We often get asked why Mars-Hydro.com is cheaper. This post will explain the details of why it looks cheaper, but in reality that is not the truth.
Let’s look at an example to illustrate the problem. Consider the Mars Reflector 192 LED grow light selling at $302 on Mars-Hydro.com. Assuming a good USD/ZAR exchange of about R13.25 per $, one Mars Reflector 192 LED grow light is only R4 000.
At such a good exchange rate you decide to buy two Mars Reflector 192 LED grow lights at a total value of R8 000. Using PayPal to make the purchase, your total cost goes to R8 320 after fees.
After landing on our shores SARS adds customs duties and VAT.
The cost breakdown is shown below:
- Customs charge import duties of 20% on electrical lighting from China. Cost after import duties: R8 000 x 20% = R9 600
- VAT is then added at 15%. Cost after duties and VAT: R9 600 x 15% = R11 040
- Shipping with DHL is at least another R3 000, depending on the exchange rate.
- PayPal fees are R320.
Total is then R14 360, without the local 3 year warranty.