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Supporting Local – the one where it costs us more

We’re encouraged to support Kiwi made, and to be proud of our Kiwiness. But this week, and added to a story of last year, it seems that we might just be paying through the nose for some of that faith.

Both the examples below, Air New Zealand, and Adidas New Zealand are both under some scrutiny for their pricing models.

I’m probably being a curmudgeon on this, and this is just the natural order of things, by and large no corporate does anything for altruistic purpose. Why give your money away for no reward.

Air NZ claim that “of course your tickets that buy in NZ on NZ’s Airline cost more” because “They spend millions on advertising” and that of course has “Downstream” benefits. So basically we pay more to support our local Air Line so they can spend more on adverts, oh and of course they support Rugby – They are a ‘global partner’ of the All Blacks.

Adidas claimed that “of course the replica jersey costs more in NZ” because “we spend millions in sponsorship of rugby in New Zealand” Which is just like saying compulsory donation from you, benefit to us!

I’d not be surprised if, for example, Fisher and Paykel run a similar model for Netball sponsorship, it’s not altruism that’d make them sponsor a sport.

The model where the price is slightly higher, the profits slightly higher, and as a result the company can show a generous largess in supporting a sports team, which should generate more sales which generates more profits, you see where this is going.

With the advent of the interwebtubes it becomes more obvious, and both the examples below are as a result of being able to by online, in real time, for the same goods, or service, and get a different experience. I’m sure they didn’t think it through really. Afterall your marketing spend is a local issue, but with a global reach. People shouldn’t be disloyal and shop elsewhere but at home, should they?

I don’t object to sponsorships, profits, profit margins, sales, or globalisation, but I do object to being treated as a bit of a dumbass by the talking head PR people about these things. They’d sell a lot fewer jerseys though if it came with a tag that said “for every jersey you buy we will recover the cost of sponsorship for your team by $10.00. Never happen. Nor would Air NZ get away with a advertising Surcharge on their tickets of 5% to aid their global marketing initiatives.


Kiwis pay top dollar on Air NZ

Air New Zealand has been left scrambling to explain why Kiwis are charged hundreds – even thousands – of dollars more than British passengers for the same flights.

A customer based in Britain who books online a return economy-class flight from London to Auckland will pay much less than a New Zealand-based traveller who books the same journey in reverse on Air New Zealand’s website at the same time.

The price disparity can vary wildly, but a standard round-trip between Auckland and Heathrow via Los Angeles will set a New Zealand-based passenger back $500 more for an economy seat, $1500 more for a SkyCouch upgrade, $2100 more for a premium economy seat and $3000 in business class.

Air New Zealand public affairs manager Tracy Smeaton explained Air New Zealand spent $100 million on promoting the country to foreign tourists – an investment that benefited New Zealanders downstream

Adidas All Black Jersey (Augsut 2011)

Adidas has refused to cut the price of All Blacks jerseys despite a threat from the country’s largest retailer to pull the tops from shelves.

An All Blacks replica jersey, manufactured by adidas, is available for $220 in New Zealand retail stores, but listed for sale at $US79.99 ($NZ92.68) on the website worldrugbyshop.com.

Mr Huggett said rugby fans knew they were supporting New Zealand rugby when they bought a replica All Blacks jersey.

Adidas New Zealand manager David Huggett said “We invest millions of dollars in Kiwi rugby from grassroots through to the All Blacks, including a major investment in the state-of-the-art All Black jersey.”

People being able to buy jerseys for a cheaper price online was no different to being able to buy cosmetics or other consumer products more cheaply from offshore retailers, he said.


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This entry was posted on July 10, 2012 by in All about me, Annoyed Much, hand outs, Justsaying, Miffed, Sponsorship, Sport and tagged , , , , .

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