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View Full Version : Why is it so expensive?



ozkat
19-08-2006, 08:52 AM
Why is it so expensive to buy parts off Australian distributors? For example, im looking to buy a sidewinder style drag exhaust in for my GSXR1100, the price the Australian Vance and Hines supplier has quoted me is $1495.00 + a 30day delivery time, and to get one made here i was quoted $1100. But to buy an original V&H drag exhaust sidewinder direct from the USA, sent to my door via airmail (within 14 days) inc all postage costs, inc all taxes and import duties and insurance is $404.00 and thats aussie dollars. I can understand the Aussie bloke has to make some money on it but $1091.00 difference is a bit much for me. Id prefer to buy from a Australian distributor but i cannot justify the huge difference in price.

sharky
19-08-2006, 09:15 AM
I agree mate. I have looked at loads of parts available here and found cheaper overseas. Ok my craft helmet might not have a lil' sticker but it cost me about $400 inc to the door for the latest design (bought in from USA). The same goes for parts for my Fj11 motor..about half the price from the us and 2/3 the price from Uk.
Likewise I would prefer to buy Aussie but not if I have to bend over and take one first !!
And yes..it does piss me off...:(

Matt
19-08-2006, 10:33 AM
That sucks...

suxukifreak
19-08-2006, 10:35 AM
Yep, same as Icon jackets. You can get them to your door for around $500 but you can bet when they start selling them here they will be double the price!! The hugger i bought from Germany was $320 to the door and here its around $450 at some shop in the middle of no where.

sharky
19-08-2006, 12:49 PM
Ozkat..You have mail.

abusa
19-08-2006, 01:27 PM
Hi OZ

$404AUS for full system to your door is pretty cheap and they are only $215US! $1495AUS sounds rediculous when you consider what they are made out of. Could sell you a full Titanium System for any late model Sports Bike for a little bit more than that!

If I was to buy them at their full Retail, add Express Freight, normal markup and GST, it would still be under $1000AUS

Sometimes buying power affects price but not with those figures. The only advantage would be warranty, but who cares when you are a third of the price from the start.

V&H Sidewinder
http://www.vanceandhines.com/c106.html

If you are lucky the distributers will use USPS, probably the cheapest and only a couple of days slower.

Duties only occur for items over $1000AUS

Handy Freight Info

DHL AirFreight
http://www.dhl-usa.com/ratecalculator/HandlerServlet

USPS
http://ircalc.usps.gov/default.asp?Mode=Intl_Single&CID=10013

ozkat
19-08-2006, 01:46 PM
http://www.bikebandit.com/partsbandit/productlist~section_dept_id~1170244~terrain_dept_i d~1182421~cat_dept_id~1183205~product_dept_id~1183 315~selection_Path~3.asp im getting mine from bikebandit i think. Airmail to QLD is 4-10 days $215.95 USD for mine. and bike bandit have a really good reputation from what ive seen.

chadams
19-08-2006, 02:30 PM
Thats a great deal oz... let us all now once its here... looking forward to the pics.

03gixxerpilot
19-08-2006, 03:25 PM
:( That sounds a bit sus, a friend odered one from a local bike shop and best price he could get was about the $650-$700 dollar mark,still not cheap compared to what you can get it for but still a lot better that what you were quoted!

Frankie
19-08-2006, 08:15 PM
The Oz Importer has to pay import tax... plus GST. Thank honest John for it....

Large
19-08-2006, 08:26 PM
That only accounts for 15%+10% on the landed price though Frankie.

I was talking to a guy who imports electrical goods from China the other day. He reckons that a toaster that costs $49-$69 has a unit price of $3-$4 at the Chinese factory that makes them...then you add handling/shipping/taxes/duties/wholesaler cut/retailer cut/Costello cut and you've got your new toaster

P.S. I saw your bike at Ben's the other day...That's the most beautiful welding I've ever seen

Matt
20-08-2006, 07:10 AM
I love you Sig Large LMAO

Booster
20-08-2006, 07:27 PM
Not all resellers are buying direct or at wholesale prices (not enough volume in our market) ,& some are just hungry.

Frankie
20-08-2006, 08:15 PM
@ Large. Yep, there is some really good craftsmenship in that frame.

ozkat
20-08-2006, 08:31 PM
quote:Originally posted by Booster

Not all resellers are buying direct or at wholesale prices (not enough volume in our market) ,& some are just hungry.


I think not enough volume in or market is a myth. If i can buy a exhaust at $404.00 as a one off purchase delivered to my door, surely the factory backed importers are buying cheaper than me. Maybe it is that most dealers see us as as an easy $$$. A few prices i got quoted recently are.. 12in swingarm extension $700-$1700 locally done. $1495.00 for a sidewinder exhaust, $404.00 i actually paid. 4 x CR flatslide carbs approx $2000.00 actual price i can buy them for is $948.00. Air shifter from a dealer here $1250.00 but delivered to my door from OS $695.00 for exatly the same brand. I actually would prefer to buy from an Australian source but i cant afford too. Maybe im just a tight bastard but i doubt it.

