N.Z. batteries cheaper in U.S.

Press, 11 July 1980, Page 4

N.Z. batteries cheaper in U.S.

"New Zealand-made car batteries will be sold in the United States for about $3O less than their New Zealand retail price. stjucas Industries, which has: recently won contracts valued at $6 million to supply batteries to the United States, expects the batteries to sell for $5O. ITwelve-volt Lucas batteries sell for $77.96 in Christchurch, if an old battery ris traded in to be sold incentives,

and the absence of a 20 peri cent sales tax, are two] reasons why the price in the United States is lower. This is offset by transport costs in getting die articles across the Pacific. It is believed that a battery costs about $3O to produce, of which about half is the cost of lead. The producer, distributor, the Government, and garage owner each take their cut before the consumer gets his battery. , . - Because of the big mark-

up from the factory floor to the consumer, several Christchurch firms have been able to offer batteries for about $63 by dealing directly with the factory and cutting out the middle man. These batteries .carry, 'a three-year guarantee. A recent survey has shown that persons wishing to buy a battery are moving away from service stations towards specialists and wholesalers, according to the marketing manager of Lucas Industries, Mr L. Bassett.