N.Z.-made toy price puzzles buyer

Press, 30 August 1985, Page 4

N.Z.-made toy price puzzles buyer

How can a toy made in New Zealand cost less than half as much in Australia as it does in local toy shops? Mrs Joan Prendeville, of North Beach bought two Robo Machines in Surfers Paradise, Australia, in July. She paid sAustll.99 (then $17.59) for each toy. But when she returned to Christchurch she found Robo Machines cost $37.99 and $46.50 at two toy stores.

“What made me curious was that one of the Robo Machines had a stick-on label saying ‘Made in New Zealand’ but under this was printed ‘Made in Singapore.' “I would like to know where it was actually made. If it was made in New Zealand, why was it so much cheaper to buy in

Australia?” she said. “The Press” visited several toy stores in central Christchurch and confirmed that prices for the Robo Machines varied between $36 and $46. Like the toy purchased by Mrs Prendeville those available locally had a “Made in New Zealand” label over "Made in Singapore.” Mr William Prior, a director of the Auckland company, Lincoln Industries, which made the Robo Machines, said he had “no comment to make to anyone who did not understand commercial practices.” He said he could not suggest anyone who could explain the price difference between Australia and New Zealand.

Mr Don Sollitt, managing

director of PDL Holdings, which also exports toys, said the reason for such a large price difference could not be found in sales tax or export incentives. "Australia is a consumers' paradise. It is more competitive than either here or the United States. The margins that retailers work on are far more competitive, and that would be the main difference,” he said.

Mr Gordon Rudd, regional director of the Trade and Industry Department said he could not comment on the price difference without knowing the exact circumstances. But if it was felt there was something totally unexplainable about it, the department would be prepared to undertake an investigation, he said.