MobileRead Forums - View Single Post - Aus Gov't report advises banning geoblocking

burnafterreading · 01-08-2015, 03:55 PM

first, electronic goods don't cost more than a fraction of a penny to send either next door or across the globe.

physical goods cost a bit to send, but the cost of shipping a widget has little to do with the selling price of the widget (we're talking bulk transport from factory to distribution, like for example Gibson guitars being shipped to the AU distributor). shipping from the USA to Hawaii is typically just as costly as to AU, since they're both just as far away and across an ocean. but few things are made in the USA anyways - now it's all mostly made in China. from China, shipping to USA is just as far and "complex" as shipping to AU.

so, why does it cost more in AU than in USA to buy the same made-in-China product? because it CAN be priced higher. basic business: maximize your profits.

at times it isn't even a question of distance, but mindset. canada is not that far from the USA. i think the border is only like 30ft wide. anyhoo, when WalMart comes to canada, they apply their US-based pricing mindset, which is lower the price but sell in higher volume, and result in more total revenue. flip side is when Canadian Tire attempted to expand to the USA, they stuck to their canuck pricing model which is to charge as much as possible even if that means less people would buy - the end result is that revenues were tiny and CT abandoned the operation. transporting widgets across the Canada-USA border is no more costly than from NY to TX.

you (are asked to) pay more because you will (despite some complaining) pay more.

01-08-2015, 03:55 PM	#43
burnafterreading Groupie Posts: 192 Karma: 1237440 Join Date: Dec 2014 Location: Ottawa, Canada Device: Kobo Glo, Arc7HD/10HD, smartphones	first, electronic goods don't cost more than a fraction of a penny to send either next door or across the globe. physical goods cost a bit to send, but the cost of shipping a widget has little to do with the selling price of the widget (we're talking bulk transport from factory to distribution, like for example Gibson guitars being shipped to the AU distributor). shipping from the USA to Hawaii is typically just as costly as to AU, since they're both just as far away and across an ocean. but few things are made in the USA anyways - now it's all mostly made in China. from China, shipping to USA is just as far and "complex" as shipping to AU. so, why does it cost more in AU than in USA to buy the same made-in-China product? because it CAN be priced higher. basic business: maximize your profits. at times it isn't even a question of distance, but mindset. canada is not that far from the USA. i think the border is only like 30ft wide. anyhoo, when WalMart comes to canada, they apply their US-based pricing mindset, which is lower the price but sell in higher volume, and result in more total revenue. flip side is when Canadian Tire attempted to expand to the USA, they stuck to their canuck pricing model which is to charge as much as possible even if that means less people would buy - the end result is that revenues were tiny and CT abandoned the operation. transporting widgets across the Canada-USA border is no more costly than from NY to TX. you (are asked to) pay more because you will (despite some complaining) pay more.