ECS Tuning is on the block, get ready Australia

[tinto]

I'm chasing the MKV R32 rear big brake upgrade.
The parts price is right, but put it into a cart and the shipping estimate to 6151 is cruel and unusual.

My credit card and I look forward to hearing how you go with your shipping negotiations on the heavy stuff.

[gareth_oau]

Tinto, Ive just set up a US address for freight purposes, via a company called www.parcelsforwarding.com

email them with the weight of your planned parcel is and ask him for a quote on delivery.

This crowd are good as you can use them for sellers who won't sell or ship to Oz.

I recently bought around $500 woth of snow ghear from them, he repackaged it and onsent it for me, with his charge to me being $13 (plus delivery)

Recommended service!

[Pete@ECSTuning]

Thanks for the warm welcome everyone!

Before I can start talking business specifics we have to clear up issues with the Admin team about site sponsorship etc. But to be vague, if we could get one large Aussie wholesaler setup you all could order from them, who puts in a big order with us, who packages it all up into one large OZ shipment and BAM, everyone saves some dough.

[Pete@ECSTuning]

This afternoon I'll do some forum trolling to see if I can help anyone out technically with procedures, etc.

Let me mention, Audis are my forte here. I have good VW knowledge but I'm much better around the Audi.

[Tim]

Thanks for the warm welcome everyone!

Before I can start talking business specifics we have to clear up issues with the Admin team about site sponsorship etc. But to be vague, if we could get one large Aussie wholesaler setup you all good order from them, who puts in a big order with us, who packages it all up into one large OZ shipment and BAM, everyone saves some dough.

Hey Chris

Welcome to the madhouse.
In relation to your comment above. How would a local wholesaler be able to set competitive pricing on product they dont already have on hand? Import duty, GST and freight all go towards calculating a final price. Obviously you can make an educated guess but that would not account for fluctuations in the US/Australian dollar which happen by the hour. The only way to combat those fluctuations would be by increasing margins.

The final challenge would be in regards to our tax free import threshhold of $1000AUD. If a local distributor was to do bulk orders then import duty and GST would apply on everything. The advantage of ordering direct from ECS Tuning is that if the orders are kept below this threshhold then the price works out to be 21% cheaper than if the tax is applied.

ECS Tuning has really been the benchmark for a number of years now but understanding the challenges that exist in our market is the key to success.

[dubbed]

This is awesome news for the VAG community!! Just set up shop here - there's been big things happening in Oz in the VAG scene only recently. I can only see it getting bigger from here on out...

[Pete@ECSTuning]

Tim,

Thanks for the welcome!

In response to your question, one way to combat it is to calculate everyone's orders, piece together orders and calculate shipping. Next, add 21% and tell the customer how much the total is. Everything is web based, so until a wholesaler gets on their feet with standing inventory, they could calculate everying reasonably well to inform OZ customers with a final price. Furthermore, maybe you are not thinking big picture enough! Expand your same logic to an order of 5k or even 10k. When you buy such a large order it would ship via freight, not just UPS or USPS. So the average shipping cost per an item drops drastically, and likely well below 21% depending on the order. So the cost of a wholesaler's order plus cheaper shipping for bulk freight and 21% import duties leaves the wholesaler still able to price competively.

Furthermore, 1000 AUD is a bit more than 1000 USD and a wholesale account holder would be able to order at a discount for being a wholesaler, so a 1000 dollar order isn't necessarrily so small that you could do business with it.

You guys appear to be importing from Arizona, how are you ordering items now? Also, this is literally the 2nd day of our invesitgation into going to Australia.

This is awesome news for the VAG community Just set up shop here - there's been big things happening in Oz in the VAG scene now only recently. I can only see it getting bigger from here on out...

All right, I'll tell you what. Convince my boss to pay me to move to Australia and I'll run a store front!

[Tim]

Tim,

Thanks for the welcome!

