Is ZASTORE such a rip off? I don't think so.

[PeterCH]

I dunno if ZASTORE is such a rip off. Take for example the top of the Range standard config Mac Pro Intel Xeon Quad core 1 GB RAM, 256GB HDD, ATi Radeon x1900xt.

In BHPhotoVideo NY it retails for
3,799.00 USD or 27,761.38 ZAR

USPS Express Delivery
UPS Express
3-5 Business Days Delivery $699.00 or
5,107.98 ZAR

VAT = 14% of R27,761.38
= R3886.59

Plus UPS R114.00 clearance fee
= R36,869.95

ZA Store Price:
R31,792.00

So importing the item yourself from a leading supplier in NYC
which ships to SA and accepts SA credit cards is about R5000
more than locally. Huh?

Of course I should point out that since the Mac Pro is a heavy and bulky item, you may want to select US Global Priority at B&H and you'll prolly get a free UPS upgrade from $453 to $699 , still it's not enough, and it may not work.

 

[JStrike]

Very Interesting. Maybe they are getting better

 

[Skeptik]

It is the cheapest. And their customer attitude is fairly positive.

Remember though, they didn't UPS the machines in. They brought them here in bulk and didn't pay anything near $700 (<--------WOW!!).

 

[neio]

Taking into consideration the prices they charge on the new iPod 80 GB I tend to disagree.

 

[pope24]

The fairest way to check local vs international prices is to take shipping out of the equation. Just add the 14% VAT. On a lot of the competitive items (like Mac Pros) the prices will be reasonably close. My theory is that if you are getting it within R500 then ZA is competitively priced. The entry-level macbook is about R1000 different which @ R10200 is very close to what I thought it should have been launched at. I reckon they could clip the price down to R9999 and then it would be spot on.

 

[diabolus]

Well i judge rip-off if there is clear signs that a company CAN sell close to $ prices, but yet when it suits them on popular products they hit us with a 30% markup...this is a clear indication of that. And even though one can argue supply&demand theory here, this is not truly applicable as we are comparing the same products [i.e. i'm sure the ipod isn't more or less popular in sa than in the usa to justify a larger price deviation compared to other apple products?] .

Mac Mini
R5,869.00 vs. $600 = R4200 + 14%vat ~ R4900 [15% markup ].

[although when Mac Mini came out this was also 30-40% markup]

and the ipod 30GB
R2900 vs $250 = R1750 + 14%vat ~ R2000 [ 30% markup ]

...anyone noticing the trend?

In BHPhotoVideo NY it retails for
3,799.00 USD or 27,761.38 ZAR

So i assume Apple isn't selling this themselves? Anyway this is a premium product, how many people buy R30k PCs these days unless it's a server . THe pricing strategy on these products i'd wager is much different than the "man on the street" products like ipods.

 

[BobJones]

What a bogus comparison.
The problem that people have with ZAStore is that it is clear that they are not getting stuff from apple through the retail channel.

They are getting distributor/reseller prices and they are not using expensive air-freight to ship stuff either... look at how long it takes them to get new stuff via sea-freight.

So all up there is no reason they should be any different in price from any other online official apple reseller, except for VAT.

My experience in Australia was that the only place you get published online prices less than the apple online store is in the independent apple retail channel, i.e. they pass on part of the benefit of economies of scale.

 

[PeterCH]

What a bogus comparison.
The problem that people have with ZAStore is that it is clear that they are not getting stuff from apple through the retail channel.

They are getting distributor/reseller prices and they are not using expensive air-freight to ship stuff either... look at how long it takes them to get new stuff via sea-freight.

So all up there is no reason they should be any different in price from any other online official apple reseller, except for VAT.

My experience in Australia was that the only place you get published online prices less than the apple online store is in the independent apple retail channel, i.e. they pass on part of the benefit of economies of scale.

It's a realistic comparison. I've imported professional grade camera equipment from B&H and their prices were about 50% of what the locals would charge (price incl shipping). On the othe hand this Mac Pro is the opposite, it costs way more at B&H. In addition importing Final Cut Pro Studio is likewise cheaper through ZA Store than doing it directly. On the other hand things like DVDs, video games, software - are way cheaper when imported (50-60% of the SA price), if you know where to import from, incl shipping and VAT. It could all just be that B&H is an expensive place
for Apple products and reasonable for other products, maybe that's it.

 

[PeterCH]

It is the cheapest. And their customer attitude is fairly positive.

Remember though, they didn't UPS the machines in. They brought them here in bulk and didn't pay anything near $700 (<--------WOW!!).

Sad thing is the FedEx is way over a thousand dollars. UPS is the cheaper courier option.

 

[bwana]

Sad thing is the FedEx is way over a thousand dollars. UPS is the cheaper courier option.

Between the vat and the UPS its cheaper to fly there and pick it up yourself.

 

[Skeptik]

What a bogus comparison.
The problem that people have with ZAStore is that it is clear that they are not getting stuff from apple through the retail channel.

They are getting distributor/reseller prices and they are not using expensive air-freight to ship stuff either... look at how long it takes them to get new stuff via sea-freight.

So all up there is no reason they should be any different in price from any other online official apple reseller, except for VAT.

My experience in Australia was that the only place you get published online prices less than the apple online store is in the independent apple retail channel, i.e. they pass on part of the benefit of economies of scale.

I know the last batch of iMacs to Apple Centre Waterfront were definitely airfreighted in. They received them very soon after the official announcement. It caught Digicape by surprise because they hadn't even ordered one.

 

[anythingc]

ZAStore is the online retail arm of CORE, the distributor of Apple in SA , ZAStores pricing are slightly higher than what CORE supplies it's re-sellers, making very diffiicult to compete.

At the end of the day, CORE is useless,

 

[Rewind]

They can definitely be cheaper:

There is a Zastore for universities like Wits and UCT available online and it's about 400 bucks cheaper for a Macbook.

Proof that they can cut off at least 400 bucks without batting an eyelid.

 

[BobJones]

It's a realistic comparison.

No its not! You continue to compare a distributor/reseller buying in bulk at wholesale prices to a single retail purchase incl. shipping.

I've imported professional grade camera equipment from B&H and their prices were about 50% of what the locals would charge (price incl shipping). On the othe hand this Mac Pro is the opposite, it costs way more at B&H. In addition importing Final Cut Pro Studio is likewise cheaper through ZA Store than doing it directly. On the other hand things like DVDs, video games, software - are way cheaper when imported (50-60% of the SA price), if you know where to import from, incl shipping and VAT. It could all just be that B&H is an expensive place
for Apple products and reasonable for other products, maybe that's it.

Its clear (at least to me) that Core is pricing at what they think they can get away with.
Its no coincidence that the retail price here is so close to the single item import price (goods + duties? + VAT + shipping).
Its really a short sighted pricing policy that ultimately puts business in your competitors pockets.
In SA the pool of people for whom money is really no object is miniscule. For the rest of us the value proposition for purchases are strongly economically rooted.
And lets face it... Apple products are good, but not really good enough to pay the "cool" premium that is currently demanded in the local retail channel.
The switch to intel makes this even harder to justify, as now you are comparing products that are perceived to be identical.