Cost of Importing Parts !!!

Hi Guys,
Just thought I would share some number with you all...

I was recently asked how much it would cost to get two Empi Style adjusters delivered to an Australian Address. I quoted the guy $80 inc delivered.

The response I got was, no thanks I can get them for $10 USD ea. Now I have no problem with this but it was written as though I was trying to make heaps of money. So for interest sake I broke down what it would cost to get them here and then for me to sell them to him. So here you go, everything is from Aust Post and Aust Customs..

$10 USD = $15 AUD , $30 pr( approx)
$24 AUD by economy air ( www.austpost.com.au, weight 1.1kg pr )
Then I have to pay 15% import duty on the purchase which is $4.50
Then I have to pay 10 % GST on the lot so 10% of $58.50 so $5.85. So all up it has cost me $64.35 landed on my door step if there was no other tax's or issues. Now to sell them I have to pass on 10% GST which makes them $70.79 . Postage to say Sydney is $8.65 so they cost me $79.43 to land them at your door. So I was making 57 cents and that is before I pay any sort of international exchange duty or fees on Visa.

So there you have it ... just thought I would put the figures out there for you. Actually now I have had to work them al out I will post it on the forum for all to read. Not having a go at you I just think people need to understand it is not that cheap for Businesses to bring stuff in.

Before anyone starts yes I know I can claim back the GST I paid so I would be making around $3 if I got no exchange fees, which is impossible.

fair enough.
Respect!

well said Brad most people dont realise all the traps you have listed

Been there, the cost soon adds up. I've been caught out in the past by customs and the old Jonny Tax (GST).

Somthing yopu thought you got for a bargain soon turn out to cost that little bit more.

On average 1 out of 3 or 4 get picked up by customs.

Some people just don't know or are unaware.

I started the post about being ripped off by companies.
I know about import costs etc.

What I was on about was one dealer charging $130 for a mirror when another charges $40 for exactly the same part, I am not talking about one being original and the other a pattern part,
The mirrors were both supplied to both dealers from A.Schofield in the U.K.
Can anyone please explain ?????

Cheers
Dave

Dave,

I sympathise. Generally, in the recent past very few places
actually carried stock for the more 'esoteric' splitbus parts.
Service items common with other types yes, but things like
rubbers, safaris, pop-outs, door handles etc etc no way.

Thus if you wanted these parts, the dealer would say they
stock them, but would really order them from OS and get them
sent out air. It is the power of the net that had reduced
this dependence on local dealers quite a bit.

I buy a bit of stuff and would prefer to support a local
business. However, I can do the sums and in a lot of
instances local places charge 100% on top of their landed
price (including freight and duties) for parts......not just on THEIR purchase price of said goods.

I have also been buying most stuff OS but will willingly go back to a local business whos mark up is a bit less savage (and perhaps have done so recently).......

When buying OS I also often get pinged for duty and GST but can still buy a lot things far cheaper than they are sold here (WCM bus rubber is VERY pricey through many businesses here for example and I pay around 50-100% less buying OS even if getting picked for for duty and GST)

Brad the people I'm talking about are those that would have $160 on the adjusters. And the truth is that particular customer won't pay much less than your $80 quote if he gets pinged for duty and GST.........but the other side of the coin is that many places really do sock it to you
(at least as far as splitbus stuff goes which I do know about)

????????

RobK

This is a re-occuring subject on here which will never be agreed upon. I can now express my opinion, however worthless, wearing two hats. I have been on the receiving end of some highly inflated prices and now we are a major distributer of imported VW parts.
I have heard so many horror stories of people ordering from overseas. Ok some will save a few dollars but many lose their money or even wait 6 months or even longer for a delivery. I have heard stories of hundreds of dollars being lost and what come back have you got with a company thousands of miles away......absolutely none.
This guys $10 could be money well spent or it could be his worst nightmare who knows.
Businesses dont have to just buy one item, they invest thousands of dollars at a time, some items may never sell and therefore is money just sat on a shelf. This has got to be calculated into the equation.