Frankie
20-08-2006, 09:41 PM
I've been through this myself.
I buy where I get the best prize- end of story. Perhaps the locals come to their sences if everyone chooses the best prizes, insteat of spending the hard earned money locally- for nothing...

Booster
20-08-2006, 09:53 PM
I think some of that qualifies as hungry...

As a primary producer my selling prices are based on international prices , i have no qualms about buying in the same market.

Also i think with internet buying and selling world wide it will be hard on local resellers who don't chase the best available prices , to me it appears some don't care what they pay because they just pass on the costs and thats not just the original buy price but shipping and handling all the way to the retail outlet.

sfoc711uk
21-08-2006, 05:04 AM
Had the same problem here in the uk when i bought my simpson rx sidewinder lid.The uk supplier told me i would have to wait 3 months till he even put an order in to the states.
So i thought bollox to that went on the net and got one direct from the states,it was actually made with the date on the box and on my doorstep in 3 days from ordering.And a saving of nearly 100 uk pounds.

What is hard to get hold of over there, as i work in the trade and have a few contacts i was maybe thinking of either bringing some stuff with me when i get over there or maybe trying to import and not charge stupid prices.

sluglie
21-08-2006, 08:13 AM
quote:Originally posted by sfoc711uk

Had the same problem here in the uk when i bought my simpson rx sidewinder lid.The uk supplier told me i would have to wait 3 months till he even put an order in to the states.
So i thought bollox to that went on the net and got one direct from the states,it was actually made with the date on the box and on my doorstep in 3 days from ordering.And a saving of nearly 100 uk pounds.

What is hard to get hold of over there, as i work in the trade and have a few contacts i was maybe thinking of either bringing some stuff with me when i get over there or maybe trying to import and not charge stupid prices.


its not that stuff is hard to get hold of per se, it just costs a bloody fortune over here (well, compared to the rest of the planet it seems) unfortunately australia is a long way from anywhere and has such a small population base that it just cant compete with the rest of the world on import prices.

i dont mind paying 10% more off my local distributer, but when i can buy stuff from o/s at 1/3 the price it gets a bit ridiculous

qickdraw
21-08-2006, 10:34 AM
Hi guys. I have been reading this thread with some interest (I'll bet most of you were wondering when I'd join in!), and all I can say is this -
I started AuStreetfighter for exactly the reasons mentioned below - I was sick of being raped by Aussie retailers. BUT! - At the end of the day you need to remember that a business is a business and it needs to make enough money to pay the bills and wages. Full stop. So therefore there needs to be a certain profit margin on all products. Smaller products (day-to-day stuff) can have a slightly lower margin as the volume of them going out the door is high and the costs involved with buying them are relatively low. When it comes to physically larger or more expensive/specialist items then it can get a bit complicated. There are larger costs to ship into the country and as it's (undoubtedly) going to be a shipment of more than $1K then there is tax (and sometimes duty - exhausts, clothing for example) to pay up front as well. Most of these sort of items will not be demanded until the customer orders, as it is impractical to fork out K$$$$$K for items that will sit on a shelf for years, perhaps one or two a year moving... hence the usual '4-6 week' delay.
Also - Don't forget the base price is set by the supplier/manufacturer, and so the end retail price must be this standard margin above whatever the supplier gives it to the retailer for. If this 'trade' price is high then the end retail price suffers. This is particularly prominent in Germany and the rest of Europe - trade prices can be as little as 10-15% below the manufacturs 'retail' price, so the end retail price over here suffers.
Imagine an item that retails for $1. If a business over here buys it for $0.75 (25% trade discount - quite normal), pays $0.10 to import it, pays $0.10 tax & duty then it's already cost $0.95 and the retailer hasn't even made $0.01 yet! And don't forget that come tax time the retailer is going to have to fork out another (around) $0.05 to cover the rest of the 10% tax that Little Johnny and his cronies wants - considering that most places with a large workforce and overheads put 100% mark-up on most items then you're looking at this $1 item retailing for $2!
I try to keep my prices well below this level of mark-up as I don't run a shop-front and don't have a large work-force (I don't even draw a wage from it!), and always try to be no more than 10-15% above the price the same item could be ordered from an overseas retail shop (if I have to be above that price at all..), but I have to just shake my head and concede defeat with some items - especially from US shops. There are plenty of items I've been given the opportunity to sell, but when I do the research I quite often find that some places can (somehow!) sell for almost as cheap as I'd be buying!! I don't know how some of them do it, to be honest. I guess they get a lot bigger discount being local US businesses.. with these items I just don't even bother...
The mark-up that OZkat mentioned is just ridiculous, tho'. I'd be too embarrassed to sell a single pipe for that kind of price...[:I]
I can't speak for any other retailer, but all I can say is the more people I get buying the day-to-day stuff from me, the more opportunity I've got to lower prices of other items (which I am always doing.).[^]
Not every retailer is out to get you - some simply don't realise how much you can get it for from OS. Quite often if you have a chat & let them know they'll try to do the best they can (again I can't speak for everyone, but that's my philosophy anyhoo..!)
Anyway - enough of my drivel! Thx for listening - I hope it kind of made sense... abuse always welcome.:D

sharky
21-08-2006, 11:47 AM
Thats pretty much the idea I had Stu. If you find an overseas supplier that can do it for a lot less tell the Aussie shop...They can either do a deal or lose the sale. As you say maybe they just don't realise how cheap you can get stuff.
The other consideration is loyalty...My local autoparts store costs a bit more than supercheap etc but the owner is a wealth of knowledge (30 yrs building rods) and is happy to help out if he can (lending the odd tool etc)....try that at autobarn....

