February 5, 2009
Incredible deal on Macbooks and iMacs!
Incredible Connection have been playing in the Apple space for a while now, and they have a great deal: new Macbooks are R1500 cheaper than those being sold anywhere else in South Africa.
You just need to bring down some old hardware – any old hardware! – for a trade-in. They’re repairing those computers and donating them to schools and charity – brilliant!
So why is ZA Store so expensive? That’s the question which has been asked for many years by Apple lovers in South Africa. Not only do we pay more here but we get worse service – and no recourse. I couldn’t resist writing this email:
From: roger [at] macgeek dot co dot za
Date: 05 Feb 2009 12:55:04 PM
To: enquire [at] zastore.co.za
Subject: MacBook prices
Hi ZA Store
There is a perception amongst Apple users in South Africa that they are sold computers at vastly inflated prices. For instance, a new Macbook is being sold in the States for $999 – which is about R10,000. You are selling it for R12,999 – R3000 more! Incredible Connection is running a special right now – http://www.incredibleblog.co.za/ic-news/trade-in-your-old-goods-for-new-upgrades-during-february/ – where MacBooks are being sold at R11,500 – which seems a lot more reasonable considering import duties are 15-20%.
Can you explain why you are so much more expensive?
Regards
Roger
[Update] Resent, April 23rd:
From: Roger Saner
Date: 23 Apr 2009 9:31:39 AM
To: enquire@zastore.co.za
Subject: Fwd: MacBook prices
Hi ZA Store
Does anybody read these emails?
I sent you an email back in February asking why you are so expensive. I also emailed you through stopgrey.co.za, a website which makes no definite claims, but makes lots of hints – and a fair amount of scare tactics – as to what will happen to you if you buy a grey Apple import.
What hoops do I have to jump through to get a response from you?
Regards
Roger
[Update] 2nd email sent, April 23rd
From: Roger Saner
Date: 23 Apr 2009 9:50:22 AM
To: enquire@zastore.co.za
Subject: Fwd: MacBook prices
Hi ZA Store
To rephrase my question in my first email, sent Feb 5th (included below), which you didn’t reply to:
The current Rand/Dollar exchange rate is R8.88 = $1.
You charge R24,000 for the 15 inch 2.4 GHz MacBook Pro ( http://www.zastore.co.za/macbookpro0810.php ) and it’s available from the Apple site for $1,999 ( http://store.apple.com/us/browse/home/shop_mac/family/macbook_pro )
Using the above exchange rate, $1,999 = R17,742.72. That’s a difference R6,257.28 which is 35% markup. Do you apply 35% markup to all of your products?
Regards
Roger
A reply! Hooray!
From: Rene Firsing
Date: 23 Apr 2009 12:15:34 PM
To: Roger Saner
Subject: Re: MacBook prices
Hi Roger,
I do get these mails, and unfortunately do not deal with pricing, so was unable to answer you.
I have no idea with regards to what the costs are for importing technical equipment and therefore would like to ask you to chat to one of our Executives who may be able to assist with the pricing issue.
He will also be able to assist with the grey products website, as unfortunately I do not get any mails from that site.
His name is Greg Hill
087 940 3000
Thanks so much,
Rene
ZA Store
I’ve emailed Core with the above questions.
The contents to my email to Greg Hill are at http://www.macgeek.co.za/2009/05/31/open-letter-to-core/
Technorati Tags: Apple, Core, Incredible Connection, Macbook
Comments(15)
Roger Saner is a web platform developer (using 
Im assuming you didnt get a response from ZA Store. If you did, it would be interesting to see what they had to say.
What?! ZA Store responding to a customer request?! Don’t be silly!!!
thanks for the heads up, was considering going to the ZA store in clearwater… i also found it extremely strange that the Macbook sells for $1,000 overseas yet retails for 13k here… that’s laughable, especially considering the fact that the Rand is at about R9 to the $ …… why the rip off?
I understand there’s a tax on imported technology products, but I don’t know what it is. I’ve asked ZA Store for an explanation – perhaps one day they’ll reply to me. There’s also a website which Core have created called “Stop Grey” which is warning everyone of the dangers of grey imports. As far as I can tell, it’s a way of telling the public, “Our ‘official’ more expensive stuff is better, so buy from us,’ with a bit of FUD thrown in to justify that.
