Author Topic: Why such a huge markup?  (Read 3210 times)

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Mr.Mazza

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on: October 12, 2013, 12:42:09 pm
Hey, complaints and a question from down under.

Why is the mark-up on an Enfield so high over here? I mean, it's $6500 USD for a C5 in the states, yet it's $9500 AUD over here! (Around $9000 USD)
I really don't see why there is over 1.5 grand markup for new models in Australia, I can under a small markup (Say 500-800) but I mean we are closer to India than the US, shouldn't the shipping therefore be less?

Can anyone shine some light onto this?
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Alan LaRue

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Reply #1 on: October 12, 2013, 01:24:52 pm
I had an answer typed up with prices of a Honda CB500F for comparison. Then I switched tabs on my iPad and the text was gone when I switched back. *grumble*

Basically, though, that motorcycle is a lot higher in Australia as well, though not quite as much. Two possible reasons I can think of are a difference in import duties, or simply market pricing. Maybe they just can't sell it for much in the U.S. so they take less profit just to be able to have a presence here. Or maybe your government makes more money on them then ours does.

I couldn't even find how much the U.S. taxes motorcycle imports. I know there used to be a large tax on over 700cc, but that was to protect Harley when they were about to go bust. That was lifted years ago.
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ace.cafe

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Reply #2 on: October 12, 2013, 01:50:09 pm
The guys on the Aussie forum have been grumbling about this for years.
It seems that the Enfields in Australia have been much more expensive there than almost anywhere else for as long as they can remember.
However, they also say that everything else is expensive there too. Maybe there are some big gov't taxes hidden in the prices of things there, or something like that.
Or, maybe the retailers there just like to price-gouge their customers.
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REpozer

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Reply #3 on: October 12, 2013, 04:09:12 pm
Everything  is more expensive in Oz , mate.
I understand that an Aussie coffee shop barista can make $25 an hour without tips. The US ones will make $8 an hour.
Factor in high rent, food, taxes. Its all passed on to the customer.
To be fair , most Aussies make more then counterparts in the States, but you need it to live there.
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DanKearney

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Reply #4 on: October 12, 2013, 04:48:21 pm
I read an online Australian news website every day (Along with UK, Euro, and Asian news sites)  Just so I can keep current on how much people hate us Americans  :P

Anyway, a few days ago this was one of the stories:

http://www.news.com.au/national-news/median-wealth-of-australian-adults-makes-us-the-worlds-richest-people/story-fncynjr2-1226735526450

I've seen others wherein statements about wages show that Aussie workers seem to garner much higher wages for most jobs vis-a-vis equivalent U.S. positions.  The minimum wage in Australia comes to about US$33,000/year.  The U.S. minimum wage is just a hair over US$16,000/year.  Here's a reference for world wages: http://en.wikipedia.org/wiki/List_of_minimum_wages_by_country

Folks in countries with higher wages probably have to put up with higher prices too.  As already mentioned, domestic market pressures and import duties are in play.  In my opinion they probably play a large role too.

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Dan K.


barenekd

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Reply #5 on: October 12, 2013, 07:24:43 pm
It's called taxes, to keep everything succinct!
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AussieDave

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Reply #6 on: October 12, 2013, 10:01:49 pm
Guys, the govt taxes the crap out of us. If you run a business they take 30 0/0 .also. , rent is really expensive.a little one bed flat in the city runs about 1400 bux a month . But, we do have universal health care , an old age pension , and a social security net.it doesn't seem to matter how much I make of a week, somehow it always manages to spend itself! And I think import  tax is hi- and we import just about everything.ill try and find out how much it is  so we can compare.
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AussieDave

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Reply #7 on: October 12, 2013, 10:48:02 pm
We don't have an import tariff on motor cycles. There is a 5 % duty and 10% goods and services.  Looks like a big mark up though. I've meet the importer,he's a one man show with a small warehouse in Melton . I didn't see a rolls Royce in the driveway. I don't know how many Enfields get sold in a week here but I doubt it would be many. Also, it's not the custom here to tip all the time so the waiters and barrisstas need a decent wage.
« Last Edit: October 12, 2013, 10:54:19 pm by AussieDave »
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REpozer