However, what has spoilt it in the past and I am speaking from experience is highly inflated prices and poor service for one reason or another, this seems to be something that has happened for many years because the market has been confined and specialised.
We are going to see changes here, due to Volkswagens in general becoming more popular. I have said this before that Australia now is like the UK 15 years ago, but look at the UK now and attendances to shows are in thier thousands.

I have met Brad (above) and chatted for ages about the future of Volkswagens whatever thier appearance, without support for people like him and the shops that do offer good prices and service you will lose it all and that is bad for the future of the Volkswagen scene in Australia.
I see many posts of "bargains" obtained overseas, but the fact is that these "bargains" are available here on your doorstep now, but you just have to look harder.

Thanks Brad for breaking that data up. It certainly does add up - and as a purchaser and not a business owner, do not necessarily see all the hidden costs.

Squiz....

Hi Guys,
I fixed my tripple post .. damn servers who run them ... O/S .. yanks ... hehe

Just so there is no confussion I was not having a go at anyone about anything. I just thought it was worth mentioning how thinsg add up and I come up with my prices on import stuff. As classic says you loose a bit of stuff if you are a small guy or large guy. We lodged claims for over $10 000 worth od damaged, incorrect and lost stock last year alone.

We are currently working on ways to get these costs down and the best light on the board is the free trade agreement :>

Cheers,

Totally agree with your comments Rob, where are the pics?????

Cheers
Dave

Why buy the EMPI style shite anyway... you can get better locally made ones here! Even Vintage stocks them and they are made in Sydney by Volkswagen enthusiasts!



As for a business breaking down the cost on a single item... Brad, you know as well as I do that you don't import single items so some of those costs come down. Not to mention the economies of scale and the better prices that the dealers give resellers. I have access to the trade price lists from heaps of the U.S. suppliers and I know the difference in what it costs a reseller than what they offer it to the public.

I'm sure we all appreciate the point of your message and the fact that most people don't realise that not all the price increase is profit - but to use a single item import as your example is a stretch.

I think you have missed the point completely ....

Would like to know what australian guys make raising adjusters ?

We use Indian Automotive Adjusters for the Kombi's as they are the best quality ones we have found and their service is 2nd to none but I have never seen any Australian made raising adjusters for type 1 or type 2 apart from the ones we use to make at Custom Offroad.

As for importing a single part if you read the post you will see it was in response to a single individual who believed that they could bring in the adjusters so much cheaper then what I was trying to sell them for.

Also you mention Empi style shiat , I would be very keen to hear about any issues you have ever had with their adjusters ??? I have fitted over 100 sets and never had an issue so am more than happy with both the quality and cost. Have you ever actually had any issues with them ?

HotRodMatt wrote:As for a business breaking down the cost on a single item... Brad, you know as well as I do that you don't import single items so some of those costs come down. Not to mention the economies of scale and the better prices that the dealers give resellers. I have access to the trade price lists from heaps of the U.S. suppliers and I know the difference in what it costs a reseller than what they offer it to the public.

He also doesn't list all the forgotten expenses of running a business. Electricity, rates, lease of shop, labour, paper, phone calls.... every thing adds up. Business is expensive and they have to make a profit. To make $52,000 a year to pay for food and housing and kids and stuff you have to make $1000 a week profit clear of all the expenses mentioned. That's allot of adjusters at .50c profit......

Would like to know what australian guys make raising adjusters ?

Raising adjusters are any adjuster depending on where you weld it in.

As for importing a single part if you read the post you will see it was in response to a single individual who believed that they could bring in the adjusters so much cheaper then what I was trying to sell them for.

No you are trying to imply that you were only making 50c per set. Trade price of landed adjusters in Australia are less than half. maybe you should call some of the suppliers and save both yourself and your customers some money.

If EMPI style adjusters are the same as they were they require the whole beam to be cut. Illegal and unsafe.

I think people can see what the real point is. As I said, to quote myself... "I'm sure we all appreciate the point of your message and the fact that most people don't realise that not all the price increase is profit - but to use a single item import as your example is a stretch."

You can tell the tale without pulling the wool over people's eyes.