Import pricing vs. local

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Oakley
Posts: 159
Joined: Fri Feb 26, 2010 5:05 pm
Real Name: Theunis de Bruin
Location: Pretoria

Import pricing vs. local

Postby Oakley » Thu Apr 14, 2011 12:42 pm

I am hoping there is a distributer or retail shop that can help me understand pricing of traditional protection.

Importing most sport gear works out exactly the same as to import it, but getting to traditional protection it cost nearly double after import taxes(normal 14%) and shipping charges have been paid.
It does not make sense as sporting goods(including all climbing gear) is exempted from import duties and is not regulated by government.

Who is taking the big cut home?
Maybe this is the reason for a small trad crowd?

I dont want to blame anyone but merely try to understand.

I can add a example if anyone would like.

JonoJ
Posts: 382
Joined: Mon May 23, 2005 5:30 pm
Real Name: Jonathan Joseph
Location: Cape Town

Re: Import pricing vs. local

Postby JonoJ » Thu Apr 14, 2011 12:56 pm

Howzit Theunis

Give us an example please.

Cheers
Jono

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Leebo
Posts: 135
Joined: Tue Oct 13, 2009 11:26 am
Real Name: Lee de Smidt
Location: Cape Town

Re: Import pricing vs. local

Postby Leebo » Sat Apr 16, 2011 5:06 pm

Hi Theunis,

There are a few previous threads that might be informative on gear pricing in South Africa

viewtopic.php?f=17&t=5241&hilit=import
viewtopic.php?f=18&t=4947&p=23649&hilit=import#p23649
viewtopic.php?f=17&t=4527&hilit=cost+of+import

There may be more threads that I am missing.

I'm interested what the example is...

Cheers,
L

GregB
Posts: 40
Joined: Thu Aug 28, 2008 4:34 pm

Re: Import pricing vs. local

Postby GregB » Sun Apr 17, 2011 9:58 am

Just to through in some info. I am currently living in OZ and the climbing gear there is 50% to 100% more expensive than here.

OZ has I'd guess 5 times as many climbers than us and none of them climb on old gear. What I'm saying is they import loads more gear on a regularly basis and the gear is still super expensive.

It is good to question the price of gear from time to time, it keeps people honest. But don't get the wrong impression, our local importers and stores are not ripping us off.

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XMod
Posts: 883
Joined: Tue Jun 26, 2007 9:38 pm
Real Name: Greg Hart

Re: Import pricing vs. local

Postby XMod » Sun Apr 17, 2011 1:26 pm

Hi, this sort of thing was discussed at length recently with regards to the cost of MSR equipment. Sporting goods are not exempt from import duties but are subject to a 20% surcharge plus VAT (interestingly custome charges VAT not only on top of the surcharge but also charges VAT on their 'services' fees! Go figure! - tax sux!)

Now add the shipping costs, mark-up by the local agent, and mark-up by the local retailer (not excessive at all) and you end up with a price quite a bit higher than the country of origin. I would guess this is pretty normal for almost any goods.

What can you do? Climbing is an expensive sport (well not like F1 racing!). Stop complaining, support your local climbing shop and think of the starving millions next time you purchase gear for what is in reality a frivilous and priviledged activity. IE: you are very lucky to even be considering taking part in something as indulgent and useless as climbing so why are you moaning about it?????

mokganjetsi
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Real Name: Willem Boshoff
Location: Cape Town

Re: Import pricing vs. local

Postby mokganjetsi » Mon Apr 18, 2011 7:50 am

i have brought in quite a bit of gear from overseas and the only stuff that gets an additional mark-up are textiles, footwear & assembled bicycles. other goods (ropes, tents, QDs, trad pro) gets 15,3% added and a small handling fee.

i think the retailers in SA has been open and honest about their mark-ups, holding cost & overheads - it does not seem excessive to me. ome gear in SA is getting closer to parity-pricing and that's great! let's support local :thumleft:

that said, i think it is still diabolical that someting like an MSR dragonfly would cost R2000 in SA and in the USofA less than R900 on parity. i do not fault our retailers but the importers can do something about this (?). one of the major cost components of gear is R&D; marginal manufacturing & packaging cost would be anything around 20-40% of retail price (my guess). so, working on the margins there is a great business case to be made: south africa is an emerging market with a keen outdoor community. instead of offering very expensive products to the elite few who can afford it; price products sold to South Africa closer to marginal manufacturing cost and achieve (close to) parity pricing in the shops.

so dear importers, please take the fight to MSR.......
Last edited by mokganjetsi on Mon Apr 18, 2011 11:34 am, edited 1 time in total.

Oakley
Posts: 159
Joined: Fri Feb 26, 2010 5:05 pm
Real Name: Theunis de Bruin
Location: Pretoria

Re: Import pricing vs. local

Postby Oakley » Mon Apr 18, 2011 8:09 am

Hi all.
@Jono I will get back to the example(writing tests this whole week) but I think the posts @Leebo added explains allot already.

I am really happy to be able to enjoy this wonderful sport and will not stop purely because it is expensive(relative).

I have imported a lot of pro when I started to build my rack and it was exempted from duties( as @Mok said it is 14% vat and 10% handling on the value of the Vat = 15.4%)

However I do still support my local(50km afar) gear shop regularly.

cheers for now

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XMod
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Joined: Tue Jun 26, 2007 9:38 pm
Real Name: Greg Hart

Re: Import pricing vs. local

Postby XMod » Mon Apr 18, 2011 11:16 am

Man! then Ive been ripped by those custom guys. The only gear Ive brought in was skating stuff and that def had duties added! Wonder why the difference?

Agreed that stuff expensive tho, gotta replace ropes soon..... ouch!


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