Foreign exchange & tackle pricing

reader comments

• I work for one of Sydney’s bigger tackle retailers. We are well versed on what things sell for OS. More often than not we get customers researching their intended OS product in store wasting the time of the sales staff, then purchasing OS, It cost many business. We and many others are well aware of this trend and try to limit it where possible. Unfortunately we have no control over the prices we pay for goods from our suppliers. We offer great service and help out anyone with an enquiry. Let’s talk about warranties. Any of you out there that think you prized OS purchase be it mechanical or electronic wont fail is dreaming! We get our fair share of customer who wish to get this or that repaired here OZ, where no receipt or invoice is supplied. Many Aussie distributers are now demanding proof of purchase receipts before they accept anything back for warranty, 20% of everything sold comes back for warranty – don’t think your special and it won’t happen to you. Frankly I don’t blame them. Sending your OS bought item back to the US or Japan will cost you allot more in freight than you paid to get it, and then you have to pay to get it back! There’s your saving +50% gone..... Its quite amusing as customers are quite shocked and really expected there shiny new whatever to last a lifetime. Buy here in OZ and your supporting our nations fishing tackle industry. Keep our $$ here.
  dan on 22-Dec-09 01:37 PM

• No pun here but really the industry here is swimming against the tide. Consumers have for a long time been able to compare prices on line and purchase from anywhere- its a GLOBAL economy. The warranty argument does not wash - many OS suppliers offer this anyway and do make good- and the warranty cost is built into the price here from the locals anyway which ends up being profit if not used. In any event, warranty repairs are relatively rare! Lets face it fellas, as hard as it is- the middlemen who make profit from being distributors which the end user pays for have numbered days- the net has seen to that as buyers are informed and can do the supply chain stuff themselves. The old model is not going to keep working- its just like the demise of newspapers so a rethink about the business is needed and needed now.
  Roger Emmerson on 23-Oct-09 11:35 AM

• All i know is that the tackle shop aint all that quick in reducing prices but are quick in raising them. Sounds like a few other businesses i know.
  Rooster on 03-Oct-09 06:39 PM

• I only buy my gear from the local tackle shop, always will, and always top shelf. Victor offers superb service, and he looks after me. What has happened though is that where I would only ever buy [one particular brand], my allegiances have changed, because they have priced themselves out of the market. Only when or if they wake up to themselves will I consider their products again. Let's face it, they import the goods from pretty much the same place as my new choice, the only real difference being their advertising spend. Victor won't miss out, I spend my savings on other tackle products, and he probably makes more margin anyway.
  Mike on 02-Oct-09 03:42 PM

• What is AFTA's take on this debate?
  Retailer on 02-Oct-09 01:30 PM

• I think Jim Harnwell's comments are correct. I'd like to see the local tackle trade giving us the best possible deal on gear and also supporting fishing with sponsorships etc. But they can only do that if we support them.
  Eugene O'Connor on 02-Oct-09 01:28 PM

• I always buy my gear from my local tackle shop. I've been buying it there for years and I have a good relationship with the guys there and they give me a good deal. Why would I bother going online to get stuff? I like going to the shop and having a yarn with the fellas. Support the locals!
  Charlie on 02-Oct-09 01:25 PM

