LRCrepair

Hey Guys,

I'm in the UK, just looking for a couple of answers really.

We get an awful lot of customers from Australia buying our products... Even though there's various businesses based in OZ who sell similar items.

(we manufacture our own products).

Upon closer inspection, it seems the equivalent products in Australia are upto FOUR or FIVE times the amount of ours...

This is obviously the reason for getting OZ customers, but why? Is it the Australian Economy? Or Are products generally more expensive to manufacture over there?


Note: The products are Leather repair / Leather care products.

DigDug

It comes down to a few reasons


1) Strength of Aussie dollar ( makes imports cheaper )
2) Goods will not incur duty and GST ( similar to VAT ) as Australia has a import threshold of AUD$1000 - anything over that attracts duty and GST, anything under $1000 ( excluding alcohol and tobacco ) does not incur these additional government fees
3) Australian companies are known to mark up their imported products by a huge margin ( to cover rent, high wages, greed etc.. .), therefore, now cheaper to by from overseas


You are probably seeing more individual small orders rather than large orders that would attract duty and GST.