Gix11
21-08-2006, 12:42 PM
Oz. Is that bikebandit link in Australian dollars? If not I know it's still only $600 and something plus the $300 delivery, so about $1000 all up compared to the $1400 you got quoted. What was the final figure as I'm thinking of one myself.

Frankie
21-08-2006, 04:52 PM
Mmmmh, come to think of it. If we would buy Aussie Bike Products only. Staintune, Walden Miller, Dragging Jeans- what else is there...... let me think......c'mon....
This is the problem- Auschtralia produces hardly anything. Considering the labour costs in Oz.... this problem is here to stay.
The bright site is that jap bikes are cheaper here than, lets say, Europe.

23-08-2006, 05:13 PM
Wot iwanna know is why are your parts so expensive[?]:D
STANGEKAT[8D]

ozkat
24-08-2006, 04:40 PM
yeah mundy my stuff is so bloody expensive. thats why i gave rexie a 750 slingshot frame and other stuff, and gave devo crankcases, headlight and battery cover, and gave davo a braided brakeline, and gave deano a turbo plenum and other stuff, and gave Si a pushbike speedo for his bike. Geez im a bastard for charging so much.

fimpBIKES
24-08-2006, 05:44 PM
thanks ozkat

now i feel REALLY special :(

ozkat
24-08-2006, 06:06 PM
Hey fimp i actually have something you may be interested in and they are free :D a set of late model (85 i think) 750 Katana foot pegs. The alloy ones with the rubber tops. They have your name all over them. Gibbo sent them to me but i never used them. Ill give them to rexie next time he is up here if you like.

ozkat
24-08-2006, 06:12 PM
Ok i got some info on the shipping on the exhaust i bought from www.bikebandit.com



Aug 24, 2006 5:00 PM

At dest sort facility

MASCOT AU




Aug 23, 2006 9:33 AM

In transit

HONOLULU, HI




5:14 AM

Departed FedEx location

LOS ANGELES, CA




Aug 22, 2006 7:13 PM

Left origin

SAN DIEGO, CA




2:41 PM

Picked up

SAN DIEGO, CA




1:49 PM

Package data transmitted to FedEx





going by this info i ordered and paid on monday night and its already in Australia. Could slow down a bit now but at least its here.

veetwo tls
24-08-2006, 06:20 PM
i got a icon ti-max I jacket & field armour boots from USA for $500AUD total on my door step.
at the local shop here there icon jackets are $800 alone (ti-max not avaliable in australia) joe rocket imports sell the icon gear.

gibbo
24-08-2006, 07:09 PM
Got another of those free slingshot frames Oz? I could do with some of your lovin.

fimpBIKES
24-08-2006, 07:15 PM
cheers mate!!!!

got pics?
not 100% sure what your on about :D
are they rigid?

Gix11
24-08-2006, 11:10 PM
Shit mate, you just reminded me! I still have that speedo here. I'll bring it back over some time. I'm surprised I remember to fuckin breathe sometimes......

ozkat
25-08-2006, 03:20 PM
http://www.streetfighters.com.au/forum/upload/85920802851854.jpg Ordered and paid for 9pm monday 21st arrived at my door 10am friday 25th. perfect condition shipped in 4 days from the USA. Im a happy chappy :D

Iceman
25-08-2006, 04:34 PM
Oooooo shiney!

Can't complain with the delivery time.

pt
25-08-2006, 04:35 PM
ching! very shiny and that is seriously good service:)

Rich
25-08-2006, 05:21 PM
Arrived at 10am. Why isn't it on the bike yet ??

Cheers Rich

Large
25-08-2006, 06:43 PM
might look a bit short on your streamliner...

are they one piece?

what's the total damage?

ozkat
25-08-2006, 07:10 PM
quote:Originally posted by Rich

Arrived at 10am. Why isn't it on the bike yet ??

Cheers Rich
Its already on the bike Rich

gibbo
25-08-2006, 08:07 PM
That is one cool exhaust Oz, do you reckon it would be possible to baffle it somehow to make it streetable? I guess itwould be damn loud as is.

ozkat
25-08-2006, 08:33 PM
Gibbo, the exhaust is 2 peice seperate megaphone and headers. It is bloody loud and i mean really loud, no way could you run it on the street. However i looked at some stainless baffled megaphones today up here for less than $80 new. Proberly pretty restrictive but nothing a big steel rod and hammer wouldnt fix. and they slip straight on and are the same length. Thats what ill be using for next years AFR. The biggest problem i can see is reduced ground clearance. But then again if the bike is jacked up in the rear a little i cant see too many problems.