High Cost of Goods in Australia

[MMDown Under]

Our American visitors often comment on the high cost of goods in Australia.

 

This following article is one reason why -

 

"Apple, Microsoft and Adobe declined invitations to appear before a parliamentary committee to explain the "Australian tax" that they apply to the products they sell here. The consumer advocate, Choice has shown that Australians pay about 50% more than Americans for identical music, software, games and hardware. For one Microsoft product, a software development programme, you could buy a return airfare from Sydney to LA, buy the programme at the US price, and still save money.

 

So the committee has now taken the extra ordinary move of ordering the three to appear on March 22. In what's probably the first time anywhere in the world, these IT firms are now being called by the Australian Parliament to explain why they price their products so much higher in Australia compared to the US, says Labour's Ed Husic."

 

Peter Hartcher, Sydney Morning Herald

 

Would be nice if the Committee, when they finish with the IT industry, could get the Cruise Lines to explain why they price their overseas cruises so much higher in Australia, compared to the US and elsewhere.

[MicCanberra]

Our American visitors often comment on the high cost of goods in Australia.

 

This following article is one reason why -

 

"Apple, Microsoft and Adobe declined invitations to appear before a parliamentary committee to explain the "Australian tax" that they apply to the products they sell here. The consumer advocate, Choice has shown that Australians pay about 50% more than Americans for identical music, software, games and hardware. For one Microsoft product, a software development programme, you could buy a return airfare from Sydney to LA, buy the programme at the US price, and still save money.

 

So the committee has now taken the extra ordinary move of ordering the three to appear on March 22. In what's probably the first time anywhere in the world, these IT firms are now being called by the Australian Parliament to explain why they price their products so much higher in Australia compared to the US, says Labour's Ed Husic."

 

Peter Hartcher, Sydney Morning Herald

 

Would be nice if the Committee, when they finish with the IT industry, could get the Cruise Lines to explain why they price their overseas cruises so much higher in Australia, compared to the US and elsewhere.

Interesting why the prices are higher here. It could be a number of factors, like higher wages, etc.

It is most likely that they can charge these higher prices because we still buy the products. :D

[mr walker]

It is most likely that they can charge these higher prices because we still buy the products. :D

 

Exactly. A company will aim to sell it's product/service at the highest price that the market will bear. The sell price is not necessarily directly related to cost, and prices in different markets will never be the same.

 

What business of the government is it what a business charges for its product or service, particularly when that product service is not an essential good or service? I would tell them to take a long walk off a short pier if they wanted to tell me what I could sell my products for.

[MicCanberra]

Exactly. A company will aim to sell it's product/service at the highest price that the market will bear. The sell price is not necessarily directly related to cost, and prices in different markets will never be the same.

 

What business of the government is it what a business charges for its product or service, particularly when that product service is not an essential good or service? I would tell them to take a long walk off a short pier if they wanted to tell me what I could sell my products for.

While I agree with this,

I cannot agree with the companies blaming their higher prices on Aussie taxes or the like, that is just lies and it borders on fraud.:D

[Aussieflyer]

The problem is though MrWalker that consumers here do not have the option in many cases to purchase overseas at the lower prices. We know that a number of cruise lines for example do not allow nonUS residents to buy cruises from US TAs. In these cases I have no problem with the government trying to ascertain why businesses charge so much more for products here. Did you read the news article on Adobe where it was shown you could fly to the states to buy the product and still have change on what it cost here. The Adobe manager weaves and ducked around and refused to answer reporters' questions. Time someone took them on.

[Oz_Steve]

The problem is though MrWalker that consumers here do not have the option in many cases to purchase overseas at the lower prices. We know that a number of cruise lines for example do not allow nonUS residents to buy cruises from US TAs. In these cases I have no problem with the government trying to ascertain why businesses charge so much more for products here. Did you read the news article on Adobe where it was shown you could fly to the states to buy the product and still have change on what it cost here. The Adobe manager weaves and ducked around and refused to answer reporters' questions. Time someone took them on.

