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iStore/Core Pricing
- Thread starter AfricanTech
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Pak Fa Fui
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What was your point? That the rand is doing well compared to November 2021?
$60xR16=R960
$30xR16=R480
= R1440
Hells bells, what a kicker, Lo and behold I’m gobsmacked, R60 more, someone call Carte Blanche.
Core is not paying retail. The only additional costs passed on to SA consumers should be shipping, which will be a fraction of what you and I would pay, any import duties, and VAT*, I don't see how they're entitled to anything above that.
*NB: US prices do not include sales taxes which would also need to be accounted for.
Pak Fa Fui
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So Core must not make a profit? They should just charge for shipping + their cost price?
They also have to cater for exchange rate fluctuations.
Apple is a premium brand, their products have huge mark ups and recommended selling pricing.
I don’t see an issue with this $60 + $30 priced item vs the local sales price. The numbers suggest it’s within the range it should be.
How do you think apple resellers overseas, particularly in the US, make money? They buy stuff for less than they sell it for. The same goes for Core. They're not paying retail prices for the items they're selling and you're not taking that into account.
You see the price on Amazon and assume that's what the iStore is paying for the item. They're not.
Pak Fa Fui
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Premium products have recommended retail prices.
what would you estimate this wallets landed cost be?
How about the overheads for their staff and premises, electricity and IT? And after all that, are they not entitled to make a profit? Who decides in a free market how much profit to set? They are entitled to do as they see fit. As a consumer, you are entitled to decide to purchase from them or not. And as a businessman, you are certainly entitled to take a stab at importing and reselling Apple products yourself....
I wouldn't even hazard a guess. What do you think it is?
I don't need to resell apple products, I import them as necessary. As for businesses doing that, some have tried but due to agreements in place they're mostly seen as grey imports and those, unlike items you have imported yourself, Core can reject when it comes to warranty claims. AFAIK only Digicape has managed to get a toe in the door but that may have changed.
In our case though markets decide nothing. Nobody is begrudging them a profit but Core charges what they want because there is little competition. They are the official reseller in SA. It essentially gives them a monopoly.
This reminds me of my old blackberry case...Warranty? For a Magsafe Wallet? Laptops, Phones, Watches, Tablets, Screens, etc I agree but a wallet or a watch strap? Nah....
AfricanTech
Honorary Master
The point is that:
a. Core is not paying $60 for the product - they are the official distributor which means that they will obtain the same wholesale pricing that all Apple's distributor's receive
b. Core is not paying anywhere near $30 to ship the product - I'd hazard that they pay no more than $5 to ship that item given that the stock would be shipped in bulk with many other products.
The point is that EVEN when calculating using Retail pricing and ridiculous shipping (given that it's a single item with no bulk benefit) it's still cheaper than Core (and to answer the other person who went blah blah it's only R200 less and not worth importing - that person also missed the point)
Am I going to import that item to potentially 'save' R200? No, I'm not going to - it's not worth the time or bother to arrange for shipping and whatnot - that said, if a couple of people are willing to put a bulk shipment together to bring our collective shipping cost down to around $8-10 per item, then yes, it will be worth it because then I can land it closer to my perception of value for money.
Can I afford to pay R1499 for that item? Sure I can - BUT my perception of value for the item is in the region of R800-R1000 (ie in line with the exchange rate price + shipping, VAT, etc) - still expensive for what it is but that's okay - R1499 feels like I'm being ripped off/price gouged.
Exchange rate fluctuation is normally mitigated through forward cover arrangements or, in some cases, dollar reserves. In the case of Core, given that the vast majority of their products are probably purchased in dollars, I'm pretty sure that they mitigate that risk using the various mechanisms available.
Anyway, it's all moot - for all I know here I am maligning Core and Apple might be the ones who set the ZAR price for their products (Digicape's price is also R1499 for that item) - wouldn't surprise me in the least since that might be the way Apple manages exchange and pricing risk on behalf of their distributor to keep the pricing model consistent within a particular region.
Peace people.
Pak Fa Fui
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So many ways to help you understand their pricing is not gouging. Either way, I’ll leave you to your perceived value of Apple products.
I will let you know that a quick google showed Incredible connection selling it at R1399.
R100 saving
PC link has it for R2200, make of that what you will
I will let you know that a quick google showed Incredible connection selling it at R1399.
R100 saving
PC link has it for R2200, make of that what you will
SauRoNZA
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Digicape also just uses Core.
But iStore existing as a retail extension of Core and directly competing with their own customers is some bullshit that belongs in front of the completion commission.
FiestaST
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backstreetboy
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What does Vodacon have to do with Core?
Dolby
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But does your tune change when it's other distributors and other products ?
Don't you complain about other prices as well ?
I know from previous you were upset with Telkom and some prices - are they not allowed to make a profit?
Nothing of course - he doesn't strive for relevance with his posts.
chuckles_the_cnt
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Diesal
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Was considering this for the Apple Studio display monitor as well:
Even at a generous exchange rate of ZAR 20-00 to the $ - working out to around ZAR 46 000, there is simply no justification for the obscene price difference, of ~ R 23k seen here:
Especially when you look at the LG Ultra-fine display which is almost inline with US pricing?
PS. I know the studio display is not good value, just using it as an example.
Even at a generous exchange rate of ZAR 20-00 to the $ - working out to around ZAR 46 000, there is simply no justification for the obscene price difference, of ~ R 23k seen here:
Especially when you look at the LG Ultra-fine display which is almost inline with US pricing?
PS. I know the studio display is not good value, just using it as an example.
I noticed that too…when it was launched in SA with the Mac Studio, it was WAY less than this, but for some reason the price just skyrocketed…weird and disappointing
PS. There is an additional 25% import duty on monitors of a certain size, more info here: https://mybroadband.co.za/forum/threads/mac-price-puzzle.1188508/
However, it doesn't really explain the extra gouging from Core.