Home – New Forums Marketing mastery I’m annoyed

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  • #978457
    Steve_Minshall
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    I’ve just been flicking around google shopping and spotted a product that I sell.

    Aus RRP is $245, I sell for $220-$229, I buy for $158.

    I have just found it on line in the UK for $151.
    Ok I need to have a conversation with the AU distributor about this and why our supply chain is so expensive.

    But this isn’t what really annoyed me……..

    I thought that’s ok freight will kill it.

    Freight to Australia is $8.99!!!!!!!! It will be delivered anywhere in Australia by Australia Post.
    Now firstly that is less than what I pay just for same-city metro and Australia Post will refuse to deliver it for me because it is 1.4mtr long!!!!!!!

    How much do you think it will cost you to send a 1.4m long parcel to the UK??

    Rant over.

    #1107291
    Geronimo
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    No advice to offer, other than to commiserate with you. That certainly makes it hard to compete, while staying viable.

    I use AAE for all freight, as in most cases it’s cheaper (it’s all relative) than Aus Post, but still no where near $9 to the other side of the world :(

    I do feel a little guilty though, a couple of week ago I asked my wife to post off some papers for me. I assumed she’d get stamps at the post office, but over dinner we realised that it was posted sans stamps. It did arrive though, probably subsidised by Steve’s postage costs ;)

    #1107292
    MatthewKeath
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    The book depository is based in the UK, but can deliver anywhere in the world for free. They have secured a special rate because of the amount of shipments they make.

    Could that be why your competitor pays so little postage?

    #1107293
    IncredibleCo
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    You could probably even get it cheaper in india / china / america – all of the above. Australia’s an expensive place to live these days.

    #1107294
    bridiej
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    IncredibleCo, post: 118937 wrote:
    You could probably even get it cheaper in india / china / america – all of the above. Australia’s an expensive place to live these days.

    I agree, and find it funny that we always used to refer to “Rip Off Britain” when actually I think it’s Australia that’s the rip off!

    For instance, my daughter loves Tinkerbell.

    Target had a Tinkerbell doona set – $49.99.

    Amazon.co.uk had the exact same set for just £10 (plus their small shipping cost).

    It’s the same with electricals, books, household items, etc. etc. etc.

    #1107295
    TheGoldenGoose
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    I found this article helpful (you might know if all already).. from Dynamic business mag

    http://www.dynamicbusiness.com.au/export/managing-the-cost-and-burden-of-shipping-how-to-04062012.html

    #1107296
    Calcul8or
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    First of all, Australian Air Express (AAE) is a joint venture between Australia Post & Qantas.

    Freight costs, particularly postal, are normally negotiated at the supply (origin) side, unless you’re buying FOB and have negotiated import rates with a broker or shipping company locally.

    Volume is the key, as previously pointed out. The more you export/import, the cheaper it can be per unit. So while it might cost $8.99 for that particular UK supplier to ship goods to Oz, your average Joe on the street over there wouldn’t get those rates.

    Programmer. Analyst. Nerd. Calcul8ors.com.au Custom Software & Collaboration
    #1107297
    Steve_Minshall
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    bridiej, post: 118954 wrote:
    I agree, and find it funny that we always used to refer to “Rip Off Britain” when actually I think it’s Australia that’s the rip off!

    For instance, my daughter loves Tinkerbell.

    Target had a Tinkerbell doona set – $49.99.

    Amazon.co.uk had the exact same set for just £10 (plus their small shipping cost).

    It’s the same with electricals, books, household items, etc. etc. etc.

    There are a couple of things going on.

    Firstly the AUD is way off true value and this purchasing power has not been shared fairly along the supply chain. In some cases the AU distributor is keeping it or using it to offset his own loss in volume from parallel imports. In many cases the manufacturer is keeping it. The North Face are currently selling a pair of their boots on their US site for $160 and on their almost identical AU site for $279! The product is not on special, compare any 2 products.

    Secondly the reciprocal delivery agreements between USA/UK post and Aus Post are way off. I think AU Post are bearing the brunt of this but it gives the overseas businesses a leg up. Especially when they get stuff delivered that Aus Post won’t even take for me.

    My frustration is that retailers are losing sales to overseas on-line while those same consumers then point at us and go “rip-off”.

