Are We Being Completely Ripped Off? (On Paracetamol, Kaffir Leaves, Baked Beans, Bike Accessories and Other Items)

A couple of years ago, I was working in Laos and this cafe I used to like to go for breakfast had these interesting chairs. They were these thick cardboard barrels with Azithromycin written on the side, 60kg. I realised I was sitting on an empty container of paracetamol (or panadol). I should explain a bit further - over there you can walk into a pharmacy and buy one pill (which most people do), but I didn't realise the scale of it. For instance one 500mg paracetemol might cost 80 Kip, which is less than a cent.

Curious I started digging around using the package number and was astounded to learn you could buy one of the barrels from India for about $100. That's for 60kg!!! Think about that the next time you pick up 24 tablets of panadol for $5 - the exact same chemical. In fact I found out the home brand sold by supermarkets here is made in the same factory.

If a recipe calls for kaffir lime leaves you can buy about six of them for 4 bucks at the supermarket. Have you ever seen a kaffir lime tree? - there's a reason it's called a tree, at that going rate a kaffir lime tree is worth say $50k !!! Wtf? If you need kaffir lime leaves it's better to go down to the nursery and buy one tree for $10.

And the list goes on and on. $2.50 for a can of baked beans? When I was in England 15 years ago you could buy a tin for a few pence, now they're like a pound each. If you have ever cooked beans yourself a handful of them will make about 4 to 5 tins.

Not to mention that it is incredibly suspicious that these supermarkets are routinely having half price sales. In order to do that, what sort of price gouging are they doing at the normal price? I've never worked it out, except to notice that one week it's Coles, the next week Woolworths, then IGA get their turn. Without fail.

And the final insult - a struggling bicycle shop a minutes walk from my house. I needed an adaptor for a pump to inflate a tire. They pull out this box with hundreds of little steel adaptors and ask for 10 bucks for one adaptor. I mean I want to support local business but not outright thievery. I looked online and you could buy the exact same box for about $3 (250 adaptors). The shop shut down not long after.

Anyhow please share your stories of what you perceive as blatant ripoffs.

Comments

        • No it's doing a favour to Australia if any. For Australian people it's more affordable in comparison with turkish people. What's hard to understand this?

          • @baldur: Wel no, they’re making it more affordable for the Turks because they earn less. Your argument is moot

            • +1

              @HelpMeiCantSee: Divide the costs of netflix by the salaries and you will find the fact that it is more affordable for Australians.
              Much more.

              Compare the proportions of the salaries to buy a netflix membership.

              • +1

                @baldur: But why should that matter? Oh, but you can afford it is a shitty attitude.

                • -1

                  @HelpMeiCantSee: You can afford much easier than turkish people. This is the point. Isn't that what we have been comparing? Anyway I'll stop. You dont wanna understand obviously.

                  • @baldur: You’re looking at it as a human right to access Netflix. It’s not.

  • +2

    Out of curiosity OP have you ever taken an economics class or two at Uni? I know it seems a little ridiculous but these prices make pretty much perfect sense when you take into account wages here and most importantly, the effect our average wage has on the opportunity cost of doing something here.

    For example; the Panadol. Sure, you could build out a small manufacturing line and print out 12,000 trays of panadol with your 60L barrel of powder from china. But it might take you 6 months to buy a warehouse and factory, organise the machine, get the license to sell pharmaceuticals and logistics for distribution worked out.

    Say you charge around of the price of supermarket home brand Panadol (as you don't have the marketing power without big spending to charge the same as name brand) and make, say, 50c profit on each box after ALL the above costs (unlikely due to the price of labour and land here but Im going to assume absolute best case scenario).

    You sell about 5000 boxes of your new Panadol brand. You make a total of $2,500 profit for your 6 months of work and realise you could've made more money just working shifts at Woolies with way less risk and way less screwing around.

    Obviously the big companies are making even better margins again since they have seriously optimised manufacturing and logistics with everything they can offshore already offshore-d. But the point remains, the reason things here are expensive isn't necessarily because the consumers are idiots OR that the companies are taking advantage, it's simply that starting a new enterprise or business has to be more profitable than the owners other opportunities, and the other opportunities to earn here offer far higher profits than a few cents per item in a race to the bottom commodity marketplace.

    • -7

      For a start they are already tablets, not powder.

