Are we being ripped off in Australia or are the mark ups more in Australia?

[jarnie]

I was just watching a Youtube video on the Mavic Air 2 produced by someone in USA.
He stated that the price for the Mavic Air 2 is $800 so that would be $US800.
The current exchange rate (from my bank) is $US0.65 = $1A so $US800 would be $1230 but nowhere in Australia can the Mavic Air 2 be purchased for less than $A1499. Are we being ripped off by $269? No wonder retailers here can often advertise discounts (not on Mavic products ) as much as 25% at times.

 

[Juggler]

I was just watching a Youtube video on the Mavic Air 2 produced by someone in USA.
He stated that the price for the Mavic Air 2 is $800 so that would be $US800.
The current exchange rate (from my bank) is $US0.65 = $1A so $US800 would be $1230 but nowhere in Australia can the Mavic Air 2 be purchased for less than $A1499. Are we being ripped off by $269? No wonder retailers here can often advertise discounts (not on Mavic products ) as much as 25% at times.

yep...we get done all the time here especially on electronics....at the current rate it is USD$800 = AUD $1165..
mobile phones and tablets are another classic take...
oh well guess we just suck it up.....wait till the taxes go thru the roof to pay for th virus recovery

BTW if you want a good cheap bag check this out..

Neewer Professional Camera Case Backpack Bag-Waterproof Shockproof 16.5x11x5.5 inches with Tripod Holder and External Pocket for DSLR, Mirrorless Camera, Flash or Other Accessories (Gray Interior) : Amazon.com.au: Electronics

Neewer Professional Camera Case Backpack Bag-Waterproof Shockproof 16.5x11x5.5 inches with Tripod Holder and External Pocket for DSLR, Mirrorless Camera, Flash or Other Accessories (Gray Interior) : Amazon.com.au: Electronics

www.amazon.com.au

 

[NeoXTC]

Don't forget to add GST

 

[jarnie]

Another item hugely marked up must be jewellery. How often do the stores offer as much as 50% off and they would still be making a profit on the marked down amount. No wonder retail sales are down (reported).
Don't remind me about how much things will cost in the future to pay for covid-19 but I knew that would happen from the day all the economic stimulus packages were announced as they have to be paid from somewhere and we don't want the government just printing more money otherwise the $A will be worth nothing.

 

[WithTheBirds]

I was just watching a Youtube video on the Mavic Air 2 produced by someone in USA.
He stated that the price for the Mavic Air 2 is $800 so that would be $US800.
The current exchange rate (from my bank) is $US0.65 = $1A so $US800 would be $1230 but nowhere in Australia can the Mavic Air 2 be purchased for less than $A1499. Are we being ripped off by $269? No wonder retailers here can often advertise discounts (not on Mavic products ) as much as 25% at times.

Ok.... You may have overlooked what it will actually cost to have an $800USD (1230 AUD) Mavic in your hands in Australia.

Freight will be $100 (150 AUD) US.

Customs duty @5% = $77

GST @10% on AU value +freight+duty = $145

Total cost in our money = $1600+ (rough round figures).

Obviously it’s cheaper here by the time you pay freight and the govt has had their lick.

You will find, like apple and others, DJI does a good job of controlling pricing globally.

 

[dawgpilot]

Advertised prices in the US don't include state sales tax. This can add up to around 10 percent to the final price out the door, depending on the state you live in.

 

[jarnie]

Not sure if those figures (add ons) are as much as you state.

Yes sales tax in USA varies by state between 4% and 10% (average about 7%) although I was thinking the author of the video (who had actually purchased the AIR2 - it was not a freebie from DJI for evaluation) would have been stating how much it cost him including tax - maybe not. Maybe Americans always state costs as a pretax amount as they are used to sales tax added on (I could never get used to it when visiting USA and often thought "gee that's cheap" and then realised that no it's not cheap (after sales tax is added) ).

I would doubt if freight would add $A150 as I often see items on Ebay from USA and have never seen postage listed more than $100 even for items which would be about the same weight.

Yes add GST and customs duty.

Maybe there isn't much of a difference but on the surface it does seem to be an unusually high difference.
Oh for the days when the exchange rate was parity and even more $US for $A (I was lucky to have visited there at that time). As such the AIR2 would be more than $A400 cheaper here (just over $A1000 instead of $1499).

 

[mavicn00b]

I paid $1614 for my Aussie FMC including GST from an eBay sale a few months ago. They retail $1899 - Are we getting ripped off?? In a word, yes.

 

[WithTheBirds]

Not sure if those figures (add ons) are as much as you state.

Yes sales tax in USA varies by state between 4% and 10% (average about 7%) although I was thinking the author of the video (who had actually purchased the AIR2 - it was not a freebie from DJI for evaluation) would have been stating how much it cost him including tax - maybe not. Maybe Americans always state costs as a pretax amount as they are used to sales tax added on (I could never get used to it when visiting USA and often thought "gee that's cheap" and then realised that no it's not cheap (after sales tax is added) ).

I would doubt if freight would add $A150 as I often see items on Ebay from USA and have never seen postage listed more than $100 even for items which would be about the same weight.

Yes add GST and customs duty.

Maybe there isn't much of a difference but on the surface it does seem to be an unusually high difference.
Oh for the days when the exchange rate was parity and even more $US for $A (I was lucky to have visited there at that time). As such the AIR2 would be more than $A400 cheaper here (just over $A1000 instead of $1499).