 

Absolutely.

[RaeBay]

I agree we are getting ripped off here in Australia by the multinational companies.

 

I also do not see why I have to pay so much for a cabin on a cruise than the person in the next cabin just because I live in Australia and not USA or UK. We should be changed the same amount.

 

I get on my cruise in April in Fort Lauderdale and get off in LA but my cabin costs more than a US citzen. :(

[MicCanberra]

I agree we are getting ripped off here in Australia by the multinational companies.

 

I also do not see why I have to pay so much for a cabin on a cruise than the person in the next cabin just because I live in Australia and not USA or UK. We should be changed the same amount.

 

I get on my cruise in April in Fort Lauderdale and get off in LA but my cabin costs more than a US citzen. :(

I agree but also disagree. While I think that countries should have all the same prices for the same cruise /cabin class, etc.

There is always going to be discepencies in prices between what people have paid, due to simple supply and demand factors at work. Sometimes it is timing of the purchase, such as early bird or last minute, sometimes it is a better TA etc. But sometimes it is also that they want to attract a mixture of nationalities onboard, otherwise the aussie cruises would be filled with only aussies and the US cruises would only have the US onboard.:D

[RaeBay]

Yeah well if they want a mix of nationalities mine should be cheaper than US on one of their cruises and visa versa but their prices are cheaper on both Aussie and US cruises go figure.

Check prices same day same cruise off Aussie site compared to US site (which we cannot book through) go figure.

[NSWP]

At least our wine is cheap, heh, heh. Until one boards a cruise ship and has to pay $40 for an $8 bottle of Yellow Tail Pinot Grigio. ! That is what Princess was charging a couple of years ago !

[Aussieflyer]

I have no problem with different pricing for products, including cruises. I know there will be regional differences for all sorts of reasons. What I do object to is companies directing where I can and cannot buy from and not allowing me to make an choice about where I spend my hard-earned money.

[6andy6]

Interesting why the prices are higher here. It could be a number of factors, like higher wages, etc.

It is most likely that they can charge these higher prices because we still buy the products. :D

 

Given the computer programmes are distributed digitally over the web to your HDD usually from the same server in the US as a US resident is buying it I'm at a confusion as to what wages your referring to?

 

And that's the point...these things are not sitting in a store.

[Oz_Steve]

Given the computer programmes are distributed digitally over the web to your HDD usually from the same server in the US as a US resident is buying it I'm at a confusion as to what wages your referring to?

 

And that's the point...these things are not sitting in a store.

 

I am constantly surprised that people are happy to be taken for a mug.

[The_Big_M]

I agree we are getting ripped off here in Australia by the multinational companies.

 

I also do not see why I have to pay so much for a cabin on a cruise than the person in the next cabin just because I live in Australia and not USA or UK. We should be changed the same amount.

 

I get on my cruise in April in Fort Lauderdale and get off in LA but my cabin costs more than a US citzen. :(

 

Imagine if cruise staff had the same view, that why should they get paid less than workers in Au, or UK, just because they're from Trinidad or the Philippines. They should be paid the same amount.

 

That's just not the way the world works.

 

Different things cost, and are charged different amounts for a whole variety of reasons, including demand and supply, and affordability (cost of living).

[MMDown Under]

Given the computer programmes are distributed digitally over the web to your HDD usually from the same server in the US as a US resident is buying it I'm at a confusion as to what wages your referring to?

 

And that's the point...these things are not sitting in a store.

 

Imagine if cruise staff had the same view, that why should they get paid less than workers in Au, or UK, just because they're from Trinidad or the Philippines. They should be paid the same amount.

 

That's just not the way the world works.

 

Different things cost, and are charged different amounts for a whole variety of reasons, including demand and supply, and affordability (cost of living).

 

IT products are provided on line, as 6 and 6 pointed out above.

[MicCanberra]

Given the computer programmes are distributed digitally over the web to your HDD usually from the same server in the US as a US resident is buying it I'm at a confusion as to what wages your referring to?