      Second, economics isn't called a dismal science for nothing. I study medicine and engineering - you know - the real science.

      And you know what - the resistance and push back in this thread has only reinforced my commitment to change things.

      Once you make the capital investment, then the revenue will flow through. But it's not a competitive market, which is my entire point. We are being ripped off. I surmise a lot of posters here have vested interests. Fine, let's discuss. They literally don't have a leg to stand on.

      • +5

        economics isn't called a dismal science for nothing

        It's was called a "dismal science" by a historian in an essay over written over 150 years ago where he recommended re-introducing slavery. See: https://en.wikipedia.org/wiki/Occasional_Discourse_on_the_Ne…

        You're off your rocker, mate.

      • +2

        Oh I study medicine and engineering that's great but what life experience do you have… none it seems.

      • +1

        You should start your panadol company then. Throw in the few extra cents gained by them already being in tablets and you could be making 60c a pack.

        But I also assume as a someone with the superior intellect of a Medicine / Engineering degree that you should be able to understand it wouldn't be worth it for you to leave a job in those fields to make a few cents a piece on selling cut rate commodity items.

        It's ironic you chose panadol as an example as it's actually an extremely competitive market, think about the number of pain relief products in a supermarket isle. Theres usually a whole section of the isle dedicated to them, when at their core they all consist of Ibuprofen, aspirin or Paracetamol repacked in a billion different ways. personally I buy the 80c boxes at the supermarket when I'm desperate, and the $2, 200 packs when I remember at the chemist.

        I am actually an extremely aggressive consumer when it comes to cost cutting and I many of insecticides and some nutrients and the like for my gardening efforts from aliexpress in Chinese language packaging for 60 cents or so a pack. But it requires some research, math and experimentation to get the dosage right versus buying a pre measured, english language burnings pre mixed spray bottle for $10, and I often wait a month for them to ship. Most people aren't willing to do this, and most are happy to pay a few dollars extra for the peace of mind when they purchase a product.

        Frankly, we should be thankful for this, as a world with people like us would be dull and lifeless and in the event you actually did need something on the spot you'd be out of luck. Additionally, the Australian economy would collapse even further as retail and food service jobs dried up due to people only consuming low margin products they could prepare at home with huge bulk.

        aside: "I study medicine and engineering - you know - the real science."

  • My main takeaway from this is people actually pay $5 for paracetamol and $2.50 for beans!

  • +1

    OP does have a point. Some, not all, businesses leverage their dominant position and influence to extract higher profits than what is reasonable. eg. consider the previous duopoly of Coles/Woolworths that many bodies commented on as being significantly more expensive than say the UK. Aldi realised it was a great opportunity.

    And the Australia tax does exist, eg. many products on Amazon USA and other businesses are not allowed to be shipped to Aus. And digital products, eg. iTunes music, that are served from foreign locations charge us more simply because they can. Does anyone remember the bunfight when Apple was directed to charge UK customers the same as the prices on the continent?

    Having said that I was also surprised at the "Laos tax". Many things in Laos were significantly more expensive than just across the river in Thailand. eg. a Honda scooter was about 20-30% more in Laos. Nobody could tell me why that was the case but I suspect govt taxes.

    • I don't normally shop at aldi but when I do, I don't find their items that much cheaper if any.

      Some, not all, businesses leverage their dominant position and influence to extract higher profits than what is reasonable

      I think I'm a terrible businessman/be considered one because I don't think I'd charge high profit margins just because I could haha but if the mentality is that 'it's just business' then there's not much you can do about it.

      • I don't normally shop at aldi but when I do, I don't find their items that much cheaper if any.

        Since Aldi arrived Coles and WW have to compete on price more than they used to and as a result prices will on occassion be similar. However my experience is that there is still a noticeable saving when shopping at Aldi ve the other two.

