Makita/Dolmar Australia...

[MCW]

Just thought I'd fill people in on the way we get ripped off on chainsaw gear in Australia.
Just got a text message from Rick (tdi-rick) who got a price for the new HD filter kit for his Makita 6401 (now 79cc) from a Makita dealer in Australia.
At today's exchange rate the RRP on the filter kit is...

wait for it...

the equivalent in USD is $233

Sad thing is this price was confirmed by a couple of dealers and did not include freight to that dealer. If Makita want to completely wreck their Australian chainsaw market they are going the right way about it.
To buy a 7901 (about USD$1000-1100 average but as low as USD$900), then add the HD filter kit at that STUPID price will bring it right up the the same price as a 372 Husky or equivalent Stihl.
I mentioned to Rick that it may pay one of us to import a heap of these kits from the US via Dolmar dealers and whack them on Aussie eBay.
I think I may just do this out of pure, utter, unremorseful, SPITE...

If you can't tell I'm pretty pissed off about this.

 

[pwoller]

So are you all that attached to South Australia?????

 

[Justsaws]

Do you have an idea of the actual reasoning behind the curious mark up?

Is that type of mark up typical for "specialty" products from the other brands?

It does seem ridiculous and self defeating to have it be that steep.

 

[MCW]

So are you all that attached to South Australia?????

I like the US and apart from Australia it would be my second favourite country to live
When I can purchase a HD filter kit online and land it in Australia from the US for under USD$100 it does tend to upset me a tad and goes to show how far off the marketing pulse Makita in Australia are...

 

[MCW]

Do you have an idea of the actual reasoning behind the curious mark up?

Is that type of mark up typical for "specialty" products from the other brands?

It does seem ridiculous and self defeating to have it be that steep.

Can't think what the reasoning would be mate but I have had the same arguments with golf gear that I used to import and sell a lot of. Markups of a few hundred % aren't uncommon with smaller, cheaper products but to mark up an item like the filter kit by what I would guess is 400%+ over Makita's net cost is just plain ripping customer's off.
Why would a local golf shop owner for instance, pay the equivalent of USD$60 for a dozen pro balls off the Australian importer/distributor when they can import them themselves for USD$40? From a purely business point of view it doesn't make sense.
I hope for their sake the Aussie Makita dealers themselves are getting ripped off but if not the dealers themselves are crooks. Since importing both my 7900's from the US for significantly less than the Australian price I have had a number of PM's from fellow Aussie members asking about who to contact and where to import saws from.
I myself used to import nearly all my chain and a number of bars, sprockets etc from the US until I got a trade account with the Carlton importers. For example I could import GB rim sprockets from the US via another dealer (who openly added a 20% mark up) from Stens and land them here for 60% of GB's dealer cost and this was an Australian company!
Fair is fair and I realise everybody needs to make money but selling a Dolmar HD Filter Kit for more than 3 times the going rate in the US is beyond a joke when the company is global.
Watch Aussie eBay in the near future as I'll be getting a few of these kits in from the US to sell and I won't be anywhere near as greedy...
I doubt Makita would even notice...

 

[atvdave]

Just asking cause I don't know... Where are the Makita's made?

I know the Dolmar's are made in Germany, but not sure about the Makita's. If they are made in Germany, maybe there a importer there with less markup....

Our, are just the upgrade kit's made in the US?

Please forgive me if you have already look at this option.

 

[dingeryote]

MCW,

Somewhere between Germany and Oz, and the States and Oz, is some jackass marking stuff up because he can, and does.

Either find that bastard and clip his nuts like a young Boar, or point out that the disparity is killing your sales to the Makita/Dolmar shareholders...and offer them a better alternative.

Odds are the Oz Importer has a sweet deal with someone, go after his mojo and hang on. It might even be the Husky or Stihl importer plying an agreement..who knows.

Whaddya got to lose? Nobodys gonna buy a Dolly for more $$$ than a Stihl or Husky anyhow.

You can buy us all a round when you get the big gig.

Stay safe!
Dingeryote

 

[MCW]

Just asking cause I don't know... Where are the Makita's made?

I know the Dolmar's are made in Germany, but not sure about the Makita's. If they are made in Germany, maybe there a importer there with less markup....

Our, are just the upgrade kit's made in the US?

Please forgive me if you have already look at this option.

Makita bought Dolmar out so the Makita saws are excatly the same as Dolmars with all parts interchangeable. Only difference is that Dolmar are red and black, and Makita's are blue and grey.
The upgrade kits are German made judging by the box and instruction manual but in Australia we don't have a real Dolmar presence, everything is/has gone Makita now. If anybdy in Oz specifically wants a Dolmar saw, they have to import from the best of my knowledge.