 

And that's the point...these things are not sitting in a store.

My point about wages was to do with other products generally as an example. What I really was enforcing was that there are many reasons why a company may charge more for their products but the main reason is to make as much profit as they think they can. While the majority of Australians buty the overpriced products, they will continue to sell them at the high prices.:D

[RaeBay]

Imagine if cruise staff had the same view, that why should they get paid less than workers in Au, or UK, just because they're from Trinidad or the Philippines. They should be paid the same amount.

 

That's just not the way the world works.

 

Different things cost, and are charged different amounts for a whole variety of reasons, including demand and supply, and affordability (cost of living).

 

The only way Australians can buy allot of products online from America which can be up to half the price in Australia is to have a friend in NZ or use a NZ broker as they do not post to Australia. Or you get a message not downloadable in your area.

I just think that with US and Australian $ about the same value we should be able to pay the same as US citzens do for cruises.

 

It is not only computers and cruises items at IKEA which cost $50 in US are $300 in Australia.

[The_Big_M]

IT products are provided on line, as 6 and 6 pointed out above.

 

I didn't refer to IT products. I replied to a comment about cruises.

[nanaof2]

The only way Australians can buy allot of products online from America which can be up to half the price in Australia is to have a friend in NZ or use a NZ broker as they do not post to Australia. Or you get a message not downloadable in your area.

I just think that with US and Australian $ about the same value we should be able to pay the same as US citzens do for cruises.

 

It is not only computers and cruises items at IKEA which cost $50 in US are $300 in Australia.

 

I Have purchased many items from the USA and they posted or couriered for minimal costs. Amazon delivers many items to Oz, Macy's etc. Give it a go. And, most certainly we should pay the same as US citizens. We use the same amount of fuel, food etc..:(

[Katana_Geldar]

My point about wages was to do with other products generally as an example. What I really was enforcing was that there are many reasons why a company may charge more for their products but the main reason is to make as much profit as they think they can. While the majority of Australians buty the overpriced products, they will continue to sell them at the high prices.:D

 

That doesn't make sense when you have such a significant price increase like we have for reduces. It is cheaper to fly t LA and buy adobe there and FH bad than it is to buy in Australian stores.

 

And they wonder why people pirate software.

 

This is why I'm a Steam member, but they're getting wise to it.

[MicCanberra]

That doesn't make sense when you have such a significant price increase like we have for reduces. It is cheaper to fly t LA and buy adobe there and FH bad than it is to buy in Australian stores.

 

And they wonder why people pirate software.

 

This is why I'm a Steam member, but they're getting wise to it.

Not sure what doesn't make sense.

They make a product for $X amount and then sell that product all over the world and they charge differing amounts in the different countries depending on what will give them the most profit without affecting their sales. In Australia, the products are severely overpriced, but they still manage to sell enough of their product so that they do not lower their prices.:D

[MMDown Under]

I didn't refer to IT products. I replied to a comment about cruises.

 

I see your point of view.

 

My view is that Australians should be able to purchase overseas cruises overseas. And they can for most other forms of overseas travel, entertainment, etc.

 

If the cruise lines keep discriminating in their pricing policies for Australians, they will loose a generation of future cruisers. (My daughters, frequent travellers, think cruising is not good value/competitive with land holidays.)

[Katana_Geldar]

Not sure what doesn't make sense.

They make a product for $X amount and then sell that product all over the world and they charge differing amounts in the different countries depending on what will give them the most profit without affecting their sales. In Australia, the products are severely overpriced, but they still manage to sell enough of their product so that they do not lower their prices.:D

 

There's no reason whatsoever we should be paying more for the exactly the same product we see lower rices elsewhere.

[MicCanberra]

There's no reason whatsoever we should be paying more for the exactly the same product we see lower rices elsewhere.

I agree, but it is just the way companies use supply and demand to regulate their prices. I think it is wrong especially in todays global market. :D

[Katana_Geldar]

Wouldn't you think there's a greater demand for their products in the US because of the higher population? Why is the rice power there then?