Rotax 912 pricing

[skippydiesel]

I have just been looking at the purchase price of a Rotax 912 ULS , from Europe, USA and Australia.

 

Having done all the sums (inc GST) they all come out within a few $100 - me thinks the price has been rigged. What think you?

 

While we are on the topic - any suggestions for a better deal?

[Blueadventures]

Buy from Floods and support Aussie businesses, where do you go go for any warranty if needed? You almost always get good will buying local.

[Jase T]

Why would you buy from overseas????

[skippydiesel]

Why would you buy from overseas????

Simplez - if there is a significant cost advantage - however in this case it seem that the price has been rigged, so as to be much the same wherever you purchase - this is what my first question is about. Do you have an answear?

[pmccarthy]

Price is affected by exchange rates, so why would it be different from a different source?

[skippydiesel]

Price is affected by exchange rates, so why would it be different from a different source?

 

Please expand?

[Kyle Communications]

You should know with the Faeta...exchange rate then add the freight then add any import charges then wack 10% on top for Grabit tax...so doesnt that tell you that the price here is probably better...do the sums in Euro and add the extras and see what you get then. As much as I hate dealing with Floods they do try to keep pricing in the reasonable area....I asked the largest Rotax dealer in the UK about pricing and when I did the conversion it was much more expensive

[pmccarthy]

Please expand?

Kyle has answered well.

[planesmaker]

Price is ‘rigged’ by manufacturer of course.

[IBob]

Expensive, yes, but given the annual volumes, I doubt they're making a killing...if that makes anyone feel any better. Personally, I'm not worrying about the price of what I've got up front when flying over tiger country...........)

[facthunter]

The manufacturer is surely entitled to set the price of his product and the market will adjust or the firm goes broke. There's not exactly a lot to pick from and it's a long road strewn with failures some of which must be the competency of the installers and operators and the long sitting around times. Some lawnmowers get better attention than some Aviation engines I've seen over the years so what hope have we really? SOME operators get very good results. so why the variation? It's also suggested that motors should be "fit and forget". Well Forget aviation if that's what you expect. The airliner you travel on is certified at each flight and any reported faults rectified or carried subject to certain restrictions and limits. INSPECT before things become a problem. Nev

[Kenlsa]

If you purchase from OS.......You must also include freight and then GST, so that 30k motor then costs about 33.5k with freight and GST added. A local agent will get somewhat of a wholesale price then put on retail price taking in to consideration freight and GST, somewhat leading to price levelling.

Ken

[Kyle Communications]

As an addendum to my previous post..the invoiced cost in whatever currency and the price you paid the exchange rate when it arrives determines what the customs cost is. So for example you bought from USA and it was US$1000 and the exchange rate you got at the time you paid was 50c so you paid AU$2000 but by the time it gets here our dollar falls to say 40c then the day it actually arrives here in australian borders customs says your package now costs AU$2500 and this also for the freight component it goes up so then they total that and add the 10% GST on it...this works the same way of course if our dollar goes up and you would pay less but maybe thats happened to me once or twice...mostly I get the privilege to pay customs the higher figure. I have done hundreds of shipments

[skippydiesel]

Na! Na! - not what I was getting at at all.

 

Cost out a Rotax 912 ULS in the USA, Europe, Australia (Floods) basic all the same price (I allowed for exchange rate, GST, etc) - ergo price is rigged by Rotax. Open market/ competition would result in greater variation.

 

Kyle - I stand to be corrected but aviation products from USA & Europe do not attract Au import duty (other than handling/processing ) only GST (which is bad enough)

[Kyle Communications]

Well be prepared to stand corrected...I just got stung 5% duty of aircraft engine parts

so the rotax engine would have 5% duty added to that list THEN add the GST

[FlyBoy1960]

As an addendum to my previous post..the invoiced cost in whatever currency and the price you paid the exchange rate when it arrives determines what the customs cost is. So for example you bought from USA and it was US$1000 and the exchange rate you got at the time you paid was 50c so you paid AU$2000 but by the time it gets here our dollar falls to say 40c then the day it actually arrives here in australian borders customs says your package now costs AU$2500 and this also for the freight component it goes up so then they total that and add the 10% GST on it...

 

 

This is close but not correct.

 

GST and/or customs are levied on the day that the shipment is exported from the first foreign location so if for example your shipment left England on 1 January then the exchange rate used in the calculation for any duty (which doesn't apply to aircraft) and GST is applicable on the exchange rate calculation on the 1st January not on the day it arrives into Australia.

 

It is been like this for as long as I have been involved with importing before I retired last year.

[FlyBoy1960]

Well be prepared to stand corrected...I just got stung 5% duty of aircraft engine parts

so the rotax engine would have 5% duty added to that list THEN add the GST

 

There is no duty on aircraft or aircraft parts. They are exempt. About the only thing in an aircraft that will get duty applied if it is imported on its own is fabric like seat coverings or aircraft covers but if they are reported as part of a total shipment they are like the rest of the shipment exempt. If you were charged 5% duty then this was incorrect and you are actually able to go and claim it back by contacting your customs broker who incorrectly applied the EIN code when doing the importation.

[Downunder]

There is no "open market" for new Rotax engines. They are one brand and one manufacturer.

New engines are only sold by Rotax dealers.....

I imagine aircraft manufacturers obtain them at a better price but are probably contractually restrained from selling just engines.

Other companies like Honda also keep a close hold on their products and subsidiary international branches.

Alot to do with brand and market protection, not only profit.

[Kyle Communications]

It wasnt incorrect the customs guy actually rang me and we had a "discussion" over the phone about it...engine parts like pistons and cylinders are dutiable I will find the number that he quoted me

 

As a exercise I just looked at CPS in the USA the ULS is US$22,000 that converts at 71c to AU$30,985 now add the freight which would be at least 1000 US$ (AU$1400) then import charges especially if you get it by sea freight which will be at least AU $400 then add your 5% duty on the 30,985 then add together that little lot and add 10%....AU$34k from Floods is looking pretty good

[Downunder]

That's the first time I've heard of duty on aircraft parts.

As I understood it, duty was dropped when gst come in.

Interesting.

[Kyle Communications]

I havent got the details on this computer but when I get home I will find the paperwork and post the Tarrif number

[FlyBoy1960]

Item 34 of Schedule 4 of the Customs Tariff Act 1995

 

Item 34 provides a free duty rate for imported eligible goods. Aircraft parts or materials must be consumed into the whole of the aircraft during the act of manufacture, repair, maintenance or modification.

 

[Kyle Communications]

Thats what I told him but he was adamant I had to pay because it was specifically aircraft engine parts...mind you it wasnt under US$600

Anything under that figure will usually go through

[FlyBoy1960]

I havent got the details on this computer but when I get home I will find the paperwork and post the Tarrif number

 

 

You need to go ahead and get a refund, you were ripped off and it went straight into your custom brokers pocket. Do this 50 times every year and you will have a great Christmas !

[Kyle Communications]

Just went to the tarrifs section and found it. Here you go this is what he nailed me on...no discussion was allowed...just pay up sonny