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Author Topic: The South African Way - Ripoff Companies  (Read 1559 times)

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Jason

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The South African Way - Ripoff Companies
« on: May 17, 2011, 09:45:44 AM »
+1
A disgusting trend in SA still continues...

A world-renowned soldering iron maker in Japan, known as HAKKO, recently released the new FX-888


It is punted as a low-cost machine, which in my mind should then compete favourably with the locally made MAGNUM products? Boy, was I wrong.
Before I did local enquiries, I Googled for pricing information about this product. A longstanding electronics store, FRYS.com, sell them for $84.99, that's in the region of R650 worst case. So with shipping and duties, you could land this item in SA, for just a little more than R1000.

So, the local agent in SA for this product is Vepac Electronics, and I give them a call. They want to sell this self-same product to me for R2378 + VAT.   >:( I mean, HONESTLY, have they NO SHAME! They're making more than 100% profit on this... but then again that explains why I don't see these soldering irons on South African benchtops.

So, I am no longer proudly South African, I will now whip out the credit card and do like many other South Africans are doing lately, import it myself and get it at 1/2 the price. Then when this local supplier goes out of business and WONDERS why it happened, I'll allow them to reflect on their greed and stupidity!
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Jason

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Re: The South African Way - Ripoff Companies
« Reply #1 on: May 23, 2011, 11:45:45 AM »
+1
Just in case you're all wondering - I need this to do a repair on Epsilon's laptop!
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Outrack

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Re: The South African Way - Ripoff Companies
« Reply #2 on: May 31, 2011, 12:53:48 PM »
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I've given up buying locally almost entirely now. Prices have escalated to the point where it's just embarrassing - I won't mention any names, but a certain distributor of content related to a popular section of the site charges exorbitant rates for items easily purchased at a third of the price from the UK (including shipping and customs!), and the only time I ever browse Kalahari now is to make fun of them for charging R120 for DVDs I can get off Amazon for £3.

No idea why things aren't priced more competitively as companies are surely losing a huge amount of income by doing business this way. Local distributors like Kalahari and Take2 have even lost the advantage of obtaining items within a few days as a lot of their stock is now on import, and if you buy off Amazon or Book Depository you have the same wait without shipping charges.
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Jason

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Re: The South African Way - Ripoff Companies
« Reply #3 on: May 31, 2011, 02:59:47 PM »
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Most people feel this way.. I've only just recently decided enough is enough!
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Jason

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Re: The South African Way - Ripoff Companies
« Reply #4 on: July 27, 2011, 09:56:52 AM »
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UPDATE: JULY 2011
This company, gave my employer, one of these soldering irons to test and try. Then we were told the price is R1400 odd + VAT... This revelation pissed me off even more. My boss was dealing with Vepac so I decided to do as I was told and test the thing. Make no mistake its a good soldering iron.

Unfortunately for them, my boss was out yesterday, so the phone call was put through to me... and I crapped all over them, and I showed them the website with these irons on offer at $85 US and even at the exchange rate, their profit margin is insane.

Despite this, they have the gall to call here this morning (27/07/2011 09:23) and ask if we'd be purchasing any of these soldering irons. I dropped the call.

They now know about this forum post, and I really don't give a FUCK!
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jGLZa

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Re: The South African Way - Ripoff Companies
« Reply #5 on: July 28, 2011, 03:20:36 PM »
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The way I see it, is that these companies are largely charging for the convenience, its simple supply and demand.

There aren't many good online stores based locally in SA and pretty much everything needs to be imported as most stuff bought online isn't produced/manufactured locally. Costs increase more because when purchases are made, in order for them to get it here as quickly as possible for you the customer they have to order in low quantities which means their shipments pass through customs more often. Its either that or take the risk of ordering large amounts and ending up with unsold stock.

I'm not saying they are always justified in their high prices but in most cases they offer it at the lowest costs in order to run a business sustainably. You have to understand that Amazon is a HUGE company and has massive leverage when it comes to negotiating stock & orders which allows them to advertise such brilliant looking prices, Kalahari & Take2 are just a flash in the pan compared to them.

Another point for consideration is that not alot of South African's actually use online shopping facilities citing not that they don't know of it, they are aware of them, most just fear to use their credit cards online such is the environment that we live in.

And lastly, I believe that South African's live with this mindset that everything should be free or that they deserve to be giving things for nothing. Its one of the reasons why it is so damn difficult for local business to flourish. South Africans need to change their mindset.

(That said, that soldering business is still a rip-off)
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DRUiD

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Re: The South African Way - Ripoff Companies
« Reply #6 on: August 10, 2011, 11:46:52 AM »
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Hey Jason, also been looking for a good soldering iron.
Like you said Magnum is the most popular choice out there.
I have found some "cheap" solder stations at Hamrad Electronics out in Cape Town but dont trust buying unknown makes/products.
Makes sense to import a better station if the price is right, just have to take into account the customs levy/duty.
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