1290 wrote:
There fixed it for you, added a minor consideration in the price.....
And as far as ADI selling to the USA add the same (wholesale) price as locally.....I call bulls**t. Simply the quantity would 'allow' a more attractive buy price....
So, bare in mind that the "price hike" at each stage of the supply chain does actually have to cover running costs, payroll, etc, etc. So, even if the mark up is %110, they aren't putting all that in their pocket. Mind you, distributor 'sales reps' don't get paid a hell of a lot in most cases; it's well under the current 'average wage' for Australia.
As for the retail side of things, they generally make their biggest margins on consumable items, as the big ticket items are almost 'loss leaders' with very small margins in a lot of cases.
Also, ADI may well sell to the USA at "the same prices"; that is, their pricing schedule would be the same and if Aussie companies were to buy the same quantities as those in the US, then they would enjoy the same pricing benefits; my guess is that one distributor in Australia would buy about 1/2 of what, say, even just Walmart would order in the US. This is added to by the Aussie tendency to reload rather than buy factory ammo; where as in the States, they are more likely to buy factory rounds on a percentage of user level. One of those cycles of 'ammo prices are too high so i reload/ because i don't buy ammo the volume pricing is not available to me'. [don't get me wrong: reloading is better in every way, from my perspective]
I'd be very interested to see the prices if ADI worked directly with firearms dealers. Only problem is, there aren't many retailers big enough to warrant the quantity order required to get the "bulk rate pricing" and logistics of getting it all out to 100's of tiny local shops just isn't cost effective for ADI.
Any way you look at it, we get screwed at the drive through.