        • Yeah but again, Aldi carries less product range (lower overheads, less floor space), doesn’t have many staff in store (overheads), doesn’t pack items and aren’t exactly cheap for their non Aldi branded products. They are a midi mart, not a supermarket. My Aldi makes me go to the bank to withdraw money to use a trolley, to prevent paying trolley collectors (less overheads for them, more for me), they dont have shopping baskets (less overheads), they are only open during profitable hours (lower overheads) etc. Personally I find the whole Aldi experience very annoying. Most of the time it’s closed when I finish work so waste my time even thinking about going there. The whole Aldi experience is Just marginally below the Coles experience. I have my tried and tested brands I can get cheaper at Woolworths than these other two stores. Most of the items I buy aren’t even stocked in these other stores. I might pay a little bit more but it’s nice during COVID to be able to shop out of hours at a safer less busy store or have the food delivered to my home when I choose. I don’t find Coles or Aldi really much cheaper. They are cheaper for their own store brands but other than that I often find them more expensive than Woolworths for branded items that WOW usually has on sale. It’s not cheaper at all if I have to make a second trip to Woolworths to get what I couldn’t get at the other stores. My time is more valuable than that. I know of people who visit multiple stores to get the specials each week. I certainly don’t have the time or interest in doing that. I’m a vegetarian and the range of vegetarian options in the frozen section, deli items, sauces, sides, cheeses, different Asian sauces etc. I find much better at Woolworths. Aldi has hardly any of this stuff and Coles is not much better where I live. I don’t know about meat prices or quality because I haven’t purchased meat/seafood for years. Aldi has much less range of veggies, especially Asian type vegetables like wombok or Choi sum. They don’t have a range of tofu derived products. It just doesn’t work for me at all.

  • And FYI: Azithromycin is an antibiotic, has nothing to do with Panadol.

    Don’t ask me how I know.
    ( ͡° ͜ʖ ͡°)

    • +3

      You also study medicine? ;)

  • I've never worked it out, except to notice that one week it's Coles, the next week Woolworths, then IGA get their turn. Without fail.

    Clearly you don't shop at ALDI often.
    You don't need flybuys or everyday rewards as everything is already discounted. Even when they have sales for the same item, ALDI prices are still cheaper most often than not.

    • +1

      The rewards programs usually are not about discounting items. It’s usually about getting repeat business to earn points to use for other things.

  • +2

    I genuinely lost 10 points of IQ reading the OP.

    • +11

      Shame you weren't in Laos, would only have lost 0.01 IQ points…

  • money is a trading tool. eating in a restaurant is equal to your time and effort that you spend on shopping for groceries, chopping, preparing, cooking them and doing the dishes. the perception is that you think you give up on more valuable thing as a money spender. nope, the amount you spent is exactly equal to what and how you are served in a restaurant. maybe next time you can convince the waitress with a 30 dollar worth sim card instead of giving money. you might be lucky. try your chance.

  • +3

    Yes, Australia is a very expensive place to live, but we have a lot of extremely well paid uneducated and low skilled people who can afford it, so no worries mate.

    • Selling coffee to each other.

  • yep. Public transport and cigarettes are rip off here.

    • Public transport isn’t that expensive when you consider the cost of maintaining an old vast city network and purchasing new trains etc.

  • Just thank the almighty imaginary daddy in the sky you don't live in America. Where it's don't get sick or you better have insurance, Google the price of it. And the prescription prices is next level. Prices are extortionate to a point over here but hey that's capitalism.

  • +2

    Oh man my brain hurts from the OP comments. Off to get Panadol from a 7/11 at an inflated price. 2 pills for $7? Is that the going rate

  • +1

    "The shop shut down not long after."

    Probably moved to the Bahamas to retire on that sweet adaptor coin

  • +1

    Funny discussion but I'll add my pet peeve.

    I just want a small bottle of water and it costs more than a big bottle of water at Coles. Even non branded.

    In the US I was in Trader Joe's (their Aldi) and a small bottle of water was 13c, slightly bigger was 25c etc.

    I'd be there for trade shows so would buy 24 bottles for like $4

    I'd love to just get a small bottle sometimes for 50c in Australia. But I end up buying a 1.25L for $1.20 or something

  • Azithromycin is an antibiotic, probably for livestock, not paracetamol or acetaminophen.

    Just because some of the letters are the same doesn't make the word the same.

  • I wonder what the going rate is for 60kg of tea leaves in Laos? 60kg of aspirin/acetophenetidin/caffeine powders?

    The OP would probably benefit from "A cup of tea, a Bex, and a good lie down"….

  • +2

    Go open your own business here in Australia and get some perspective… please.

  • It doesnt matter. If we can't afford it we can always print more money.

