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14/08/2009 6:58:59 PM
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It Hurts
Posts 2
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On a recent trip to the States I dropped into a bike shop and was absolutely stunned to see the price of new bikes. For example, the latest TREK 6.9 Pro with all the trick bits USD$4999 (here in Aust they retail for AUS$15999) three times the price. Even when you convert USD-AUD (including 7.25% State Tax) it works out to be approx AUD$6362'ish, then add extra baggage, plus Cuctoms' duty at the airport, you have now got yourself A TREK 6.9 at about half the price. With airfares so cheap at the moment it's cheaper to fly yourself to the U.S. plus accomodation, buy a bike than it is to hop in your car and go down to your local bike shop. Can someone, anyone tell me why the huge price difference.
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14/08/2009 7:28:40 PM
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Brad-lee Bennett
Posts 3
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Supply & Demand.
If people didnt pay $16k the prices would have to drop until a suitbale price is found, also if you have the $16k you are probably to busy to travel to the US just to buy a bike.
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14/08/2009 8:15:55 PM
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Michael Warner
Posts 122
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Firstly, the list price of that bike is over USD$8K (according to bikeradar's review), so it's either a cheaper model, or heavily discounted.
Secondly, the local shop may not expect to sell many of them. It's a well-known psychological trick in retailing that having an expensive, high-end model on the floor encourages people to spend more than they intended when they walked in, because even a mid-range model looks like a bargain by comparison, especially when the salesman tells the customer (truthfully, in the case of bikes) that it's "almost as good".
That's why whitegoods stores all had one of those silly Internet fridges on the floor when they were being promoted, even though they hardly ever sold one.
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14/08/2009 11:22:26 PM
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Robert Rau
Posts 150
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After seeing the price of high end bikes in Indonesia and Singapore (when you are able to find them) Australia appears quite cheap Very significant is the lack of knowledge the salemen have about their product - (noone can seem to tell you where the carbon frame comes from???) Knowledge of the poduct is everything.....
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15/08/2009 8:04:50 AM
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It Hurts
Posts 2
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A little about myself, my work has me getting to places like USA, Sinapore and London on a very regular basis, every few weeks for the last ten years. I bought my 1st MADONE in Singapore (simple yellow pages will help you there) saved about $3000 on the exact same bike if i had bought it here in AUS. I was in the US just last week despite what 'bikeradar' says it was in fact a 2010 TREK MADONE 6.9 PRO Orange and White to be exact. After knowing what bikes go for in other countries I would never buy another bike or bike part in AUS. Its sometimes even cheaper to have your goods shipped out from the UK than to buy them here (i understand i have the rare opportunity to be able to this) I'm just trying to bring to peoples attention just how much of a mark up is being paid for them here and as an avid cyclist and consumer as we all are, just sick and tired of getting bent over all the time due to the sport or hobby we love. I guess it's just the depth that varies.
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15/08/2009 12:29:41 PM
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Marc
Posts 6
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I am all for supporting the local trade, but when you can buy tyres (and other parts) from PBK and wiggle (UK internet stores) for less then half what you pay here, then it is hard to stay loyal to the local guys.
This is especially true when the local shop has to order something for you. Most of the time I can get it quicker from the UK and delivered to my front door, rather then waiting for the local shop to get it and then have to drive to pick it up.
Of course with bikes there is the whole warranty issue, but for the savings in the top end models.....
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15/08/2009 6:07:58 PM
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Drew Johnston
Posts 1
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Thanks 'IT Hurts'
Totaly agree... it is completely outrageous what we pay.
Even if you did pay list on the Trek Madone 6.9 in the US, and had to fly over to pick it up, and buy a tri all 3 sports case for your bike, and bought an extra seat on the plane for your bike, you would still save about $5K on what you can buy it for in a bike shop in AUS.
I guess that is the problem with being a 'small market'
I want to support my Independant Local Bike Shop, but instead of buying a bike from them, I might just GIVE them $2K an keep the rest for some nice wheels.
edited by Drew Johnston on 15/08/2009
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18/08/2009 7:36:02 PM
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Jason Daniels
Posts 30
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What's the deal with import duty? Don't you have to declare all new goods less than 12 months old?
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19/08/2009 4:07:13 PM
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Jeffrey Schulz
Posts 58
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1. Treks are made in the US which means no import /tax or gst
2. The local price doesn't include sales tax and the cost of shipping to internationally
3. The importers have to deal with an unstable economy at the time as the dollar could have dropped further (prices are usually set for the year model and don’t change during the year)
4. They only import a few of the top end treks due to supply availability
5. Prices where set this year when the Aussie Dollar was at 60cents. Which puts a US$6000 bike at A$10,000
6. The market for bikes in Australia is tiny compared to that in the US
7. The US$5000 bike was marked down, chances are you could get a fair bit of the RRP if you asked. I think the minimum I have received is 10% of the RRP and have had as much as $1500 off the RRP of a bike.
8. Sometimes the parts are not exactly the same here as in the US, same model but different parts, wheels etc.
9. If the bike has a problem you will need to send it back to the where you got it from for it to be fixed and the local bike should would not want to help you for nothing, they are a business and need to make a profit somehow.
They are a little overpriced but I don't think the bike shops are the problem as good shops give good discounts on full bikes.
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19/08/2009 4:46:20 PM
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Allkai
Posts 9
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Marc wrote:
I am all for supporting the local trade, but when you can buy tyres (and other parts) from PBK and wiggle (UK internet stores) for less then half what you pay here, then it is hard to stay loyal to the local guys.
I just ordered some Sidi Genius 5.5's from PBK, for approx $205.
About $450 RRP here I think.....
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19/08/2009 8:52:55 PM
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Marc
Posts 6
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5. Prices where set this year when the Aussie Dollar was at 60cents. Which puts a US$6000 bike at A$10,000
When the dollar dropped everyone was VERY quick to increase their prices and blame the GFC (regardless of when they actually purchased the products). but now the dollar is back up around 80-84, I havnt seen any shop drop their prices - including new models that they are ordering in.
Here is a thread - Cycling Tips
http://www.cyclingtipsblog.com/2009/08/support-your-lbs-2/#comments
that has been discussing this issue over the last couple of days. There are also a great number of cycling tips.
edited by Marc on 19/08/2009
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