This excerpt is taken from Loaay’s Two Cents column in Bazaar Magazine:
We’re dealers for a photographic cameras brand. Because our sales volumes are much smaller compared to the US dealers our prices are not as attractive. While many customers still purchase from us, some visit us but then decide to buy online. The Internet is killing our business. What can we do when our cost is higher than online selling prices?
LA: Price is what you pay for something. Value is what you receive from your purchase. Instead of focusing on price, let’s talk value. There are some obvious benefits that you can highlight. For example, customers who purchase online won’t enjoy the local warranty in many cases. The convenience of walking away immediately with the camera is an advantage over waiting a week or two to use it. However, on a deeper level, offering a free or discounted local photography club membership with certain benefits and tips for local purchasers of the brand might be exciting enough to attract some. Maybe offering an automated monthly installment for three to ten months with no interest on the higher-end models can be a winning factor for others since they have to pay 100% upfront online before their camera is shipped.
You can also negotiate with dealers in neighboring countries to make collective orders to lower the cost of all your products or at least some of your most commonly ordered items. As customers have a choice so do you. Instead of competing on price, which is a losing battle, compete on other grounds to win the war…and that’s just my two cents. [Source]
Although the example used here is with one local camera dealer this applies to other dealers as well. If you want us to buy locally instead of ordering from Amazon then give us a reason to. I’ve found a lot of things in Kuwait cheaper than the US so I don’t actually understand why some brands cost so much more. One example of something I found in Kuwait a lot cheaper than the US is Definitive Technology speakers. I got them for half the price of what people in the US pay. And just the other day I purchased a camera bag from a small local shop who was selling them for cheaper than what I would have paid for if I ordered it from Amazon. It’s doable.
24 replies on “Buying online vs local”
I agree with some of the points mentioned. Especially value. However, when I go to buy shoes (no names mentioned here) and I get it shipped to Kuwait from Amazon for the price of 25KD(rounded it up, if I remember correctly it was 24KD400 something fils) and find it at a large sporting retailer in Kuwait for approx 50KD, you know something is definitely wrong. Economically speaking, if you look at the value…it’s beyond rip off. The problem I find is that not all but a lot of the stuff I seem to want to purchase appear to have ridiculous mark ups. Electronics are not that bad in comparison to other stuff such as running shoes and so on. However, I have seen cases where products are inflated beyond the value of having the warranty and walking away with the product. I don’t know about others but I barely have problems with stuff I buy. I don’t usually break things or require the warranty. Most websites will provide a warranty. The only problem is when you do have an issue the Warranty doesn’t apply to Kuwait so you gotta ship it back to get things fixed up. Though I generally don’t have a problem with having to use my warranty as I usually barely ever face any issues. I guess it’s down to a personal level as to what you see as “value”…I just hate it when I see things cost twice as much.
The main drive force in local market is fast profit, if it is not available anywhere else then they jack the price up. I needed a battery for my Canon DS1 and there is only one place in the dealer and it was 156 KD ( yes that much), I got it online for 90 plus shipping, took 2 weeks to arrive but it was worth it, another example is my Yamaha boat ( I got it from USA for 10,000 KD with shipping to Kuwait including US sales tax and kuwait 5% custom, here the dealer sell it for 20,000 KD) boat accessories are 3X the price online, all because they are the only one to have it. Dealer and re seller keep your profit logical and we will buy from you Keep it high and we have the net option
Hola Armando,
question:
I went to Amazon to buy a Nikon D800 and it says that due to country’s regulations cannot be shipped to Kuwait.
I see guys ordering many things from Amazon and getting it in Kuwait.
What is the trick?
Thanks.
Abrazo
Gus
shopandship.com but if you want the d800 shipped directly to kuwait go to http://www.digitalrev.com
I bought my macro lens from HK fr 240 kd and it was 600 here, it was a canon, btw dealerships wont get it for 240 so the margain is even bigger!
For me, there are several factors play into my decision. First how cheap is the product, anything below 30 KD is not worth the online ordering hassle (except games, dvds..etc). Secondly, sometimes I also buy slightly overpriced products just because the dealer was able to get it on its release date (eg. not having to wait 1-2 weeks for a new iPhone). Third and last, I can tolerate a price different of up to 15%, as long that 15% doesn’t reach 40KD.
I only experienced three companies… Canon (I think its Alsayer), Nikon (Ashraf), and Sigma (Alageel). And I can tell you with confidence and honest knowledge that they do receive the products from the factories at the typical price and then they decide to put a good premium on it here in Kuwait. To make things even worse… they have went to court to ban anyone from buying their brand items from abroad and have succeeded in implementing a monopole.
I buy online as much as I can, I ask my relatives, friends, and now even people I barely know to buy me stuff from abroad because business in Kuwait are VERY greedy.
Businesses in Kuwait don’t pay taxes or any duties yet they insist on charging us more than anywhere else in the world for no obvious reason other than greed.
fuck them.
Please explain to us where you get your honest knowledge from. As the owner of Ashraf i can assure you that you have incorrect knowledge and that you’re accusing us with incorrect information.
