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Huge Markups on Products in the 4wd industry Exposed

Here’s how 4WD Supacentre can sell you a similar quality product for around half the price our competitors charge.

In the same way Kogan, Amazon and other innovative online retailers have slashed the price you pay on many products, 4WD Supacentre brought this new way of shopping to 4WDers.

Everyone knows higher prices don’t always equal better quality and 4WD Supacentre has proven this!

As was recently shown, one of our more popular products, the Thumper MKII air compressor, came 4th in an independent comparison conducted by Unsealed 4x4. The Thumper MKII beat 15 more expensive compressors with some selling for more than 3 times our price.

The price you pay depends on several things;
1. The manufacturing cost of the product
2. How many dealers and middlemen make a profit along the way
3. How many places the product gets freighted to before it gets to you


In many cases the actual manufacturing cost and product quality is similar – it’s the middlemen and inefficient freight system that means you pay more for a similar item.

4WD Supacentre’s business model removes the expensive costs of middlemen and freighting products to stores.


There are only 3 people in our chain – the manufacturer, 4WD Supacentre and you. This is because of the efficiency of online retailing.


Our competitors’ models often have 5 people increasing the price you pay. The manufacturer – (a buying agent sometimes) – wholesaler – retailer – you. They multiple handle the product incurring extra labour and freight, they also have fancier packaging and advertising costs.
In our model only 2 people have to make margin – the manufacturer and 4WD Supacentre. In their model up to 4 people need to charge their margin.


Let’s say 4WD Supacentre and our competitors both import a similar product costing them $200, 4WD Supacentre would retail that product for less that $300. Our competitors typically charge $600-$700. You would be paying double the price for a similar product.


Don’t be fooled by competitors then claiming their price is much higher because their product quality is superior. Again, looking at the results in Unsealed 4x4’s air compressor comparison shows this is simply untrue.


When you buy from a franchisee or dealer (someone who sells other people’s brands), they make on average 30% of the sale price. So when you buy an item for $600, the dealer is making a margin of around $180 incl GST.


The wholesaler can be making a margin of about 35% of the sale price – again another $210) and the buying agent about $10.

 

To save money, ask yourself:
1. Has the quality of the product determined the sale price?
2. How much does the inefficient supply chain cost you, the customer?
The current 4WD product retail model is out of date, inefficient, and charges the customer a “premium” for

 

NO ADDED BENEFIT. 

 

You, the customer have the power. Kogan revolutionised shopping for electronic goods, Amazon changed the way we buy books, now 4WD Supacentre cuts out middlemen and extra freight costs to slash prices on 4WD and camping gear.
My promise remains to continue slashing prices on 4WD and camping products and make 4WDing more affordable.

Charles Vella
Founder – 4WD Supacentre

 


Our range of aftermarket products are sourced from a number of quality third party manufacturers. 4WD Supacentre wishes to clarify that any trademarks owned by vehicle manufacturers or images of entire vehicles on this website are intended only to indicate that the product for sale is suitable for that particular make of vehicle. Use of third party trademarks or images of vehicles are not intended to indicate any association with, sponsorship by or approval of the manufacturer of the vehicle or the owner of the trade marks.

 

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