Jump to content

Do you pay RRP shown on the website?


Recommended Posts

Hi Everyone,

 

I was always wanted to get into hifi world and saved enough money to purchase a pair of floor standing speakers and integrated amplifier to start my journey.

 

I've done the research and decided to go with KEF R7 and CA CXA81 so I started searching online to see which shop would offer the best price but looking at 5-7 shops, they were all selling at $7000 for KEF R7. It was quite shock to me as KEF US's RRP was shown at U$4000 which would be equivalent to A$5500 and since it is retail, I thought it would be even cheaper. 

 

Just wondering if it is normal for AU shops to have higher price than other countries (possibly due to higher tax??)? Would shops offer some discount when you make a purchase? 

 

Link to post
Share on other sites
  • Replies 46
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Popular Posts

Exactly.   I really cannot fathom why people continually fail to understand that the price should not be determined just by a currency conversion. Even the most cursory examination of t

Unlike Australia, where sales of audio gear are a tiny fraction of the volume of the US market so there are no economies of scale,  where wages, rents and the cost of doing business are 2-4 times thos

If I purchase online then, yes, I pay RRP.  If I want a better price I call and speak to someone.  As for hi-fi, I never pay RRP, unless a small purchase.   A straight currency conversion fr

Yes import duty, gst, import agent profit and retail profit.

 

I tend to use the website as a starting point and then ring around to get best price. I find that most retailers will come to the party. 
 

...don’t expect them to come down to $5500 though

  • Like 1
Link to post
Share on other sites

This must be the first time you've compared o/s prices for anything to AU.

You won't find anything for the price of a simple currency conversion.

Online buying .... yeah I just pay it .... but I'm not shopping at your level.

Link to post
Share on other sites


Thread title really should identify Websites by Australian Retailers.

 

'Website' could be anywhere, and there's definite after purchase advantages buying from an AU seller.

Edited by eman
  • Like 1
Link to post
Share on other sites

If I purchase online then, yes, I pay RRP.  If I want a better price I call and speak to someone.  As for hi-fi, I never pay RRP, unless a small purchase.

 

A straight currency conversion from overseas to Australia dollars isn't accurate simply because the items in overseas currency is taking in to account their costs, not ours.  We're on the other side of the world, it costs money to freight things here, plus when you're adding man hours the price also goes up.  Just look at the quality products made in our own backyard, such as Osborn speakers and Elektra amps - great value for money, for the same reasons I mentioned.

  • Like 5
Link to post
Share on other sites
9 hours ago, Junz said:

Hi Everyone,

 

I was always wanted to get into hifi world and saved enough money to purchase a pair of floor standing speakers and integrated amplifier to start my journey.

 

Now you know - 'hifi' stands for 'high-cost fidelity '!  xD

 

Andy

 

  • Like 2
  • Haha 1
Link to post
Share on other sites


50 minutes ago, andyr said:

 

Now you know - 'hifi' stands for 'high-cost fidelity '!  xD

 

Andy

 

 

Yes, also High Fi, you need to be on drugs to get in to it.  

 

In fact, a drug habit is probably cheaper...

Link to post
Share on other sites

In Australia tax (GST) is included in the price as it is law*. In the U.S. they don't have to show taxes included in their advertised price, and remember they have state, county, local (city) taxes. added to the final price.

This is why it is very hard to compare prices with the U.S. 

 

*Though when looking for speakers in the last few weeks, I did find one well known online dealer who had a price displayed, and when you went to the checkout it added GST to the final price 😡

  • Like 1
Link to post
Share on other sites

Most of the time it doesn't make any sense to buy online speakers or amplifiers. Once you are inside the shop you can negotiate price, try different components, find some demo or second hand, even borrow something to try at home and more. All those benefits are priceless.

  • Like 3
Link to post
Share on other sites

Thanks all for the input.

 

I know AU price are usually more expensive than other countries but the difference was not as significant as hifi equipments so I thought maybe I needed to know something more before I commit the purchase. It is not a small amount for me ... :(

 

Yes, I would definaltely visit brick and mortar store if I could but living in Melbourne, I cant really do that yet. Perhaps I should wait until the lockdown is over and then make a purchase.

 

 

  • Like 1
Link to post
Share on other sites


Folks above said it. 

 

With COVID19, I can't go into the store. Next best thing is call up and enquire. Politely ask if they can give you a better deal. I won't recommend that you simply click purchase on the website and check out. If the store is willing, they will send you an invoice via email with the discounted price.  Then transact from there.

 

Good luck. I got a CXA81 and its awesome. 

Link to post
Share on other sites

There is post a few years ago discussing why Kef Aust prices are among the highest in the world when comparing US, UK, Asia and EU, so no it’s not because of local tax and other issues it’s purely because that’s the markup Kef Aust has chosen. It’s something like 40% more than it should be comparatively.

