NADs in Australia
Dec 1, 2004 at 9:53 AM Thread Starter Post #1 of 16

Hunter_Killer

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I just bought a new NAD c542 for less than $600AUD from Basement HiFi (great service) at Brookvale, which is a nice deal considering its $700 rrp. (Before anyone does a straight conversion, consider that things always cost more here) Ive always wondered why cant the other makers of hi-fi gear give the same availability to Australia as NAD does.

The build quality of the c542 is quite good. Not amazing, but much better than most cd players Ive seen. Anyways, I am waiting for my Gilmore Lite to be delivered here so I can give an impression. Stay tuned
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Dec 1, 2004 at 11:58 AM Post #2 of 16
I don't understand why Australia's such a rip-off. Dealers always used to say it was because of the low Aussie dollar, then the dollar went up against the greenback, and they said prices had to go up because the manufacturers were in asia, but all foreign trade was done is US dollars or something
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, so either way we are screwed!

I was once quoted A$700 for a part that sold in the US for around $180! How does that work?!

That's why I've got most of my kit while I'm here in the UK. SO much more reasonable when you are earning the pound (and most of it is made here) and so much more decent s/h to choose from!
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Dec 1, 2004 at 1:08 PM Post #3 of 16
I guess its the fact that demand for such products here just are not sufficient for most distributors and sellers to give a low mark up. But some dealers here have fairly competitive prices. Headphonic is quite good I got my Etys there. Basement HiFi is great for Sennheiser and NAD products.
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Dec 3, 2004 at 1:50 AM Post #5 of 16
Quote:

Originally Posted by Hunter_Killer
I guess its the fact that demand for such products here just are not sufficient for most distributors and sellers to give a low mark up.



Exactly.

Australia is tiny in terms of population, but large in size and very remote.
Wholesale prices work on volume, so the more you buy the cheaper it gets - it makes sense
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To give you an example - for me to offer better pricing on etymotic products, I would have to order 20 times the amount I currently order in a batch and a quantity that large would not only send be broke, but last me a very, very long time even at discounted rates.

Then of course there's freight costs, import duty, gst, customs fees etc. It all adds up.

I remember talking to the National wholesaler for Klipsch speakers a few years back, Klipsch had recommended they stock around 5000 units of a particular model as an initial order, the supplier took 200 and still had stock after 2 years. The discount rate on 5000 units was pretty large as well, but there's no way in hell they'd move that many in a reasonable amount of time.


Also, arguments about the $AU are tough, people complain when prices rise due to a weaker dollar, yet it normally takes a while to filter through. Prices don't jump overnight when the dollar falls. On the other hand, the second the dollar is stronger everyone expects prices to drop instantly along with it.
Prices are dictated by the rate of the dollar at the time the wholesaler (or retailer) purchased the goods, not the current going rate.
It can take months or years for price changes to filter through.

H_K - you'll find that some brands have strict recommended retail pricing, NAD and Cambridge are 2 of them - it's always worth asking for a discount, just don't expect to always get one
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Dec 3, 2004 at 9:39 AM Post #6 of 16
Hey at least we do well on Alessandro headphones... and I do think the Talisman amps are well priced in Australia... its just everything else!!!!

TonyAAA
 
Dec 3, 2004 at 11:11 AM Post #7 of 16
The c542 is well priced at $600aud. They are $656aud plus shipping at Todds site. Not everything is expensive in Australia after you convert to AUD and add shipping.
 
Dec 3, 2004 at 11:54 AM Post #8 of 16
Correct me if i'm wrong but:
Smaller Market
Dealer moves less stock therefore has to make more money on each item
Higher prices
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At least we get decent Alessandro prices from Snufkin, and I'm sure it's similiar on a couple of other brands as well.
 
Dec 4, 2004 at 1:20 AM Post #9 of 16
Quote:

Originally Posted by Stornn
Correct me if i'm wrong but:
Smaller Market
Dealer moves less stock therefore has to make more money on each item



It's not just a case of making more money on each item, it's also a matter of not getting as good a discount when buying in smaller quantities.

For example;
Let's say Wholesaler A buys a product from Manufacturer A and the buy breaks for a product are something like; $2000 for a single unit, $1900 for 10+, $1600 for 50+, $1200 for 100+ and $1000 for 1000+
Now let's say freight is $40 per item, then you have import duty of roughly 5% and GST of 10% plus customs processing fees (which will vary, but with single classifications of items aren't a lot).

