Explanation for Australia vs New Zealand prices

Hi, moved from Australia a little while ago and I'm still struggling to understand why things in NZ costs so much more than in Australia. Even identical products at the same store.

Is this purely due to lack of competition in NZ and extra GST? The exchange rate explanation doesn't fly.

For many things it's significant cheaper for me to buy an identical product online, pay delivery and GST than it is to buy local. Price difference is significant enough to run the warranty risk.

Comments

  • +2 votes

    3000 km further, a small market with lower purchasing power.

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    Yup; retailers will argue its the cost of the market (economies of scale, location, legislative requirements - cga, employment etc), but yeah its hard to make it all make sense when you can get something for significantly less for the same item…I don't know, I think sure, some of it is those things, but I also think its a lack of competition and local retailers just not wanting their margins to drop below what they have historically held.
    I still consider it far better value for many things to purchase overseas, pay shipping and now gst; sure you loose your cga/returns flexibility, but you get so many other things (better product ranges, lower initial prices, etc).
    I am struggling this exact thing atm with a Ryobi Blower Vac, where here in NZ it is $100 more than the same model in AU…wtf.

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    It's not the retailers is the importers that have always had a culture of high margins. These are the people who have lobbied the government To crack down on the private Importing of goods.

  • +3 votes

    Fun Fact: MightyApe sell most items for much cheaper on their Australian Store.. yet the product ships from Auckland.

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    Seems like price gauging when large stores such at Bunnings, JB etc. are much cheaper in Australia than in NZ.

    Lack of purchasing power doesn't seem to be a viable explanation for these large companies that are in both countries

  • +1 vote

    when i shop online at multinational retailers sometimes i avoid the NZ website completely. I find even going to their UK site and paying shipping and foreign currency rate you get better deals.

  • +1 vote

    Same lol. I can't find a logical answer. I go back to Aussie once a quarter so i just save my big ticket item to buy there.

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    The pricing problem is far worse with small retailers, who import smaller quantities. New Zealand is made of of many small companies and middlemen, which isn't great for prices. For example if you buy electrical parts for a home, you usually have to go through a wholesaler, as the company that imports the lights or switches, won't sell direct.Then there is a huge range of prices the wholesaler will sell it for, based on who is buying the product, as the price varies depending on who is buying it.

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