Why are tools so expensive

[Baddabing]

It really annoys me that we seem to be getting ripped off big time, in Australia when it comes to the price of tools.

For example: DeWalt 10" table saw XE 745. In USA you can pick up with a stand for around US$299. https://www.lowes.com/pd/DEWALT-10-i...Saw/1000465645
In Bunnings, the same saw is $949, occasionally with a stand via redemption. https://www.bunnings.com.au/dewalt-1...e-saw_p6260316
Now US$299 is around A$399. Some will say freight is the killer...I say BS to that. I import around 300 containers a year from the USA and sea freight is pretty cheap, around A$5,000. I expect you would get around 16 of these saws on a pallet, 20 pallets per container = 320 saws at a cost of around A$15 per saw. So, if retailer margins are consistent across both countries, the saw should cost A$415. Where does the other $534 go? Now maybe because we run at 240 volt and the US at 110 volt, some additional cost may be in the motor. It still leaves a huge hole and someone is profiteering big time. It is pretty much the same with Bosch, Milwaukie etc across all power tools.

Now lets look and hand tools. A Stanley block plane is USA is US$36.00 or A$48.00. Lets assume freight is about $5 per plane (probably only a couple of bucks) we are up to A$53.00. https://www.homedepot.com/p/Stanley-...-960/203727261. The same plane in Bunnings is A$159.00 https://www.bunnings.com.au/stanley-...plane_p5767091. How do we get from $53.00 to $159???? !!!

It really pees me off. We are getting ripped off unbelieveably.

[Chris Parks]

These comparisons never work because the Americans think they are getting ripped off at the prices you quote so can you explain that? Do you think the Americans have a valid reason to say that they are getting ripped off because they sure think they are. The Poms think they are getting ripped off also and the Americans in some cases say they can buy cheaper in the UK than the US. As I said comparisons do not work.

[BobL]

This has been gone over and over ad nauseum in these forums.

Just for a start, minimum wage in the US is ~AUS$10/hr in Australia its almost double that.
That's why tools in the US look expensive to the average US worker.

[aldav]

There's always options. Why you'd buy a new Stanley plane from Bunnings when you can buy a Luban from any number of local sellers for less is totally beyond me. Only a consumer with a complete lack of knowledge of the product options and quality would do that. To get value you have to study the field.

[Beardy]

I agree with what Chris said, the grass is always greener on the other side.

You can’t expect the living conditions we enjoy here and the pricing structures of other economies

[tonzeyd]

As others have said prices are relative to the economy

Prices are relative to wages in any particular country. Similarly you can buy cars cheaper in Thailand than Australia for exactly the same item hence why Australia is constantly battling gray imports/replica's

Plus it also depends on the supply chain, don't know what its like in other countries but here in Australia there are distributors supplying to distributors which then onsell it to the end user with each distributor taking their own cut.

This is even before we get into supply and demand factors, pricing to minimise back orders etc

[KBs PensNmore]

What a lot of people don't see, is that our country has a population of 20million whereas the USA has 327million.
More items can be sold for X in USA, but to sell the same item and get an equivilant $ value, we are forced to pay what we do. Plus there are customs fees, Grab Snatch and Take, and as Tony mentioned the distributors who sell to the distributor who sell to the distributor to the store, and everyone has their hand out for a share.
If everyone was to get 20%, which in all probability is under stated, of an item imported for $20+20%=$24+20%=$29+20%=$35 plus the GST $3.50, it would have to be sold for $38.50. On some smaller items, a Markup of 200-300% is the norm. I know these figures aren't correct, as I don't have a calculator handy, but you get the picture

[Luke Maddux]

Another thing to take into account is that this isn't the exact same saw. Remember, this one has a 240v motor in it, which may well be more expensive. I'm not saying it is, just that there's a chance it could be.

Also, didn't Aus institute some sort of fairly significant import tax recently? Or is that only on consumer goods being imported by the end user?

Either way, I agree that does seem like a more significant price hike than I remember when I lived there. I was used to seeing "double plus a bit" on these kind of things, not triple. It looks like it's gotten a bit worse in the past two and a half years since I left.

Have you considered buying American and putting this kind of thing into one of your containers? Maybe you could help some friends out at the same time? Just a thought, although you'd run into the motor voltage (actually frequency is more of a problem) issue if you did this.

Good luck.

[BobL]

Another thing to take into account is that this isn't the exact same saw. Remember, this one has a 240v motor in it, which may well be more expensive. I'm not saying it is, just that there's a chance it could be.

Also, didn't Aus institute some sort of fairly significant import tax recently? Or is that only on consumer goods being imported by the end user?

Either way, I agree that does seem like a more significant price hike than I remember when I lived there. I was used to seeing "double plus a bit" on these kind of things, not triple. It looks like it's gotten a bit worse in the past two and a half years since I left.

Have you considered buying American and putting this kind of thing into one of your containers? Maybe you could help some friends out at the same time? Just a thought, although you'd run into the motor voltage (actually frequency is more of a problem) issue if you did this.

The cost of 240V motors does not add to the costs as they are needed for European countries and China itself uses 240V - they are now selling a lot more of the stuff they make internally..
US prices are almost always quoted sans GST.
Frequency is not a problem for most basic motors but our 50Hz does cause them to run 20% slower than when on 60Hz.
If speed is critical for a machines operation that uses belts and pulleys this can be adjusted by using different pulleys - again a minor cost.
One type of machine on which they do nothing speed wise are dust extractors - they just swap out the motor so the DCs sun 20% slower and collect 20% less air/dust.

[A Duke]

Hi,
A 240V motor will have more copper in the coils than a 115V motor.
That could account to a Cent or two.
Regards

[Bohdan]

Hi,
A 240V motor will have more copper in the coils than a 115V motor.
That could account to a Cent or two.
Regards

Actually it will have twice the number of turns of wire but they will be half the cross section area.

So total amount of wire is the same.

[BobL]

3 phase motors will often use the exact same coils just connected in a different way.

[A Duke]

Actually it will have twice the number of turns of wire but they will be half the cross section area.

So total amount of wire is the same.

Hi,
Yes, but they will have to go through a couple more drawing processes, hence still more expensive.
Regards

[China]

What it all boils down to is tools are expensive because consumers a happy to pay the price, if consumers don't buy items because they are too expensive the price will soon drop, look what people are prepared to pay for items such as iphones
landed in Sydney at $80 each

[FenceFurniture]

Oh gawd, not this again.

I'm so bored with it.