 

Hunt around for demo Kef deals around Aust and good used buys. There is also a tagged speaker audition list post in the forum for wider considerations. For that money others like ATC40 and VAF I-66 etc are better.

 

 

Edited by Al.M
  • Like 1
Link to post
Share on other sites

Righto here we go again

 

AUDUSD about 0.7100

USD 4k = AUD 5,600

 

Shipping and insurance at a guess $500 (I have no idea but its probably quite a bit more)

 

GST and duty on AUD $6,100? Again a guess but probably 15% total

Total AUD 7k 

 

 

 

 

  • Like 4
Link to post
Share on other sites
3 minutes ago, sir sanders zingmore said:

Righto here we go again

 

AUDUSD about 0.7100

USD 4k = AUD 5,600

 

Shipping and insurance at a guess $500 (I have no idea but its probably quite a bit more)

 

GST and duty on AUD $6,100? Again a guess but probably 15% total

Total AUD 7k 

 

 

 

 

Exactly.

 

I really cannot fathom why people continually fail to understand that the price should not be determined just by a currency conversion.

Even the most cursory examination of the costs associated with getting the product here would reveal at least an additional 25% in shipping, GST and import duty and then the retailer /distributor need to make a living and not be a charity for audiophiles.

  • Like 7
Link to post
Share on other sites


  • Administrators
2 hours ago, Al.M said:

There is post a few years ago discussing why Kef Aust prices are among the highest in the world when comparing US, UK, Asia and EU, so no it’s not because of local tax and other issues it’s purely because that’s the markup Kef Aust has chosen. It’s something like 40% more than it should be comparatively.

 

It used to be a prime example, but I *believe* KEF's importer locally has been working with the manufacturer to get the prices down closer to global pricing in more recent times.

  • Like 4
Link to post
Share on other sites
4 minutes ago, Marc said:

It used to be a prime example, but I *believe* KEF's importer locally has been working with the manufacturer to get the prices down closer to global pricing in more recent times.

Based on my rough calculations it seems like they are doing a pretty good job 👍

  • Like 3
Link to post
Share on other sites

In addition to exchange rates, which importers often hedge, I totally agree that costs associated with freight charges,  including importer's risk - shipping on dangerous waters etc, storage, relevant taxes, profit margins, and the lack of bulk import (Arse end of the world as some economist would call Straya and NZ) all play a part in the determination of the RRP here. I think we should look at what we are paying in Aussie dollar here when comparing 'equivalent' equipment for value and performance. I am sure dealers and importers alike are aware of competition or the lack of and also all the above cost factors and price their stuff accordingly and in agreement with overseas manufacturers. By the way, the more expensive the equipment does not equal to higher musical satisfaction. Listen to the equipment yourselves and choose the sound you like most than ask the price. You might be pleasantly surprise.

  • Like 1
Link to post
Share on other sites

Speakers often have 40-50% mark up.

 

You won’t get that discount normally - and nor should you - overheads are insane!

 

If you want a red hot deal, try this:

 

Email/phone every store that you know that stocks that item, and tell them you’ll take their floor model if they’re ever getting out of that model for 40% off retail - quick sale, no effort for them, condition as is, cash in hand. Also can work if they just accidentally overstock. If they don’t have to pay someone/their rent etc at $100 an hour, it’s good for them (don’t spend a week bothering them - it’s only a win if they can quit that stock in seconds).

 

A quick sale of a dead stock floor model is a win for the retailer at that stage - they don’t need to make a profit on that last one (usually - and they may even have a rebated price from the distributer). The stock turn for the next profitable speaker is worth it. You then also get a retailer who’ll happily help you, instead of only sticking to the legal requirements because you made their life hard.

 

Electronics, at best, will have 30% (give or take rebate) - but do the same thing.

 

Everyone needs to make money, or they won’t be there for you in the first place.

 

If you want the deal of the century, it just has to be a viable win-win for everyone. Be prepared to wait, have the colour you don’t want and a scratch on the side.

 

It’s also astronomically easier to give that deal to someone who isn’t a ball buster - if you’re a d***, they’ll happily grin as you walk off fuming.

 

I’ve done this with everything I’ve bought brand new that’s up there in price, and it’s always been super easy (as long as you hold on to that patience).

Edited by Billy Shears
  • Like 1
Link to post
Share on other sites
7 minutes ago, Rob McHugh said:

I always go old school - I go to the shop knowing what I want and offer cash up front, I always get a discount. 🙂

 

Rob

Yup - you make it easy, and you’re happy for a win-win.

  • Like 1
Link to post
Share on other sites
5 hours ago, rantan said:

 

Even the most cursory examination of the costs associated with getting the product here would reveal at least an additional 25% in shipping, GST and import duty and then the retailer /distributor need to make a living and not be a charity for audiophiles.

