LG Monitors: Why Price Is Almost 2 Times in Aus Sites?

frank100 on 01/08/2020 - 00:10
Last edited 01/08/2020 - 00:59

When I search for LG monitors, I end up in the LG US site.
LG Australian website is not selling most of the models, but even the model it is selling, the prices are enormously different.

Usually being the global company, and Australia being a global market, the price may be Australian dollar equivalent of 1.25 times, but I found that most of the prices are 2.5 times to more in Aus sites.

For example, it is selling for around 1050 USD (which should be about 1470 AUD excluding tax), but it is selling for 2600 in the Aus site. Same with most of the models.

https://i.ibb.co/pzqsbgZ/Screen-Shot-2020-07-31-at-11-44-50-…

Why is that? I know there will be some taxes, transportation cost but even with that how it can be 2.5 times? Am I missing something?

Is it ethical or no laws to stop such practices?

Interestingly, it seems like even amazon does not show not available for most of LG monitors.

Actually, I found that LG monitors are cheaper is many other countries than Australia.

Computing

Comments

  • WoodYouLikeSomeCash on 01/08/2020 - 00:15

    That’s because they work out prices based on how wealthy each country is, what there economy is like, etc.

    • frank100 on 01/08/2020 - 00:25

      lol, on that node, the countries which have higher per capita income than Australia may be paying up to 4-5 times the original price or currently equivalent?

  • this is us on 01/08/2020 - 00:26
    +1

    If you check the history:
    US:
    https://camelcamelcamel.com/product/B079L4WR4T?context=searc…

    AU:
    https://au.camelcamelcamel.com/product/B079L4WR4T?context=se…

    You can see that this particular model is cheaper than ever in the US, and more expensive than ever in AU. Therefore, I think it's more about this particular model, and the increase of price of monitors in Australia in the last months (currency correction, increased demand). This monitor was AUD 1600 back in March, and right now it's only available from one seller.

    *Not considering RRP on LG website

    • frank100 on 01/08/2020 - 00:34

      I am taking reference to the US and Australian store on the same website.

      So, LG company is not able to fulfil Australian market demands (or does not have enough monitors? only one selling it and for around 2.5 times? and selling much lower specs other models for a higher price? lol)

      I think taking reference to amazon prices (us and au) sites may not be that accurate. As there are many other conditions attached (claiming to do so as a part of their prime thing).
      And if you check, you will find for most product, "the seller does not ship to this address" or will show delivery after around 3 months.
      Was it available for 1600$ in any other Aus sites other than amazon Aus?

      The question is why so much difference in LG same site? maybe "profit mongering"?

      • this is us on 01/08/2020 - 00:47

        I don't have the answer… Some things are really expensive in Australia and it's hard to understand why.

        You can buy this monitor from BHphotovideo for 1370 USD (included GST and shipping) = AUD 1900. I don't believe LG has worldwide warranty, but you can pay extra for worldwide warranty (3 years) on BH website (might not worth the difference).

        • frank100 on 01/08/2020 - 00:58

          Thank you very much for your answer and suggestion. Appreciated.
          Yes, my question was why squeezing Australian customers. Now, if I use that long way I can get it for 1900 but that company is selling it for $2600? also for something which has to be paid earlier and they don't need to store physically. That is not entirely ethical. Watchdogs should act on such squeezing out or bais for Australian customers.

  • MrHyde on 01/08/2020 - 07:36
    +6

    Its called the Australia tax.

    The reasoning goes something like, Australia is a very small market that is also far away from the rest of the world. To sell something in Australia, there is

    • smaller benefits of scale (due to smaller market size)
    • greater shipping costs (due to distance)
    • greater holding costs (due to high rents)
    • greater selling costs (due to high wages)
    • greater warranty costs (due to high wages, shipping back plus ACL)

    All of that adds up to higher prices.

    Now, I don't agree with all these reasons - they don't explain why digital goods are priced higher in Australia than elsewhere - there is no shipping or holding costs involved there.

    At the end of the day, it comes down to competition and what the market is willing to bear.

  • Hithere on 01/08/2020 - 10:26

    It's called Geo-blocking.

    It's a company policy that restricts/limits our access to content based on geographic location.

    Big companies charge us more because they can and who's going to stop them?.

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