• Fisho writer Sami Omari raises some interesting points in his blog on tackle pricing and financial fluctuations. Aussie anglers buying tackle and gear from overseas sources is a very touchy subject with the local tackle industry - and for good reason. This largely internet-based phenomenom costs jobs and investment in the local tackle industry. It is not a good thing for the Australian tackle industry. Sami's blog raised the question, however, as to why some of you guys buy your gear from OS and what can be done by the tackle industry to address this problem. The mere fact that Fisho has raised this question has resulted in criticism of us by some sectors of the tackle industry. For the record, Fishing World fully supports the local tackle industry and does not advocate any Aussie angler buying gear from OS sources. We refuse to accept ads from OS-based online tackle shops and would certainly never promote or support any company or individual who was involved in this practice. But we think that this is an issue needs to be looked at analytically and discussed intelligently and openly. Fisho strongly believes that more transparency of the processes behind tackle pricing and how financial fluctuations affect how much you pay for a rod or reel is an important factor in helping the consumer, ie, you blokes out there reading this, understand the various issues involved. By understanding the issue, we would hope that you would see the benefits of buying locally and also realise the negatives associated with buying OS gear. The fact is that most tackle companies buy their products months or even years before the product actually arrives on the tackle store shelves. These products are purchased at pre-agreed prices. Thus it is extremely difficult to be as flexible as might be desired when it comes to responding to fluctuations in international currency. For example, a tackle importer might buy reels when the dollar is at 65c but when the reels go on sale the dollar is 85c. Theoretically they should come down in price, right? Well, that's pretty hard to do when the tackle company stands to lose 25c in every dollar. Not many companies could absorb that sort of loss. There are various financial options for tackle companies to utilise to offset this sort of currency fluctuation but most Australian tackle companies are relatively small operations and often don't have the resources to get involved with hedging and all that other corporate high flying financial shenanigans. Price obviously plays an important role in any purchase making decision. This is why the internet-based tackle companies appeal to some anglers. But you need to realise that the few bucks you might save when you buy a reel or other item of tackle from an OS online shop will probably be lost when it comes time to get that gear repaired or replaced due to warranty failure. It's easy to dismiss this concern by saying that quality tackle will last the distance. You will be laughing on the other side of your face when you pay the big bucks to get the gears in your fancy threadline fixed. And then you need to consider things like magazine advertising, sponsorships of competitions and events, taxes, government lobbying, jobs (retail and wholesale) and the level of customer service offered by your local tackle shop. The OS outlets are taking the money which would otherwise be used for supporting Australian fishing media, events and jobs. Cheap tackle ends up being paid for in other ways, often ways that no self-respecting Aussie angler would otherwise contemplate. You need to think about that. You might pay a few bucks less for that reel or lure but it WILL cost you eventually. Let's get it straight: There is no such thing as cheap tackle. It costs what it costs, whether you pay up front at an Australian tackle shop or down the line after you've bought it online. Fishing World believes the local tackle industry needs to be more open with consumers about why gear costs the price it does. The tackle industry needs to work harder to make the tackle sold in this country be as price competitive as possible. Some gear is probably more expensive than it needs to be. Consumers will respond to good deals and they appreciate fair treatment. There are obvious concerns out there about tackle prices and it's up to the tackle industry to work with consumers to get the best deals possible and communicate the benefits of a strong and vibrant Aussie tackle industry. The tackle industry needs to work with consumers to make them more willing to support local business, wholesalers and retailers. And you guys out there - the end consumers - you need to get behind our tackle importers, wholesalers and retailers. Buying gear from OS will ultimately screw things up for all of us, if it continues. As I said before, that reel on the internet may sound cheaper but it will probably end up costing the same when you factor in the warranty and other issues. And anyway, why give your hard-earned cash to some foreigner? Keep it herein Australia! As I said at the start of this piece, the mere fact that Fisho has raised this contentious issue will mean that some tackle companies will probably want to beat us over the head. But we stand by the fact that this is an issue that needs to be dealt with. There's no point trying to ignore it. We would hope that we can all work together to make fishing tackle in Australia as affordable as possible and also have a tackle industry that is customer service driven and supportive of the entire fishing scene..
  Jim Harnwell Publisher/editor Fishing World on 02-Oct-09 12:30 PM

• I agree totally, I recently got a quote for an item from a local tackle shop and they quoted $130 Aussie, you can buy the exact same item every day on the net for $38 USD, that's $43 Aussie, and that is from a retailer. Either the importer or the tackle shops are having a go at us!
  Laurie on 02-Oct-09 11:39 AM

• Pricing these days, unfortunately, is set by "what the market will bear". What this means is that as long as there are enough mugs out there willing to part with $1500 for a fishing reel, the price won't come down,regardless of the wholesale price paid by the dealer. The only way to capitalise on currency fluctuations is to buy from overseas. You also find some goods cheaper in other countries, as maybe there aren't as many mugs willing to part with $1500 for the same reel in that country. If you buy quality goods, warranty is of little concern, and hopefully unnecessary anyway!
  Steve on 02-Oct-09 12:39 AM

tell a friend

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