Why are tyres in oz so expensive

[spamanglenn]

I believe 2 things occur.The australian importer of whatever it is doesn,t get the same discount from the manufacturer as the high volume us wholesaler and secondly the australian sellers sell alot less of the product with higher wages and rents and put a bigger margin on the goods to make it viable to keep the doors open.A good start would be to be able to buy the stock at the same price as the US wholesalers do and then they could be sold cheaper and increase volume of sales.

[Andycool]

Similar discussions have take place regarding the cheap ass shinko 003 tyres for drag racing. Not cheap ass over here unfortunately.

LOOK on the BRIGHT side Fellas

THEY GOT BUSH AAAAARRRRGGGGHHHHHHHHHHHH!!!!!!

[Louwai]

I believe 2 things occur.The australian importer of whatever it is doesn,t get the same discount from the manufacturer as the high volume us wholesaler and secondly the australian sellers sell alot less of the product with higher wages and rents and put a bigger margin on the goods to make it viable to keep the doors open.A good start would be to be able to buy the stock at the same price as the US wholesalers do and then they could be sold cheaper and increase volume of sales.

Yeah, that's true for many items. But there are also many which are blatently over priced.
I have a product I sell. Bunnings also sell the exact same item. Infact I buy mine from the same manufacturer that Bunnings buys from.
And yes I pay more for mine because I do not have the volume of Bunnings.

Bunnings sells this item for AU$29.95ea
I sell the same item at 100% profit for AU$3.15

So who's ripping who ????

[DAD]

I believe 2 things occur.The australian importer of whatever it is doesn,t get the same discount from the manufacturer as the high volume us wholesaler and secondly the australian sellers sell alot less of the product with higher wages and rents and put a bigger margin on the goods to make it viable to keep the doors open.A good start would be to be able to buy the stock at the same price as the US wholesalers do and then they could be sold cheaper and increase volume of sales.

Yeah, that's true for many items. But there are also many which are blatently over priced.
I have a product I sell. Bunnings also sell the exact same item. Infact I buy mine from the same manufacturer that Bunnings buys from.
And yes I pay more for mine because I do not have the volume of Bunnings.

Bunnings sells this item for AU$29.95ea
I sell the same item at 100% profit for AU$3.15

So who's ripping who ????

What the Hell!

[Volvi]

The car tyre market is very competative and you can get a great brand tyre for $75 so why does a motorbike tyre have to cost 4 times as much, are they not mass produced to? Besides wholesaler rip offs what about from the manufacturers angle?

[Madmax]

The car tyre market is very competative and you can get a great brand tyre for $75 so why does a motorbike tyre have to cost 4 times as much, are they not mass produced to? Besides wholesaler rip offs what about from the manufacturers angle?

I believe the sad fact of this matter is, Australian's are being ripped off and our rat-fink governments are entering "free Trade" agreements with the septics, who are still protecting their market.
We're all getting ripped off guys, BUT

THEY STILL HAVE BUSH!!! as one of our brothers stated.

We're in front.

[rb3221]

It comes down to the fact AU importers are reaming us! they get it at an importers price they bring it in they put a massive mark up on it, then sell it to the shops who then have to try and sell it to the public.

You don't see many poor importers here, but you do see alot of parts shops going down.

[Louwai]

I've found that Aussie's have been paying too much for stuff for so long, when someone (like me with the scenario in my last post) comes along with an item "resonably priced" they shy away thinking it's cheap crap.
When really it's the EXACT same item as the expensive one, it's just being sold at a more realistic price.

Like in Brissy, you guys may have seen a company in the shopping centres selling the Water Dispensers / filters.
[attachment=3984][attachment=3985]
These units are retailed for about $900ea
I supply those units to some of those sellers. Delivered to their warehouse door in Brisbane (Moorooka), including all costs, Aquis, Duty, GST etc, etc, etc. AU$185ea. (400 units - full container load)
& the units I supply are top quality, with a 110w compressor cooling system. Not the electronic cooling that the cheaper units have that lasts about 6mths.
+ they sell replacement filters for about $48ea which I sell to them for $2ea

[Louwai]

Yeah, that's true for many items. But there are also many which are blatently over priced.
I have a product I sell. Bunnings also sell the exact same item. Infact I buy mine from the same manufacturer that Bunnings buys from.
And yes I pay more for mine because I do not have the volume of Bunnings.

Bunnings sells this item for AU$29.95ea
I sell the same item at 100% profit for AU$3.15

So who's ripping who ????