Furthermore, maybe you are not thinking big picture enough! Expand your same logic to an order of 5k or even 10k. When you buy such a large order it would ship via freight, not just UPS or USPS. So the average shipping cost per an item drops drastically, and likely well below 21% depending on the order. So the cost of a wholesaler's order plus cheaper shipping for bulk freight and 21% import duties leaves the wholesaler still able to price competively.

On the contrary! I am thinking bigger picture than you are! Lean local stock holding with on demand ordering for bigger ticket items perhaps is the way to go. The only reason i say Lean is that it is the only way to maintain competitive pricing due to dollar fluctuation. Traditionally our dollar is worth around 70 - 75c US. I would expect it to return to this level at some point. But who knows.

My big concern would be that unless you were talking about doing weekly orders or something I dont think the average person will want to wait a month for some "group shipment" to take place. They will just order direct from your website which now has the USPS shipping option which although limiting is actually quite competitive for the average person purchasing under $1000 of gear.

The other challenge you face with comparing prices locally to the US is the double shipment required. Once product is received by your local distributor they would then have to ship it onwards to the customer adding to the cost.

Also what is your opinion on selling brands into our market that already have existing global distribution networks in place? Would you be under pressure from companies like Koni, Bilstein, APR, Forge, etc to play ball? Or in this case does the tail wag the dog?

Anyways I hope the above doesnt come across as some sort of rant against you joining our market. Its not that at all. Im actually in favour of it. More affordable parts will only apply pressure on local businesses rorting the market. I guess Im just trying to point out that the biggest competitor to your local distribution would be yourselves!

As you have probably gathered I have a genuine interest in this topic and am always open to discussing it so I can gain more knowledge along the way.

[dubbed]

All right, I'll tell you what. Convince my boss to pay me to move to Australia and I'll run a store front!

Alright, as long as you employ me too haha

[Pete@ECSTuning]

Tim,

We are on the same page it seems. The only way I can gather to get around everything is to run a lean store front with usefull everyday economic upgrades. Brakes, Rotors, coils and springs, commonly failing sensors and switches, etc. Then import the exhausts and FMIC's on an as need basis. Problem is, we need a store front!

As for double shipping, once you had a location people could pick up or you could domestically ship for much cheaper than international costs.

Dubbed,
Deal!

Cheers Everyone!
Chris

[Kiel_GTI]

Hi Chris,

any more news on the shipping ideas?

Kiel

[POLARBEAR666]

How about getting around the shipping by having the option to select "Bulk Shipping"- once a month all the people who have selected Bulk shipping have their orders sent as one whole amount. Get a bulk price through your shipping company rather than dribs and drabs throughout the month.

Maybe have it sent just to the shipping companies yard in each city and have people pick it up directly if possible to save the final leg cost.

[GTI2708]

Thats sweet. I just got my Mk 6 GTI and am really wanting to do it up a bit. ECU and maybe some intakes is where i'm thinking of starting. If you guys have parts for the Mk6 GTI and we see how you guys go with this shipping idea, maybe we can do business.

[Pete@ECSTuning]

Thats sweet. I just got my Mk 6 GTI and am really wanting to do it up a bit. ECU and maybe some intakes is where i'm thinking of starting. If you guys have parts for the Mk6 GTI and we see how you guys go with this shipping idea, maybe we can do business.

Wow jealous! We just got the MKVI here. I saw my first "real" one a day or so ago.

As a side note, we are finally a paid up sponsor! You'll see Jon on here. He is our VW product specialist and will be able to help you with whatever you need! If anyone has some Audi questions, feel free to PM me!

[ECS tuning]

I just wanted to say hello to everyone rather than creating a new post. I've worked with a few AU members over on Vortex over the past few years, and it is great to finally be a sponsor on here.

If you have any questions at all, don't hesitate to shoot over a PM or email me directly for the quickest response.

Thanks for the welcome everyone!

Jon@ECS