Are we being ripped off with tackle in australia

[NAGG]

When it comes to the bigger retailers they would be on a buy price ( known as cost plus bits ) where going to the trouble of doing it themselves is not worth the exercise.

A lot of the larger mass merchants and so forth are buying at prices that mum and dad small businesses could only dream of and end up subsidizing the larger groups.Ever heard the independent small business claim they can't even buy at the price a mass merchant is selling for, i have many times over and seen invoices to support that claim.

Many small businesses deliberately attempt to carry brand differentiation so as to avoid that situation.

I don't know about QLD but there is a well known group of stores down here selling sporting goods mainly footwear that import the vast majority of there stock themselves bypassing the Oz distributor and to this day and for many years the local distributor has not been able to stop this only limit how they use the brand in there advertising.

I am sure there is many instances where the local distributor or arm of the parent company have successfully argued against this but i would bet my left one this would not have been in recent times, last 5 years or so.

Certainly not trying to have a war of words NAGG but if i was a small business owner in the tackle industry getting screwed on price by a local distributor with a captive market attitude i would be doing my level best to canvass other folk in a similar situation and forming a buying co op and properly listed business and importing from another source. You could also on sell that product to other similar independent dealers at a small profit who chose not be included in the co op just to keep the numbers up and even cover the costs of employing someone who's sole role would be to manage and oversee the import program.

All good - I think we are pretty well all on the same page ! ..... I reckon if there was some way around it - someone would do it. what I do know is that the likes of Daiwa & Shimano Aust would be going all out to shut it down . At the very least you can expect no supply of other products or service support.
They would have already got in the ear of the principals to make sure it doesn't happen though.
Geofencing is an example of how Lowrance is trying to stop grey imports ........ You need to keep in mind that Shimano / Daiwa / Lowrance / pure fishing Aust are owned by the principals ........... so guess what ? - They get two bites of the cherry

Chris

[oldboot]

On the matter of these large high profile retail chains and groups.......they have no interest in a reduction the the retail price of tackle.

The higher the retail price, the higher their cut on the sale of those items.

And you can bet your last pilchard that they will be getting a pretty good deal from the distributers....so their normal price will hold much higher margin than it would for a smaller concern.

Remember all the large retailers ( in whatever industry sector) are high margin operations, they very rarely sacrifice margin.
They are not in the business of discounting, regardless of what their advertising might say.
Any large high margin retailer, if there is a cheap item...they will not be sacrificing margin to make the sale...that item will be suppiled to them at a price that allows them to sell at that price and maintain full retail margin.

Remember......walk into any of the large retail tackle stores......the vast majority, of what any one of them sells will come from no more than 3 suppliers......and both sides of the wholesale transaction know it, and both sides are very keen to keep the deal sweeet.

Discounting...ahh well, that is the last thing any high marging retailer or distributer wants, so they will do anything they can to prevent it.

as a small shop, if you get into a bidding/price war, with any of these large concerns you will get squashed like a bug......they will make a point of it.......they mostly have price matching polocies, but price matched sales will be an insignificant portion of overall sales.......they know that and make sure of it.

If a big retailer has difficulty with a small up start under cutting them.....the distributer will back the large concern against the smaller party that also buys off them.
And it does not have to be too many sales before the big retailer starts bleating in the ear of the reps over being undercut.

Now think about this price match thing.
Advertised price match polocies may have a role in improving sales......but it is also deliberately done so large retailers know when they are being under cut and by whom

SO
If you do get a much better price on something from a small independent......serioulsy think if pushing for a price match from a major chain is a clever thing.........by getting the price match from a major player, you are denying the minor player a sale AND you are giving the major player the information they need to run the discounter out of business.

Some of the prices may go down in the short term, but once the competition is removed they will go up because there is no competition.