  • That I study medicine/engineering name drop, is an example of a position of authority is not an argument.

    OP please try better.

    • I think we should cancel him, that’s the cool thing to do.. Clearly he is a classist bigot.

  • Just ordered 60kg of Azithromycin from India. Thanks OP! Best bargain I've found so far.

    Now, how do I chemistry?

  • Yes everything in Australia cost 3 times as much as our Neighbouring countries. Since you came back from SE Asia you have come to realize it. That is good

  • +1

    YES we can match Laos' prices… provided:

    Min wages drops to $2/hr
    Average rent in Westfield drops to $1000/mth
    Petrol diesel drop to $0.30/L
    Population in Australia increases 10 folds (volume vs margin)
    Bus train tickects drop to $0.30 for the shortest trip
    Milk drops to $0.20/2L
    Bread load drops to $0.20 a loaf

    But to get back to the above prices, Australia will see the Grand Great Great Great Great Great DEPRESSION of the last 2 decades.

    NB: "small sustainable" inflation is a good thing for everyone.

  • Firstly as some others pointed out, Azithromycin IS NOT panadol/paracetemol. It is an anitbiotic. Probably in use on a farm in the area for that sort of bulk purchase. having said that you can't compare prices, as the costs here are completely different, but yes on many things we get ripped off as between taxes, labour costs, real estate costs, regulatory costs etc Australia is a damn expensive place to sell.

  • People pay an extraordinary amount of money for a shot of spirits in a bar when they could make the same spirit at home for next to nothing. BUT THEY DON’T because they live in a home not a factory. To get that can of beans or pack of paracetamol on the shelf in front of you takes a process and a marketing campaign to bring you to that spot plus of course the staffing, real estate costs, compliance costs, super contributions, taxes, etc., etc., etc.. now which product you choose to purchase is up to you. You can buy the 69c can of generic beans or the $4 pack of 100 generic paracetamol tablets or the more expensive highly marketed brands and still save a bundle. These choices didn’t used to be there when the cost of goods was relatively cheaper once upon a time, you know before the world was so commercialised. You can still ferret and buy cheaper alternatives for most daily items but it takes a little time and effort on your part so maybe we aren’t being ripped off so much as choosing to pay for the convenience that the marketing department tells us is so important to our everyday lives. Isn’t that why we come here?

  • +3

    Why don't you guys mention about the australia has got the highest minimum wages in the world? Guys you can't always win and everybody can't be rich at the same time. This is not how economy works.

    • Not everyone can be wealthy, but we can improve the standard of living.

  • +3

    I completely agree with you on the bike shops. A few years ago I wanted to start cycling again and was very enthusiastic about it. However, I needed a lot of small items, e.g. lights, tyre sealant, chain lubricant, etc. The prices were well and truly ridiculous at the local shops, like you said something like 5x or 10x what I would have expected (or found online). In the end, I never dropped a dollar in any of the local shops aside from the bike and a few closed down or changed ownership then downsized. Sadly, again like in your case, I was happy to spend a bit more than I wanted at the local shops but it was ridiculous.

    • And bike shops are filled with throngs of people desperately trying to spend their money right? They have no overheads and they are usually owner operator businesses run by people who have no idea about the products and services they offer and the owners don’t need to pay any wages. They should be ashamed for trying to make money.

      • You're right. With that logic, Woolworths/Coles should sell 50g bags of potato chips at $20 each, after all they need to make a profit, and Hyundai should price their cars at $150K+, I can't imagine how hard they're doing it by selling their cars at the prices they do now.

        • Hmm. Worked well for Holden..

  • +2

    If i can buy it for cheaper than I can make it myself, its a good deal.

    E.g. How much money and time for me to buy seeds, grow beans, sauce them and can them? I'll pay the $1

    $80 for a video game??!! How long would it take me to (learn) to write the code, draw the pictures, compose the music?…I'll pay the $80

    I know business streamline and optimise to bring costs down and manufacture it etc etc, but thats the whole point. They focus on doing one thing. I focus on doing my one thing, my job, and can buy lots of other optimised things. As a result we all get way more richness in our life than we would if we tried to do everything ourselves. So glad I was born in modern era.

  • 24 tablets of panadol for $5

    There's the problem, you're going out and buying the iPhone of paracetamol.