Now if the wholesaler bought 1000 units at a time they'd be getting the product for 1/2 the price as if they buy single units, but that's a million bucks worth of stock right there before freight, or nearly 1.2mil after costs. I know for starters I don't have anywhere near that kind of money to buy stock
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Anyway, with those buy breaks once you add a hefty (let's say 50%) rrp margin you end up with prices like so;
$3600
$3400
$2840
$2145
$1800

Ok, so these are all imaginary prices, but you get the idea
smily_headphones1.gif
 
Dec 4, 2004 at 6:59 AM Post #10 of 16
Quote:

Originally Posted by Snufkin
It's not just a case of making more money on each item, it's also a matter of not getting as good a discount when buying in smaller quantities.

For example;
Let's say Wholesaler A buys a product from Manufacturer A and the buy breaks for a product are something like; $2000 for a single unit, $1900 for 10+, $1600 for 50+, $1200 for 100+ and $1000 for 1000+
Now let's say freight is $40 per item, then you have import duty of roughly 5% and GST of 10% plus customs processing fees (which will vary, but with single classifications of items aren't a lot).

Now if the wholesaler bought 1000 units at a time they'd be getting the product for 1/2 the price as if they buy single units, but that's a million bucks worth of stock right there before freight, or nearly 1.2mil after costs. I know for starters I don't have anywhere near that kind of money to buy stock
wink.gif


Anyway, with those buy breaks once you add a hefty (let's say 50%) rrp margin you end up with prices like so;
$3600
$3400
$2840
$2145
$1800

Ok, so these are all imaginary prices, but you get the idea
smily_headphones1.gif




Gotcha, thanks for the elightenment.
smily_headphones1.gif
 
Dec 6, 2004 at 10:21 AM Post #11 of 16
Quote:

Originally Posted by Snufkin
Exactly.

Australia is tiny in terms of population, but large in size and very remote.
Wholesale prices work on volume, so the more you buy the cheaper it gets - it makes sense
smily_headphones1.gif


To give you an example - for me to offer better pricing on etymotic products, I would have to order 20 times the amount I currently order in a batch and a quantity that large would not only send be broke, but last me a very, very long time even at discounted rates.

Then of course there's freight costs, import duty, gst, customs fees etc. It all adds up.

I remember talking to the National wholesaler for Klipsch speakers a few years back, Klipsch had recommended they stock around 5000 units of a particular model as an initial order, the supplier took 200 and still had stock after 2 years. The discount rate on 5000 units was pretty large as well, but there's no way in hell they'd move that many in a reasonable amount of time.


Also, arguments about the $AU are tough, people complain when prices rise due to a weaker dollar, yet it normally takes a while to filter through. Prices don't jump overnight when the dollar falls. On the other hand, the second the dollar is stronger everyone expects prices to drop instantly along with it.
Prices are dictated by the rate of the dollar at the time the wholesaler (or retailer) purchased the goods, not the current going rate.
It can take months or years for price changes to filter through.

H_K - you'll find that some brands have strict recommended retail pricing, NAD and Cambridge are 2 of them - it's always worth asking for a discount, just don't expect to always get one
wink.gif



All true. But I guess we couldnt do much because we pay for our privilage of not living in a country that is too crowded.
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Dec 6, 2004 at 10:49 AM Post #12 of 16
Anyone noticed that us Australians seem to have a much larger personal space than others?
 
Dec 6, 2004 at 11:16 AM Post #13 of 16
Quote:

Originally Posted by Enverxis
Anyone noticed that us Australians seem to have a much larger personal space than others?


Do you mean when other people get close to you?

There's this guy at work that's from London and sometimes it feels like he's way to close to me.
 
Dec 6, 2004 at 2:52 PM Post #14 of 16
Quote:

Originally Posted by 3lusiv3
There's this guy at work that's from London and sometimes it feels like he's way to close to me.


He may just fancy you
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But seriously, here in London, they have traffic jams on the bloody pavement! The tubes are bad enuf, but try getting near Oxford Circus station at 6.30pm during christmas shopping season! All just to get home from work at night!
rolleyes.gif
 
Dec 7, 2004 at 6:52 AM Post #15 of 16
Quote:

Originally Posted by Enverxis
Anyone noticed that us Australians seem to have a much larger personal space than others?


Oi, there's people in the US who are like that too. Southerners and east coast types. Me, I'm all about the hugs. ^^ I just wish guys wouldn't think I'm coming onto them if I stand close to them. o.O
 

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