Thanks for the post Dingeryote.
I'd love to get a container load of Dolmar saws and accessories imported to stick it right up Makita but I'm pretty sure Makita Australia would be all over me like a cheap suit seeing that they own Dolmar. I smell lawsuit

 

[porky616]

i been looking at a makita for a third saw in my stable as they seem to be cheaper than a stihl and i hear a lot of good reports about them but if parts and extras are going to be this ridiculous i might pass on it. im still carrying a grudge over the $120 it cost for the cheap plastic $10 quality hd filter for my 880.

 

[dingeryote]

Makita bought Dolmar out so the Makita saws are excatly the same as Dolmars with all parts interchangeable. Only difference is that Dolmar are red and black, and Makita's are blue and grey.
The upgrade kits are German made judging by the box and instruction manual but in Australia we don't have a real Dolmar presence, everything is/has gone Makita now. If anybdy in Oz specifically wants a Dolmar saw, they have to import from the best of my knowledge.

Thanks for the post Dingeryote.
I'd love to get a container load of Dolmar saws and accessories imported to stick it right up Makita but I'm pretty sure Makita Australia would be all over me like a cheap suit seeing that they own Dolmar. I smell lawsuit

MCW,

That sucks... Makita OZ is likely working under the radar of the home office here, and they don't have a clue. It's a consistent problem with Dolmar.
Great saws, but Idiots run the business.

Any chance you could just take over as Makita Oz?
Ya never know..it's obvious some Gucci handbag salesman is running it now!

Good luck with that mess!!

Stay safe!
Dingeryote

 

[MCW]

i been looking at a makita for a third saw in my stable as they seem to be cheaper than a stihl and i hear a lot of good reports about them but if parts and extras are going to be this ridiculous i might pass on it. im still carrying a grudge over the $120 it cost for the cheap plastic $10 quality hd filter for my 880.

Still consider it mate. They really are a good saw and if you need parts the US dealers are only an internet session away Hopefully this weekend I will be able to try the HD filter kit our on dead Redgum/Pinkgum. It has surpassed all my expectations so far and if it survives dead Redgum (Pinkgum similar) then it will be the equal of any saw filter on the market. I hope it passes!


As I've previously mentioned though, there are good Makita dealers in Australia serious about the chainsaw side of things with respectable pricing on the saws themselves and the service.
Problem is though that the USD$233 for the HD filter kit is Recommended Retail and not just some dealer trying to take Rick for a ride.

Also, the only Makita dealer I've ever seen that's serious about their chainsaws and service are New Norfolk Mowers and Cycles in Tasmania, Australia. The problem is that any guy with a Makita account can also get you a chansaw but wouldn't even know what one's used for. I can only imagine what would happen if you needed servicing or warranty work. The turnaround time is likely to be 2 months at the least.

 

[porky616]

yeah the rrp are the biggest problem with everything these days. i still think i will get one, trimming someones orange tree with the 66 or 88 is bit much and tends to upset the neighbours a bit.

 

[husq2100]

i think it getting blown out of proportion.......think about supply and demand, think about population density, think about transport costs, both international and national......

as an example, Ford USA sold more Ford explorers in 1 month than all the cars sold in OZ for one year!!!!!!!!!!!!!!!!!!

we all complain about cost of things, yet flip the coin and bark when we get paid and not enough.....

Serg

 

[porky616]

i think it getting blown out of proportion.......think about supply and demand, think about population density, think about transport costs, both international and national......

as an example, Ford USA sold more Ford explorers in 1 month than all the cars sold in OZ for one year!!!!!!!!!!!!!!!!!!

we all complain about cost of things, yet flip the coin and bark when we get paid and not enough.....

Serg

well yes that is true, i guess it does cost a lot to freight foam and plastic. and i hope your explorers are better than the exploders that were sold here for a few years

 

[tdi-rick]

Some Dolmar/Makita parts are quite a bit cheaper than equivalent Husky bits here, my nearest dealer handles both brands (and charges RRP on everything)

As the son of the owner said to me today, some Makita parts are very well priced, others are pretty steep.
Apparently there is only one filter kit in stock in Sydney at the warehouse with nil backorder ATM, and I can't see them turning over many at that price.

 

[tdi-rick]

MCW,

That sucks... Makita OZ is likely working under the radar of the home office here, and they don't have a clue. It's a consistent problem with Dolmar.
Great saws, but Idiots run the business.

Any chance you could just take over as Makita Oz?
Ya never know..it's obvious some Gucci handbag salesman is running it now!

Good luck with that mess!!

Stay safe!
Dingeryote

hahahahaha, I like that Dingers.

FWIW, here's part of an email from one of the fella's at Makita OPE OZ from two months ago before the kits had even hit the wharf here.

Hi Rick,



Pricing has not been set yet. In the past we have had issues with purchasing larger stock weights to reduce our buy price from Germany. We have however overcome this issue and you should see better pricing in the market place.



Regards,

Hmmm.....

 

[tdi-rick]

i think it getting blown out of proportion.......think about supply and demand, think about population density, think about transport costs, both international and national......

as an example, Ford USA sold more Ford explorers in 1 month than all the cars sold in OZ for one year!!!!!!!!!!!!!!!!!!

we all complain about cost of things, yet flip the coin and bark when we get paid and not enough.....

