Why Are The Same Or Similar Items Cheaper Overseas?  (Or: Where did our jobs go?… in One Easy Lesson)

Why Are The Same Or Similar Items Cheaper Overseas?

And Britain/USA/Canada/Europe/New Zealand/etc?… All way lower than Aussie.

To Illustrate: The goods land in Australia for roughly the same price as they do Overseas. But then they are subject to Aussie Customs Services, Aussie Import Clearance Officers, Aussie Freight (Or: Where did our jobs go?… in One Easy Lesson)

Every single day of every single week we are asked this question.
I will attempt give a (relatively) quick explanation of the facts behind this situation.
Hopefully those of you with open minds will take the time to read this and understand the real situation.

So…….How come Overseas Sellers can sell the same items cheaper online than you can buy them in Australia?
Surely all Australian businesses must be “Ripping us off” ?
Actually, it’s very simple. And Aussie businesses are not “Ripping Anybody off”.
Why? Australia has the highest wages and privileges…………… in the entire World.

(The closest country to us in wages and privileges is Luxembourg, and they don’t even come close to Australia.)Companies, Aussie Warehouses storing the goods, Aussie Warehousemen picking the goods, Aussie Office Workers invoicing the goods, more Aussie Truck Drivers delivering the goods, and then finally to us Retailers…..All paying Australian Wages and Costs.
Don’t believe me? Maybe ask Toyota, Ford, General Motors, Nissan, Mitsubishi etc. - All gone because they couldn’t compete in a country that demands high wages and privileges. Better still, ask those now unemployed workers. And that’s just one industry.

So, let’s see how Overseas countries compare to Australia. Let’s not apply the obvious 3rd World comparisons, but instead we’ll use the good ‘ol US of A, Land of the Brave and Home of the....Free.

The minimum adult wage in the USA is currently $7.75USD per hour, with no Superannuation, no Work Care and no paid holidays per year. Yes.....none. If you don’t show up for work, you don’t get paid. End of subject. And just don’t get sick - no paid Sick Leave either…or real Healthcare. Instead the buying public are expected to tip from a minimum of 15% up to a staggering 30% of the price.
And you wonder why they can happily undercut Aussie businesses online?
So, what about China?……..The average minimum hourly wage is $0.87c AUD per hour. On top of this, the Chinese Government subsidise their local exporting businesses in order to gain US Dollars (And market domination) They also subsidise postage costs.
All done in order to create a strong future economy in China. They can really pull the rug out from under Australian Businesses.
Also, keep in mind the economies of scale, i.e. population size. The USA’s population is Fourteen times that of Australia, making International Postage costs a mere fraction of what Australia Post charges. As they are also in Asia and Europe.
That’s because there are MORE people using the service, which makes it cheaper. Basic principles of mass markets/economy of scale.
Now, I understand only too well just how important the almighty dollar is to the general public. It’s all about just how cheaply you can buy something for. A perceived “bargain” excites us even more. Why wouldn’t you buy online Overseas? It’s cheaper, for God’s sake, and it won’t hurt anybody, will it? Just “greedy” Aussie businesses paying legitimately “greedy” Australian wages. ;-)

In a way, you’re absolutely correct. It is cheaper, but “having your cake and eating it too”, does cause just a tad of a problem for the so-called “Lucky Country”.
Basically, it means the future of retail business in Australia is effectively owned by Overseas interests. This would be fine if we were happy to accept that we simply just buy everything we need from Overseas Online.
Yep? It sounds fine, doesn’t it? So what are the ramifications that can possibly affect us…..in the “Lucky Country”?
Ummmm…….Jobs? Employment for our children into the future?
And you wonder why big businesses use 457 Visas to obtain lower paid workers from O/S? (We won’t even mention how many developers simply just pay workers to come out here on tourist visas and “lose” the costs in a spot of “Creative Accounting”!)
We do not have a level playing field, and retailers in Australia are being punished for the general ignorance of the public.
(And by this I mean ignorance, in the true meaning of the word, not as a potentially demeaning term.)
I do hope however, that in the not too distant future, the people of Australia will turn their backs on International Sellers and come back to their local Aussie Stores. Whether it will be on the back of their Government making change, or simply just being “burnt” one too many times on purchases from Overseas sellers, I hope their thought processes will change, enabling them to see the real truth over all the “A Current Affair/Today Tonight” gutter media beat-ups.

All we ask for is a fair and level playing field....is that really too much to ask?
Brad Coates
Owner…MelbourneMusicCentre