davestanton Posted July 20, 2011 Report Share Posted July 20, 2011 The internet is helping to level the playing field regarding price of tools. You guys in North America may not be aware of how cheap things are there in comparison to the rest of the planet. The driving force is your numbers. America has 528 million compared to Australia's 20 million. This is some serious buying power! To give you an idea, here are a couple of price comparisons on items that do not require electricity so that we don't get into the debate regarding different voltages and electric motors. Also, the Australian dollar is buying $1.07 US at present, has been for the past three months and will probably continue to do so for another year or so. Festool Routing Template MFS 700 in Australia $699 You guys pay $415. "Festool 488030 Clamping ElemenTS 2-Pack" In Australia $171, you guys in America, $98. I purchased a few things through Amazon last night and was amazed how cheap the shipping fee was, $13 for one package including 4 individual items, one of them being the clamping elements 2 pack. Sure, I have to wait a couple of weeks for them to get here, but that really is not an issue. Any other "International" members here have a similar story to tell? Quote Link to comment Share on other sites More sharing options...
aengland Posted July 21, 2011 Report Share Posted July 21, 2011 congrats on the price gloat! Quote Link to comment Share on other sites More sharing options...
Tobbe Arnesson Posted July 21, 2011 Report Share Posted July 21, 2011 Festool Routing Template MFS 700 in Australia $699 You guys pay $415. "Festool 488030 Clamping ElemenTS 2-Pack" In Australia $171, you guys in America, $98. Sweden: MFS 700: $590 488030: $144 Internet aware Swedes often make their OnLine purchasing in Germany (same power plugs) or UK (same voltage, different plug). Shipping is usually about the same as in Sweden in both cost and time (unless buying really bulky stuff). Shopping within the EU keeps customs and additional taxes at bay. Germany (where the things are made): MFS 700: $527 488030: $129 UK: MFS 700: ? Not listed. 488030: $122 All prices are suggested retail from Festool, in addition bargains are much easier to find in both Germany and UK as compared to Sweden. This price difference can be seen on several other brands and applies to most gods (not just tools). There was a time when one could fly to the USA, buy a high end mountain bike, spend a week riding it and then fly back home. Since the bike would be used going home there would be no additional taxes and in the end you would still have spent less then you would if you just bought it in Sweden. There's also a few companies that see Europe as one big market and have the same pricing all over. And there's others who force retailers to not sell to other countries within the EU, which is illegal but the retailers often don't have the time and money to fight it. All in all, before making big purchases look up prices all over the globe. Just remember to factor in custom fees and taxes or you might be in for a nasty surprise (been there, done that). Quote Link to comment Share on other sites More sharing options...
davestanton Posted July 21, 2011 Author Report Share Posted July 21, 2011 Tobbe, In Australia, anything under $1,000 that I purchase online is not susceptible to GST or import duties. Also, I tried to purchase the MFT 3 online and Amazon just refused due to the sheer bulk of the item for international shipping. Somethings like the guide rails I would not grab online due to the risk of damage. So I pick and choose, look for bargains and get shipments with total value sub 1 k and I am happy. Quote Link to comment Share on other sites More sharing options...
ChetlovesMer Posted July 21, 2011 Report Share Posted July 21, 2011 Dumb question: Is any of that difference due to taxes, or is it purely buying power and what the market will bear? Quote Link to comment Share on other sites More sharing options...
davestanton Posted July 21, 2011 Author Report Share Posted July 21, 2011 Chet, in Australia with have a 10% GST (goods and services tax) similar to VAT in England. We do not have sales tax anymore which used to be 20% and I don't think we have import duties. We live on a very large island with a relatively small population that is spread out around the comfortable coastal areas. The centre of the country is a desert with a very small head per square mile count. Hence we have a more expensive distribution factor per head. USA has 142 people per square mile whilst Australia has 7 people per square mile. At present, our dollar is stronger than the US greenback by around 8%. Now regarding distances. The company I chose to use an example re price difference is Festool, manufactured in Germany. Distance to USA from Germany 4,850 miles and from Germany to Australia 9,102 miles. One would think that maybe because there is twice the distance that could justify twice the price? But the distance from USA to Australia is 9,463 miles and the items I just purchased from USA cost a total of $171, $13 of that was postage. The cost of the items if purchased in Australia including GST would have been $280. 10% tax of that total is $15.54, items were $264.46 pre GST. The difference between buying from USA (shipping included) was $93.46 if we remove the GST from the equation. Wow, that was as clear as mud but I hope it gives a bit more of a detailed response rather than me just having a whinge about high prices in Australia. All of the above taken into consideration Quote Link to comment Share on other sites More sharing options...
duckkisser Posted July 22, 2011 Report Share Posted July 22, 2011 eather way im broke and cant afford for eather price i plan on buying all my shop stuff with things that i have saved up for by selling things that i have made and sold Quote Link to comment Share on other sites More sharing options...
Tobbe Arnesson Posted July 22, 2011 Report Share Posted July 22, 2011 Part of the story is taxes for sure, but the main part is fewer customers meaning fewer sold items meaning the middle hands need to get more $ per sold item to cover the costs. Adjusting for the taxes still leaves a big difference. Most of the companies having the same prices all over Europe have centralized the distribution and selling directly to the stores w/o middle hands. This will be more common in the future, not because the local distributors or the stores like it but because the customers shop more and more via Internet and finding the prices abroad... Quote Link to comment Share on other sites More sharing options...
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