Serg

Serg, US$70 vs US$233 is a bit more than a little bit of margin to cover costs. I can handle 50% higher even, but 300% above retail over there ?

 

[MCW]

i think it getting blown out of proportion.......think about supply and demand, think about population density, think about transport costs, both international and national......

as an example, Ford USA sold more Ford explorers in 1 month than all the cars sold in OZ for one year!!!!!!!!!!!!!!!!!!

we all complain about cost of things, yet flip the coin and bark when we get paid and not enough.....

Serg

I agree to some extent Serg but as Rick said, the Aussie price is WAY beyond reasonable. The weight of the filter kit when it arrived from Baileys made me think they'd sent an empty box. It cost about USD$10 to get it here (it was one order and all my bits and pieces came in 3 parcels and I paid one postage amount).
As far as US cars go, I know we pay more for the equivalent vehicle in Australia than guys do in the US, but not 300-400%.
Fair enough if a dealer wants to mark up chain 300%, he'll go broke from the dealer down the road who marks up 200%. As far as the filter kits from Makita goes, they have the market sewn up unless you import your own from the states.
Taking advantage of gullible, uninformed customers happens, but it's never acceptable in my book. For instance in my area paying 70 cents per DL for chain is the accepted norm from dealers.
If I've ever been shafted and found out, I've never, ever given that place my business again.
Makita are digging their own hole in Australia with the chainsaw side of things because they don't care about that side of their business. They'll do you a good deal on a drill though...

 

[tdi-rick]

Do you reckon this is OK ?
It's for my contact at Makita Australia. Maybe I should CC it to the head of Marketing and the Co President here in Oz too, just for good measure ?

Hi #####,
I've just priced up the 957-173-400 HD filter kit for the DCS7901 chainsaw and was quoted $235 incl. (rec. retail is $253.06 incl)
Apparently you have one kit in stock.

I must say I'm a little shocked. The same kit retails in the US for US$70. (A$76 at current ex rate)
I can actually land one here for under A$100.
http://www.baileysonline.com/itemdetail.asp?item=DM+957173400&catID=368
http://www.edgeandengine.com/store/...oduct_info&cPath=93_288_290&products_id=45156

I wish you luck selling them in Australia at that price. I understand that prices do vary from country to country and region to region, due in part to various external and market influences.
Makita's dealers here are generally quite willing to discount and so make saw pricing in Australia quite comparable to US pricing, and far and away better than Stihl or Husqvarna here. Some of your saw spare parts pricing is quite acceptable too, I've bought quite a few consumable items from my nearest dealer at RRP but I can't even contemplate ordering this kit from a dealer here at the current price.

If your buy in price is such that your dealer cost and as a consequence RRP is so high I'd be having words with Germany, if not, I'd suggest a re-think on your wholesale and RRP as you will dramatically lose parts sales from anyone that has 'net access. Unlike electric power tools, there are many consumable items in OPE and pro's turn over equipment every few years so it pays to keep servicing costs reasonable to garner repeat sales.

regards,"

 

[MCW]

Do you reckon this is OK ?
It's for my contact at Makita Australia. Maybe I should CC it to the head of Marketing and the Co President here in Oz too, just for good measure ?

Hi #####,
I've just priced up the 957-173-400 HD filter kit for the DCS7901 chainsaw and was quoted $235 incl. (rec. retail is $253.06 incl)
Apparently you have one kit in stock.

I must say I'm a little shocked. The same kit retails in the US for US$70. (A$76 at current ex rate)
I can actually land one here for under A$100.
http://www.baileysonline.com/itemdetail.asp?item=DM+957173400&catID=368
http://www.edgeandengine.com/store/...oduct_info&cPath=93_288_290&products_id=45156

I wish you luck selling them in Australia at that price. I understand that prices do vary from country to country and region to region, due in part to various external and market influences.
Makita's dealers here are generally quite willing to discount and so make saw pricing in Australia quite comparable to US pricing, and far and away better than Stihl or Husqvarna here. Some of your saw spare parts pricing is quite acceptable too, I've bought quite a few consumable items from my nearest dealer at RRP but I can't even contemplate ordering this kit from a dealer here at the current price.

If your buy in price is such that your dealer cost and as a consequence RRP is so high I'd be having words with Germany, if not, I'd suggest a re-think on your wholesale and RRP as you will dramatically lose parts sales from anyone that has 'net access. Unlike electric power tools, there are many consumable items in OPE and pro's turn over equipment every few years so it pays to keep servicing costs reasonable to garner repeat sales.

regards,"

Well written Rick.
10:1 that you don't hear back but good stuff
By the way I'm no price shopper. I don't play businesses against one another screwing everyone down till they basically have to pay me, but I'm not gonna piss my hard earnt dollars up against the wall either...