Buy local... what a joke..

[Polyal]

Clearly if the cost is the same or +5% then its a bit of a dog act to not buy locally, unless the service is rubbish which is quite often the case aswell.

But like for like local guys need to wake up a bit or offer something the others cant.

[66FAIRLANE]

A lot of the time OE spare parts are expensive because it is the only way the manufacturer of the part (tier 1 or 2 etc) can make any money. The suppliers to the car companies get right royally fisted on the OE production stuff so the only way they can make any money is on Parts & Accessories. P & A pricing is generally negotiated independently of production and when you supply production you hold all the cards and I must say I can't blame them. I have seen the fistings.

[The FOMOCO]

I used to work for a paint company we sold house paints and industrial coatings i used to see the buying prices on accessories eg paint brushes rollers airless spray set ups and spares ladders masking tape etc etc the mark up on most of the small accessories brushes rollers etc was 200-300% the paint was more than that they make 4 litres waters base house paint for less than $10.00 sell for $60.00 + retail trade was less amazing profit margins too greedy if people only knew how much they are being ripped of for in some big hardware shops

[XBROO]

Everything is made to be replace these days not repaired, so sadly we are losing good businesses. And with all the over heads of running a business they just can't compete. I'm no angel and I always look for a cheaper option, that's why I shop at Aldi. Like someone has mentioned in a previous post, that the cost of living is high. So you'll do what you can to provide for your family week to week. Ok this may not help with Australian business, but family comes first. And if you can save by buying on line then so be it. I know it's not good for Australia but we've got to eat now.

[TheSneakiness]

A place I used to work at, we did cash sales for shed componentry.

The fee was the wholesale price of the part (so what we paid), plus GST plus 10% markup.

Used to do ALOT of cash sales.

[Xauterus]

Are we facing the theft of intellectual knowledge and trades knowledge by cheap imports.

For example in the past a TV was a relatively expensive outlay for a family. They were purchased with a notion that it would be kept for many years. If something went wrong with it then it was taken to a repair man. Now days people buy a TV and think that will for a few years until something better can replace it. If it fails outside the warranty then its too hard to get it fixed so most wont bother so its relegated to curb collection. That means the TV repair guy closes his doors.

Will we see this across a range of products? Meaning that will will then be totally reliant on new imports of goods. We may well have lost our skill base by then.

What will that mean for imported goods? The price could really increase, and I mean from the overseas manufacturer, not necessarily the local importer. So we wont have an option of buying those goods cheaper from overseas.

I too don't like the practice of large retailers, where they deal direct with overseas manufacturers and import it themselves and then charge what they like.

Have you ever tried to buy decent fasteners from a place like Bunnings? I think they are made of grey cheese.

[Outbackjack]

Originally Posted by Xauterus

Are we facing the theft of intellectual knowledge and trades knowledge by cheap imports.

For example in the past a TV was a relatively expensive outlay for a family. They were purchased with a notion that it would be kept for many years. If something went wrong with it then it was taken to a repair man. Now days people buy a TV and think that will for a few years until something better can replace it. If it fails outside the warranty then its too hard to get it fixed so most wont bother so its relegated to curb collection. That means the TV repair guy closes his doors.

Will we see this across a range of products? Meaning that will will then be totally reliant on new imports of goods. We may well have lost our skill base by then.

What will that mean for imported goods? The price could really increase, and I mean from the overseas manufacturer, not necessarily the local importer. So we wont have an option of buying those goods cheaper from overseas.

I too don't like the practice of large retailers, where they deal direct with overseas manufacturers and import it themselves and then charge what they like.

Have you ever tried to buy decent fasteners from a place like Bunnings? I think they are made of grey cheese.

You are not gazing into a crystal ball here. You are telling it how it already is.

[MAD]

How many blacksmith shops are still open?
Don't see many Boot Blacks either.

Times change, people adapt.

[Outbackjack]

Originally Posted by MAD

How many blacksmith shops are still open?
Don't see many Boot Blacks either.

Times change, people adapt.

Thats exactly correct. Could it be that the bricks & mortar retail business model has had it's day?

It's always sad when people find themselves out of a job. But when a door closes a window usually opens..... Ya just gotta crawl through that window.

[pottery beige]

Originally Posted by ILLaViTaR

Times be a changin

http://en.wikipedia.org/wiki/Cobb_and_Co#Demise

I'm sure everyone loved talking to the coach operator and he was a great bloke and all that. Damn Fords.

nah, its just the usual hard done by **** heads in this thread

doesnt affect me dgaf

straya ****

[mr smith]

We all need to realise the Aussie gravy train has derailed.