You wouldn’t pony up for express shipping and add insurance?

Let’s assume shipping is free. You are still not saving anything over buying locally and you have no local warranty if you buy outside Australia (direct from DJI being the only exception). Have an issue with the drone and it will have to go back to the USA for warranty repairs.

 

[jarnie]

I wouldn't dream of buying from overseas I'm just pointing out that it seems that with many things (Mavic Air2 included) that we pay a lot more here than what we would pay in USA for the same item.

 

[WithTheBirds]

I wouldn't dream of buying from overseas I'm just pointing out that it seems that with many things (Mavic Air2 included) that we pay a lot more here than what we would pay in USA for the same item.

That has been the case for a very long time.

The recent development has been our loss of opportunity to bring stuff in without being slugged at the border with duty and GST -and- less value on our currency.

Would have been worth buying your Mavic from USA not that long ago.

 

[mavicn00b]

Aussie sellers seem to have more latitude to discount the price than US sellers do presumably due to higher margins so may not hurt to ask if they can cut you a deal or just shop around for a better price. No need to pay retail unless you want to.

 

[jarnie]

I thought that I should point the following out.

Apple Mini 5 tablet in USA $US 388 which equates to about $597
Price in Australia $595 Almost the same
Mavic Air 2 in USA $US800 which equates to about $1230 using same conversion rate
Price in Australia $1499

They BOTH have to be shipped here and import duties and GST paid and the diffeernce between those on $US388 and $US800 would be no where the difference in the Australian price.

Something doesn't seem to add up.

 

[NeoXTC]

Probably different business model etc. Anything that comes into Aus usually is more expensive than getting it overseas. Can't do much about as much as I hate how it is. Eg when our dollar rises, prices doesn't fall as fast but when our dollar drops, the price increase pretty quickly. Business are there to make a profit. We as a collective need to vote with our feet. I'm sure Apple economy of scale plays a role as well in how they can maintain same price across countries. So big they able to absorb the differences in shipping etc etc.

Anyway yeah I hate the price difference but what can we do?

 

[WithTheBirds]

I thought that I should point the following out.

Apple Mini 5 tablet in USA $US 388 which equates to about $597
Price in Australia $595 Almost the same
Mavic Air 2 in USA $US800 which equates to about $1230 using same conversion rate
Price in Australia $1499

They BOTH have to be shipped here and import duties and GST paid and the diffeernce between those on $US388 and $US800 would be no where the difference in the Australian price.

Something doesn't seem to add up.

Ok... I’m not sure what your missing or how you might be doing your adding up.

If we take your AU$ figure of $1230 and add $190.65 ($61.50 and $129.15 being the import duty and GST) you are already at $1420. That is without shipping and duty.

Bottom line is absent your successfully beating the taxman it will almost certainly cost you more to purchase from offshore.

 

[aokusman]

I thought that I should point the following out.

Apple Mini 5 tablet in USA $US 388 which equates to about $597
Price in Australia $595 Almost the same
Mavic Air 2 in USA $US800 which equates to about $1230 using same conversion rate
Price in Australia $1499

They BOTH have to be shipped here and import duties and GST paid and the diffeernce between those on $US388 and $US800 would be no where the difference in the Australian price.

Something doesn't seem to add up.

US price with sales tax is closer to $1400. Not much difference.

 

[eipbroc]

$1,575 AUD for my Fly more combo

 

[jarnie]

$1,575 AUD for my Fly more combo

You did very well. Are you able to disclose where you got it from? I have not seen the combo in Australia less than about $A1800.

Ok... I’m not sure what your missing or how you might be doing your adding up.

What I am getting at is that there is hardly any difference between the cost of an IPAD MINI 5 purchased in USA (after applying current $A to $US exchange rate) as when purchased in Australia YET there IS a BIG difference for the AIR 2. How come the cost of an IPAD MINI 5 is virtually the same but not the AIR 2? They BOTH would have those costs mentioned.

BTW isn't the MAVIC AIR 2 manufactured in China (says so on the box mine came in)? SO there should be NO diffeernce in freight cost from China to Australia as China to USA. That (freight) then comes out of the 'equation'.

 

[WithTheBirds]

You did very well. Are you able to disclose where you got it from? I have not seen the combo in Australia less than about $A1800.

What I am getting at is that there is hardly any difference between the cost of an IPAD MINI 5 purchased in USA (after applying current $A to $US exchange rate) as when purchased in Australia YET there IS a BIG difference for the AIR 2. How come the cost of an IPAD MINI 5 is virtually the same but not the AIR 2? They BOTH would have those costs mentioned.

BTW isn't the MAVIC AIR 2 manufactured in China (says so on the box mine came in)? SO there should be NO diffeernce in freight cost from China to Australia as China to USA. That (freight) then comes out of the 'equation'.

The answer to that one is simple. DJI sets the recommended retail prices in each region. As does apple obviously. What you, me, or anyone else thinks the price should be is irrelevant. They will charge whatever the market will sustain.

 

[jarnie]

They will charge whatever the market will sustain.

Absolutely correct unfortunately. And while they continue to sell as many the price will be the same. Unfortunately (IMHO) Australians tend to be huge purchasers of electronic gadgets and also seem to have a lot of disposable income and the manufacturers obviously know this and charge what they like. That makes it difficult for those who have a limited income.