Look what has happened with bunnings.....we used to have 4 thriving retail hardwares close by, all providing a different overlapping ranges of stuff at competitive prices.
Now we have 1 bunnings, who do not stock certan brands, do not stock certain items and all those other things people complain about.

serioulsy tink about it.

cheers

[PinHead]

it really has nothing to do with margins, mark up , distributors or anything else. It has everything to do with people. People walk into those stores and buy their products. As long as the products sell and people continue returning then all is good. The average Joe just goes and buys what he wants and pays the marked price..simple as that. The average Joes will always be far superior numerically than those buying from overseas.

[oldboot]

That is exactly why prices are so high in Australia.... because the average bunny will pay them.

The call em bunnies because there are plenty of em.

The average bunny knows nothing of retail commerce and even less of overseas product prices.

And they buy on price......if they want cheap they buy cheap...if they want quality they expect to pay for it.

In truth......many things sell better at a higher price.

Because a great many people prefeer to buy an item with a known brand name on it at a higher price......they will not believe an item half or a third the price is the same item under a different brand.

cheers

[GPB]

it really has nothing to do with margins, mark up , distributors or anything else. It has everything to do with people. People walk into those stores and buy their products. As long as the products sell and people continue returning then all is good. The average Joe just goes and buys what he wants and pays the marked price..simple as that. The average Joes will always be far superior numerically than those buying from overseas.

And that's what makes the world go round

[PinHead]

That is exactly why prices are so high in Australia.... because the average bunny will pay them.

The call em bunnies because there are plenty of em.

The average bunny knows nothing of retail commerce and even less of overseas product prices.

And they buy on price......if they want cheap they buy cheap...if they want quality they expect to pay for it.

In truth......many things sell better at a higher price.

Because a great many people prefeer to buy an item with a known brand name on it at a higher price......they will not believe an item half or a third the price is the same item under a different brand.

cheers

that makes every single one of us a bunny

[GPB]

Well! it's your Emblem and my nickname

[Steeler]

Bloody bunnies, go the Steelers !

[grammel]

I love going to my local tackle store to buy my gear.So if you blokes can try and buy just enough locally so they can stay open that would be great .

[NAGG]

I love going to my local tackle store to buy my gear.So if you blokes can try and buy just enough locally so they can stay open that would be great .

I think most of us support our favorite local tackle store in one way or another much prefer buying from them than the big chain stores.
Dont worry .... the good tackle stores will still be around

Chris

[RB]

Here is what I think and Know , first up the Australian Tackle industry is a closed shop , I have a mate who has the funds and large street side shop who is trying to set up a tackle shop , none of the top brands will surply him , because there is one other here in town ,I will just side track here for a moment , I own a butcher shop and every man and his dog can surply meat , you want to start up a butcher shop in my town , go for it , no surply problems , no one is going to stop you . NOW try that in the tackle industry , more surply cheaper prices , more pressure on the wholesaler, less margins , not going to happen , Aussie dollar high, prices coming down NO ,It is called discrepancy spending , charge what the market can bear , 2 or 3 big wholesalers run the market, total control on prices , so what can we do , BLOODY simple , buy on the internet from overseas and save a bundle , I know all about surporting local buissness , so don't jump on me about that one, but there comes a time when enough is enough . mybe then and only then will they take not , and yes I spend a lot of money on tackle , over $10,000 last year . most overseas . one other thing , how many petrol stations , supermarkets , cloths stores , butcher shops in your town , now how many tackle stores , SPEAK UP and mybe they will listen .

And every one of those supermarkets & petrol stations will sell tackle so cut the bs about trade hell you even sell Rods in your Butcher Shop

[La Vida]

has this maxxed out???

[Tunzafun]

http://www.charkbait.com

[PinHead]

well..I did it..ordered a couple of reels from the States..now have to wait and see how long they take to arrive.

[Steeler]

Hey PH

I reckon if they are coming USPS Int Priority you will be reporting back to us all good by the middle of next week, particularly if they make it on a plane by our Friday afternoon.