What the Hell!
[/quote]

I know a person who is the mgr of a Bunnings warehouse.
She tells me that Bunnings' absolute mimimum margin is 100%. Absolutely NOTHING, not even the stuff that's on supa-duper special or clearance items, goes out the door for less than 100% profit.

And if they can get more they will.

[DAD]

So if Bunnings low end profit is 100% I would hate to think what there top margin is its a Joke and what gets me is that we all support these rip off's. Its funny but I mostly go to my local hardware not Bunnings.

[NEMESIS]

I believe 2 things occur.The australian importer of whatever it is doesn,t get the same discount from the manufacturer as the high volume us wholesaler and secondly the australian sellers sell alot less of the product with higher wages and rents and put a bigger margin on the goods to make it viable to keep the doors open.A good start would be to be able to buy the stock at the same price as the US wholesalers do and then they could be sold cheaper and increase volume of sales.

Yeah, that's true for many items. But there are also many which are blatently over priced.
I have a product I sell. Bunnings also sell the exact same item. Infact I buy mine from the same manufacturer that Bunnings buys from.
And yes I pay more for mine because I do not have the volume of Bunnings.

Bunnings sells this item for AU$29.95ea
I sell the same item at 100% profit for AU$3.15

So who's ripping who ????

Oh my...
HEaring this shit makes me mad.
An then you wonder why people hold up stores an rob them lol.

" born on revenge,raised on cement,chaos created government... "

[Louwai]

So if Bunnings low end profit is 100% I would hate to think what there top margin is its a Joke and what gets me is that we all support these rip off's. Its funny but I mostly go to my local hardware not Bunnings.

We're getting off topic (Tires) but these examples are the best I can give cause I don't deal in tires.
I can only assume something similar is happening.

It all comes down to who buys what & how many. If you are willing to buy from overseas, then do it. If you need someone in the US to do the dealing & re-sending for you, I can arrange that. But for tires, you'll need someone here to fit them.
Also, if you are not familiar with the "Personal Importation" rules of Australia, then I suggest you study up or ask. There are several hidden costs which newbie importers can sometimes miss & then they get a surprise at the end.

Getting back to my telescope scenario, I ONLY buy major components from overseas. Over the past 5yrs I've saved approx AU$5k by buying my bits overseas & having them shipped.

[busacrankin]

Well said Louwai, yours is exactly the case in point, as I said earlier 300% is probably about standard for other importers. They should be interested in volume themselves. ie; cheaper the price the more you`ll sell.

[Louwai]

It comes down to the fact AU importers are reaming us! they get it at an importers price they bring it in they put a massive mark up on it, then sell it to the shops who then have to try and sell it to the public.

You don't see many poor importers here, but you do see alot of parts shops going down.

I beg to differ rb. Many importers don't make huge profits because if they mark up too much their customer will just go to another importer with a lower price.
For myself, if I sell stock RETAIL, then yes I'll put up to 100% on it depending on what the item is.
But when I am supplying a customer WHOLESALE (ie by the container load) the most I am able to put on is 10% or maybe 15%.
If I put any more on my price is too high & they go somewhere else.

If the importer has distribution rights for the specific product, then that's a differrent story.They can charge what they want cause no one else can get it.
Also, most importers will not deal in qty's less than a container load, or under a certain total order $$$ value.

I have been building my business on supplying small qty's to small business owners who can not afford to outlay the money for a full container load of 1 item.

But also to rebut your comment,
You are annoyed at the importer supposedly reaping high pofit. If the same item was manufactured in AU how much would it cost, accounting for high wages, high transport costs etc. Probably more than the retail price of the imported item.
The Importer is the one outlaying huge amounts of their own money to bring very large qty's of said item, & going through all the dramas of getting stuff into the country,
+ copping it when the AUD drops but deposits have been paid & so the importer misses out due to the exchange rate. etc......
If you are so concerned about the pricing, have a look into importing yourself. I think you'll find it can be a pretty scary type of work. Especially when you are dealing in orders & payments upwards of AU$50k per order.

I'd suggest the biggest problem is the opportunistic importers.
They are not an importing business. They are people who search the world for a "fad" item & then import many & sell at a huge profit. Usually not complying with all AU regulations.

eg. Pocket bikes.
When they first appeared on the AU retail market they were selling for well over AU$2k
Today you can get them for AU$250
That's because they cost about AU$90 to buy & import into AU. They always have been the same price. The early sellers were making HUGE profits on these.

[Louwai]

I stuck a breif description of personal importing in the DIY section.
Hopefully it'll help members to import their own stuff & save some money