Dears
Who is the dealer for defentive technology speakers.which model u brought and what6 is the price. which amp you are using..
Pls give u reply.I am alos looking for some good speaker packages…
Yousefi are the dealers for DefTech. They’re also dealers for Denon.
I got the Mythos STS System and the Denon 3311 amp
Yosefi was selling IBMs and Lenovos three times more expensive than their online price.
I ended up ordering my ThinkPad from Lenovo Mexico because of Yosefi greed and Lenovo’s stupid online sales that was aimed to protect their resellers abroad not expecting them to be so greedy!
Don’t know if they ship to Kuwait from India?
What do guys think of online stores in Kuwait?
X-Cite [www.xcite.com], Blink [www.blink.com.kw]?
There is a Cash on delivery website in india called flipkart.com (Established by Ex – Amazon India employees Sachin Bansal and Binny Bansal)
https://www.flipkart.com/
From my experience Blink is expensive. I think the concept of online store succeeds because its supposed to have a low operations costs (like not having to pay rent for showroom etc). Yet it appears that most online stores in Kuwait are just a front for shops that already exist. Even worse… they will act as a delivery agent nothing more.. they’d buy the item from the market for you at normal shelf price, add premium on it and deliver it.
Both Blink and X-cite are dealers of certain brands (like Blue-Air Philips with x-cite) but majority of the products they have they get from local dealers so it’s the local dealers that are expensive.
There was a lens that I wanted for my camera. It was sold in Amazon for $50. I call the local dealer in Kuwait because I so wanted to have it right now and guess what? They sell it for 50 KD! Three times its price on amazon, PLUS they were out of stock and are not not sure if it should arrive this week or the next or the next.
I got it from Amazon in one week. 15 KD + 5 for shipping. Saved myself 30 more KD which would have bought me another lens from Amazon plus 10 KD to spare for dinner b3d!
The lens i wanted was cannon 50mm 1.8 in the dealer it is 65 KD, while in Greece last week I got it for 50 euros of the shelve, all canon items here are expensive and old model too, why no one can import and sell to us in a logical price ??? why monopoly is the keyword !!
which lens was it? the iphone lens?
I Agree, i was in Alghaniam Xite yesterday and was checking prices for my Canon 60D purchase, they said its KD 380.000( boldy only ), which is only 270.00KD in Amazon. I also Checked with Al Sayer and it was the same price as Alghaniam Xite, and the most discouraging thing is , the sales guys tells me is , if i bring from Amazon the Agency in Kuwait will charge me like Hell for any service.
On the other hand i really want to Appreciate AAB & Alghunaim Photography Store, for their very competative prices which they are offering.
Alghunaim is a better example since he’s the actual dealer of the brands he carries. AAB aren’t dealers but they order the items for you (kinda like u buying it yourself from Amazon).
Buying online simply makes more sense (both functionally and economically) . However, I agree with one comment made earlier that most online stores in Kuwait are just a delivery/ front for their brick and mortar stores. There is no creativity.
The concept of new media marketing does not exist in Kuwait(social media, web TV, social commerce etc) , and that is primarily why kuwait’s online stores don’t/ won’t do well- and that is because they focus on targeting people that will not purchase online (mass media or print) –
the reason stores like amazon, ebay, flipkart.com, etc all achieved huge success is because they targeted the early adopters, depended on them to drive education to the middle / older decision makers and then leveraged.
In Kuwait, it is the other way round unfortunately.
cHEERS!
Caesar
I wanted to buy a battery and flash for my Canon 5D mark 2 from Al Sayer.
After purchasing them i was curious how much was the price difference on Amazon. Guess what, it was 60 KD.
I really felt like idiot !!!
I want to know how to shop from amazon, how do they ship to kuwait if there is no international shipping available for that product
http://www.shopandship.com
Unless I have to have an item right this second I have found in 80-90% of the cases where I’ve tried to purchase anything (electronics, lego, clothing, tools, vehicle parts, etc) within Kuwait that the market up is ridiculous. Even assuming that a local dealer pays full retail, taxes in the country of origin, exorbitant shipping fees, actually pays taxes/duties in Kuwait, has to cover rent in a high end location, etc – there is no way to justify a straight dollar to dinar conversion or worse in many cases. If you have to do that to stay in business – you have a BAD business model. Moreover the ridiculous refusal to move sometimes 6 month old (or older) merchandise for what Amazon/the manufacturer/anyone online is offering just further reinforces the the perceived greed motivation of most stores in Kuwait. While I don’t get to carry my purchase home immediately in the case of Amazon not only can I usually find a reasonable price but even when shipping over here I usually receive my products in three to seven days. With Amazon Prime I don’t pay for shipping and am guaranteed replacement items if anything is damaged in transit. Like I said to start, unless I need -whatever- to keep my house from burning down there is no need to even look at the local market for manufactured goods. You need clothing tailored, furniture custom made, anything involving a skilled craftsman producing a unique item – then that’s where there are some very reasonable places to shop in Kuwait. You need a camera/lego set/router – go to Amazon.