscoes & the like excluded ), we are just a small fish in a big pond.





This is interesting, but ultimately irrelevant.


When I am looking at whether a local price is attractive or "fair" I couldn't give two hoots about the stock holding issues of NZ distributors, how a manufacturer may want to supply NZ, or whether NZ retailers have to charge more because of their higher cost structures, and whether distributors add value or cost. I also don't care if the shareholder making a profit happens live in Parnell, Delaware or Shanghai. I simply look at what the local price is, and how it compares to what I can source the item from elsewhere. If the local price is comparable, or slightly higher, then I'm likely to regard it as a "fair" price and buy local - esp if I want convenience etc. However, if the price is several times what I can land the item for if I import it myself, then I am unlikely to regard the price as "fair" and buy locally.


If cost structure issues mean that the local retailer can't be price competitive with offshore sellers and remain in business than that's unfortunate (for the retailer), but isn't my problem. It's the NZ retailer's problem to figure out how to solve their supply chain and cost structure issues and be competitive. Some will manage this, finding innovative solutions, and will prosper. Some won't manage this, and will fail. And good riddance to them. Markets can be Darwinian like that - which is in consumers interest.



View this topic in a long page with up to 500 replies per page Create new topic

Twitter »

Follow us to receive Twitter updates when new discussions are posted in our forums:

Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:

Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:

News »

Orcon announces new always-on internet service for Small Business
Posted 18-Apr-2019 10:19

Spark Sport prices for Rugby World Cup 2019 announced
Posted 16-Apr-2019 07:58

2degrees launches new unlimited mobile plan
Posted 15-Apr-2019 09:35

Redgate brings together major industry speakers for SQL in the City Summits
Posted 13-Apr-2019 12:35

Exported honey authenticated on Blockchain
Posted 10-Apr-2019 21:19

HPE and Nutanix partner to deliver hybrid cloud as a service
Posted 10-Apr-2019 21:12

Southern Cross and ASN sign contract for Southern Cross NEXT
Posted 10-Apr-2019 21:09

Data security top New Zealand consumer priority when choosing a bank
Posted 10-Apr-2019 21:07

Samsung announces first 8K screens to hit New Zealand
Posted 10-Apr-2019 21:03

New cyber-protection and insurance product for businesses launched in APAC
Posted 10-Apr-2019 20:59

Kiwis ensure streaming is never interrupted by opting for uncapped broadband plans
Posted 7-Apr-2019 09:05

DHL Express introduces new MyDHL+ online portal to make shipping easier
Posted 7-Apr-2019 08:51

RackWare hybrid cloud platform removes barriers to enterprise cloud adoption
Posted 7-Apr-2019 08:50

Top partner named at MYOB High Achievers Awards
Posted 7-Apr-2019 08:48

Great ideas start in Gisborne with hackathon event back for another round
Posted 7-Apr-2019 08:42

Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.

Support Geekzone »

Our community of supporters help make Geekzone possible. Click the button below to join them.

Support Geezone on PressPatron

Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.