bENDER wrote:
Hi alle!
I'm really the [NASA new project name] in! >☹
Can anyone give me a GOOD reason why a person can buy a, lets say Dean Dixie Rebel in America for a average price of $1000*R8=R8000+- and then in pay R20000+++ in SA?? This is ludicrous! I mean, how much can courier costs be.....is it all because of import tax [CORRUPTION 101]??? We call ourselves a "modern" civilization!
I've got empathy with people like Adolf Hitler....maybe I must try and take over the WORLD BUWHAHAHAHAAHAHA!!! Then I can give everyone the opportunity to explore their talents without being held back because of money!
Keep in mind that the above example of the Dean aXE is just a stupid little incignifiCANT fact, the really important stuff we see everyday in our streets, on TV and we are all running around with chopped off hands….while those who deserve no hands have hands! ???
Let me start with my big plan....
"Tempers are wearing thin. Let's hope some robot doesn't kill everybody."
I think it's easy but wrong to just blame everything on corruption. I'll let you in on a little secret: If you convert from dollars to pounds then you will find that American instruments tend to cost more in the UK than in the USA, and British made instruments, amazingly, cost more in the USA than they do in the UK. Freight costs, customs etc etc. And if you buy the hypothetical instrument in London then you'll probably pay more than if you bought in Manchester, and in Manchester you'll probably be paying more than if you bought it in Norwich. Rents are higher in some cities and so the retailers need to make more just to cover having the shop open.
You're also assuming that it must necessarily be the government that is inflating prices by lining their pockets. The retailers and wholesalers are busy making a profit as well - don't leave them out of your calculations. Selling musical instruments is an expensive business. If you're selling loaves of bread and tins of baked beans you will turn over your stock very quickly and your money won't be sitting on the shelves of your store for very long. If you're selling guitars then the instrument (and thus the money you spent on it) may hang on a wall for months, even a year. So you can't do anything with that money that could be earning interest for you. So what do you do? Yes. Right first time. You increase the margin so that you still get some return on your money.
Interest rates are higher here than in many countries, so that has an effect. You have to pay more for the money that you borrow from the bank to stock your shop.
What we DON'T have here in some retail sectors is a lot of competition. Retailers tend to be fronts for wholesalers and thus "own" various brands. How many shops do you see stocking Schecter guitars for example? So the guys who do sell Schecters don't have a lot of competition from other shops that encourages them to keep their prices down.
Interestingly, if you look at some global brands - Johnny Walker is a good example - the prices, with exchange rates and duties factored in, are not the same across the world. Some markets will bear a heavier price for certain items or brands.
Welcome to the free market.