Why Are Australian Suppliers So Expensive Compare To Usa?

[michael_aussie]

I am looking to set up a freezer for my kegs.

I have a substantial shopping list, and would love to spend my money in Australia, and would love to support the AHB sponsors but why are keg fittings so expensive in Australia?

For example gas and liquid connects.

http://www.ibrew.com.au/images/equipment/B...isconnects1.jpg

Craftbrew = $13.50
http://www.craftbrewer.com.au/shop/details.asp?PID=711

Mashmaster not offered??

Grain and Grape = $16.95
http://www.grainandgrape.com.au/product_in...roducts_id=7229

The Brew Shop = $21.95
http://www.thebrewshop.com.au/disconnect-beer-p-261.html

The lowest price I have found in Australia are at:
Ibrew = $11.50
http://www.ibrew.com.au/html/equipment/keg...eer%20Kegs.html

HOWEVER in less than an hours casual searching Ive found 5 USA sites selling for under $6USD down to as low as $4.99USD at CHI Company.

http://www.chicompany.net/index.php?main_p...ec17d186fa63739

Even considering the additional cost of international postage, I will be able to buy these parts at less than 60% of the cost of buying locally.

Im on the verge of buying parts that would cost more than $600 to $800 from Australian suppliers or less than $400 from any one of 4 or 5 USA supplies. Id love to buy here, but $$$ are $$$.

MY SHOPPING LIST INCLUDES
10 x gas disconnects
10 x liquid disconnects
1 x regulator
1 x six outlet manifold with isolating valves
100 feet of beer line
1 x drip tray
various guns and taps

What am I missing??

 

[felon]

A US regulator won't fit an Aussie bottle from what i've heard.

 

[Mayor of Mildura]

my best guess would be that the US market is much larger than australia therefore more competition and higher turnover means lower prices.

or... this could explain the ferrari i saw parked out the front of craftbrewer last time i was in brissy

 

[Nick JD]

Buy where it's cheaper.

This won't force down local prices though because there's always enough fools to support excessive local prices.

Like me.

 

[sjcampbell]

Partly the size of the market. If you are selling x items and you need to make y profit to make a living then the larger x is then the less you have to sell each unit for. Remember the guy selling them has to make a living, so has to make $ per hour to earn a living.

Partly the GST - add 10 % to each unit.

....and partly the wholesalers.

My pet peeve that has nothing to do with Brewing.

I own a photography business and want to buy a printer (serious printer). It is a canon iPf 8300.

Price in Oz - $11,000 to $13,500 Price in the US (in Oz $) $3,000 to $4,000. That is just a rip off from local wholesalers.

Make up your own mind!

Cheers
Steve

 

[felon]

I like to support my local (which is one of the sponsors) but they don't sell March pumps and PID controllers.

 

[ekul]

that guys kegs are more expensive then what i thought they'd be. I was expecting them to be like $10, considering most US stuff is a quarter of the aud price.

I wonder if that means australian kegs will get more expensive?

I've always figured US homebrew has to be cheap in order to compete with the commercial beer market. Good beer is cheap over there i've heard. PLus all the other factors mentioned above.

I reckon if i was living in america i'd probably be knocking out brews for like $2.50 a carton

 

[Maheel]

i agree we take it up he arse on many prices

just remember when you send all your $$$ OS no tax, wages, employee's, profits, or any benifit remains here. All that money that gets spent here then also gets spent mostly here so it goes around creating a good solid economy that supports Australia. Gives us a medical system that works, un-employment benifits, etc etc

so when the shops shut here where are you going to buy all that stuff you still buy here.... ship in your grain from OS on your own ???

i try to support local as much as i can

 

[roller997]

I suspect it is a combination of the following factors:
1. The LHBS indirectly pays import duties and taxes (which don't apply to orders of less than $1000) that need to be passed on to the consumer.
2. The US is a much bigger import market for chinese goods which lowers transport costs for imported items.
3. There is much greater competition due to more homebrew shops which service a larger population of home brewers.
4. Quite a lot of the goods are produced or grown in the US, so there are no import and negligible transport costs

 

[Nick JD]

I will only support local business if they are selling at a fair price.

