Hi all
Long time reader, first time poster ...
Arin, do you exercise
any kind of control over pricing outside USA?
The $AUD price of a MK7 update is $1650 here in AUS, and $1495 for MK6. This is very very hard to stomach when the list price is $699 and $599 in USA and the Aussie dollar is not far off parity. Arin, does the AU importer have to do anything to validate your ROW software in the AU market? I mean, do they have to test end report back to head office, or is all that done and they just resell a finished product?
You might flag taxes and duties? Our GST is 10%, and import duty would be 5%. This is a maximum of $250 ... but duty is on the wholesale cost not RRP, so the tax take is much lesser than this. We have a free trade agreement with USA - designed to open up flow, not restrict it ... and given this is software (with respect!) you can set the base value for tax purposes at whatever you like.
Is the "wholesale" cost roughly parity for ROW? It seems to me the AU importer is charging the absolute maximum the market might bare, but I'd say this is really costing APR as a global brand penetration into the AU market. Let's face it if you halve the price I think you'd more than double the sales thus improving your net position ...
Arin, can you please provide more detail on this issue - hopefully more than "AU is free to set whatever pricing they please"?
I'm positive that if APR Head Office exerted some influence to remove the "Australia tax" that your sales here would improve significantly ... surely this is of interest?
Cheers
Doogz