Email resent to ZA Store today. This time asking, “What hoops do I have to jump through to get a reply from you?”
The Rand has come down to 8.20 and yet you keep getting fed this rand hedging bullshit.
The Mac pro $1900 call it $2000 should weigh in at 20,000 x 10 , leaving the difference between 10:1 and 8.2:1
and considering Core get the goods at a dealer rate not at the Joe public rate of $2000 so they’ll get at least 30 % off that being a volume reseller. so they pick it up at $1650 +- even if you factor in shipping and work on a
ration of 12:1 2000 x IS R24,100 not R31,000 do they think we are nuts and money growns on tree and you pick it up like our local members of government for free.
I’ve found another place that sells macs for much less than most stores, http://www.appleonlinestore.co.za they seem pretty cool
Nice blog adding this to my twitter now
i have lodged a complaint with the competition commission. to lodge a complaint, phone 0123943200. They will fax or email you a form to fill in called a Form CC 1.
You can/must add as much documentation as you can and a letter explaining your complaint.
fax the complaint to 0123940166 or fax it to ccsa@compcom.co.za
get as many people as you know to do this. the more the better. it is not only core who are guilty of this excessive greed, it’s a common trend in south africa and need to be sorted out.
@Darin: good idea. Can you please paste in the copy you’ve put together for your letter to the Complaints Commission?
Hey Roger, here you go.
To Whom It May Concern,
I am forwarding this complaint to you out of concern for the consumers in South Africa.
I have been looking to replace my laptop computer recently. I have an Apple MacBook Pro laptop, a premium brand.
I went to the international Apple website to peruse what was available, to view specifications etc… …
The model I am interested in retails in the United States for $US1699.00 That is equivalent to R13445.00
However, when I went to the Apple South African website, I noticed the retail price is R20999.00
That is a difference of R7554, or the equivalent of the same product retailing in the United States for $2653.00!!!
That is a difference of $954.00!!!!
I phoned up The Core. This is the official importer of Apple Electronic products to South Africa to query the above pricing discrepancies.
The Core trades to the public and has a website. The website address is http://www.zastore.co.za I could not get any answers.
I then called up a couple of local South African resellers of Apple products. They tell me they have to purchase their stock of Apple products from The Core.
The Core dictates to these resellers what the recommended retail selling price is.
This is absurd! The Core firstly has a complete monopoly on the import of Apple computer products to South Africa. Looking at international pricing, it is clear to me that
they are abusing this monopoly by adding excessively large margins to their stock.
Secondly, The Core is controlling the retail selling prices to the public. As the official importer, they are also retailing to the public, thus competing directly with other resellers
in the market AND controlling the prices these other resellers retail to the public at. This is price fixing.
If a reseller objects to The Core’s activities or pricing, it is akin to business suicide, as The Core is the only official importer and can make their lives very difficult.
To summarise. I feel very strongly that The Core is abusing their privileges in South Africa. They are being extremely greedy and monopolistic.
The example I quoted is not merely a case of one item being grossly overpriced. The entire range of their products is priced this way. Therefore all prices for any computer, or appliance, accessory or software program is controlled by The Core.
I phoned up South African Customs to ask if import tariffs exist for these types of products. There are no import duties levied on these products. All they have to pay is VAT and transport costs.
Even if I had to import this one item myself from the United States, if I include VAT and transport costs for a quality courier, I would pay approximately R16514.00 This is still R4485.00 cheaper than The Core.
If you consider The Core pays wholesale price for the same product, buys them in bulk along with all the accessories, software etc… … their transport costs are drastically reduced per item.
It is a shame companies like this have been allowed to fleece the public for so long. When will our culture of greed in South Africa stop?
Yours Sincerely
We are based in one of the neighbouring countries and unfortunately we are are also forced to buy all our stock from Core.
Does anyone have an idea if their distributor rights are restricted to SA only, the whole of Africa or just Southern Africa.
@africa – I have no idea, actually, although it wouldn’t surprise me. If you find out, please come back here and let us know
If I were to bring a laptop back from the states how much import do I pay?
Not quite sure, but customs have no way of telling if it was bought overseas or in SA, so if you don’t tell ‘em…