[Pub247]

Originally Posted by JC

A work mate of mine has a friend who was diagnosed with sleep apnea recently. The clinic gave him the model of machine he needed to buy - went to the supplier (local chemist, I believe) where it was $2500. The guy decided to hire one for $100 or so first to make sure it was going to help, and then he did a search on ebay and found one, brand new, delivered from Texas in the USA, to his door for $1000. Gets it after 8 days, opens the box - "Made in Sydney, Australia". This is why we buy online - he markup by retailers in this country is criminal. The manufacturer is still making the same money regardless of where it's being sent/sold, but local businesses will miss out on sales unless they wake up to themselves and compete with the global market. Kmart have changed their policy to get more volume at lower individual profit and guess what, their sales and profits are both up - a lesson there somwwhere that others NEED to learn from to stay alive in this economy.

Turbosmart is another case, Australian made product Australian company. Yet its waay cheaper buying it from us then Aus Even direct they will refuse to price match it.

It's their choice they're getting a sale in the end even if it cost them more profit and makes summit some more money

[stevz]

Originally Posted by mr smith

We all need to realise the Aussie gravy train has derailed.

The train has derailed?

More like the services have been cancelled and the tracks and infrastructure have been torn up and decommissioned.

[Spudz27]

Ok so I work in retail Sales. I see the cost price of laptops and tablets etc everyday. I can assure you that 75% of our products are at or below cost. For example....Tablets we label as the race for the bottom, as soon as a tablet is released Big W or Target who prob pay less, put the price at or below what it costs us to buy it. We then have to work our asses off selling accessories, to make some profit. Laptops are another example, in a laptop you really do get what you pay for, but no one wants to pay for good specs anymore, they want the cheapest **** tey can get. Oh I want this $400 dual core to do photo editing, even if you just explained that the laptop won't even handle it.

Then we have places like Kogan, they use Grey imports (no duties excise etc) so they can sell stuff in aus at 1/3rd what we can buy it. People don't realize there is no warranty in aus for these products, should something fail they are generally shipped back overseas for repairs, and they are international models to begin with. At least if you pay more locally you can deal with someone face to face over warranty issues etc and can be assured you are getting a model designed for our region. We will not price match Kogan or most online stores for this reason, We do price match the big players like JB, Target etc, but they are selling the same stock we are. Not imports. and yes there is overheads to pay, it is not easy to pay 5 staff, pay for your stock and pay rent when 75% of what you sell is not making money.

I get really ****ed off at people who whinge about buying locally and paying more. I don't control the price, but like you have to feed my family and the more shopping done online the more likely of me being unemployed. Now I am not a saint, I do buy online, however I buy little things and stuff you can't actually get in aus. What grinds my gears the most is the business owners who threaten to shop elsewhere if I don't knock some money off, but **** me if I come in and ask the same thing at your shop.

[b0son]

Originally Posted by bafel

I'd be buying from the UK seller and spend the saving on a local craft beer.

This ^100

Spend $300 on the locally supplied part, they pay $50 for the part, and whoever is pocketing the $250 profit could be spending it on anything, imported quite probably, and you have no control. OTOH, you have 100% say in how the $250 you save is spent and where.

[BPXR6T]

Originally Posted by Outbackjack

Wifes fiesta has faulty Vehicle speed sensor... Diagnosed by son in laws diagnostic gear. P0050 error code. Makes sense the speedo has stopped working. Hit the internet and all the usual ebay sellers pop up. Mostly from the UK. It will cost me about $AU50 to get one from the UK. But I resist and go see the local ford dealer. None in stock but they can get me one $291.00 I tell him that I wanted to support local jobs and business's but I cannot justify spending that when I can get it for $50 on line. He shrugs, I walk away and another customer is lost. Perhaps for ever.

It seems to me that the state guvs want to make it harder for us to escape this kind of blatant thievery....

I had the exact same thing happen a couple of months back. Speed sensor on a holden combo went. Replacement from local supplier was $450. eBay from the uk for the exact same part, $27 plus postage.

[mechanic]

Australian farmers are one of the best examples of the hypocrisy in saying " buy local and support local businesses".
Most labour in the agricultural industry now is foreign and the attitude of farmers is that they can get cheap labour without the demands of Aussie workers.
Don't see a lot of farmers supporting the local car and machinery industry either.
Different story though when it comes to selling their product in the retailers, nothing but constant whingeing about imported food stuffs.

[senna_T]

Dairy Farmers have to accept a very low buy price from the large supermarkets in order for them to move product - this is so that woolworths and coles can have their $1 per litre milk war - that's a whole other kettle of fish though.

The biggest issue that i find in pricing is quantity.

As an example if you buy in bulk you get a better deal, correct? If you buy 2 T-Bone steaks they may cost $5 each, however if you buy 10kg worth it may only work out as $2.50 each.

Expand this to every product line that is bought from an international producer by an Australian Distributor. In order to become a National Distributor you need to guarantee a particular stock holding and in most cases a regular order quantity (per month or per quarter). A lot of large companies won't sell you one off or small single orders.

