There are two schools of thought…..do you import new gaming stools directly from the manufacturer, or do you buy them from a local Australian agent? Each option has its own advantages and disadvantages concerning cost, quality, risk, and convenience.
This article aims to uncover the opportunities and challenges associated with each route, guiding you towards making an informed choice.
The PROS of Importing Gaming Stools Directly
1. Lower Initial Purchase Price
Importing gaming stools directly typically results in a lower initial cost, which is the main reason why some Australian gaming venues go down this route. By eliminating the middleman (a local agent), you can avoid extra fees and potentially secure a better deal, especially for large orders. Factors that influence the price of gaming stools.
2. Customisation Options
Some foreign manufacturers offer a wide range of designs and customisation options. Many venues like to have stools that reflect their branding or interior décor, and these manufacturers may offer greater flexibility in this regard, especially for larger order quantities. Customisation might include specific colours, fabrics, logos, or features that appeal to your venue’s aesthetic or customer experience goals.
3. Wide Selection of Manufacturers
Importing directly gives you access to a global pool of suppliers. You can shop around to find the best deal or design that suits your needs. The breadth of choice means that you can often find stools that match both your budget and your specific requirements.
The CONS of Importing Gaming Stools Directly
1. Warranty Claims
Should the stools arrive in poor condition or not meet your expectations, returning or replacing them can be difficult and expensive. Handling warranty claims and communicating directly the manufacturer can be complex, time-consuming and above all, costly.
2. Quality Control & Communication Challenges
While many foreign manufacturers produce high-quality products, the quality can vary widely. When importing directly, you may not have the opportunity to inspect the stools before they’re shipped, leaving you vulnerable to receiving sub-standard products that, in most instances, have already been fully paid for.
Without a local agent to manage quality control, you’ll need to rely on photos, samples, and communication with the manufacturer. Furthermore, if the manufacturer is based in a non-English speaking country, communication, especially regarding technical issues, can be challenging.
3. Risk Of Product Damage For Less Than Full Container Loads
If your order quantity is insufficient to fill a container (less than container load or LCL), then you share a container with other shippers and only pay for the space your goods occupy. LCL shipments have additional disadvantages, namely:
a. Longer Transit Times
LCL shipments often take longer than full container loads (FCL) due to the need for consolidation and deconsolidation. Your goods may be delayed waiting for other shipments to fill the container, and/or during the deconsolidation process on arrival in Australia.
b. Higher Risk of Damage and Lost Items
Sharing a container means your goods are packed alongside those of other shippers, increasing the likelihood of damage, especially if the other shipments are poorly packed. Furthermore, goods shipped LCL undergo multiple handling operations, thereby increasing the risk of items being damaged, lost and/or misplaced.
c. Complicated Customs Clearance
Since multiple consignments are packed in one container, customs clearance can be more complex and time-consuming. As there are multiple sets of documents, the process is more complicated than with full container loads (FCL). This can result in longer wait times for your goods to be released.
4. Freight Forwarding
If you decide to import gaming stools directly from a foreign manufacturer, one of the first steps involved is finding a local freight forwarder. This company will need to have an agent in the foreign country, and their role is to co-ordinate the shipment, arrange road transport and sea freight, customs clearance, insurance, fumigation, payment of fees and duties, etc. If you are unfamiliar with the importation of goods into Australia, this will add an additional layer of complexity when buying gaming stools. The cost of freight for gaming stools
Once your stools arrive in Australia, LCL shipments are un-packed at a central location before being dispatched to the various consignees. If you ordered a full container/s, you’ll need to arrange transport to your venue for unloading. To avoid additional charges, the unloading of the container/s must be done within a short timeframe, usually about 1 hour. To accomplish this, you will need sufficient space for the container/s as well as unloading equipment, like a forklift truck.
5. Exchange Rate Fluctuations
Depending on their location, overseas manufacturers usually price their products ex-works either in US Dollars or Euro. With international shipping being based on the US Dollar, a fluctuating Australian Dollar exchange rate may result in additional costs and budget uncertainty.
6. Payment Terms
When buying gaming stools directly from a foreign manufacturer, they typically expect a 50% deposit on order placement, and the balance before the goods are shipped from their factory. This payment schedule may have a negative impact on your cash flow.
The PROS of Buying Gaming Stools from an Australian Agent
1. Fixed Prices & Budget Certainty
Buying gaming stools through some local agents may provide a greater level of budget certainty. Some agents are prepared to carry a portion of the risk associated with varying sea freight costs and exchange rates.
Karo Quotes Offer Budget Certainty
When we provide a quote for our gaming stools, the price is FIXED and is fully inclusive of delivery to your venue. Sea freight and import costs are included. There are no additional or variable costs based on fluctuating exchange rates. This creates absolute budget certainty as the price on our quote is EXACTLY what you will be invoiced.
2. Local Support and Service
One of the biggest advantages of buying gaming stools through a local agent is access to local customer service. If any issues arise with your stools, you have someone nearby to handle warranty claims, repairs, or replacements. This eliminates the hassle of dealing with overseas manufacturers and international communication barriers.
Karo Office in Sydney and FCL Shipments
In July 2004, Karo opened a local office and warehouse in Sydney. Not only do we keep stock of our most popular ranges, but we also carry some spare parts should you experience any warranty or service issues with our gaming stools. All shipments from our factory to Australia are full container loads (FCL), thereby eliminating the risks of LCL shipments as detailed above.
3. Hassle-Free Purchase
Buying casino gaming stools through a local agent is hassle-free, after all this is what they specialise in! The agent will have a reliable network of freight forwarders and is well-versed in the intricacies of importing goods into Australia. This allows you to stay focused on your business.
Karo Australia
We have been importing casino seating from our South African factory since 2004. From the time that we opened our Sydney office, we have been dealing with the same freight forwarding company, and it’s fair to say that we are familiar with the importation process into Australia.
4. Established Contacts and Warranty Support
Local agents have developed close ties with leading manufacturers abroad. They are well-acquainted with the quality and standards of their gaming stools. In case any issues crop up with the chairs, the agent has a direct and reliable channel of communication with the manufacturer.
Karo Gaming Stools
We have been manufacturing office and casino chairs since 1986. All Karo gaming stools are designed and manufactured in our own factory located in Johannesburg. Our casino chairs can be found in gaming venues across the globe, and for your peace of mind, a 7-year warranty is standard.
The CONS of Buying Gaming Stools from an Australian Agent
1. Higher Initial Cost
Buying gaming stools from a local agent will typically be more expensive than importing directly. However, while the upfront investment may be steeper, you’ll likely experience a smoother and more convenient buying process.
2. Limited Supplier Options
Australia has fewer local agents representing overseas manufacturers, so your options may be limited. However, these agents typically source from reputable manufacturers with a track record of delivering high-quality, durable casino gaming stools.
Conclusion
While the initial price of importing gaming stools directly may seem appealing, it’s essential to factor in the hidden costs and complexity which can quickly erode any savings. On the other hand, purchasing through a local agent may come with a higher initial cost, but it offers significant advantages in terms of warranty, customer support, and reduced risk.
In the end, your decision should be based on the long-term needs of your gaming venue, your budget, and how much risk and complexity you’re willing to take with the importing process.