    Grab a box of 200 paracetamol for about $0.50 - $1 - pretty standard price.

  • +1

    I'm in dentistry and constantly hear about how much cheaper dental work is somewhere or other. But it's a nonsense argument, we don't live in whatever country they use as an example. We live in Australia with Australian wages, taxes, and supply chain costs.

    I always find it incredible these people want to pay developing nation prices but yet aren't willing to take developing nation wages themselves.

    • Shhh let's not get OP onto Fuji-9

  • -2

    Australians are ripped off by everything… and all the excuses don't cut it any more. Why do we put. up with it… bc we are a lazy bunch. The govt knows this, financial institutions know this, utility providers know this, food stores know this.

    Lets just say the prices of oranges are $6.50 per kg and blame it on backpackers - even though we obtain them from South America

  • Businesses run by marking up the prices, thats how they make profits and its OK.
    But the level of markup down under is plain unethical. Markups are usually 10x 100x and even more.
    The leader in this is Woolworths and its group.
    Simple example- 500gm strawberries is $4 at most supermarkets but its $4.50 for 450gm at woolies. And many more…

    • Strawberry numbers are off :)

  • I'm sure someone had already done an Excel Spreadsheet to convert
    Flybuys, BTC, Kaffir Leaves, Saffron. Live pricing?

  • As for supermarket specials, these aren't often at the cost of the supermarket. We don't just drop the price 50% and take reduced profit; we get them at that reduced price from the supplier.

    Sure, we sometimes take advantage of that if we have the space to hold stock beyond the special period, and make a bigger profit when it returns to RRP.

    These companies move more stock, get their products in your home, and hope you'll prefer them to the cheaper brands.
    They also move about 3-4 the product as usual, which is more money even at a reduced profit per item.

  • +2

    Yes, massive ripoff.

    Instead of PANADOL branded tablets buy PANAMAX tablets.

    Same active ingredient paracetamol 500mg.
    A lot cheaper. Same effect.
    Sometimes on super special at 69 cents a box of 100 tablets.

  • Have 12ft n 10ft kaffir lime tree in back yard grew from pot plants, 4yrs old, both fruited albeit fruits pretty useless

    • +1

      It's really just the kaffir lime leaves that are most useful. It's interesting to think that one or two trees could easily service a whole suburb. If you go to a village in Thailand generally there is one or two large trees, and people come and pick some whenever they need them - I always thought that was nice. They are good to use for seafood because it takes away the fishy smell that a lot of people dislike and in turn perfume the food with a pleasant citrus smell.

      You have to be really into Thai cooking to use the fruits - they're an essential ingredient in making a lot of curry pastes. However most Thais don't even make their own curry pastes - they buy small packages at the market. I've made some curry pastes in my time, mainly because I enjoy cooking, and like replicating recipes I like. It's a lot of work though.

  • I can't understand people that take paracetamol regularly.
    Doing that alone is a waste of money. Just deal with the odd ache and pain, its normal for your body to feel things. I think alot of people are addicted or just in automatic habits.

    • -2

      Yes, I agree. I guess people have differing level of pain thresholds. I mind once when I'd very severely lacerated my hand, luckily not cutting the tendons, but you could see them. The doctor asked me how much does it hurt on a scale of 10. I said, about 3. And she's like you've got to be joking.

      • +5

        When I went to my doctor and showed her this thread she asked me how much does it hurt on a scale of 10. I said about 15.

        • Take some paracetamol for the pain

          • @berger: But not the expensive stuff. Get the $60 barrel.

            • +2

              @dizzle: Just need someone to import it at the right price

  • +2

    Australia is expensive but this is another 'everything is relative' to wages and population - supply and demand

    Overall we live in an expensive country but how many countries paid you to not work during COVID? how many countries pay AL,Sick L and LSL as standard for workers? How many nations have mostly free health care? - got a friend in the USA that said there medical bills for the birth of there son was over 20k USD!!!

    We take for-granted how lucky we are in this country

    Ill bag out Australia and the idiots running the country all day long but it is still one of the best place to live in the world for 'regular' people

    The biggest issue we have is our leaders have been s**t for a fair while now we have a lot of stupid taxes and wasted expenditure ie - PM pensions, Luxury car tax, Stamp Duty, Petrol Ex tax etc

    But i've been around the world and there are 'few' countries good for poor - to - middle income people like Australia

    • I'd highly recommend a book I read a few years ago: 'Prisoners of Geography'. For instance the Chinese have massive mountain ranges separating them from India. They're only access to the ocean is easily blockaded. And to their north, the Russians won't allow them to expand, and for thousands of years Vietnam has easily thwarted any invasion attempts.

