Super_BQ
16th February 2007, 04:20 PM
If you're coming to NZ from N. America, you'll find prices of most goods are more expensive in NZ. One only has to look at the "buying power" a nation has to say ie. import goods from China.
I often notice the very same items sold at The Warehouse are 5 folds more than what can be bought at Wal-Mart. Tons of factors contribute to a higher price and never really a "rip-off". The logistics is a major cost factor in getting the goods on the shelf. Container shipping is always cheaper from China -> USA than from China -> NZ.
Then there's taxation. NZ is currently talking about free trade with China but nothing is set in stone yet (politician gossip). Meanwhile goods from China going to the US have an extremely low duty rate (in the area between 1 - 3%). Don't forget, NZ has GST which is separate to Duty & Excise tax. Even with free trade, NZ's 12.5% GST will still put goods higher than in the US.
It's not really the matter of "RIP-OFF" prices. It's more to do with the fact that NZ is a small country and thus, has limited buying power, complicated with higher tarrifs on imported goods.
As for locally produce goods? Well even in produce and farming, I doubt it would be cheaper than in N. America. Most veggie produce sold in NZ is dependant on "in season or not" whereas living in Canada, one can buy a head of lettuce at $1 each anytime of the year.
Besides the import barriers and taxation, local macro factors are a big concern. For eg. electrical power is at least 3 times more expensive than in Canada. What does that mean to a manufacturer plant? It means that local NZ made products can not be made cheaper if other countries have "cheaper resources" - power, labour costs, gov't regulation, etc.
BQ
I often notice the very same items sold at The Warehouse are 5 folds more than what can be bought at Wal-Mart. Tons of factors contribute to a higher price and never really a "rip-off". The logistics is a major cost factor in getting the goods on the shelf. Container shipping is always cheaper from China -> USA than from China -> NZ.
Then there's taxation. NZ is currently talking about free trade with China but nothing is set in stone yet (politician gossip). Meanwhile goods from China going to the US have an extremely low duty rate (in the area between 1 - 3%). Don't forget, NZ has GST which is separate to Duty & Excise tax. Even with free trade, NZ's 12.5% GST will still put goods higher than in the US.
It's not really the matter of "RIP-OFF" prices. It's more to do with the fact that NZ is a small country and thus, has limited buying power, complicated with higher tarrifs on imported goods.
As for locally produce goods? Well even in produce and farming, I doubt it would be cheaper than in N. America. Most veggie produce sold in NZ is dependant on "in season or not" whereas living in Canada, one can buy a head of lettuce at $1 each anytime of the year.
Besides the import barriers and taxation, local macro factors are a big concern. For eg. electrical power is at least 3 times more expensive than in Canada. What does that mean to a manufacturer plant? It means that local NZ made products can not be made cheaper if other countries have "cheaper resources" - power, labour costs, gov't regulation, etc.
BQ