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Originally Posted by MAD
If the local company here imports the same items, the cost of manufacture doesn't change.
Companies can buy in bulk and save on shipping, they also get wholesale prices. Average Joe doesn't get those benefits and yet still ends up a country mile in front.
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Yes I know about wholesale price.
I will give you an example. I can import 20 sets of Rims from China. The cost for 80 pieces (20 sets) is $6000. Cost around $75 per rim. Now this does not cover shipping or tax to get it into the country. Shipping and Tax is around $3000. So the cost to get the product to Aus is half of what I pay per piece.
Also if I did not buy 80 rims and I bought 4 rims. The cost to get them to Aus is around $2200. I still need to pay for a shipping container.
So you tell me know that Aus is getting ripped off. yes I may buy the rim for a heap less over seas, but to get it to Aus is half the cost.
So end of the day, the cost to get 1 rim to Aus is $112.50. A set $450.
Now if you include the cost to rent a Shop with a show room, Eletrcity, water Gas and pay an employee, the cost of my the rim is now around the $160.00 Mark, $640 a set. I sell the Full set for around $700.00.
So all that work I make $60.00 on the Rim.
The prices I have worked out are very basic and do not include tyres.