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Reply #8 on: October 12, 2013, 11:09:27 pm
Also, it's not the custom here to tip all the time so the waiters and barrisstas need a decent wage.
Wasn't meant to sound cross. Just economic observation.  I understand why a cup of coffee(or a Motorcycle) is high in Oz .Nothing is free, all cost will either be paid by the customer or thru higher taxes or both.
There are some aircraft pilots that make less then $25 hour in the U.S.
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wildbill

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Reply #9 on: October 13, 2013, 01:31:21 am
I suppose i'd better have my say after all i've put in 61 years in the land of Oz.
REponzer is right in all areas and aussiedave is also right on track - we do have pretty good universal care services.
as for wages and to put it nice i doubt very much if you'd get an unemployed centrelink applicant to get off his/her Ass to work for $8 an hour. maybe a kid at mcducks lol
if your prepared to work you can earn very good money here and show little respect for it.
i'm about to buy my 4th royal enfield shortly -the cafe racer - within a span of 2 years but that said - i do work -there's a lot down under who don't.
if i was unaware of prices of goods in other countries i'd be none the wiser.
nothing wrong with that. throw in a couple of kids and with fringe benefits -they do quite well.
wind back the clock say 30 odd years you'd be classed as a no ----- but today no-one cares.

now on another note if some of the aussie members know some-one that's after a cheap b5 - $6700 will take it away plus i'll toss in a few extras. my bikes 2 months old and would retail for $8500 new plus $500 in extras - so a pretty good saving off new price.






AussieDave

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Reply #10 on: October 13, 2013, 01:57:15 am
Wildbill , in st kilda there are old men who've never worked a day in their lives - they just drink or do drugs get themselves declared alcoholic/ addict and kickback on a pension. It's sad to see. Of course they get public housing as well
  On a lighter note, REpozer I didn't men to sound cross either , sorry if I gave that impression.and it sounds like I should come and get my flying lessons over there- it might save me some! ;)
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Gypsyjon

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Reply #11 on: October 13, 2013, 02:11:57 am
I thought all you Aussies were wealthy.....Is that not right???   :)


AussieDave

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Reply #12 on: October 13, 2013, 02:26:38 am
Don't suppose you could spot me a fiver and ill go find  out. :)
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Mr.Mazza

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Reply #13 on: October 13, 2013, 04:04:51 am
I thought all you Aussies were wealthy.....Is that not right???   :)

Pretty hard to find decent work without any qualifications, applying as a Copper soon so if I get that, I'll have my Enfield within two months of starting training (50K/Year ;P)

And I did forget GST, that lovely tax that takes 10% of all goods, so once you take into account all our of taxes, from a 6500 motorcycle say, you tax around a grand on top, then because they wouldn't sell as many as -insert generic sports bike- the dealer has to mark up.
Lizzy - 07 500 Deluxe ES - Red and chrome - Sold.


wildbill

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Reply #14 on: October 13, 2013, 06:12:54 am
not all of us......but i have done well out of breeding mutation finches. see that little lass in my photo id - her offspring alone sell for $900 per bird and she has bred 15 in the past 2 years.
best part about it - here in OZ no tax on a hobby so  my secret is out why i buy and sell these bikes.  :P


Sectorsteve

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Reply #15 on: October 13, 2013, 09:02:38 am
because australia is run by a long line of crooks and its corrupt as hell. we pay a fortune for everything here. Luxury car tax? a BMW in europe is half the cost of what they sell em for here.  I bought my enfield here, but only buy parts from overseas as its cheaper and better quality than what you get from that A hole in melbourne who imports.


Sectorsteve

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Reply #16 on: October 13, 2013, 09:10:37 am
Hey Mazza, Richard Branson, Bill Gates and Mark Zuckerberg didnt finish school. no qualifications.
it aint where youre from or what degrees you have, its where you are at.
« Last Edit: October 19, 2013, 09:44:30 am by Sectorsteve »


wildbill

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Reply #17 on: October 13, 2013, 12:01:57 pm
anyway boys its been an interesting topic so as members of a good forum - lets move on  ;D :D