Unlike in the US, to where KEF ships their speakers for free, where no import duties exist, and where products are distributed and sold by charities?

 

I know that advertised prices in the US usually don’t include GST/sales tax, but I reckon that after currency conversion the US RRP should be at least in the same ballpark as the AU RRP (minus GST), for products that are made neither in the US nor in AU.

 

Any large discrepancies would then have to be attributed to higher regulatory compliance costs, greedy middlemen or unrealistic exchange rates. The latter plays likely a role, since the exchange rate is largely determined by gamblers and speculators.

Link to post
Share on other sites

I don’t think the Aus RRP of $7000 is that bad actually because from my experience, most shops can easily give you 10% discount for a product that they have in stock and in that price range. So $6300 is easily achievable without much effort. I would guess more discount may be possible...

Now I am not advocating you should be an a-hole and haggle excessively or start ranting about overseas pricing, but usually a good sales will explain to you why certain brand or model they can give you more discount and why some they cannot (cos they have to order in or they don’t sell enough etc). 

Edited by att23
Link to post
Share on other sites

In my experience auditioning is priceless. You go to the shop and get huge discount on some brand. Then you try it and you find out that other brand is just much better. Don't believe blindly reviews. 

 

Link to post
Share on other sites
39 minutes ago, Irek said:

In my experience auditioning is priceless. You go to the shop and get huge discount on some brand. Then you try it and you find out that other brand is just much better. Don't believe blindly reviews. 

 

I suspect some people don't care about that, Irek - they just want to know that they bought 'Component X' for a much lower price than was advertised.  xD

 

Andy

 

  • Love 1
Link to post
Share on other sites

I decide on what I want and research it to death but usually only on the net.  To be honest - I rarely audition, save for some speakers I was after last year but even that is compromised as it was always at the store and not my equipment.  

 

Anyway - to the point - asking for a discount, well that depends on where and what I'm purchasing.  I would say the easy majority of my gear comes from the classifieds on here. Most of the stuff for sale here is an absolute steal - a huge discount on new. If it is something pretty expensive, I might ask to include shipping or even drop it off to my place. If it is pretty cheap, the fact I want it outweighs squabbling over a few beans. If it is something I want but over priced in my view, I would give it a miss.

 

For retailers, I like to build relationships. Service here is the key for me. Yes, I will ask for the best price but it is nothing ever stupid and I leave it up to them. Might be $50 - $100 on some exy gear but that is fine. For small purchasers like LP's or bits and bobs, I don't worry. A lot of what I have purchased there is only one retailer anyway.  By the stage I can be bothered to go to a store or ring them up - I know I want to buy it and probably will.  I'm not usually thinking  of their overheads or doing calculations of how much the retailer will be making, I'm far too selfish for that - I just want the service and a place to call if I have a problem.

 

As for on the web - I only buy new cheap items online therefor no haggle. If it is exy, always call but again I end up as the paragraph above.

Link to post
Share on other sites
13 hours ago, Steffen said:

Unlike in the US, to where KEF ships their speakers for free, where no import duties exist, and where products are distributed and sold by charities?

 

 

Unlike Australia, where sales of audio gear are a tiny fraction of the volume of the US market so there are no economies of scale,  where wages, rents and the cost of doing business are 2-4 times those in the USA, where there is GST and duty on imports and where shipping from the UK is much further and far more  expensive.

 

******* I am sorry if this seems negative, as this is not my intent, but there are many valid and ongoing reasons why we pay more in Australia.********

Edited by rantan
  • Like 5
Link to post
Share on other sites

I thought KEF was owned by a H.K. listed company that primarily produced batteries. Product was developed in Britain but manufactured in China.

 

But as the saying goes Bejing is closer to Berlin than it is to Brisbane.

Link to post
Share on other sites

I’ve found using the Commercial Sponsors on SNA like Frank Prowse etc will give you the best deals.  If you call them and discuss your needs and mention you a member here they will normally do their best for you. 

  • Like 3
Link to post
Share on other sites

Good reading above, interesting too and I guess there are always exceptions. Looks like Luxman and Yamaha amplifiers cost less here than in the US. (Based on advertised RRPs) they are hefty nuggets too so shipping might be costly.

Link to post
Share on other sites

I don't buy much from retail, but when I do I will go to the stores to see what's around and what it's like, and do some web research.  Then some serious auditioning.  During this exploratory phase I will casually ask if there can be some movement on the price when I'm ready to buy, and note their response.  RRP on websites can never be relied upon, manufacturers/distributors will often have the RRP higher than the retail price so the retailers' pricing will look good.  And if someone pays RRP online, well, that's extra profit.

