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jogesel

Are these prices for real?

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jogesel

I came across some listings for leather jackets. The prices of these jackets were as high as R 15 500. See listing below

 

http://www.bidorbuy.co.za/item/120867117/PUMA_Mens_Ferrari_Leather_Jacket_Black_Medium.html

 

Coincidently I came across a posting in this forum where the poster Rags auctioneers stated –

“Would anyone know where I could get a third party certificate to indicate that the items I am selling are genuine leather? Our genuine leather items are selling at ridiculous prices, and I thought a certificate will help give buyers confidence.”

 

I thought that R 15 500 for a jacket was a bit much to pay and bearing the words of Rags auctioneers in mind I decided to check prices online.

 

I checked 4 online shops including eBay and Amazon.com. The prices for the exact same jacket ranged from R3 500 to R5 000. This is R 10 to 12 000 less than what the seller is asking, a considerable amount. While I appreciate that the jackets are quality and that they are imported I can in no way understand how a mark-up of more than R 10 000 is justified for a single item.

 

The seller did respond to my query indicating that the mark-up of over R 10 000 consisted of shipping and import duties and that there were no hidden costs. Seller however failed to indicate what percentage of the price was profit, which leads me to think that most of the price may be profit.

 

I find what seller says difficult to believe. Amazon.com is selling the jacket for R 5 000 and will do free delivery. So, if we take shipping costs out, that leaves seller claiming over R 10 000 for import duties alone. Can import duties on an item of clothing item really be 200%?

 

I may be mistaken but research indicates that import duty on leather goods into South Africa is 30% plus 14% sales tax.

 

The cost of a R 5 000 jacket would then be R 5 000 plus 30% import duty of R 1 500 = R 6 500 plus 14% sales tax of R 910 = R 7410. Less than half of what seller is asking.

 

Assuming that import duties and taxes are as high as 50% and sales tax of 14% is also payable. A R 5 000 jacket would cost R 5 000 plus import duty R 2 500 plus 14% sales tax R 1050 = R 8 550. This is still R 7 000 less than the price seller is asking.

 

If I buy the jacket online for R 3 500 then the total cost would be R 3 500 + import duties of R 1 750 plus sales tax of 14% R 735 = R 5 985. Here the savings are even more remarkable – about R 9 000.

 

Even if shipping costs are required the amount for shipping a single item woud hardly affect the overall price.

 

I wonder what seller meant when he said that there are no hidden costs involved. If there are no hidden costs then surely the jacket should be priced for much less than what seller is asking.

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Not1CentMore

Once upon a time, in the not so long ago, we had limited choices when it came to buying a product: a local shop, a Sunday afternoon drive to a neighboring community, a day outing to a larger town or even a weekend trip to a major city.

 

All that has changed with the internet. We can 'shop 'til we drop' (or until hubby and the kids start complaining about there being no food on the table come dinner time). We can compare prices, shipping costs, warranties, services, transit times, etc., and if we don't 'like' what we see in one 'shop', we can 'walk through the door' of another... right from the comfort of our home.

 

Long story short... if we don't like the price of a 'hill of beans' at, let's say, Walmart, we can check out the 'price tag' at Target or Sam's Club or Shopko or Big Lots (this corner of the flat map) or even online at Amazon or eBarf or iOffer or....

 

Isn't it great that we are no longer 'stuck' with only one or two places to buy what we are looking for at a price that fits our budget?

 

(JMHO)

 

Ruthie

Edited by Not1CentMore

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NooNooBug

LIKE your thoughts there Ruthie ! Agree !

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lilythepink

I, too, agree with Ruthie.

 

In the "real" world we can shop where we want to shop. If prices are too high then we go elsewhere. Simple as that.

 

For heavens sake, I can't see myself ever (not ever) asking a shop-owner how he/she arrived at the price of an item I am interested in. I would ask for discount and if none is given then I would choose to wait and find what I need elsewhere.

 

But that's the way I would handle something I may consider over-priced.

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Not1CentMore
I can't see myself ever (not ever) asking a shop-owner how he/she arrived at the price of an item I am interested in.

 

Janet... Hadn't 'thunk' of that.

 

Can you imagine going to the market, filling up your cart / basket with a week's worth of groceries and asking the Owner / Manager to 'break down' his / her 'cost' for EACH item (percentage added to his / her 'actual' cost) for building rent/lease/mortgage payment, utilities, insurance, spoilage / markdown, employee wages, advertising, etc. to determine his / her 'profit' on each item?

 

Snakes alive snake2_zpsf507c7fc.gif! By the time you left the market, your face would be 'splashed' all over the telly as a 'missing person'.SMALL_12.gif

 

Ruthie

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lilythepink

Oh my good grief, Ruthie. Our local Pick n Pay and Checkers would ban me from ever crossing their thresholds again! :cry:

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