sailchris
Member
In a related thread, we were discussing the relative pricing between the US and Australia for Laser gear. The previous thread was closed by the administrators because the discussion mentioned a sponsor. This thread will not mention sponsors or dealers specifically.
We have previously discussed the pricing of sails. We have not discussed why there is a price difference between regions. I would like to know why.
For example I found both Hyde sails and North sails being sold for AU$1000 (which is US$922). A Hyde sail sells at APS for US$620 (or AU$696). That's a AU$226 difference!!! A North sail sells at APS for US$530 (or AU$595). That's a AU$405 difference!!!!!
If the sails are made in Sri Lanka, why doesn't the price work out the same? More price fixing shenanigans? The shipping costs from the factories must be comparable. Is there a ridiculous import duty on sails brought into Australia (it seems that there is not; the tariff looks like 5%)?
Why is there such a huge markup on sails in Australia? I understand that there is a GST (Goods and Services Tax) of 10% on goods and services sold in Australia. What about the other 10-30%?
Even if I complied with the rules (i.e. the duty of 5% and GST of 10% was paid), I could still sell a North sail to an Australian sailor for less than US$700.
Customs value (Cval) 595.00
Customs duty (Duty) @ 5% of Cval 29.75
International transport and insurance or postage via USPS (T&I) 40.00
Value of the Taxable Importation (VoTI) (Cval+Duty+T&I) 664.75
Goods and Services Tax (GST) @ 10 per cent of the VoTI 66.48
Total payable (Duty + GST) 96.23
Total Cost (Cval + Duty + GST + T&I) = 731.23
So, in Australian dollars, the sail would cost AU$731.23. This is about US$650, and still a huge savings for an Australian sailor. If you assume that the Australian sailor would take care of the GST on their own tax returns, then the price would be about US$591.
What am I missing here? It can't be this simple. Once I buy a sail from a dealer in the US, I own it. What is stopping me from shipping sails to individual sailors in Australia at a price of about US$600, which includes shipping and duty*?
* Please note, I am thinking of this as a hypothetical for discussion purposes only.
We have previously discussed the pricing of sails. We have not discussed why there is a price difference between regions. I would like to know why.
For example I found both Hyde sails and North sails being sold for AU$1000 (which is US$922). A Hyde sail sells at APS for US$620 (or AU$696). That's a AU$226 difference!!! A North sail sells at APS for US$530 (or AU$595). That's a AU$405 difference!!!!!
If the sails are made in Sri Lanka, why doesn't the price work out the same? More price fixing shenanigans? The shipping costs from the factories must be comparable. Is there a ridiculous import duty on sails brought into Australia (it seems that there is not; the tariff looks like 5%)?
Why is there such a huge markup on sails in Australia? I understand that there is a GST (Goods and Services Tax) of 10% on goods and services sold in Australia. What about the other 10-30%?
Even if I complied with the rules (i.e. the duty of 5% and GST of 10% was paid), I could still sell a North sail to an Australian sailor for less than US$700.
Customs value (Cval) 595.00
Customs duty (Duty) @ 5% of Cval 29.75
International transport and insurance or postage via USPS (T&I) 40.00
Value of the Taxable Importation (VoTI) (Cval+Duty+T&I) 664.75
Goods and Services Tax (GST) @ 10 per cent of the VoTI 66.48
Total payable (Duty + GST) 96.23
Total Cost (Cval + Duty + GST + T&I) = 731.23
So, in Australian dollars, the sail would cost AU$731.23. This is about US$650, and still a huge savings for an Australian sailor. If you assume that the Australian sailor would take care of the GST on their own tax returns, then the price would be about US$591.
What am I missing here? It can't be this simple. Once I buy a sail from a dealer in the US, I own it. What is stopping me from shipping sails to individual sailors in Australia at a price of about US$600, which includes shipping and duty*?
* Please note, I am thinking of this as a hypothetical for discussion purposes only.