Kiwis To Deter Overcharging Brands Web Site Ready to Haul Up Offenders

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By Kalyan Kumar | August 25, 2014 5:45 PM EST

The refrain that Kiwi consumers have to pay more for products and services is often heard. Sometimes they pay dearly compared to the actual prices overseas. The Web site FrontUp.co.nz takes up this cause and leads the Kiwis from the front towards the right pricing.

Reuters
Lemons, Smirnoff Vodka and Gordon's Gin are displayed at a Tesco Extra supermarket in Watford, north of London August 8, 2013. Tesco, the world's number three retailer, is hoping the allure of casual dining, coffees and even yoga will help tempt Britons back to its ailing retail park stores as part of a 1 billion pound ($1.55 billion) push to revitalise business.

Modus Operandi

The NZ Yahoo says the content of the Web site is written by a team of independent journalists, and offers good reviews of goods and prices after comparing with other countries. Also it asks brands to explain by fronting up the reasons for the premium cost they are charging Kiwi customers.

Consumers cal also have their say whether the company's pricing rationale is right or not by clicking "Yes" or "No." Then they are welcome to make a comment via Facebook and Twitter about matters like cost or quality.

The Web site Front Up is backed by Slingshot's Global Mode. There is absolute variety in the range of goods and services covered. They include Apple's iPhone 5S, Sony Playstation 4 and Windows 8.1 to staples such as bread, coffee and milk.

Justify Your Price

Giving the rationale of the project, Slingshot General Manager Taryn Hamilton explained that the goal of Front Up is to make sure Kiwis are treated fairly, and they only have to pay the fair prices.

According to Hamilton, high prices have to justify themselves. But often times, it did not happen.

New Zealand might be a small country, but no one should take advantage of that by forcing consumers to pay more for even basics like bread and milk.

Front Up updates every week on all major products. Some examples are...

  • iPhone 5S - New Zealanders pay $161 more than U.S consumers
  • Sony Playstation 4 - Charging $100 extra compared to the U.S prices
  • Milk: For Fonterra's Dairy Dale brand, Kiwis are charged $1.70 per litre. But the price in the U.S. costs the equivalent of NZ$1.20 and in Britain it is NZ$0.86.

Smartphone

Samsung was asked by Front Up to explain why its Galaxy S5 cost  $150 more than the U.S. market. It said that the company's New Zealand wholesale prices are comparable with those in other markets. The costs of local retailers such as import duties, GST, installation and service policies, promotions, retail channels and logistics are passed on the consumer.

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(Photo: Reuters / Suzanne Plunkett)
Lemons, Smirnoff Vodka and Gordon's Gin are displayed at a Tesco Extra supermarket in Watford, north of London August 8, 2013. Tesco, the world's number three retailer, is hoping the allure of casual dining, coffees and even yoga will help tempt Britons back to its ailing retail park stores as part of a 1 billion pound ($1.55 billion) push to revitalise business.
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