Why do we get so ripped off on prices in Australia?

[Adam W]

This is a general question however I will make reference to a couple of specific products & companies.

I am becoming increasingly annoyed with companies that seem to treat our 'isolation' as an excuse for gouging us on price.
I am aware of market realities i.e. - size of market, freight costs, exchange rates etc etc. And I'm also aware that a company can charge whatever it wants but please...
Let me give yo a couple of examples.
I've been shopping for some new Hi-Fi gear recently. A number of Marantz surround receivers took my ear.
I went looking for reviews on-line & found that our price in Aus is pretty much double that in the US. Speakers by Jamo (distributed by the same importer) are over 300% more expensive than in the US.
Now what I find annoying about this is that if I spend $1400 on an amp' I'd like to think that at least I'd be getting say $1000 or $1100 worth of amp'. Not $700 worth.
They are positioning the products as entry-level premium-range but in reality they are just Harvey Norman/JB Hi-Fi mass-market quality.

Another good example is any software from Adobe.
Why is Photoshop CS3 $1155 in Aus & $630 in the US?

It's little wonder that more people are buying on-line & having gear freight-forwarded from the US!!!

[Section52]

Another example is bulk ink for computer printers. I needed 6 x 250ml bottles. The going prices from the local suppliers was 35 cents per ml. I bought them via Ebay from America and delivered to my door in six days for 11 cents per ml. So now I fill my Canon cartridges for 88 cents as opposed to about $23 for the genuine cartridge. I have not needed to change any of the software settings for perfect photo prints.

[shillard]

Don't even get started on cars, you would wet your pants if you saw what European cars sell for in the US.

[Ad_Rex]

I've just had another example today... a photographic accessory, a shade screen, costs $265 here in Australia.
The same brand, same model number etc cost $70 in the US.
I have just ordered 2, they will arrive from the US in less than 5 days & even after paying for expedited shipping I'll still be around $30 better off importing 2 than if I bought 1 locally!!!!

[bif1234]

Agree with all of the above – recent examples I have seen include

• Merrill’s shoes – about 2-3 times the price of those in the states
• Premium Car Care Products – around double
• Laptops – Varies but much higher in Oz
• Even basis things such as disposable plastic car sea covers (like you car dealer uses) – again round double.
• Suits and shirts

Its not even just the price but also the available ranges of sizes and colors in products. Going shopping in the US and UK is just plain dangerous and very quickly threatens your duty free allowance and excess baggage charges – and this is just for basis items.

It seems anything that is even slightly specialized (read other than very basic items) seems to be a signal for gouging in Australia.

Freight is the usual excuse to beat up by retailers however it must be just competition ?

[snaic61]

Not excusing retailers/wholesalers by any means, but additional to earlier named "causes" the following have to be factored into prices:
higher salaries/wages;
longer/more holidays;
high cost of employing (superannuation, occupational health and safety, etc.)

Photographic supplies are shockers, and I'm looking to buy on-line and overseas which, of course, is not good for Australia.

The initial observation is valid, but can anyone suggest how to overcome these great differences.

[shillard]

Easy, buy direct.

Employment costs are a big contributor, as outlined above. The insanely high minimum wages in Australia (coupled with the cradle-to-grave welfare system and union croniism) push up the costs of all sorts of goods and services.

Then add in shipping, economies of scale (250 million vs 21 million consumers), tax, more tax, still more tax + duty + tax, tax on employment - payroll tax which pushes up the cost of doing business - tax on fuel, more tax......get the picture?

The only recourse - other than changing the entitlement mentality that besets 95% of the Australian population - is to buy direct from overseas at a fraction of the local price. Certainly my preferred avenue for books, CDs, DVDs, children's toys, IT equipment, etc, etc, etc...

I don't get the guilts over costing "Australian jobs", as chances are those missing out on my cash here are part of the problem - and responsible for voting in the parade of useless scrotes doing such a dismal job of running the country.

[Cas98]

The reason we get so ripped off in Australia is the following:

1: We work, we get paid. Businesses want more profit.
2: We want more pay, so to cover the extra wages cost, business put up prices (and increase profit).
3: See point 1
4: See point 2
Repeat above steps over and over and over and over...

This is not rocket science. Look at how much cheaper shopping is in the USA, the general (NON business execetive type)workers over there get ALOT less per hour than we do. I think (I may be wrong here) their average wage is about the same as the dole over here (?).

Our own greed is going to choke us in the end.

[Danny_b]

The minimum wage in the US was raised in the last 2 years for the first time in over 7 years.

Why are things so dear here? Look at the societies. In the US the poor are generally much more poor than in Australia. Things also have to be cheap so that someone earning $7 an hour can still afford to feed their family. Over here we have a pretty good standard of living.

Hence why we pay far more for shoes, amps, and laptops. Everyone along the line adds more on, from the government, to truck driver delivering it, the importer, and the retailer selling it.

[dammit]

it's not just Australia in general. We live just south of Perth (70km) and to buy an item locally we have at times been expected to pay anything up to $35 more than the Perth price for the same item, along with a 'take it or leave it' attitude from the retailer. It's cheaper for us to take the car up to Perth and buy there, and even cheaper to take the half-hour train ride. The excuse for the much higher prices is always 'transport costs'. Amazing when we can get goods delivered from Sydney to our doorstep for only $12, and a courier to deliver from Perth to our doorstep for only $20! Needless to say we never buy locally if we can help it.