Why does makeup cost so much in Australia compared to the US: I hope no one sees this as a rant, its just a simple honest explanation! This is my 5th time here in the US, and obviously I have an Australian store. Let me lend your ear to why things are more expensive. A: Everything is more expensive in Australia B: We are a bloody long way from where most products are made: USA, UK, China etc C: Freight is extremely expensive. Case in point. If I purchase $1,000 worth of products from the USA then the cost of freight is often 1/3 if to 1/2 of the cost of the products. So factor that in. D: Wages! Asking Sephora staff what they get paid? Anywhere from $7 - $14 per hour E: Wages in Australia: $18 - $25 plus over time and Saturdays/Sundays 1.5 times that price and then factor in public holidays that is 2 x the wage F: SUPER!!! On top of $25 employers pay 9.3% super....so kinda another 10% G: DUTIES! We pay 5% to bring in cosmetics to Australia H: TAXES! We pay 10% on top also to bring in stock I: Clearance fees! On average...depends on who clears the stock, but usually quite a few $$$$ J: Overheads! Australian rents and utilities are FAR higher than that of the US! Our electricity and phone and broadband is around 3 to 4 times the price of that in the US! K: Is just that - no wonder why we pay nearly double the price when all I have said above equates to over 40% of the buy price....kkkkkkkkkkkay?
Posted on: Thu, 10 Apr 2014 02:35:50 +0000
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