Aussie retailers in a lot of industries are just hooked on ripping people off.

Yesterday I was pricing a BOSS Loopstation guitar pedal. Aus: $600+. USA: $240

Aussie retailers can get ****** if they think they can keep ripping Aussie customers off.

They can whinge all they want - I'll have none of it. There's makign a living ... and then there's being a dickwad.

 

[Nick JD]

4. Quite a lot of the goods are produced or grown in the US, so there are no import and negligible transport costs

Go get a price from Hops Direct (in WA, USA) for a pound of NZ hops ... Organic Hallertau Hop Pellet (NZ): $15 for 454g. What? You just paid $10 for 90g! FOOL. You can get it shipped here in 4 days via DHL for $20 and be ready for the weekend brew.

Yup - Aussie retailers are cocks. Good for them for trying to maximise their profit, but this ain't 2002 - people are getting wise.

 

[Golani51]

that guys kegs are more expensive then what i thought they'd be. I was expecting them to be like $10, considering most US stuff is a quarter of the aud price.

I wonder if that means australian kegs will get more expensive?

I've always figured US homebrew has to be cheap in order to compete with the commercial beer market. Good beer is cheap over there i've heard. PLus all the other factors mentioned above.

I reckon if i was living in america i'd probably be knocking out brews for like $2.50 a carton

Good (that should read "GREAT") microbrewed beer there is extremely cheap. Supplies there are too. I didn't buy enough when I was there, but I do regret it. I like the stores I have dealt with here /(Go G&G!!Woohoo!!) but books, many tools and so forth are too much. I understand the issues from their side, but being financially 'limited', I buy things O/S when I can. Someone is making money out of this, but I don't know of any store that is rollling in it. I believe the importers have something to answer for. America tends to think 'Sell more and make less on each item but more overall' whereas Australia has traditionally thought 'they will have to come to us so lets only sell 5 items, but charge a great deal more for each'. The internet has changed that.

Ultimately, I am happy to spend what I can at the LHBS (only 30 mins away, and not even my LHBS) as they are helpful, genuinely nice and professional, and they sometimes have a beer on tap.

R

 

[Silo Ted]

Yesterday I was pricing a BOSS Loopstation guitar pedal. Aus: $600+. USA: $240

Aldi special last week. Choice of four pedals for $30 a pop.

We should all buy locally. Not only that, we should all buy from self-endorsed fair players, regardless of the price.

Brewing Toy X direct from China - $25
Brewing Toy X direct from Aus dealer - $70
Stupidity of those who buy from (B) out of some strange ethical bias - Priceless

 

[brettprevans]

backseat economists everywhere. And not a clue between them.

Lots of info on this already on the forum.

Is summary. It's for lots of reasons incl economies of scale, manufacturing costs, MUCH lower wages, COMPLETELY differant tax system etc. But where u want. Support local where u can. Support good customer service and quality products. business is differant in diff countries.

 

[Silo Ted]

Academic economist qualifications aside, in this present world of reliable e-commerce, can you explain why we should spend twice as much for an identical product through local channels, or made to feel guilty about not buying it locally ?

Financially, we're all under the pump, with rising energy fees, fuel prices, land rates, etc. I can't see the sense in supporting an overpriced outlet, when the buyer suffers out of his own pocket and the seller reaps the markup.

 

[manticle]

CM2's point was not about where you should buy or what guilt you should feel.

The initial question was 'why is it more expensive?' not 'where should I spend my dollar'?.

Spend it where you want. It's yours to do so.

 

[yardy]

CB serve free beer don't they..
can't get that in the US or China.

 

[Silo Ted]

Lots of info on this already on the forum.

 

[proudscum]

Next there will be the guilt because you buy from an ebay store that sells an item cheaper than going to a physical shop...me, not catholic, no guilt

 

[manticle]

How did guilt ever even come into the equation?