Sensor Purchase Traps

[Peter Gargano]

I thought the list would be interested in these figures relating
to a group purchase of 15 sensors from the US, compared with buying
the same items locally - apparently at a much higher price.

Hit [delete] now if you have no interest in the Australian WB deal.






This isn't intended to be a flame or malicious posting, just an
insight for anyone wondering why Australians, and others on this
list who don't live in continental US, may feel they way they do
about "group buys".






NTK DIY-WB sensors purchase Traps 101
-------------------------------------

I can get these sensors at my lowest price of US$118 each (all figures
will be rounded for simplicity) from a parts supplier who can
ship them anywhere in continental US for free. This sounds great -
at AU$1.00 = US$0.52 that's a local price of AU$227, substantially
cheaper than the AU$310 a local parts place has quoted me for 10
off, which is itself substantially cheaper than the one-off list
price of closer to AU$400 - that's damn near half price!.

Okay, so I can save AU$83 (US$43) Great! - but wait, freight from
US -> Oz must be included, and some other charges too, like duty,
GST, handling charges, etc.

Better ring a customs agent and talk turkey. Here are some figures:

Delivery to LA customs/freight agent - US$0 (free freight)

Best estimate LAX -> SYD  ....  US$80 (3 separate items here)

Customs clearance ............  AU$220 (total of 10 items)

Customs duty on FOB cost .....   5%

GST on the total + customs ...  10%

So, 15 sensors at US$118 = US$1,770 add freight = US$1,850 or FOB
cost of AU$3,558. Add customs house fee (AU$220) to give AU$3,778.

Now add 5% duty (and this is the absolute lowest they'd charge - may
have to argue over this) for AU$3,967.

Now add GST at 10% to give AU$4,363 for those 15 sensors to arrive
on my doorstep. That's AU$291 per sensor.

And there's a further local distribution cost on top of AU$7.00
(overnight OzPost < 500 g) - but we'd have this cost however we
did the buy.

So, bottom line: there's an AU$19 saving (US$10) if we get the NTK
sensor in the US. That's AU$310 vs. AU$291.

Wow! Great saving.

Oops, I forgot to include the foreign exchange transaction fee I'll
be charged for the US purchase, and I wont get the proper $0.52
exchange rate if I pay with a card. And I'll be losing some sleep...

Now, I know a lot of people won't even get to read down to here, but
there are also a lot of disadvantages with doing a US purchase - and
I don't mean to necessarily stir up nationalistic sentiments, but...

These sensors are made in Japan, currently in less than healthy
economic circumstances, then shipped to the US where they perhaps mark
up the price by 50% to 100% and then we pay all sorts of charges to get
them to Oz. Mr Bush and his administration are holding Australian
farmers to ransom and not honoring GATT and lots of other trade
agreements. And ... I could go on, but I won't. I think I've made the
point.

And sure, sometimes you get a part from overseas, and it gets thru'
the system at no added duty/GST/etc., but quite a few locals have
had sobering experiences getting "cheap" parts from OS. They have
shared these experiences with me privately.

Bottom, bottom line is that I'll be getting the sensors locally. And
on the bright side, we may even get a better price than AU$310/each.

And thanks to those few US "lurkers" who offered to be my "agent" for
the sensors - much appreciated, and I'll try and return the favour
some time (this is the true DIY spirit). Thanks again to those who
privately expressed their support for my stance.  For me, this has
really been a "unifying experience".

Peter.

PS. This has been posted ONLY to DIY, not GMECM.

Disclaimer: All on-list flames will be ignored. Direct them
here if you must:

           flames at techedge.com.au?subject=burn
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