      Add to this that they are struggling to feed there people, and they lack most resources that need to be imported. Trying to maintain a dictatorship is a precipitous proposition.

      Now most of what they need can be stolen from Australia - we do have the resources - if they don't want them than they can go stuff themselves. Does any one mind the time when the Chinese premier addressed the Australian parliament and he was practically salivating over our resources.

      The point is, we have the upper hand, We are an extremely wealthy country. I mind driving an American from the airport on a business trip, and he was shocked at just how clean the city was (Brisbane). I asked him what he meant and he said, well the gutters should be overflowing with trash, there should be trash everywhere. I asked him - so why don't they hire people to clean it up? He thought about it for a long way and eventually said that noone really cared that much.

      • Americans don’t want to pay taxes for things like that.

  • Where are you getting $2.50 cans of baked beans lol

    • aren’t they like $1 at coles?

      • 90c I think haha

      • Cheapest home brand is 65c for 420g beans/spag from Italy.
        From memory, 49% bean content.

  • Insurance, council rates , water rates , stamp duty, land tax , power & gas, car rego, most groceries, fruit and veg , education, clothes, hotel accommodation, concerts/sporting events & restaurants are the worst examples of Straya tax compared to Europe .

    What is cheaper in Oz competed to Europe is petrol, beef especially steak, US junk food chains some building materials ( but tradies charge much more).

  • Generic Zyrtec costs at least $1 a tablet here. In Indonesia, only 10 cents.

    • And you make 100k per year while your peers in Indonesia make 5k.

      • Tell that to those who are running pharmacies here and selling their so-called 'Pharmacy Brand' medicines.

        • What?

  • Time to get off drugs mate 😂

  • Electricity in Australia. Looks on how much energy companies are making. The Big 3 - AGL, Origin and EnergyAustralia made combined $1.45B in 2015, in 2018 their combined profit is $2.6B.

    While AGL and origin are publicly traded in ASX, Energy Australia is not. Also it is owned by Hong Kong companies, recorded $30B total income in 4 years, declared $52M taxable income AND paid zero tax.

  • +3

    Drop Australian wages to third world level so OP can have his cheap paracetamol.

    I'm sure OP is happy earning $2 an hour so he can have his cheap azithromycin in the supermarket, although why he would need it in the first place is questionable unless he happens to have chlamydia

    Mate stay in Laos and don't return if you can

    • +1

      well said, sir. it is unbelievable this guy envies the life in laos. lol.

  • I'm no expert but I think your 60KG of paracetamol would expire before you consumed it all.

  • A small franchised convenience store I knew budgeted 20 to 26% of sales on stock, budgeted 30% on wages, 10% on franchise fees, 20% utilities and 10% other (like rent and interest) for 10% profit. From memory he said his take was closer to 2.5% as at least one of those costs regularly blew out.

    I would expect supermarkets to be leaner on stock and staff, but higher on utilities, rent and operations like head office and logistics. From my understanding, it's not uncommon for shrinkage (damage and theft) to be 10% of budget as it is often cheaper than increasing staffing to reduce shrinkage. I would also expect a few percent invested into developing new business streams.

    If you could remove most labour and order in bulk, like hospitality, you could reduce your costs by 20% to 40% and increase the quality of your groceries. From the outside that looks like Amazon's business model, but with smaller orders you need larger mark ups to hid the labour cost of organising smaller deliveries until you can scale to the level of our current supermarket duopoly.

    You can further optimise by ordering direct from the factory, using white label branding and controlling logistics factory to the store (stock can go into the single percents) (pioneered by Franklins in Australia if I am not mistaken). This is how specialty retail survives and part of why giants like Myer and Grace Brothers struggled for the last 30 years.

    I haven't really heard of retailers who integrate factories or suppliers below factory level. I would expect an adaptive titan like Amazon or Nestle to make the jump in to production or into retail if it was feasible.

    tl;dr: Labour is 80%+ of the cost in the over all supply chain.

