Why is APR software so cheap overseas?

[Skitz]

I'm well aware that we tend to pay substantially more for physical products in Aus compared to the US due to economies of scale. But why does this apply to software?

I can't understand how a US retailer can sell a fully loaded APR software package for $599 and we pay $1700.

This question has been bothering me lately, anyone care to explain?

thanks
-Skitz

[Tony_Mitchell_1983]

Why is APR software so cheap overseas?

Oh god... You're in for it now...

Over to you Guy.

[Skitz]

Oh god... You're in for it now...

Over to you Guy.

Damn it, I assume this has been answered before. I tried searching for previous instances and didn't find anything. sigh.

edit, I'd also like to make clear that I am not finger pointing at the dealers.

[noone]

The short answer is R&D vs quantity.

As cars here differ slightly from OS models, local R&D is required. In the US they may sell 1000 units compared to 50 here.

Simple answer, there is more to it.

[ssman]

Don't know if I really want to go here, but, the short of it is, its all about controlling the market and the margin and I'm fine with that except when the dollar is strong as it is now and everyone still keeps the same pricing and that would be fine if !! when the stock moves on and new stock comes in at the lower figures we should be able to get something out of it.

Quote from the guy that I went through that did my conversion on my Dodge Ram, You couldn't be unhappy if we only made a grand from this, $ 60,000 + gst later, (that's just conversion) if he would have been standing in front of me I would have punched him in the face. and he sells trucks like mine for 175 thousand, I brought mine in and converted for 140 thousand even after 60 thousand conversion. It just ****s me that we get taken advantaged of here.

Enough of me rambling on, cause I can ramble for hours on this one. Protection of Margin that's what it all about, but that will all change over time or they will be out of business

Cheers ssman

[gareth_oau]

you also have local import duties (not sure if they apply to software) plus 10% GST.

Noone answered it best - from an accounting perspective, fixed overheads, shared amongst all of your sales ie fixed overhead per unit sold, are a lot higher here because the market is so small, then throw in local taxes etc and local prices are a killer

[Tim]

There are plenty of premium tuners in the market selling their product around the $1000 mark. If you dont like the someones price dont pay it.
If you think a product is worth paying a premium for then by all means go for it but dont complain about it.

[2muchcoffeeman]

Clearly, 6 months have elapsed...

Best bet is to pop the car on a boat or plane, take it to America, go crazy and then ship it back

[Jasonpb]

I doubt you will get a response that really answers your question, obviously there's money to be made at that price point and people are prepared to pay for it. A custom tune from motec isn't much over $1000 (had it done) so I don't really understand the cost justification being placed in R&D or the fact it's a niche market as the tune would simply need to be modified slightly for our conditions and while I don't know much about a stock VW golf ECU most ECU's have temperature compensation maps to cater for this to begin with.

I have been tossing up if $1700 is worth it or if the cheaper option superchip (bluefin) is a better overall choice, still haven't come to a decision and my car arrives soon. I have it in my head that there must be something wrong with the bluefin given the price difference between the two but everything I have read over multiple forums suggests there isn't.

[Pepe]

I'm debating it right now myself... according to APR website, 10% off right now So your argument is 10% less valid until the 15th

As for Aus v US prices, welcome to the market economy! European cars like VW will attract a premium in Australia, just because they come from that continent. Go to the UK and price up a Golf there, it'll be a lot cheaper than here. Same for the US market. Simple fact is we are a small market in a relative sense and businesses will charge what they believe the market will bear. If everyone stopped buying upgrades (regardless of brand), then the market would correct itself and it would be cheap ECU flashes for all! Of course, with a small population like ours, that's never going to be the case.

[Tim]

Go to the UK and price up a Golf there, it'll be a lot cheaper than here.

Golf GTI sells for more in the UK than it does here. VW have done a pretty good job coming to the market at a competitive price point in Australia.

[h100vw]

I adjust my prices dependant on the cost of the credit I buy for my flash lead. I set my prices against the other tuners on the market when I arrived in Australia. TBH without the overheads of a big set up like APR, I am happy with how I am doing.

There's always the choice to go somewhere else.

Motec may be a $1000 to tune but I doubt that you could get factory quality cold running, hot starting etc etc without spending a great deal of time, on top of the ECU and fitting. I don't think that point holds much water.

[DNA Tuning]

APR also seem to bring out new programs earlier than its competitors here; which allows them to price tunes much higher as they can dominate the entire market for some time. Also, here in Australia, they can more or less ignore the pricing overseas as nobody is going to get their Australian car tuned by an overseas dealer anyway.

Furthermore, they can also tout their technologies such as their switchable ECMS system to their advantage; similar to how Mercedes Benz can be proud of being a technology leader, and thus price their products well above the rest.

Most of all however, is that they have a very effective marketing strategy through a well-developed website, multiple dealers nation-wide, and forums that they run where they have control over the content and advertising to promote their products; most of my customers weren't aware of any alternatives.

Fortunately for those who do carry out further research, there are usually cheaper alternatives for "similar" products. Of course, there is no denying the peace of mind that comes with choosing a product backed by a large company though; therefore both expensive and affordable options can thrive in this industry as they appeal to different markets.

[VW Convert]

Most of all however, is that they have a very effective marketing strategy through a well-developed website, multiple dealers nation-wide, and forums that they run where they have control over the content and advertising to promote their products; most of my customers weren't aware of any alternatives.

This line piques my curiosity....................on which specific forums do APR have "control over the content"?

[Tim]

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