Assuming an import tax of 40% (which in and of itself is ridiculous). That's not a substantiated value - happy to be corrected if it's wrong.


GST isn't really relevant - you'd claim that back off your import tax, AFAIK. Could be wrong.

Overseas cost of US$40 (?) at 90c to the US dollar = $45
add Import Tax of 40% (?) = $63
add Shipping of $5 (?) = $68
add Profit Margin of 20% = $81.6
add GST of 10% = $89.76

GST = $8.16, claimed back from import tax?
Gross Profit = $89.76 - $68 = $21.76

For high volume sales, you could drop your profit margin a bit to increase sales/compete with other vendors. There is no justification for the $100-120 RRP at current exchange rates.


Pretty sure that's what killed RedAnt, the sudden fluctuation on the Australian dollar.

Overseas cost of US$40 (?) at 70c to the US dollar = $57
add Import Tax of 40% (?) = $79.8
add Shipping of $5 (?) = $84.8
add Profit Margin of 20% = $101.76
add GST of 10% = $111.93

GST = $10.18, claimed back from import tax?
Gross Profit = $111.93 - $84.8 = $27.13

Higher profit margin in dollars (mainly because you'll look at profit in terms of percentage of revenue).

It's a valid point regarding the exchange rate... except that prices always go up when the dollar devalues and they don't go back down again afterwards.

im not really sure how import laws and taxes operate, but would any of this be under free trade agreements (such as Australia-United States Free Trade Agreement (AUSFTA))

places that are specific to certain stuff most of the time will stick with rrp, with eb games is there main profitable item... same with sanity, they usually stick with the highest price point because its where all there profit comes from, so from a business standpoint its understandable to cover all there costs but it still doesnt mean they have to stick to it

major retailers, or smaller type ones that are apart of the bigger company generally undercut the prices like big w, kmart, target etc. as they can make there profit elsewhere

but whats stopping eb from meeting them half way? even though they will always have the higher price they still get alot of business

come to think of it who actually sets the rrp, im pretty sure sony made the ps3 $120 and microsoft made the xbox $100 (i could be wrong) and with manufacturing plants now in australia import/exchange rate costs are irrelevant

at the end of the day we're just being shafted left, right and center... i say import away as you'll save yaself $20 bucks most of the time

just our country is ass.

when i was in england a football jersey and a new game is around 39.99pounds (which is around $65 AUD)

yet in australia a football jersey is about $120-100 and a game $100-$90

go figure

As much as I want to support Australian business...it's hard to do that when you pay twice as much for something here than if you bought it off the net.

My 2 cents on the price thing: Places like cdwow can charge low prices because they source their games from Hong Kong. My rellies who live there say that games (and anything else pretty much) are cheap there because of the low taxes.

It's not only video games, but also other software, including Windows 7. Students are able to pick up an upgrade to Win 7 for $50 AUD; however, in the US it is only $30USD, and something very similar in the UK. How come Australians must for out on average 33% more for digital software which is downloaded, not distributed by hard copy?

Because people pay more for it.

Just stop buying stuff, and they'll have to drop the price. Either that or capitalism is broken and needs a reboot.

Play-Asia gets all my business. F**k local retailers, price accordingly and you might just get it back. Unfortunately though Play Asia customer support is x100 better than the sweaty trolls that seem to inhabit the local gaming brick and mortar stores (at least in my area) and they cannot beat the convience of delivery to my work/home.

Regarding parellel importation, would it not be illegal from brick and mortar stores to stock games that do not have the OFLC rating on the box?

Thanks for that mate. As an owner of a small, independent store all I can tell you is that my cost price for games from my supplier is what you normally see on sale from the larger chains. I can't drop my price and stay in business at the same time. People can spend their money wherever they want but if I can't sell stock, then I can't buy bigger orders to get better pricing. The fact that everyone wants the cheapest price (who doesn't?) means that there is no point in me even trying to compete with import/online sales and hence why software is about 5% of my IT business now.

All I am trying to get across is that there are people to blame before you take it out on the retailers.

I don't know if it's illegal for them but Gametraders often source their stock from overseas, my copy of Left 4 Dead GOTY ed is the full english asian version with an MA15+ sticker stuck on.

Sorry mate, I am not blaming you personally (this is more aimed at your EBGames and GAME etc etc) but in these 'Financial Crisis' times I want my dollar to go further. Retail has and always will be a poop game to be in so good luck to yourself

His point is that to blame retailers (even the big ones) for pricing is plain ignorant. As someone who works for a small business selling games I can tell you that it's the publishers and distributors that are gouging this market. You should thank the EBs and GAMESs for actually working out deals with these companies which means they can sell games at $79 on release. However, for small retailers it's not possible, we don't buy the bulk they do and don't have the marketing weight to pull.

You can buy games from Play-Asia, have them shipped to Australia via UPS and they'll land in your hands cheaper than a retailer can get stock from a local supplier. The publishers and distributors know that the majority of people buying games in Australia will pay $100, so that mark up accordingly.

Also, you may want to note that the distributors and publishers buy their stock from Europe, not the US. It would be inaccurate to use the US dollar as an indication of what prices should be like.

Errr what, not one new release game has ever been under the 100 mark (console game that is) at any of my local or any that I have walked into retail stores.

Regarding the blame, I apoligize if I offended. Calling me ignorant though is another thing. How can I possibly know how a business operates if I do not work for them or in that industry? Regardless it doesn't matter what I do nothing will change. With that in mind I have taken things into my own hands and chosen to part ways with my cash elsewhere.

I myself wasn't offended by what you said DXPetti, just felt the need to share my perspective with you from the side of the counter that cops the flack for expensive games. Long story short, gaming in Australia is expensive before the games even get to the store.

Yes i love steam and look forward to the weekend special's , its just not worth buying in an australian shop anymore import or digital distro is the only way to go now.