    • Thanks

    • Yes I agree labour is often the largest cost in business. And despite all the people criticizing me bringing up Laos - the only reason I brought it up was that that's where I saw the barrels. And I've said over and over I meant to say acetaminophen, but people just won't allow you to correct a misspoken word.

      Forget about Laos - I'm talking about prices in Australia. I never argued they should be as cheap as Laos. Go back and read the thread if you believe so. And people can be quite insulting I think - fine state your point of view - that was what I was asking - but if you disagree, by all means make your point - but you don't have to be insulting about it.

      • I am sorry that I made you feel attacked buddy. Not my intention. I read your original post and tried to answer your question:

        Are We Being Completely Ripped Off?

        I get I didn't talk about your adapter example so here goes:

        A slow paced specialty shop, like a bike shop, needs significant mark up to pay staff for the hours with no customers. Two staff for a day can cost ~$600 after taxes, insurances and/or shrinkage. Shops are started to make profits, so the owner would want another $200 for operating expenses and $400 for profit (otherwise why risk your life savings). So $1200.

        You would need to sell three bikes with $400 mark up every day to hit this target, which is unreasonable. Instead, you might sell your bikes for a little less and cross sell accessories at high mark up to make up the difference. After all, Kmart might be a quarter of your price but are they providing service?

        If you have been around for 10 years and have bought and paid off the building you could survive on less, but business people rarely stop and will often use the extra income/capital gains to expand.

        but you don't have to be insulting about it.

        Not sure how I insulted you but I am always looking to improve my English. Pretty please copy/paste the insulting parts as a reply with a brief note about why what I said was offensive.

        • No it wasn't you being insulting - far from it. I started replying to you by agreeing about the cost of labour. But instead of going ahead and making a fresh comment, I just carried on as a more general comment about the rest of the thread. Sorry about that.

          I agree with what you are saying with regards the bike shop. When I was a boy they made more of their income maintaining and repairing bikes. These days it's easier just to throw away an old bike and buy a new one - or buy the tools from China and do it yourself.

          If we take your figures which sound eminently reasonable - then what are we supposed to do? Prop up an outdated business model? As I said I can buy 250 adaptors for $3; I said I would have been happy to buy just one for $2 (after all I don't need 250 of them).

          For example there is a thriving garage run by Koreans near where I live, and whilst they cater mostly to the Asian community, from time to time I'll take my car there for certain repairs, servicing etc. They are very experienced, highly knowledgeable mechanics, and they charge very reasonable prices. They are always busy - in fact they are swamped.

          Before anyone makes any comment, this is an inner city suburb in Brisbane, not Laos. The reason I'm bringing it up is what they are essentially doing is selling their expertise.

          At some point you've got to draw a line in this day and age of being able to source products over the internet. You need to sell a service, an expertise; if you want to make margins on products you'd better have a monopoly / or go big or go home.

          I don't mind paying $5 for a banh mi - even though the raw ingredients to make one probably cost far less than a dollar. Running a bakery seems like bloody hard work. Putting things on a shelf and trying to sell them for ridiculously inflated prices with the excuse that you the customer should prop up a tired old business that has failed to adapt to the modern era? Don't think so.

          • @WizMuncher: Where you can get 250 adapters for $3.

          • @WizMuncher: The problem here is it is not reasonable for a small shop to bother stocking them if they are going to sell you one for $2. They will sell so few of them that this won't come close to covering staffing costs. So they charge what the market can bare, $10 makes it profitable and reasonable for them to stock but still probably won't make them much money as they won't sell many. Many stores in today's easy internet buying are not viable due to easy access to far cheaper items so shops have to have larger markups of items like this just for the emergency purchases.

            Guess what, customers absolutely need to prop up tired old business models, otherwise live with the fact you will have to wait a few weeks to get your adapter. can't have it both ways, you either need to support a model where the majority of the cost is not the product but the service and convenience or accept having to order and wait. Those tired old business models can only operate when they make a profit.

            • @gromit: No, that is absolutely my point - if they're not viable, then they should cease to exist.

              And it's deceptively easy to get around the delivery window - order ahead. When I bought a pair of Philips X2HR headphones I immediately bought a pair of replacement ear pads for them. I keep a stock of consumables, like audio / electrical cables as well as other odds and ends like the adaptors in question. I build custom made electrical devices, and I keep a cache of my own parts, which I restock regularly.

