INCH ACTIONS IN AUST & US

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jcinsa
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INCH ACTIONS IN AUST & US

#1 Postby jcinsa » Wed Jan 12, 2011 7:02 am

There seems to be a discrepancy in pricing between Australia and the US.

What would be the reason for this?

Have a look at the links below

http://www.actionclear.com.au/store/ind ... at&catId=8

http://www.x-tremeshooting.com/index.php?page=CG%20INCH

M12LRPV
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Re: INCH ACTIONS IN AUST & US

#2 Postby M12LRPV » Wed Jan 12, 2011 7:19 am

jcinsa wrote:There seems to be a discrepancy in pricing between Australia and the US.

What would be the reason for this?

Have a look at the links below

http://www.actionclear.com.au/store/ind ... at&catId=8

http://www.x-tremeshooting.com/index.php?page=CG%20INCH


Exchange rate and transport costs :lol:

TOM
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#3 Postby TOM » Wed Jan 12, 2011 7:21 am

Could purchase in the states, bring em back here, resell and make a profit
TOM

AlanF
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Re: INCH ACTIONS IN AUST & US

#4 Postby AlanF » Wed Jan 12, 2011 9:23 am

jcinsa wrote:There seems to be a discrepancy in pricing between Australia and the US.

What would be the reason for this?

Have a look at the links below

http://www.actionclear.com.au/store/ind ... at&catId=8

http://www.x-tremeshooting.com/index.php?page=CG%20INCH

To be fair, its the same for Barnard : http://www.mtguns.com/prod01.htm

Its a "marketing strategy" to get into the high volume US market. In effect though, we are subsidising the US market. The main losers are us and the US manufacturers, who have to compete with subsidised imports.

Alan

TOM
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#5 Postby TOM » Wed Jan 12, 2011 10:20 am

Alan, your forgetting the manufacturer of the INCH is from Australia, Its a bloody big difference considering we are dollar for dollar with the U.S at the moment. The question remains, Why do we pay more directly from the manufacturer when the middle man (XTREME) can undercut by such a large margin and obviously still make a profit? I would have thought the opposite would apply or at very least a similarity in price, this isn't even close!

TOM

AlanF
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#6 Postby AlanF » Wed Jan 12, 2011 10:37 am

TOM wrote:Alan, your forgetting the manufacturer of the INCH is from Australia, Its a bloody big difference considering we are dollar for dollar with the U.S at the moment. The question remains, Why do we pay more directly from the manufacturer when the middle man (XTREME) can undercut by such a large margin and obviously still make a profit? I would have thought the oppisite would apply or at very least a similarity in price, this isn't even close!

TOM

I'm not agreeing with it Tom - just saying that its a reality of the US market - some of our exporters will take a loss into that market to get a foothold. If you see this as unfair, you don't have to buy the product.

Alan

Woody_rod
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#7 Postby Woody_rod » Wed Jan 12, 2011 11:32 am

TOM wrote:Could purchase in the states, bring em back here, resell and make a profit
TOM


You could try, but you would not be sold one by the USA reseller. Same goes for most products with an AU seller.

The price difference is made up from many things involved, which I don't intend to go into. The underlying issue has been stated by Alan, where the market size is just vastly bigger than here in AU. 90% of our sales are overseas already, this is just how it works with this type of product.

Take a look at the prices for cars. See how much a new Toyota Camry is in the USA and then here.

Things are not as simple as they look on face value. Volume makes a big difference, probably more than most might think. Anyone in business wil understand they would rather sell 100 units of product X at a 10% markup, than 30 items at a 20% markup.

Don't forget that the reseller in the USA is the same guy that makes our triggers.

TOM
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#8 Postby TOM » Wed Jan 12, 2011 3:19 pm

Toyota Camry's are not made in Aus and shipped to the states or visa versa.
TOM

ratshot
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#9 Postby ratshot » Wed Jan 12, 2011 5:54 pm

They say buy Australian, but it appears we are still propping up the yank economy , another eg of this is ADI powder . LGS $50 a pound in US $18.50

Woody_rod
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#10 Postby Woody_rod » Wed Jan 12, 2011 8:39 pm

Our overseas resellers order 10+ actions at a time.

You will find that ADI sells more sporting powder to the USA in a week, than the whole of Australia probably uses in a year. The market here is miniscule. A lot of people here just don't understand that this is how the world operates.

I saw Mitsubishi Magna 380's brand new in the USA last year for about US$14,000. They are made in AU and exported to the US. There would be thousands of examples like this.

Woody_rod
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#11 Postby Woody_rod » Wed Jan 12, 2011 8:40 pm

ratshot wrote:They say buy Australian, but it appears we are still propping up the yank economy , another eg of this is ADI powder . LGS $50 a pound in US $18.50


And what rifles do you use? This should be interesting....

Lynn Otto
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#12 Postby Lynn Otto » Wed Jan 12, 2011 9:32 pm

Rod, Trevor and I both agree with you re the pricing structure in relation to volume of sales and that this is a whole lot more complex than most people realise especially if they do not own a retail business that deals largely in imported goods. However, your leading question is a little unfair, you would like people to say they buy Australian...ie your action. This is unfair on the basis of reputation, known after sales service and longevity of the business. When you can provide those things and I am not saying you can't, so that people have peace of mind in their purchase then maybe it would be a fair question.

As it happens, since all bar two of our competition rifles are Omarks, and one of those is a Dale, I do own Australian rifles.

Your product, like most new products, needs to do the hard yards and prove itself over a reasonable period of time before you could expect to have a similar standing with the current well known names in the mind of the consumer.

actionclear
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#13 Postby actionclear » Thu Jan 13, 2011 9:45 am

The US photo is shown without a trigger. In the US the trigger is extra.

In AU, trigger comes standard.
Linda

.308 Scoped Rifle

Western Australia.

IanP
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#14 Postby IanP » Thu Jan 13, 2011 10:50 am

Woody_rod wrote:Our overseas resellers order 10+ actions at a time.


Woody,

I have been involved in group purchases from overseas and locally to achieve sizable discounts. Would you consider discounts for orders of 10 or more Inch Actions?

A sizable discount for a "group buy" may help kick start your product in Australia. What do you think?

IanP

Woody_rod
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#15 Postby Woody_rod » Thu Jan 13, 2011 5:02 pm

IanP wrote:
Woody_rod wrote:Our overseas resellers order 10+ actions at a time.


Woody,

I have been involved in group purchases from overseas and locally to achieve sizable discounts. Would you consider discounts for orders of 10 or more Inch Actions?

A sizable discount for a "group buy" may help kick start your product in Australia. What do you think?

IanP


Absolutely. PM me, we can do the numbers. We have 130 in production now. There are options that are not advertised, like special serial numbers, just ask.

This is how we buy barrels, triggers, stocks, parts....it is an extremely large investment.


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