 

At the point when I'm ready to purchase, I'll ask politely if they can do any better on the price (I'm not very wealthy).  I have nothing to lose, and the worst they can say is "no".  When they make an offer, I then might as (politely) if they can do any better on that offer, and accept if they can't improve.  Whatever they offer is what they are willing to accept.  If I'm happy I will proceed, but usually at that point I've already made the decision to purchase before I walk into the store. 

 

An important factor in my purchasing decision is the level of service I've received.  I understand that salespeople need to be paid when they are spending time doing extended demos, and retail needs to pay rent.  So I will often purchase from the retailer that has ensured that I will be happy with the item I'm buying and has invested the time/money in me - even if they can't match the cheapest price.  I am paying for equipment and service.

 

 

Edited by audiofeline
  • Like 3
Link to post
Share on other sites
1 hour ago, Ratbob said:

Good reading above, interesting too and I guess there are always exceptions. Looks like Luxman and Yamaha amplifiers cost less here than in the US. (Based on advertised RRPs) they are hefty nuggets too so shipping might be costly.

I think weight is not an issue unless you buy them individually. Most stuff are loaded into shipping containers however, if the suppliers do not have the quantity, then sharing containers is much cheaper than paying full price for a half filled container. 

Link to post
Share on other sites

I solved it by buying Aussie made. 

 

Plenty of top hifi manufacturers here, especially speakers. 

 

And guess what, the Aussie price is often cheaper for the same reasons. 

  • Like 1
  • Love 1
  • Thanks 1
Link to post
Share on other sites
On 09/10/2020 at 7:29 AM, hopefullguy said:

not many things o/s that are not more expensive in Aust, thats anything. pretty well common knowledge would have thought.

Online maybe, but not bricks and mortar ime.

 

Having travelled to many European and Asian countries in recent years, I was actually very surprised at the comparative cost of things. I was expecting to buy plenty of cheap goods. Boy was I wrong. The "Aussie tax" is actually a myth.

 

From clothing to electronics, I was seeing similar prices to here, sometimes more overseas. I bought a camera kit and tripod in Belgium and France respectively, and they were a little cheaper than what I could've probably bought for here, but generally there were very few bargains to be had, unlike what I expected. I looked at camera lenses in Thailand and they were on par with Aus. I did buy one in Singapore though, for slightly less than local. 
 

I agree you can get some bargains online from overseas vendors but the gap has closed significantly in recent times. Many brands can't be shipped here now also, from U.S vendors like B&H, who I've bought stuff from in the past. I've looked at several speakers etc. on there recently and most cannot be shipped here. Yes, you may be able to use a U.S shipping service, but not worth the hassle imo. 
 

With our dollar value and changes to gst and restrictions etc, I have hardly bought anything from overseas in the last few years. Savvy shopping locally is more advantageous to me. Especially in hifi, where sales, clearances etc are plentiful.

  • Like 1
Link to post
Share on other sites
On 09/10/2020 at 12:24 AM, Junz said:

Hi Everyone,

 

I was always wanted to get into hifi world and saved enough money to purchase a pair of floor standing speakers and integrated amplifier to start my journey.

 

I've done the research and decided to go with KEF R7 and CA CXA81 so I started searching online to see which shop would offer the best price but looking at 5-7 shops, they were all selling at $7000 for KEF R7. It was quite shock to me as KEF US's RRP was shown at U$4000 which would be equivalent to A$5500 and since it is retail, I thought it would be even cheaper. 

 

Just wondering if it is normal for AU shops to have higher price than other countries (possibly due to higher tax??)? Would shops offer some discount when you make a purchase? 

 

Its called the "Australia Tax"

Link to post
Share on other sites
3 minutes ago, Saxon Hall said:

Its called the "Australia Tax"

Which really doesn't exist in the vast majority of cases.

Possibly in the past but not for several years.

Link to post
Share on other sites
On 08/10/2020 at 9:24 PM, Junz said:

Just wondering if it is normal for AU shops to have higher price than other countries

 

It is normal for Australian Retailers to advertise full RRP on their website.  Some people will click and buy at that price which is one  reason it is done  but you should  talk to the stores directly ( visit if possible) and get a discount.  I haven't come a cross a situation where equipment such as  speakers  are not discounted from RRP  when shopping around and entering into purchase negotiations. So it is definitely NOT  recommended to click and buy.     Besides,  RRP is usually set high enough to allow for discounts,  and  to let the buyer think they are getting a bargain through discounts given.

 

Australian pricing is getting better (with a few exceptions ) but the basic rule of price setting in business is to set the price as high as the market will bear -  which in Australia is sometimes higher than other countries ( even after taking into account transport, taxes etc).  This can happen in other countries too with certain gear.  So again , price negotiation is the key.   And if buying second hand, don't just compare the advertised price to RRP.  Instead it should be compared to a typical  discounted new price  to assess if its worth buying. 

 

 

Edited by TP1
Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    No registered users viewing this page.




×
×
  • Create New...