              None of this is difficult to do. It's almost like you're saying I should be providing the shop with charity.

              And by the way, the community agreed with me, they are no more. Not that I take any satisfaction out of that - they weren't skilled in repairs, or even knowledgeable about bikes, just stacking shelves and overcharging. It would almost be cruel to prop them up.

              • @WizMuncher:

                None of this is difficult to do. It's almost like you're saying I should be providing the shop with charity.

                not at all, purely saying don't complain unless you are happy to order only online. brick and mortar cannot effectively compete on price, they are their for convenience and service. Many people seem to get offended at the markups of the local store without realising it is simply the price you pay to have a local store. If you value that convenience then be prepared to pay a premium for that tired business model, if not then expect to wait for items, even ones you need urgently.

                Personally I buy most things online so I am fine.

          • @WizMuncher:

            If we take your figures which sound eminently reasonable - then what are we supposed to do? Prop up an outdated business model? As I said I can buy 250 adapters for $3; I said I would have been happy to buy just one for $2 (after all I don't need 250 of them).

            Model still works if they provide excellent service and have an exclusive product range to stop discounting wars.

            For example there is a thriving garage run by Koreans near where I live, and whilst they cater mostly to the Asian community, from time to time I'll take my car there for certain repairs, servicing etc. They are very experienced, highly knowledgeable mechanics, and they charge very reasonable prices. They are always busy - in fact they are swamped.

            My experience with small business, both white and non white, who charge very little, often avoid taxes and often under pay their staff.

            If something is too good to be true it often is.

            • @This Guy: Well in my experience it's large business not paying tax. Also 7-11's paying overseas students who legally aren't meant to work more than 20 hours - their solution pay them for twenty hours but force them to work 60 hours or tell them to get lost.

              The Korean business I referred to work for themselves, so if they are ripping anyone off it's only themselves, but it certainly doesn't appear that way. And white or not white should have nothing to do with it.

              • @WizMuncher:

                Well in my experience it's large business not paying tax. Also 7-11's paying overseas students who legally aren't meant to work more than 20 hours - their solution pay them for twenty hours but force them to work 60 hours or tell them to get lost.

                Most of the petrol stations stealing from employees were franchises. They were independent companies trading as 7 11. Big business used to steal from full time employees with unpaid overtime, but most big companies have been burned or listened to their accountants or lawyers and stopped. The CEO of Super Retail group was even fired for the practice.

                The Korean business I referred to work for themselves, so if they are ripping anyone off it's only themselves, but it certainly doesn't appear that way. And white or not white should have nothing to do with it.

                Yes. Aussies of all races will dodge taxes and steal from employees.

                But I have to disagree with their rest. The community is ripping them off.

  • For those that say Australian wages why is it I can buy a banh mi in Sydney cbd , with its insanely high rents , cheaper (about half the price) than I can buy one in Brisbane cbd?

    I needed some gaskets for my Cummins boat engine last year.
    Paper gasket about the size of a small plate were over $300 each from Cummins Australia and 2 weeks to get them.
    I was going to buy 10 for a lifetime supply so $3000

    Gaskets from Cummins China cost $9 each and were here in 5 days.

    Is there really $2800+ in "Australian wages" in grabbing a handful of gaskets off a shelf?

    I have plenty of similar equally as thievy examples on boat stuff and motorcycle stuff.

    • Wages is just a factor but not the entire picture as to why prices are what they are here in Australia.

      Banh Mi is cheaper in Sydney CBD because here we have a multitude of banh mi stores. Free market economy has created competition and this competition drives down the prices for customers to what they believe is fair.

      Your gaskets are priced at what the market can bear in the Australian local market. Lucky for you, you can obtain the same product from China at a cheaper price.

      Same deal for buying almost anything at the local convenience store or servo station, it is priced higher than a supermarket.

      • Not only that but the Sydney CBD is a lot more dense than Brisbane in terms of population numbers so you need to consider that maybe these businesses are taking in smaller profit margins for larger sales volume.

        Gasket example, the Australian business needs to take into account the cost doing busines here including much more robust consumer protection laws, stautory return and warranty periods on top of obviously higher rent, salary etc.

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