Now lets equate that to population and projected sales for these products. Australia has 20-odd million people, USA has 300-odd million people (and lower wages) and then you have India which is close to 1 billion people (correct me if i am wrong i'm not sure on that one). So if we go back to the bulk buy discount structure you can start to see why things are cheaper in other countries - then reverse that and look at a higher buying price for the distributor, higher on-sell price to the retailers plus higher transport costs to get to relatively remote areas and then your final price is higher...

Not saying that these are excuses as such, rather a plausible cause.

The wheels are already too far in motion to stop though, the distributors, the wholesalers, the retailers and the public should have done something about it a long time ago.

[XB GS 351 Coupe]

Originally Posted by mechanic

Australian farmers are one of the best examples of the hypocrisy in saying " buy local and support local businesses".
Most labour in the agricultural industry now is foreign and the attitude of farmers is that they can get cheap labour without the demands of Aussie workers.
Don't see a lot of farmers supporting the local car and machinery industry either.
Different story though when it comes to selling their product in the retailers, nothing but constant whingeing about imported food stuffs.

Australian Farmers use back packers as they turn up to work and do a hard days work, farmers in my area are constantly looking for workers, a good farm hand will clear anywhere from $1400-2000 per week around here, and get a house provided for free in most cases.

Aussie workers do not even turn up in a lot of cases. There are plenty of jobs going, Farmers are ALWAYS looking for workers, but have trouble getting them, so back packers jump in and make 15-20K in a few weeks before moving on.

[zilo]

Aus Dollar versus US dollar went below 88c overnight.....remember $1.10?

keep watching, it's starting now...

soon imported prices will be back in the stratosphere

[naddis01]

Originally Posted by mechanic

Australian farmers are one of the best examples of the hypocrisy in saying " buy local and support local businesses".
Most labour in the agricultural industry now is foreign and the attitude of farmers is that they can get cheap labour without the demands of Aussie workers.
Don't see a lot of farmers supporting the local car and machinery industry either.
Different story though when it comes to selling their product in the retailers, nothing but constant whingeing about imported food stuffs.

You have no idea.

Can you please provide examples of how farmers aren't supporting local industries? I would also be interested to know which 4x4 Australian Ute I could buy locally and the same goes for a tractor or header. However it is a different story with alot of specialist implements. You might be surprised how well local industry is supported.

As for the labour, I think you might find that most employees are the whingers. Oh it's too hot, it's to cold, I just broke a nail, oh I just got a scratch I need a bandaid, did I say it's too hot, it's raining, I don't want to do that, it's to dusty, it's too hot. That is why alot of fruit picking or harvesting is done with backpackers however there is plenty of work in rural areas for those who want to work.

[jg33ht]

Originally Posted by GREGL

As for those believing you could run a business on 10 % mark up on anything you would have to buy it at $10 and sell it at $12.10 and sell 700 of them in a week to make minimum wage , before rent , transport costs and everything else . So you best be a willing little worker who doesn't take sickie to afford to eat .

Spot on, it's clear most on here have little experience with retail. If you would like the 'cheap' overseas prices here we could just turn Australia into another third world dump and then I guess saving $50 on a part would be the least of your worries.

Small retail shops here generally buy from wholesalers based here in Aus. Now before you say go direct to the manufacturer, it doesn't quite work that way. The manufacturer will not sell the goods directly to the retailer here in Aus as they have a contract with the distributor/wholesaler and will not break the contract for obvious reasons.

[Spudz27]

I had another example today. Someone saying they could get a galaxy s3 7" for $164 online. I explained the crap, international model, costs us more and that if it needs repair under warranty it will go back overseas as 99% of the time manufacturers will not fix a product purchased from overseas. She argued and I just tokd her to buy it online, but please don't come and ask us to help you set it up etc. Maybe a bit harsh but I am getting so sick of being told I can get it cheaper online and accusing me of lying when I explain why I can't and won't price match.

[Crazy Dazz]

One of the problems faced by traditional shopfronts, is the astronomical rents and outgoings they have to pay. The big corporate landlords demand extremely high ROI, but give Coles & Woollies ridiculous deals to be the drawcards, meaning that the poor little bloke is shouldering the bulk of the burden. Even the prices of industrial properties are ridiculous.

Put simply, we have an entire (vertically “integrated”) system that has developed to require extremely high retail markups, so the consumer is supporting everyone right up the chain. This cannot support a fight against direct imports, and the system is simply too slow to adapt to the changing reality. I LIKE supporting small business, but in many cases it is simply a large corporate chain, or the small-guy is working his **** off simply to paid the greedy landlords and subsidise the big chains.

[zilo]

I can't believe the rents that shopkeepers have to pay in Westfield shopping centres.

There's the rent, the security, the compulsory re-fitout when management decide you need a facelift..the list is endless, some shopping centres actually want a percentage of the cash register take as well!!

Seems that all they sell is clothes and take away food...the highest margin items.

Can't buy a lounge suite, hardware, whitegoods etc in a shopping centre...you have to go outskirts of a city to find those items now.