    #1107298
    JacquiPryor
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    Hi Steve,

    When you say that you found a product you sell on the UK site – is it exactly the same product (i.e. same manufacturer and supplier etc)? I ask, because if there is some sort of exclusive AU distribution agreement here, then it may be possible to follow up with the originating supplier and have them stop UK company sending to AU if this would be in breach of the AU distribution agreement… just a thought, in case viable. Whilst doesn’t take the frustration away, it might stop the AU market being able to bypass buying from you in order to get their cheaper price.

    #1107299
    Steve_Minshall
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    JacquiPryor, post: 118971 wrote:
    Hi Steve,

    When you say that you found a product you sell on the UK site – is it exactly the same product (i.e. same manufacturer and supplier etc)? I ask, because if there is some sort of exclusive AU distribution agreement here, then it may be possible to follow up with the originating supplier and have them stop UK company sending to AU if this would be in breach of the AU distribution agreement… just a thought, in case viable. Whilst doesn’t take the frustration away, it might stop the AU market being able to bypass buying from you in order to get their cheaper price.

    Yes Jacqui it is identical.

    I will take it up with the AU distributor because they will be losing sales as well and are in a stronger position to make noise than me with the manufacturer.

    #1107300
    nominal
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    As far as international shipping prices go – I never got the hang of it.

    Over the past few weeks I’ve ordered a few cables from EBay – at a cost of under $1.5 INCLUDING shipping. Just to make sure I get it on time I bought one more from an Australian supplier for $8.5.

    The AU one came first – but didn’t work :-)

    The minimum I could see for a letter to be shipped in Australia is 60c, this is an international package – how can it be?

    #1107301
    Steve_Minshall
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    nominal, post: 118983 wrote:
    As far as international shipping prices go – I never got the hang of it.

    Over the past few weeks I’ve ordered a few cables from EBay – at a cost of under $1.5 INCLUDING shipping. Just to make sure I get it on time I bought one more from an Australian supplier for $8.5.

    The AU one came first – but didn’t work :-)

    The minimum I could see for a letter to be shipped in Australia is 60c, this is an international package – how can it be?

    The only answer I have is that who ever negotiated the international reciprocal arrangements on behalf of Australia Post did a shocking job of it! Then they try and make up the revenue on international outbound and domestic. Your cable for instance would be a $5/$6 satchel for domestic delivery. I would be really interested to find out more about how the international arrangements have been set up if anyone knows anyone that knows someone.

    #1107302
    Printerboy
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    MatthewKeath, post: 118936 wrote:
    The book depository is based in the UK, but can deliver anywhere in the world for free. They have secured a special rate because of the amount of shipments they make.

    Could that be why your competitor pays so little postage?

    JacquiPryor, post: 118971 wrote:
    Hi Steve,

    When you say that you found a product you sell on the UK site – is it exactly the same product (i.e. same manufacturer and supplier etc)? I ask, because if there is some sort of exclusive AU distribution agreement here, then it may be possible to follow up with the originating supplier and have them stop UK company sending to AU if this would be in breach of the AU distribution agreement… just a thought, in case viable. Whilst doesn’t take the frustration away, it might stop the AU market being able to bypass buying from you in order to get their cheaper price.

    Top post Jacqui, You are like the sharks on Shark Tank A Venture Capital Show. If you have not seen it, watch it!

    #1107303
    JacquiPryor
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    Top post Jacqui, You are like the sharks on Shark Tank A Venture Capital Show. If you have not seen it, watch it!

    Haha! That makes me sound like I am nasty…. really I’m not! :)

    #1107304
    LucasArthur
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    OMG what a can of worms…

    i send a few parcels OS in CD boxes and send em to the states, europe (mainly UK) and the prices are more the treble what can be returned to me from the same locations.. although this is not the end of it,,,,

    not only is it costs, but services… i tend to want to track these parcels and the only way to do it effectively is via EMS for online tracking which can set me back $26+ for postage to USA or UK and yet the same countries i send to can send it back for no more than $3-5 with online tracking…

    i believe our postal service lets us down considerably on costs and value adds compared to the rest of the world, although i guess i do understand it is vloume based (a little :D)..

    but on your side bro
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
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