High Aussie Dollar and Buying OS???

mbp · #1 12-09-2011, 11:40 PM

I know a lot has been said on BM in relation to buying fishing gear locally compared with purchasing items over seas - and personally I'm a great believer in supporting the local distributers and retailers whenever possible.
However with the AUD as high as it is it does make purchasing high end fishing gear direct from Japan or the States a very attractive option for the consumer.
I don't study exchange rates and I might have got this wrong but I'm curious because you would imagine that importers and distributers in Au are getting a much better deal at the moment when they bring stuff into the country.
My question is if thats the case why are some of those benifits not being passed back on to the consumer and why are we not experiencing cooresponding price drops and better better deals locally?
Personally I still prefer to shop in Au but I would welcome an explanation from an industry point of view.
As I said, I'me no expert in this but I'm sure if the situation was reversed prices would go up pretty quickly.

TassieDevil · #2 13-09-2011, 12:23 AM

That is the case MBP - imports costs for items themselves are down but that is only one part of the puzzle.
As a manufacturer the costs continue on. The cost of moving these items is up due to fuel and insurances etc. Also the cost savings due to the exchange rate are often just an offset balancing out the increased cost of production and a higher purchase price in the first instance.
Now I am only speaking as a manufacturer where we have many more parts than just purchase. Those purely bringing items in would see greater benefit (profit) just onselling product IMO.

crabcrusher · #3 13-09-2011, 01:46 AM

We purchase alot of components for work, through an Australian reseller...

The cost of these components does not fluctuate with current markets and US dollar....

The reason is the US market is way bigger than the Aussie Market,,and they do not manufacture specifically for the AU market... If times are tough in the US they slow down on manufacture.... So therefore there is less stock so if anything there is more demand.......

This is not in all sectors,,, but i dare say the US tackle market is more dynamic than the AU.... Even though we have a huge intrest in fishing....

Just my 2cents

Bobby Bass · #4 13-09-2011, 04:42 AM

I have droped alot of my prices by 1o-15% I know shipping costs are higher but not In the way said above.

Production prices in coutries like the US have driven alot of their companies broke. The companies that are still producing are raising their prices by a bit.

There was atleast a year when the prices should have dropped but they didnt.

I import goods from the US, India, China, Spain, Italy, Germany, Japan and Sweden. As said above we have droped all our prices by atleast 10%

Unfortunately we do not sell fishing tackle.

They are telling porkies when they say the prices even out because of shiping and production. They should have droped a little but they wanted to keep the extra profit.

NORDY · #5 13-09-2011, 04:54 AM

I agree with Bobby Bass, I recon that the Aussie distributors have worked there prices out when the Aussie dollar was around 80cents, they think the aust public are used to these prices so we will just leave them there, well guys we arnt silly anymore we have the world wide web, and will buy from OS , next you will be complaining we don't support the Local economy etc. Few companies have it right like Legend Boats they price your boat on what the aus dollar is doing at the time, not what is the excepted etc. Pass on the saving and we would all be happy to shop locally even if we paid a little more but not what is happening at the moment with a lot of companies.

fishnhook · #6 13-09-2011, 05:13 AM

Wait until the carbon tax come's in thing's are going to go up even more.

Ben · #7 13-09-2011, 06:49 AM

have been given the excuse from tackle stores before that the reason is the stock they are selling was bought pre dollar hike and so they are selling in relation to what they paid and it takes a while to filter through, but when it goes the other way the prices seem to go up pretty quick

Paz · #8 13-09-2011, 07:13 AM

Please tell Shimano to lower the prices on the 10 million dollars worth of stock they have in their warehouse that they paid for when the dollar was much lower.

While you are at it please tell China to stop the wage increases.

Can you ask Japan to get the hell over the Tsunami too? We need our Fuji components ASAP and cheaper!!!

If you've got some time left, please see if you can bring down oil prices a little so the courier companies that send DohDohDohDoh to WA from the east coast can reduce their prices a bit.

Also pump out about 190 million babies because we will need that population to get U.S prices.

Sprinter · #9 13-09-2011, 08:17 PM

To claim its stock left over from when the dollar was lower is either bullsh*t or an example of incredibly poor stock management. The dollar has been high now for well over a year. How many importers carry more than a years worth of stock on hand?

Ever noticed what most suppliers do when they do have old stock? Its discounted to clear it out. You dont see Harvey Norman saying "This fridge is two years old and you can buy a new one 30% cheaper but pay full retail so we can make the profit we always wanted".

Paz · #10 13-09-2011, 08:33 PM

Well done on adressing all points there.

Sprinter · #11 13-09-2011, 09:42 PM

Quote:

Originally Posted by Paz

Well done on adressing all points there.

Didnt know I had to? In any case your other points arent relevant to importer prices based on exchange rates. I was trying not to be rude and think arguments on forums are counter productive so just ignored them but if you insist.....

Wage increases in China? Id be curious what information you are using to suggest this is a prime factor in increases in costs. Its going to have some impact but actual manufacturing costs in China are such a minimal part of the eventual retail price of an item its like chucking deck chairs of the Titanic worrying about it.

Suggesting the Tsunami is responsible contradicts your stockpiling argument. If the stock is held from prior to the change in exchange rates how can the tsunami have affected it?You cant have it both ways either the stock was bought years ago so recent natural disasters dont impact or if its recent and a comparable time frame then the exchange rates should have affected prices. Which is it?

Oil prices? Not sure what your point is. They fluctuate all the time. It affects costs sure but thats across the board. The tyranny of distance

Fair point about population but the reality is any of us can buy from half a dozen countries and get it here cheaper than an importer can. They have costs we dont so will never "match" OS prices but the question is have they truely kept profit margins the same? When the rates change how long before we start to see price rises blamed on it? As I said before exchange rates have been on parity or close for over a year now. Even if other costs have increased this should have had an affect on retail prices by now but Im yet to see any examples of price drops. If there are any Ill gladly buy from whoever it is as I want to support locals too. Im not a charity though. I cant afford to pay 50% more than I have to.